Auction Property Boom Spurs Surge in Bridging Finance

Auction Property Boom Spurs Surge in Bridging Finance Demand Among UK Developers

By Vision Finance

London, UK auction finance
A new wave of property acquisitions at high-profile auctions—particularly those hosted by Allsop and Savills—is triggering a sharp uptick in demand for fast, flexible bridging finance, as developers seek to move quickly on residential and commercial opportunities across the UK.

According to data released from recent sales, the UK property auction market remains remarkably resilient, with clearance rates regularly exceeding 80%, and high levels of competition pushing buyers to secure funding within days, not weeks. As a result, bridging finance has emerged as the preferred vehicle for auction buyers looking to meet strict completion deadlines and unlock value in turnaround or redevelopment projects.

Speed Is Non-Negotiable in Auction-Driven Property Investment

With auction houses typically requiring completion within 28 days, traditional lending timelines have proven incompatible with the pace of modern auction transactions.

“Auction deals are about speed, certainty, and execution,” says Roshan Doostdar, Director at Vision Finance. “Our role as a capital advisor is to ensure our clients can move faster than the market. Bridging finance gives them that edge.”

From buy-to-let conversions in Birmingham to mixed-use redevelopments in South London, bridging finance has enabled clients to secure assets quickly while positioning themselves to refinance or develop once ownership is complete.

Case Study: Allsop Auction to Completion in 5 Days

One recent example involved a client who acquired a semi-commercial property at Allsop’s February auction, winning the bid at £805,000. The property, part-tenanted with vacant upper floors, offered significant upside through residential conversion.

“Our client needed to complete in under a week to avoid losing the deposit. We arranged a £600,000 bridging loan secured on the asset’s open market value, with funds drawn down in just five working days,” said Roshan Doostdar. “The client is now preparing a full planning application while renting the ground floor retail unit.”

Why Developers Prefer Bridging for Auction Acquisitions

There are several reasons why property developers are increasingly using bridging finance when buying through auction platforms:

  • Speed: Completion can be arranged in 3–10 working days, often quicker than mainstream lenders.

  • Flexibility: Bridging lenders are asset-focused, making them ideal for unusual or mixed-use properties.

  • Leverage: Buyers can secure up to 75% LTV on residential and commercial lots.

  • Strategy: Enables purchase now, refinance or redevelop later—especially valuable when planning gain is likely.

At Vision Finance, we also help structure bridging with future exits in mind, ensuring the terms suit both the initial purchase and the long-term financing strategy.

Spotlight on Savills Auctions: Commercial Demand Rising

While Allsop has long been a leader in residential auction volumes, Savills has seen a sharp increase in commercial transactions, particularly in regional cities and commuter belts.

From empty pubs and former banks to office blocks with permitted development potential, these properties often fall outside the risk appetite of high-street lenders. That’s where bridging becomes essential.

“We recently financed a developer purchasing a vacant warehouse in Yorkshire via Savills,” said Roshan Doostdar. “Traditional finance wouldn’t touch it, but we secured a £1.1m bridge based on asset value and the client’s refurbishment track record. They’re now mid-refurb and due to refinance into a commercial mortgage within 6 months.”

What Buyers Need to Know Before the Hammer Falls

Bridging finance can unlock opportunity—but only when prepared properly. Developers bidding at auction should keep the following in mind:

  • Secure a decision-in-principle (DIP) before the auction date

  • Have a solicitor ready who can handle auction timelines

  • Know your exit plan—whether it’s refinance, sale, or development

  • Budget for valuation, legal, and lender fees in your cash stack

Conclusion: Bridging Finance Is Now Standard for Serious Auction Buyers

In the current climate of limited bank appetite and rising opportunity in underused real estate, bridging finance is no longer a backup plan—it’s a strategic enabler.

As more developers pivot toward auction-led acquisitions to find value in the market, capital advisory firms like Vision Finance are playing a vital role in structuring deals that balance speed, flexibility, and long-term returns.

Planning to bid at an upcoming Allsop or Savills auction?
Our team of real estate finance specialists can arrange tailored bridging terms aligned to your investment strategy.

Contact us today on on 0207 206 2500 or email us bridging@visionfinance.co.uk