The market is changing, and the opportunities are emerging

Illustration. Market commentary by Dominic Farrell, 31 October 2026.

For some time, I have been predicting that 2027 could offer outstanding opportunities for disciplined property investors.

What we are seeing now is strengthening that view.

Members of my property mentorship group are submitting offers prior to auction on properties that have already seen significant price reductions. Across several auction catalogues, we are finding properties where our initial assessments suggest the issues deterring the herd are manageable and could be resolved quickly.

The numbers are incredible

On some of the lots we are currently assessing, the projected annual rent represents a gross yield above 13%, even after including the purchase price, stamp duty, legal fees, auction fees and other acquisition costs.

Here, I am expressing projected annual rent as a percentage of the purchase price plus those acquisition costs. This is a gross rental yield on total acquisition cost, before ongoing expenses, finance costs and tax. Any refurbishment or remedial work must also be included in the full investment appraisal. These are projections for properties under assessment, rather than completed purchase results.

Why sentiment matters

Rising inflation, borrowing costs and the tax burden on landlords are all contributing to uncertainty. I think we could see an increase in Bank Rate in November, which would add to the negative sentiment.

That is my assessment, rather than an announced decision. The Bank of England’s next Bank Rate decision is due on 5 November 2026.

The Budget has added another consideration, with further increases in property income tax rates announced for April 2027. My view is that this will reinforce the negative sentiment among some landlords already questioning whether to remain in the market.

For a buyer with finance arranged, a clear plan and the ability to assess risk, it can create opportunities.

As I told my mentorship group this week, some aspects remind me of the period following the financial crisis. Looking back, I regard that as probably the best property buying opportunity of my lifetime.

History will not repeat itself exactly. But I recognise something familiar in the combination of uncertainty, motivated sellers and buyers reluctant to act.

Understand the seller as well as the property

People sell for different reasons.

One seller may need to release capital. Another may be reducing debt, exiting a portfolio or dealing with circumstances that make certainty and speed particularly valuable.

Understanding that motivation should form part of your assessment. Why is the property being sold? Why has the guide been reduced? What matters most to the seller?

A large reduction is a reason to investigate. The valuation, legal position, condition and rental evidence must still support the purchase.

Use AI to shorten the distance between information and action

We are now seeing substantial guide price reductions. With the right monitoring system, AI can help flag those changes and send alerts to your inbox as the underlying sources update.

That can give you a valuable head start.

For more on the process, read how to use AI for property auctions.

Speed is key

Where access and information are available, you may be able to arrange a viewing, inspect the property and begin your assessment within hours. If the due diligence supports it, you can then submit an offer prior to auction.

The speed comes from preparation: knowing your market, having finance ready, using a consistent analysis process and involving experienced specialists when needed.

A quick viewing does not replace a legal review, a survey where appropriate or a realistic assessment of costs.

My outlook for 2027 remains very positive for investors prepared to do that work. I am also looking forward to my ‘unsold lots’ sessions with my group, for there is significant value after an auction.

You do not need to follow the crowd. You need to understand the opportunity, complete the due diligence and act decisively when the evidence supports your decision.

Put the approach into practice

If you would like support applying these principles to your own goals, explore property mentorship with Dominic Farrell and the Property Auction Professional Mentorship.

Our property auction courses cover finding value, legal packs, finance and the practical decisions involved in buying. The next workshop takes place on Saturday 23 January 2027, from 10am to 6pm, in London and LIVE ONLINE. View the workshop and book your ticket.

You can also explore the wider principles in Property Auctions: Repossessions, Bankruptcies and Bargain Properties (fourth edition, 2026), and listen to The Property Auctions Podcast with Dominic Farrell.

About the author

Dominic Farrell is a property investor and developer who has been investing since 1999, a property mentor, author and podcast host. A former British Army Major with a BSc (Hons) in Economics and an MBA (Defence) from Cranfield, he brings practical acquisition, negotiation and risk assessment experience to his teaching.