Growing demand from high net-worth investors drove the volume of UK commercial property auction sales to a new record high in the first quarter of this year.
Just under £240m of assets were sold in Q1 – the highest-ever value for a single quarter. Analysis by auction house, Acuitus, of the 396 properties which sold during the quarter reflects a new influx of investors – many of whom have turned their back on residential property investment because of increased regulation, harsher tax treatments and competition from new BTR development.
Acuitus Chairman, Richard Auterac, comments: “The Q1 results indicate that the auction market continues to evolve as a mainstream transactional route for a widening pool of sellers and buyers. Strong turnover, resilient sales rates, and broad sector participation all point to a market in which auctions are being used not only for secondary retail disposals, but also for larger lot sizes, alternative assets, and more selective office asset opportunities”.
The analysis also indicates that while retail assets still account for close to half of all auction sales, there is clear evidence of investors favouring more ‘alternative’ property types such as medical facilities, care homes, bars, restaurants and hotels. This category accounted for more than a quarter of Q1 sales.
Investors are also showing a greater acceptance of shorter lease terms and impact on income security. The All-Property yield gap between assets with less than five years unexpired and those with more than 10 years to run is narrowing. Analysis of Q1 sales show that yields for assets with less than five years unexpired stands at 9.69% against the 7.86% for assets with more than 10 years unexpired.
Richard Auterac of Acuitus comments: “This may suggest that where entry pricing remains attractive investors are becoming increasingly comfortable underwriting potential reletting, refurbishment or change-of-use risk “.
In terms of the locations which investors favour, London remains dominant and accounted for 35% of total sales by value in Q1 2026 with £83.8m of transactions. Although this was not a quarterly record for London, it continues the capital’s strong weighting within the auction market and its Q1 sales were just above the four-year average of 33% of all sales.
Richard Auterac comments: “The combination of firmer yields and strong first-quarter volumes suggests that investor confidence has improved but remains selective rather than indiscriminate.
“Buyers continue to favour assets where cashflow is clear, pricing is realistic and there is a credible route to income growth, repositioning or eventual resale.”
