The majority of UK property sales are conducted through estate agents via private treaty. However, a recent trend shows more sellers opting for auctions.
Auction House saw a 70% year-on-year rise in tenanted properties sold through its weekly online auctions in April. The wider auction market has also expanded, with EIG figures indicating a 33.5% year-on-year increase in residential lots offered at auction in June, and a 29.7% rise in those actually sold.
This shift is partly attributed to changes in the auction process. Many auctions are now online, offering extended bidding windows and allowing up to 56 days for completion, which accommodates buyers needing mortgages. This broader buyer pool means auctions may not carry the same equity costs as in the past.
Sellers are also drawn to the speed, control, and certainty auctions provide. They offer a quicker and more reliable sale process compared to the potentially lengthy and uncertain timelines of traditional estate agency sales, where buyers can withdraw at the last minute. Auctions are particularly useful for properties that do not fit the conventional market, such as those sold with tenants already living there.