Alright, let’s talk about what’s happening in the property market right now. February 2026 is shaping up to be one of the busiest months we’ve seen in a while, and if you’re thinking about buying, selling, or investing in London property, you need to know what’s going on.
The Numbers Don’t Lie: January Set the Stage
Quick snapshot for the UK property market 2026
January gave us a proper wake-up call. We saw a 2.8% price jump – the biggest monthly increase in ages – and it’s sent ripples right through into February. Combine that with mortgage rates dropping to around 4.29% (finally some relief, right?), and you’ve got a recipe for serious market activity.
But here’s the kicker: buyer demand is up 57% compared to this time last year. That’s not a typo. More than half again as many people are actively looking to buy property right now. For those of us in the auction world, this is exactly the kind of energy we love to see.
London property auctions are absolutely buzzing
If you want proof that the market’s heating up, just look at what’s happening with London property auctions this month. We’re not talking about a few scattered sales – we’re talking about a proper auction bonanza.
Auction House London is bringing 398 lots to their livestream auction on 11th-12th February. Nearly 400 properties. Savills is auctioning 308 properties on 10th-11th February. Strettons has 61 lots going under the hammer on 19th February. And that’s just scratching the surface.
The variety is brilliant too. We’re seeing everything from vacant flats with guide prices starting at £60,000, right up to prime London properties guided at £460,000+. Freehold houses, leasehold apartments, commercial investments, mixed-use developments – it’s all there for the taking.
At Palace Auctions, we’re seeing the same surge in interest. Our current auction catalogue is attracting serious attention from both first-time buyers and seasoned investors looking for property auctions London can still deliver value in.
Why Mortgage Rates Matter More Than You Think
Let’s talk about those mortgage rates for a second. At 4.29%, they’re still not exactly what you’d call “cheap” – we’re not back in the wild days of sub-2% rates – but they’re significantly better than where we were six months ago.
This cooling has unlocked a massive wave of buyers who were sitting on the sidelines waiting for rates to come down. They’ve done their research, saved their deposits, and now they’re ready to move. And move they are.
The impact on property auctions London has been immediate. More buyers with approved financing means more competitive bidding, which means better prices for sellers. It’s Economics 101, really.
What This Means for Sellers: Get In Early
If you’re thinking about selling, listen up. The early bird really does get the worm in this market.
With all this buyer demand and auction activity happening right now, February and March are golden months to list your property. Don’t wait until spring “officially” arrives – the market’s already sprung into action.
Here’s my practical advice:
1) Start with a proper valuation (the unsexy bit that makes you money)
Get your property valued now. At Palace Auctions, we offer comprehensive property valuations that give you a realistic picture of what your property could achieve at auction. No fluff, no overinflated estimates to win your business – just honest, market-based valuations from people who actually stand at the rostrum and see what properties sell for every single day.
2) Consider the auction route (because “quick and certain” beats “maybe in 12 weeks”)
Consider the auction route seriously. Traditional sales can drag on for months. Auctions get it done in weeks. In a hot market like this, that speed matters. You’ve got motivated buyers with finance ready to go, all competing in one room (or online) at one time. It’s efficient, it’s transparent, and it works.
3) Probate? Move it from “to-do list” to “done”
Don’t delay on probate properties. If you’ve inherited a property and need to sell it, probate sales through auction can be particularly effective. The process is clearer, the timeline is faster, and you avoid the endless back-and-forth that can happen with traditional estate agent sales.
Investors: This Is Your Moment
Now, if you’re on the buying side – particularly if you’re an investor – pay attention. The sheer volume of auction lots hitting the market in February represents opportunity.
Yes, there’s more competition. But there’s also more choice. You’re not fighting over the same three properties week after week. You’ve got hundreds of options across London and beyond.
Some smart strategies for the current market:
Set your budget and stick to it. With all this excitement, it’s easy to get caught up in bidding wars and overpay. Know your numbers before the auction starts, factor in all your costs (legal fees, stamp duty, refurbishment if needed), and don’t let emotion override logic.
Do your homework on each lot. Just because the market’s hot doesn’t mean every property is a good deal. Review the legal packs, arrange viewings, and understand exactly what you’re bidding on. We’ve seen seasoned investors get burned by skipping due diligence.
Look beyond the obvious. Everyone’s chasing the same central London flats. But there are brilliant opportunities in up-and-coming areas, amenity land with development potential, and commercial-to-residential conversion projects. Sometimes the best value is where others aren’t looking.
Get professional advice. Our team at Palace Auctions doesn’t just run auctions – we provide investment advice to help buyers make informed decisions. We know the local markets, we understand the auction process inside out, and we’re here to help you succeed (and avoid paying “auction adrenaline” prices).
The Bigger Picture: What’s Driving This Market?
It’s worth stepping back and looking at why we’re seeing this surge right now.
Beyond the mortgage rate cooling, there’s genuine economic optimism building. Inflation’s under better control than it was, wage growth is holding steady, and consumer confidence is creeping back up. People feel more secure about making big financial commitments.
The UK property market in 2026 is also benefiting from continued housing undersupply. We’re still not building enough homes to meet demand, particularly in London and the Southeast. That fundamental imbalance keeps prices supported even when other factors might suggest a slowdown.
Plus, international interest remains strong. Overseas buyers see UK property – especially London property – as a stable, reliable investment. That demand adds another layer to an already active market.
What to Watch For
As we move through February and into March, keep an eye on a few things:
Will mortgage rates continue to edge downward, or have we hit the floor for now? Any further drops could add fuel to an already hot market.
How will spring traditionally boost activity? If February’s this busy, what happens when we hit the peak season?
And crucially for auction buyers: are we reaching a point where London property auctions become overheated, with buyers paying over the odds just to secure something? It’s a risk in any competitive market.
The Bottom Line
February 2026 is delivering exactly what we hoped for: a vibrant, active property market with genuine buyer interest backed by improving mortgage conditions. London property auctions are proving once again that they’re the most efficient way to buy and sell when the market’s moving.
Whether you’re selling and want to capitalise on this buyer surge, or you’re looking to invest in a market that’s offering both volume and opportunity, now’s the time to act.
At Palace Auctions, we’re here to guide you through whatever decision you’re making. Check out our latest property listings or get in touch for a chat about how we can help you navigate this market.
The gavel’s about to fall on some brilliant opportunities. Don’t miss out.