Faster deals, tighter deadlines and valuation clarity are making auctions a key driver of bridging demand
Auction purchasing is rapidly gaining traction among investors, with Steve Burns, principal at Stephen Burns Specialist Property Finance, estimating that 30–40% of his clients’ acquisitions now come through auctions. While private treaty sales still dominate the market, auctions are shedding their outdated image and emerging as a faster, more transparent way to transact.
"Auctions used to be these sweaty, smoky, intimidating rooms where people were frightened to put their hand up," said Burns. "Now they're largely online, which has made them more accessible, but also a bit confusing for some, because the perception hasn't caught up with how the process has evolved."
Unlike traditional sales, auction purchases come with no cooling-off period. Once the hammer falls, the buyer is legally committed, typically with 28 days to complete. Some online auctions allow up to 56 days, but even this window requires a different pace and mindset compared to the usual six-to-eight-week timeframe for a standard buy-to-let or residential deal.
Valuation certainty and fast decision-making
Burns highlights another auction advantage: clarity around value. "An auction is the purest definition of market value: the price agreed between a willing buyer and seller. Valuation issues are rare unless there's a structural fault."
Automated valuation models (AVMs) have further streamlined this process. "A lender can run an AVM in seconds and approve the deal. That speed is changing how people approach auction purchases," he said. While not all lenders use AVMs, those that do significantly reduce time lost to traditional inspections and reporting.
Why bridging makes sense for auction buyers
"I work to a simple triangle: speed, deliverability and cost. For auctions, speed comes first," Burns said.
Bridging loans, although typically more expensive than buy-to-let mortgages, offer the speed and flexibility auctions demand. Traditional buy-to-let funding might align on cost but rarely delivers on timeline. Burns routinely views bridging as the initial funding route, especially for 28-day auction completions. In some 56-day online cases, a conventional mortgage may still be viable.
Beyond speed, bridging enables strategic portfolio building. Buyers can refurbish a property using bridge finance, then refinance based on the uplifted value. "Say you buy at auction for £100,000, spend £20,000 on improvements, and it's worth £170,000. A buy-to-let lender might now offer up to £127,500 – enough to repay the bridge, cover the works, and recycle your deposit," he said.
Legal execution can make or break a deal
"One of the biggest risks in auction purchases is using the wrong lawyer," said Burns. Conveyancers unfamiliar with bridging timelines can introduce fatal delays.
"A client might want to use their usual solicitor, but if he’s never handled a bridge, he could be overwhelmed by the lender’s requirements. We often end up walking them through it."
Auction sales rely on having all legal documentation prepared upfront. Yet many conveyancers treat them like standard cases, creating unnecessary delays. Burns recommends using lawyers experienced in bridging and auctions, and ideally local to the property.
"Local solicitors often know more about quirks in the area, which is especially useful in development deals. They’ll have heard about that planning application while getting a coffee."
Bridging is more mainstream, but still needs expert handling
Burns has seen the bridging market mature considerably. "Twenty-five years ago, bridging was the Wild West. Today, it's properly underwritten and far more transparent."
Still, most lenders prefer to operate through intermediaries. "Even if a borrower contacts a lender directly, they often get referred to a broker. Lenders want someone who knows how to package and present a deal."
And that's where experience matters. "A good broker earns their fee by understanding the client’s goals, structuring the right deal, and project-managing it to completion and exit," said Burns.
With over £2 billion in completed deals, he believes careful planning is critical. "My job is to ensure the client is in the bridge for the shortest time possible. It’s more expensive than long-term funding, so getting the timing right is key."
As auctions rise in popularity, bridging finance is increasingly seen not just as a fallback, but as a forward-looking tool to unlock opportunity.
This article is part of our Monthly Spotlight series, which in January focuses on bridging finance. Full coverage can be found here.
