Pick a Bargain at a London Property Auction
Navigating the London property market can be overwhelming, particularly if you’re considering auctions. Auctions offer unique opportunities for both seasoned investors and first-time buyers.
Whether you’re looking to snap up a bargain flat, a fixer-upper, or a commercial asset, London’s auction landscape is rich and varied. This comprehensive guide walks you through where to find property auctions in London, how they work, and how to make the most of them.
Why Consider Property Auctions in London?
Property auctions are not just for the experienced investor. They offer multiple advantages for both buyers and sellers.
For Buyers:
- Speed: Properties can be bought much faster than through conventional means.
- Transparency: The bidding process is open and transparent.
- Potential Value: Properties are often sold below market value, especially those needing refurbishment or quick disposal.
For Sellers:
- Certainty: Once the hammer falls, contracts are exchanged immediately, reducing the risk of fall-throughs.
- Competition: Auctions attract competitive bidding, which can drive prices up.
- Efficiency: A set timetable for marketing and sales allows for better planning.
Major Property Auction Houses in London
London is home to several reputable property auction houses. These organisations conduct regular auctions annually and cater to various budgets and property types.
Auction House London
One of the busiest auction houses in the UK, Auction House London, deals with residential and commercial properties across Greater London and beyond. It hosts monthly auctions and offers both in-room and remote bidding.
Savills Auctions
A prominent name in real estate, Savills conducts property auctions with a wide selection of residential and commercial lots. Their auctions are usually held every couple of months and are accessible online and in person.
Barnard Marcus
Operating under the Sequence Group, Barnard Marcus is a popular choice for sellers and buyers. Their auction events, which are held around ten times a year, primarily feature residential properties, land, and investment opportunities.
Allsop
Allsop is one of the UK’s leading commercial auctioneers and has a significant residential offering. Known for high-volume sales and major institutional properties, they are ideal for investors looking for bigger opportunities.
McHugh & Co
A family-run firm with a longstanding presence in the London market, McHugh & Co. specialises in residential and mixed-use properties. It conducts auctions solely online and releases catalogues several weeks before each event.
Strettons
Focusing primarily on properties in East and North London, Strettons is known for its deep local expertise. They auction residential, commercial, and mixed-use properties and offer pre-auction marketing.
Knight Frank
Knight Frank, a globally recognised brand, offers high-end residential and commercial properties through their auctions. Their events are usually live-streamed and cater to buyers seeking premium investments.
Foxtons Auctions
Foxtons Auctions entered the auction space more recently. It leverages digital tools to streamline the auction process. It caters to sellers looking for fast sales and buyers who prefer a more tech-forward experience.
SDL Auctions
Operating across the UK with a growing presence in London, SDL Auctions is known for its digital-first approach. Their catalogue includes residential homes, land, and commercial properties.
How to Access Property Auctions
There are multiple ways to access property auctions in London, depending on your preferences and experience level.
Auction Websites
Most auction houses have dedicated websites where you can browse current and upcoming lots, download legal packs, and register for bidding. Sites often include virtual tours, floor plans, and guide prices.
Mailing Lists and Alerts
Signing up for newsletters or alerts with auction houses can help you stay updated on new listings. Many homes also offer registered users early access to catalogues.
Property Portals
While estate agency listings dominate traditional portals like Rightmove or Zoopla, some properties scheduled for auction are also listed here with links to the auction house.
Social Media and Online Ads
Many auction houses use platforms like Instagram, Twitter, and Facebook to promote high-interest lots and auction events.
Steps to Buy a Property at Auction
Buying at auction requires preparation, discipline, and a solid understanding of the process.
- Research and Shortlist
- Start by exploring available lots. Focus on location, type, condition, and guide prices.
- Arrange Finance
- Auctions require a 10% deposit on the day, and completion usually within 28 days. Have your finances in place, whether a mortgage in principle or bridging finance.
- View the Property
- Visit the property at scheduled viewing times. If you’re unsure about structural integrity or renovation costs, bring a surveyor.
- Examine the Legal Pack
- Legal packs typically include title deeds, leases, planning permissions, and special conditions of sale. Have a solicitor review them.
- Set a Maximum Bid
- Know and stick to your financial limit—factor in the buyer’s premium and any refurbishment costs.
- Register to Bid
- Registration is required, often with proof of ID and funds. You can usually bid in person, by phone, online, or via proxy.
- Auction Day
- If your bid wins, you must pay the deposit and sign the contract immediately. Completion usually occurs within a month.
Tips for Sellers at Auction
Auctions offer a structured, fast-paced alternative to the open market if you’re selling.
- Choose the Right Auctioneer
- Select a house with experience in your property type and location.
- Agree on Guide and Reserve Prices
- These determine buyer interest and the minimum sale price you will accept.
- Prepare a Legal Pack
- Your solicitor should prepare all relevant documentation to satisfy the buyer’s due diligence.
- Marketing the Property
- Auction houses will photograph, list, and promote your property via their networks and online platforms.
- Auction Day to Completion
- Once sold, contracts are exchanged on the spot. The buyer pays the balance within the agreed period (usually 28 days).
Popular Auction Categories in London
- Residential: Flats, terraced houses, semi-detached, and entire blocks.
- Commercial: Retail units, office buildings, pubs, and warehouses.
- Development Land: Plots with or without planning permission.
- Mixed-Use: Properties combining residential and commercial use.
- Repossessions and Probate: Often priced below market value.
FAQs About London Property Auctions
Can anyone buy property at auction?
Yes. While experience helps, first-time buyers can participate by preparing adequately and seeking legal and financial advice.
What is a guide price?
The guide price is an approximate valuation to attract interest. It is not the final sale price, which is determined by bidding.
What is the reserve price?
This is the minimum price the seller is willing to accept. If bidding doesn’t reach this, the property won’t be sold.
Are auction purchases final?
Yes. When the hammer falls, the buyer is legally bound to complete the transaction, usually within 28 days.
Do I need a solicitor?
Absolutely. A solicitor will review the legal pack and flag any concerns, helping you make an informed decision.
What happens if I win but can’t pay?
If you don’t always ensure your funds are ready, you will likely lose your deposit and may face legal action for breach of contract.
Can I get a mortgage on an auction property?
Yes, but the process must be quick. Secure a mortgage in principle or consider bridging finance to meet the completion timeline.
Are all properties good deals?
Not always. Some may have legal issues, structural defects, or expensive leasehold conditions. Do your research.
Can I inspect the property before bidding?
Yes. Most auctioneers schedule open viewing times. Some also offer virtual tours or 3D walkthroughs.
Are auctions suitable for selling inherited property?
Yes. Auctions are often used for probate sales due to their speed and transparency.
Conclusion
London’s property auction market is dynamic and fast-paced, offering opportunities for buyers and sellers alike. Whether chasing a dream renovation project or quickly disposing of an investment, auctions can deliver real advantages.
The key is preparation: understand the process, work with reputable auctioneers, and get expert advice. With the right approach, buying or selling at a London auction can be profitable and rewarding.
Major Property Auctioneers in London
Auction House London
https://auctionhouselondon.co.ukSavills Auctions
https://www.savills.co.uk/auctionsBarnard Marcus Auctions
https://www.barnardmarcusauctions.co.ukAllsop Auctions
https://www.allsop.co.ukMcHugh & Co
https://www.mchugh.co.ukStrettons
https://www.strettons.co.ukKnight Frank Auctions
https://www.knightfrank.co.uk/residential/auctionFoxtons Auctions
https://www.foxtons.co.uk/auctionsSDL Property Auctions
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