Buying at Auction in the UK: A Complete Guide for First Time Bidders

Why people buy at auction

Auction buyers come in three main types:

1. Investors looking for properties to renovate and resell or let

2. Cash buyers who want speed and certainty

3. First time buyers looking for properties at the lower end of the market that have not sold by private treaty

The common factor is appetite for risk. Auction is fast but unforgiving. Mistakes are expensive because the contract is binding the moment the gavel falls.

Finding lots

Property auctions are run by:

• National auction houses: Allsop, Savills, Auction House, Network Auctions, Pugh
• Regional auction houses: dozens of smaller firms covering specific areas
• Online auction platforms: iamsold (modern method), eig, Property Auction Action

Each auction publishes a catalogue 4 to 6 weeks before the sale date. Catalogues list the lots with addresses, guide prices, photographs, and brief descriptions. The full legal pack for each lot is available on the auction house website.

Reading the legal pack

The legal pack is the most important document for any auction buyer. It typically contains:

• Title register and title plan from HM Land Registry
• Local Authority Search results (for some lots; not always provided)
• Water and Drainage Search results
• Environmental Search results
• Energy Performance Certificate
• Special conditions of sale (auction-specific contract terms)
• TA6 Property Information Form (for some lots)
• Lease (for leasehold) with management pack
• Any other relevant documents (planning consents, building regs sign-offs, restrictive covenants, easements)

Have your conveyancer review the legal pack before you bid. The fee for a pre-auction legal pack review is typically £250 to £600 and is essential for any non-trivial purchase.

Visiting the property

Always visit before bidding. Auction houses arrange viewings in groups (typically 30 minutes per lot, 1 to 3 viewings before the auction). Take photographs, check the structure, look for damp, ask questions about the property's history.

If you cannot visit in person, ask the auction house for a video tour or send a friend or surveyor in your place.

Pre-bidding survey

For higher-value lots, a pre-bid survey is often worth the cost. A RICS Level 2 or Level 3 survey before the auction typically costs £400 to £1,200. The survey can flag deal-breakers (subsidence, structural issues, RAAC) that would otherwise only be discovered after you have committed.

For low-value lots (under £100,000) the survey cost may be a high proportion of the purchase price, and many bidders skip it. This is a calculated risk.

Setting your maximum bid

Decide your absolute maximum bid before the auction starts. Write it down. Do not exceed it in the heat of the room.

Your maximum should account for:

• The purchase price
• The buyer's premium (3% to 5% in modern method auctions)
• Stamp duty (calculated on the purchase price)
• Conveyancing fees
• Any urgent repairs identified by the survey
• Renovation budget for any planned work
• A contingency of 10% to 15%

The headline guide price is usually significantly below the reserve price. Auction houses use low guide prices to attract bidders. The reserve is typically 10% to 30% higher than the guide.

How bidding works

Traditional in-room auction

1. Arrive at least 30 minutes before the auction starts

2. Register at the desk with your photo ID and proof of funds

3. Receive a bidding card with a number

4. Sit somewhere the auctioneer can see your card

5. When your lot comes up, raise your card to bid

6. The auctioneer takes bids in increments

7. When the bidding stops, the lot is "sold" if the reserve has been met, or "withdrawn" if not

Online auction

1. Register on the auction platform

2. Pay any registration deposit (often refundable if you do not win)

3. Place your maximum bid before the deadline

4. The system runs the bidding automatically up to your maximum

5. If you win, you receive a confirmation and 28 to 56 days to complete

What happens if you win

In a traditional auction, the moment the gavel falls:

1. You sign the memorandum of sale with the auctioneer

2. You pay a 10% deposit by debit card or bank transfer (the auctioneer's terms vary)

3. You also pay any buyer's premium and admin fees

4. The contract is binding: you must complete within 28 days

5. Your conveyancer takes over and arranges completion

In modern method of auction, you pay a reservation fee of 4% to 5% (non-refundable), then have 28 to 56 days to apply for a mortgage and complete in the standard way.

What if you cannot complete

If you fail to complete within the 28 day window in a traditional auction, the consequences are severe:

• You forfeit your 10% deposit
• The seller can sue you for the balance of the purchase price plus any costs
• You can be sued for damages if the property has to be re-marketed at a lower price

For this reason, never bid at a traditional auction unless you have either cash or pre-arranged finance ready.

Bridging finance

Most auction buyers who do not have cash use bridging finance. Bridging is a short-term loan secured against the property, typically lasting 6 to 12 months at 0.5% to 1.5% per month interest. The buyer completes with the bridge, then refinances to a standard mortgage afterwards.

Bridging is expensive but it makes auction purchases possible for buyers who do not have hundreds of thousands in cash. A specialist bridging broker can arrange a bridge in days for an experienced auction buyer.

Common mistakes

1. Not reviewing the legal pack before bidding

2. Bidding above your maximum in the heat of the moment

3. Forgetting the buyer's premium in your budget calculations

4. Underestimating renovation costs

5. Buying a property with restrictive covenants that prevent the intended use

6. Buying without checking the title for unusual easements or third party rights

7. Buying at modern method auction without realising the reservation fee is non-refundable

Verifying property data before bidding

Before bidding on any lot, search the address on Property Passport UK at [/search](/search) to see verified data including tenure, EPC rating, sold price history, flood risk, and listed status. The platform aggregates data from HM Land Registry, the EPC Register, and the Environment Agency for every one of the 19.35 million properties in England and Wales. It is the easiest way to spot risks (flood zone, listed building, leasehold complications) before committing time and money to a survey or legal pack review.

Check any property in seconds with Property Passport UK

Whether you are buying through Right to Buy, Shared Ownership, First Homes, or at auction, the underlying property data matters. Property Passport UK shows verified EPC, sold price history, flood risk, listed status and tenure for every one of the 19.35 million properties in England and Wales. Search any address at [/search](/search).

Related guides

• Right to Buy explained
• Shared Ownership staircasing
• First Homes scheme explained
• Buying at auction UK guide