Property auctions can feel like the Wild West of UK property investment. The pace is fast, the stakes are high, and there's an undeniable rush when the hammer falls in your favour.
But beneath the excitement lies a process that rewards preparation and punishes amateurs. Every month, investors lose tens of thousands in deposits because they didn't understand what they were getting into. Others miss out on life-changing deals because they weren't properly set up to act when the opportunity came.
If you're thinking about buying at auction—whether it's your first time or your fiftieth—this guide will walk you through the entire process, from finding the right property to completing within 28 days. We'll cover the tactics that work, the finance you'll need, and the mistakes that cost people serious money.
Let's start at the beginning.
Why Buy Property at Auction in the First Place?
Before we get into the mechanics, it's worth asking: why bother with auctions at all? What's the appeal?
You Find Better Deals
Properties at auction are often priced below market value—sometimes significantly. Why? Because sellers are motivated. Maybe it's a repossession. Maybe it's probate. Maybe the property needs work and traditional buyers can't arrange mortgages. Whatever the reason, auction properties tend to sell at a discount.
Less Competition
Most property buyers can't bid at auction because they can't arrange finance quickly enough. That immediately cuts your competition. Instead of competing with dozens of buyers on Rightmove, you're competing with a handful in the auction room (or online).
Speed and Certainty
When you win at auction, you've legally bought the property. There's no gazumping, no seller changing their mind, no chain to worry about. You exchange contracts on auction day and complete 28 days later. Job done.
Access to Unmortgageable Properties
Some of the best investment opportunities are properties that banks won't touch: derelict buildings, properties with structural issues, short leases, legal complications. These properties are auction gold because most buyers can't buy them. You can—with the right finance.
Portfolio Building
For serious investors, auctions are a pipeline. You're not waiting for the perfect property to come up on the open market. You're scanning every catalogue, targeting opportunities, and systematically acquiring assets below market value. Over time, this compounds into serious wealth.
That's the upside. The downside? Auctions are unforgiving. Make a mistake and you're losing money, not just time.
Step 1: Finding Auction Properties (And Which Ones to Target)
Most UK property auctions are run by established auction houses. The big names include:
- Allsop
- Acuitus (formerly Auction House)
- SDL Property Auctions
- Barnett Ross
- Savills Auctions
These auction houses publish catalogues online 2-4 weeks before each auction, listing every lot with details, photos, and legal packs.
How to Find Upcoming Auctions:
- Visit auction house websites directly and sign up for catalogues
- Use aggregator sites like EIG Property Auctions that list multiple auction houses
- Set up Google Alerts for "property auctions [your area]"
- Follow auction houses on social media—they often promote standout lots
What to Look for in an Auction Lot:
Not every auction property is a good deal. Here's what experienced investors target:
Target Property Types:
- Below-Market-Value Residential Properties: Standard houses and flats that need light refurbishment. Relatively low-risk and easy to refinance or sell after work.
- Repossessions: Usually sold with vacant possession and priced to clear. Banks want them gone, which creates opportunity.
- Probate Sales: Estate sales where executors need to liquidate quickly. Often unmortgageable due to condition but full of potential.
- Development Opportunities: Properties with planning permission, conversion potential, or scope to extend.
- Commercial Property: Shops, offices, industrial units. Higher risk but often better yields.
- Land with Planning: Building plots or land with development consent.
What to Avoid:
Red Flags to Watch Out For:
- Properties with Serious Legal Issues: Restrictive covenants, boundary disputes, or access problems eat time and money.
- Properties in Terrible Locations: Just because it's cheap doesn't mean it's a deal. Location always matters.
- Properties with Structural Nightmares: Subsidence, major roof problems, structural cracks can cost £50-100k+ to fix.
Step 2: Do Your Due Diligence BEFORE Auction Day
This is where most amateur auction buyers go wrong. They view the property, think "that looks alright," bid, win, and only then discover the problems.
By that point, you're contractually committed. You can't back out without losing your deposit and potentially facing legal action.
Here's what proper due diligence looks like:
Essential Due Diligence Checklist:
- View the Property in Person: Never bid on a property you haven't seen. Walk every room, check structure, test boiler, look for damp.
- Read the Legal Pack Thoroughly: Download 10-14 days before auction. Contains title deeds, searches, special conditions. Pay a solicitor £200-300 to review professionally.
- Get a Surveyor's Opinion: For higher-value properties, pay £400-800 for a survey. Could save you from £50k of hidden problems.
- Check Planning History: Visit local authority planning portal. Check for refused applications or enforcement notices.
- Research Comparable Sales: Use Rightmove, Zoopla, and Land Registry to verify market value.
- Calculate Your Costs: Refurbishment, finance costs, stamp duty, legal fees, holding costs, agent fees. Does the deal still make sense?
Step 3: Arrange Finance BEFORE You Bid
Do not bid at auction without pre-arranged finance.
Here's what you need to do:
Contact a Bridging Lender 1-2 Weeks Before Auction
Give them property details, loan requirement, and exit strategy. They'll provide a decision in principle: "Yes, we'll lend £X against this property at Y% interest."
Get Your Deposit Funds Ready
Most auctions require 10% deposit on the day. Make sure you've actually got this money available.
Brief Your Solicitors
Let your solicitor know you're bidding at auction and might need them to move fast. Ideally, they've already reviewed the legal pack.
Understand Your Maximum Bid
Based on the lender's decision, your funds, and refurb budget, work out your absolute maximum. Write it down. Stick to it.
Critical Point: Auctions are emotional. The competitive tension can push people to bid more than planned. Don't let that happen. Know your number. Don't exceed it.
Step 4: Bidding Strategy (How to Win Without Overpaying)
Auction day arrives. You're registered to bid. The property you want comes up. What now?
Start Strong or Hang Back?
There are two schools of thought:
Strategy 1: Start Aggressively
Jump in with a strong early bid to signal confidence and discourage competition. This can intimidate less committed bidders and shut down the auction quickly.
Strategy 2: Wait and Watch
Let others bid first. Watch how the competition unfolds. Join late when you can see who you're up against.
Both work. It depends on your personality and the situation.
Bid Confidently
Whether you're in the room or online, bid decisively. Don't hesitate, don't look uncertain. Confidence matters in auctions.
Know When to Walk Away
If bidding goes above your maximum, stop. Don't get caught up in the moment. There's always another deal. Overpaying kills returns.
Step 5: What Happens Immediately After You Win
The hammer falls. You've won. Congratulations. Now the real work begins.
The 28-Day Timeline:
Immediate (Within Minutes):
- • Sign memorandum of sale
- • Sign the contract (legally binding)
- • Pay 10% deposit
- • Receive signed contract copy
Day 1-2:
- • Notify your lender and solicitor
- • Forward signed contract
- • Lender begins valuation process
Day 3-7: Valuation
- • Surveyor inspects and values property
- • Valuation report confirms property worth
- • May affect loan amount if values lower
Day 7-14: Formal Loan Offer
- • Lender issues formal terms
- • Review and sign loan offer
- • Legal work begins in earnest
Day 14-28: Complete
- • Solicitors handle documentation
- • Funds transferred on completion
- • You receive the keys
Common Pitfalls (And How to Avoid Losing Your Deposit)
Even experienced auction buyers make mistakes. Here are the costliest:
Pitfall 1: Not Reading the Legal Pack
You assume everything's fine. There's a restrictive covenant, short lease, or unclear boundaries. Your lender refuses to lend.
Solution: Read the legal pack. Pay a solicitor to review it. Know what you're buying before you bid.
Pitfall 2: Underestimating Refurb Costs
You think "£20k should do it." It doesn't. The property needs structural work, rewiring, a new roof. Suddenly you're £50k over budget.
Solution: Get quotes before bidding. Walk the property with a builder if possible. Budget conservatively.
Pitfall 3: Overpaying in the Heat of the Moment
The bidding's tense. Someone keeps pushing. You bid more than planned. You win. Then you realise the numbers don't work.
Solution: Set your maximum bid in advance. Write it down. Don't exceed it. There's always another property.
Pitfall 4: Slow Solicitors
Your solicitor doesn't specialise in auctions. They treat it like normal conveyancing. By day 20, legal work still isn't finished.
Solution: Use an auction-specialist solicitor. They understand the urgency and know the process.
Pitfall 5: Lender Pulls Out
You thought finance was sorted, but the lender changes their mind after the valuation or issues are discovered.
Solution: Be transparent with your lender upfront. Send them the legal pack before you bid.
Pitfall 6: Failing to Complete on Time
Something goes wrong—banking delays, legal issues, miscommunication. Day 28 arrives and you haven't completed.
Solution: Aim to complete on day 26 or 27, not day 28. Build in buffer time.
What Happens If You Can't Complete?
Worst-Case Scenario:
- The seller keeps your 10% deposit. This isn't negotiable. You signed a binding contract.
- The seller can sue you for losses. If they resell for less, they can claim the difference plus costs.
- You damage your reputation. Auction houses share information. Other houses might refuse future bids.
The moral? Only bid if you're absolutely certain you can complete.
Is Buying at Auction Worth It?
For the right investor, absolutely. Auctions offer access to below-market-value properties, minimal competition, and the ability to build a portfolio systematically.
But they're not for everyone. If you're risk-averse, dislike tight deadlines, or don't have access to fast finance, auctions will stress you out.
You're a Good Fit If:
- ✓ You've got bridging finance pre-approved
- ✓ You're comfortable with properties needing work
- ✓ You do thorough due diligence
- ✓ You understand property refurbishment
- ✓ You've got a clear exit strategy
You're Not a Good Fit If:
- ✗ You're buying your dream home
- ✗ You can't arrange finance within 28 days
- ✗ You're unwilling to buy properties needing work
- ✗ You panic under time pressure
At Black Props, we finance auction purchases every month. We know what works. If you're thinking about bidding at auction, talk to us first. Let's make sure your finance is sorted, your exit strategy is solid, and your numbers stack up.
Because winning at auction should be the start of a profitable investment—not an expensive mistake.
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