Selling a house at auction is becoming increasingly popular in the UK – so, how does it work? And what are the advantages or disadvantages compared to the more common ways of selling a property?
An increasing number of first-time buyers are purchasing properties at in-person or online auctions, in turn encouraging more sellers to consider this method. I wrote recently about what to consider if you’re thinking about buying a house at auction.
The most recent data available, from October 2025, shows that the national auction market saw an increase of 4.3% in lots offered, with sales growing 2.2%, according to Essential Information Group. The total raised rose 9.6% year-on-year to £611.2m.
Find out below, what are the advantages and disadvantages of selling a property at auction?
Key takeaways: Selling a house at auction (UK)
- Selling at auction is a fairly quick process following a fixed timetable, with a binding sale once the hammer falls and completion typically within 28 days. However, there are some drawbacks.
- Best suited for: Unusual properties, those requiring renovation or ones that are difficult to finance – as well as inherited homes, properties requiring fast sales or serving as debt‑repayment solutions.
- Advantages: Competitive bidding can push up prices, faster sale timelines and investors or professional landlords often target auction properties, ensuring committed buyers.
- Disadvantages: Final prices can be lower than open‑market sales, auctions may fail to meet the reserve and marketing/legal costs are payable even if the property remains unsold. Auctions also attract a narrower audience.
- Costs: Auction fees can be higher than typical estate agent fees. Reportedly, modern auction fees tend to average approximately 3.6-4.8% including VAT of the price you receive for the property, plus other charges including legal pack costs.
Quick recap: What is a property auction?
Here’s a quick summary of how they work:
- At a property auction, there are competitive bids for a property from all interested buyers, at a scheduled date and time.
- The auctioneer appraises and values the property, assisting in setting appropriate guide and reserve prices.
- Prospective buyers gain access to a legal pack containing title deeds, property searches, conditions of sale and other supporting documents.
- The auctioneer markets the property online and via investor networks – usually with photographs and legal documentation. They may also organise viewings or open days for interested buyers.
- Prospective buyers must pre-register and complete identity and due diligence checks before bidding.
- Typically, the highest bidder secures the property – provided their offer meets or exceeds the reserve price.
There are two main types of property auctions: the traditional method and the ‘modern method of auction’ (MMoA).
Traditional property auctions usually take place in physical venues with live, in-person bidding. They result in an unconditional sale, where the highest bid wins and contracts are exchanged immediately on the day of the auction. They require prompt completion, typically within 28 days.
MMoAs take place online, with bidding open for a set period – often around 30 days – offering more flexibility than traditional auctions. They can use a reservation fee instead of requiring an immediate contract exchange, giving buyers additional time for due diligence and financing.
Selling a house at auction: Why?
Selling at auction is an attractive choice for owners prioritising speed and a clear timetable, looking to avoid the risks of prolonged negotiations or property chains.
Once the hammer falls, the successful bidder pays a deposit on the day (often around 10%), with completion usually required within a set period, such as 28 days. For a MMoA, it may be a reservation fee instead.
Competitive bidding can also work in the seller’s favour. Strong demand from multiple buyers, whether in the room or online, can help push the price up, if there are committed bidders competing who want to secure the property.
Auctions can work well for properties that sit slightly outside the standard mainstream market:
- These include unusual homes, those needing modernisation or comprehensive renovation, or assets that are complex to finance in their current condition.
- They often attract experienced investors, portfolio landlords and renovation‑focused buyers who understand the potential, pricing and funding options for this type of property.
The structure also lends itself to situations such as selling an inherited property, addressing a sudden change in life circumstances and needing to quickly rebalance (or offload part of) a portfolio. In a separate guide, find out – what is property flipping?
An auction sale with clear deadlines also suits sellers who need to repay debts or avoid repossessions.
As long as there is sufficient buyer interest and realistic guide and reserve prices, sellers can usually expect to have a committed buyer by the end of the auction process.
Risks of selling a house at auction
The other side of the argument is that the fast-paced nature of an auction can work against sellers in some ways:
- The final sale price is not guaranteed and may end up below what you could achieve on the open market, especially if bidder interest is weak on the day.
- There is no guarantee the property will sell at all; if bids do not reach the reserve price you may need to re‑list or switch to another sales route, adding delay and extra cost.
- You may also invest in marketing, repairs or staging to attract bidders, so your total outlay can be significant relative to the sale price.
- Auctions often attract a narrower pool of buyers (cash investors, landlords, developers), which can limit competition compared with the broader residential market.
- The fixed auction date and short completion timescale make it hard to coordinate with an onward purchase or complex chain, so auctions are often less suitable if you need to buy and sell simultaneously.
- The fast, high‑pressure bidding environment can deter more cautious buyers, which may reduce participation or push some interested parties to alternative routes.
- If the property fails to sell at auction, the listing and guide price are part of the public record, which can affect how buyers perceive the property and its value in any later sale.
- Auction fees (commission, entry/marketing charges and legal pack costs) are often higher than typical estate‑agent fees and some are payable even if the property does not sell.
Find out more about estate agent fees in our guide.
However, if you have decided that your goals and the property for sale suit the auction format, here’s how a typical process works in detail:
How to sell a house at auction
Choose an auctioneer
- Research and select a suitable auction house with local knowledge and a good track record in your property type.
- Ask your local estate agent if they have any recommendations – here’s how to choose an estate agent in the UK.
Instruct the professionals and set your terms
- Instruct the auctioneer formally – agreeing fees, selling terms and the auction date.
- Appoint a solicitor or conveyancer to prepare the legal pack (title documents, searches, contract, special conditions and so on).
- Agree guide and reserve prices with the auctioneer, based on a valuation and your minimum acceptable price.
Prepare, market and conduct viewings
- Make the property presentable and provide photos, the EPC and other information for the auction listing.
- The auctioneer markets the property across their channels and arranges viewings or open days for interested buyers.
- The solicitor finalises and issues the legal pack, so buyers and their advisers can review it before bidding.
Auction day
- Registered buyers bid at the auction, in‑room or online.
- If the reserve is met or exceeded, the highest bid usually secures the property.
Post‑auction
- The buyer pays the deposit (often around 10%) on the day, or the reservation fee (after some online auctions).
- Both solicitors progress the transaction to completion within the agreed timescale, usually around 20-28 days.
- They finalise the sale and you receive the balance of funds.
How much does it cost to sell a house at auction (UK)?
Sellers usually face a mix of auction fees and legal costs, but in some models many of the auction fees are shifted to the buyer instead.
But according to Home Selling Expert, modern auction fees are much higher than traditional auction or estate agent fees. On average, it claims modern auction fees are 3.6-4.8% including VAT.
By way of comparison, the Fine Living commission varies between 2.4% and 3% including VAT of the agreed selling price, depending on the contract type – more details are in the FAQs.
Some auction houses charge an upfront entry or listing fee (sometimes a few hundred pounds), though others waive this, especially for attractive lots.
Your solicitor must prepare the auction legal pack, which commonly runs from about £200-£400+ for simpler freehold property and more for leasehold or complex lots.
However, in some modern or online auctions, the auction house recovers most or all of its fee from the buyer via a buyer’s premium, so the seller may pay little or no commission directly.
Final thoughts: Selling a house at auction
If you’ve weighed up the pros and cons but overall, you like the idea of selling a house at auction, ask a trusted estate agent if they can recommend an auction house.
If you found this article useful and informative, take a look through the blog for more guides, with popular articles including:
The team at Fine Living has property experience from all over London – we stay updated with the very latest trends and market data.
If you have any queries or would like to enquire about the Fine Living sales services, please don’t hesitate to get in touch.
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