Why Auctions Are Gaining Market Share in the UK
The UK property market is witnessing a quiet revolution. While traditional estate agency sales remain dominant, auctions are steadily gaining ground.
Once seen as a niche route reserved for distressed properties or seasoned investors, property auctions increasingly attract mainstream attention. This shift is not just anecdotal—it’s backed by tangible growth.
In recent years, auctions have grown to account for approximately 2% of all UK property transactions. Though this may seem modest, it represents tens of thousands of sales annually. More importantly, auction sales have shown consistent year-on-year growth in the number of properties offered and sold.
Between 2023 and 2024 alone, auction houses saw increases in activity and revenue in activity and revenue ranging from 8% to 11%. Some months even recorded over 20% increases compared to the same periods the year before. How people choose to buy and sell homes in the UK is changing.
The Drivers of Growth
Several powerful forces are driving this surge in popularity, with speed, transparency, and competitive bidding among the most important.
Speed of Sale
One of the most significant advantages of selling at auction is the speed of the process. Unlike the traditional route, which can stretch over several months, auctions offer a clear and fast timeline. The process typically takes six to nine weeks, from marketing the property to the final sale and legal completion. Once the hammer falls, contracts are legally binding, and completion usually occurs within 28 days. This speed is often the decisive factor for sellers facing time pressures, whether due to relocation, inheritance, financial strain, or personal change.
Transparency and Trust
Auctions are fundamentally transparent. Bidders can see each offer as made, and the final sale price is in full view. This contrasts sharply with the private treaty process, where buyers and sellers often navigate behind-the-scenes negotiations, silent bidding wars, and last-minute surprises. With auctions, what you see is what you get. There’s no room for gazumping, hidden offers, or prolonged haggling. For many, especially first-time buyers, this openness builds confidence and trust.
Competitive Bidding
The very structure of an auction encourages competition. When multiple bidders are interested in a property, the final price often exceeds expectations. This dynamic benefits sellers, who might otherwise accept a lower offer through an estate agent. It’s not uncommon for bidding wars to push sale prices above the guide price, particularly for well-located or unique properties.
Who Is Selling Through Auction?
The profile of sellers choosing auctions has evolved. Traditionally, auctions were associated with repossessions, probate cases, and “problem” properties. While these still comprise a portion of the market, many ordinary homeowners turn to auctions for strategic reasons.
Homeowners who need to “sell house fast for cash” often find auctions the best route. The certainty and speed offered and the number of genuine auction buyers make auctions a natural fit. Others include landlords looking to exit the market, developers offloading stock, or families resolving estate matters.
Increasingly, homeowners frustrated by long sales chains, buyer dropouts, and time-consuming negotiations opt to go directly to auction. They see it as a way to bypass the unpredictability of the traditional estate agency system.
Who’s Buying at Auction?
The buyer base has also diversified significantly.
Investors and developers remain core participants. They are often looking for below-market-value properties, homes needing renovation, or unique investment opportunities not widely available on the open market. Auctions offer them access to a steady pipeline of stock.
But first-time buyers and residential owner-occupiers are becoming a growing presence. Many are attracted by the opportunity to secure a home without a bidding war behind closed doors. With more lenders supporting auction purchases and digital platforms making it easier to research and bid, newcomers are confidently entering the space.
In addition, there has been a notable increase in participation from high-net-worth individuals and institutional buyers, especially in the commercial auction space. These buyers value the efficiency and transparency of the process and are often seeking high-yield properties, particularly in areas like London and the South of England.
The Role of Online Auctions
The digital revolution has been a significant factor in the rise of auctions. Since the pandemic, most auction houses have moved to online operations or adopted hybrid models. This has removed geographical barriers, allowing bidders from across the country—and even internationally—to participate in sales from the comfort of their homes.
Online auctions tend to attract more bidders, increasing competition and prices. The ease of access also broadens the pool of buyers and sellers. Once requiring in-person attendance, auctions now take plac/7, with properties marketed through slick online platforms, video walkthroughs, and virtual data rooms.
This digital transformation has made auctions more accessible and modern. It has also introduced real-time bidding, better search tools, and online legal packs, all empowering buyers to make informed decisions.
Auctions vs. Traditional Estate Agents
When comparing auctions to traditional sales, the differences are stark.
Estate agent sales typically take three to six months and are uncertain. Deals can fall through due to broken chains, survey issues, or changes in buyer finance. Negotiations are often protracted, and sellers may feel they lack control over the process.
Auctions offer a shorter, more defined path. Sellers set a reserve price and know the sale will be completed quickly if bidding meets or exceeds it. Buyers are committed from the moment the hammer falls, and the entire process is driven by transparent competition.
While auctions aren’t ideal for every property, they are increasingly considered a strong alternative. Auctions are often the better route for properties that are difficult to value, need renovation, have unusual features, or require a quick turnaround.
The Appeal to “Sell House Fast” Sellers
Auctions provide a compelling alternative for sellers looking to complete quickly or advertise online with messages like “sell house fast for cash. “
The legal commitment at auction means no waiting, chains, or fall-throughs. The marketing period is short but intensive, with all documentation prepared beforehand. Serious buyers—often with finance already secured—enter a competitive bidding environment, giving sellers a real shot at a market-driven sale price.
Rather than waiting for the right offer through an estate agent, auction sellers can turn their property into a time-limited opportunity that encourages action. And because the completion timeline is fixed, they can confidently plan their next move.
Risks and Considerations
Of course, auctions aren’t without risks. Sellers must set realistic reserve prices. Properties with limited appeal or in remote locations may struggle to attract sufficient bidders. Preparing a legal pack can involve upfront costs, and not all auction houses deliver the same level of marketing support.
From the buyer’s perspective, auctions can feel high-pressure. There’s limited time to carry out due diligence, and the binding nature of the contract means there’s little room to renegotiate. As a result, auctions are best suited to prepared and well-informed people.
Still, for the right type of correction—and seller or buyer—these risks are manageable and often outweigh the benefits.
The Future of Property Auctions
All signs suggest that auctions will continue to grow their share of the UK property market. The factors driving this change—digital access, buyer appetite, fast transactions, and transparent pricing—are not going away. They are likely to become even more critical in a volatile housing market.
Auction houses are innovating rapidly, offering more tailored services, better customer support, and broader national coverage. As more consumers understand the advantages of auctions—not just for distressed sales but for mainstream homes—the 2% market share could easily double in the coming years.
Auctions are no longer the domain of seasoned investors alone. They have matured into a viable, efficient, and often superior method of selling property in the UK.
Frequently Asked Questions (FAQs)
Are auctions faster than estate agent sales?
Yes. Auctions typically complete within 6 to 9 weeks. Once the hammer falls, the contract is binding, and completion usually occurs in 28 days.
Do properties sell for less at auction?
Not necessarily. If a property is marketed well and attracts multiple bidders, it can sell for above the guide price. Competitive bidding often drives prices higher.
Can I buy a home at auction with a mortgage?
Yes, but the mortgage must be arranged in advance. Some lenders specialise in auction purchases. You’ll need to be ready to complete quickly, often within a month.
Who should consider selling via auction?
Anyone who wants a fast, secure sale. This includes people facing time pressures, those with unusual properties, or sellers frustrated by long estate agency delays.
Are auctions only for investors?
No. While investors are common, many first-time buyers and home movers now use auctions, especially online ones. They appreciate the transparency and speed.
Do auctions cost more to sell through?
There are upfront costs like legal pack preparation, and sellers may pay an auction fee. However, these are often offset by faster sales and competitive final prices.
What happens if my property doesn’t sell at auction?
If it fails to meet the reserve price, the property doesn’t sell. However, it may still be sold privately to interested bidders shortly after the auction.
Can I set a minimum price for my property?
Yes. This is called the reserve price. The property won’t be sold if bidding doesn’t reach this level.
Are online auctions as reliable as in-person ones?
Yes. Online auctions have proliferated and are now a significant part of the market. They offer the same legal protections and often attract wider interest due to accessibility.
Will auctions keep growing in popularity?
Given the speed, transparency, and technology trends, auctions are likely to gain popularity, especially as more people become comfortable with digital property transactions.
Property Auction Market Data & Insights
EIG Auctions Market Report
https://www.eigpropertyauctions.co.uk/market-data
The Essential Information Group provides monthly reports and statistics on auction sales, including success rates, volume trends, and revenue raised.Savills UK Auctions Results
https://auctions.savills.co.uk
View current and past auction outcomes, lots sold, and high-value case studies.Allsop Auctions – Market Insights
https://www.allsop.co.uk
One of the UK’s largest auction houses offering reports, buyer guides, and post-sale statistics.Read our top Blogs:
Sell My Property Fast For Cash In Wandsworth
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