Are House Auctions in London a Good Way to Sell?

It sounds like the stuff of telly dramas. A person in a waistcoat shouts “going once!” and slams a gavel down while the bidder in the back grins triumphantly. But what’s it really like to sell your home at a London auction? Is it fast and fair or risky and rushed?

Here’s what to expect if you’re thinking about putting your London property under the hammer.

Why people choose property auctions in the first place

House auctions aren’t just for repossessions or doer-uppers, though they do make up a good chunk of auction listings. People also choose auctions when they want speed, certainty and a clean break.

In London, where the market can move fast (and sales fall through just as fast), auctions can be tempting. There’s a set date, serious buyers and the sale is legally binding once the hammer falls. No dragging chains, no buyer changing their mind three months down the line.

For sellers who are fed up with delays, tired of endless viewings or trying to offload something a bit unusual, auctions can offer a way out.

How do house auctions actually work?

It starts with choosing your auction house. In London, you’ll find names like Savills, Allsop and Auction House London, as well as smaller independent firms. Each has its own fees, formats and buyer base.

You’ll need a legal pack drawn up in advance. This includes title deeds, searches, lease information (if it’s a leasehold), any planning permissions or building regs, and more. Most sellers get a solicitor to do this, which can cost a few hundred pounds.

Once your property’s listed, buyers can book viewings or inspect the legal pack. The auction might be in-person or online, but the rules are the same: if someone makes the highest bid and it meets the reserve price, the sale is legally binding. The buyer puts down a 10% deposit straight away and has 28 days to complete.

Do auctions guarantee a quick sale of a house?

Yes and no. If your property gets enough interest and reaches its reserve price, then it’s a guaranteed sale. But if no one bids, or if bids fall short, the sale won’t go through. In that case, you’re back to square one.

You’ll also need to factor in the time it takes to prepare for the auction. From choosing the auctioneer to pulling together your legal pack and marketing, you’re looking at a few weeks minimum.

It’s quicker than the open market in many cases, but it’s not instant.

How much does it cost to sell a house at auction?

Auction fees vary but usually include:

• An entry fee (typically £200 to £500)
• A commission (often 2% plus VAT, but this can vary)
• Solicitor costs for the legal pack
• Any costs for photography, floorplans or marketing extras

Some auction houses also offer no-sale, no-fee options or let you pass fees on to the buyer. But always read the small print as some sellers end up surprised by deductions.

Will I get a good price?

Auction prices can be a gamble. If there’s strong competition for your property then you might end up with more than you expected. But if only a handful of people bid, you may have to settle for less.

The truth is, properties at auction are often listed below market value to attract interest. That doesn’t mean they’ll sell low, but it does mean you need to be realistic.

If you’re in London and your home has broad appeal (say, a period flat in a popular zone or something ripe for refurbishment), you might get lucky. But if it’s a niche property or in poor condition, you could struggle to find the right buyers on auction day.

When auctions might be a good idea

Opting to sell at auction can be a smart move if this sounds like you:

• You need a fast sale with a fixed timeline
• You’re selling a property that’s hard to value or tricky to mortgage
• You’ve had a sale fall through and want certainty
• The property needs work or has legal quirks
• You’re willing to take a slightly lower price for speed and ease

When they might not be right for you

An auction may not be the best choice for you if:

• You want the highest possible sale price
• You’re not in a rush to sell
• Your property is mortgageable and in good condition
• You’re nervous about fees or uncertainty

What about repossessions, probate or tenanted properties?

These types of homes often pop up at auction, especially in London. Probate properties (where someone has died and left a house to relatives) can work well at auction, especially if the heirs want a fast, clean sale.

Auctions can potentially be a good way of selling a tenanted property, but it helps if there’s a clear tenancy agreement in place and buyers understand the rental situation.

If you’re facing repossession, auction might be an option – but it depends how quickly you can act. Some auctions only run monthly or quarterly. If you need to sell within days to stop court action, a cash house buyer might be safer.

The UK government has some useful guidance on repossession timelines and legal rights.

What do London sellers need to watch out for?

The London market moves fast, but it’s also unpredictable. Auction prices can be affected by everything from interest rates to Tube extensions. If you list your property at the wrong time or pitch it too high, you risk a no-sale.

You should also watch out for buyer drop-offs. Even though auction sales are legally binding, some buyers still pull out. You’ll get to keep the deposit, but you’ll lose time and momentum.

And of course, make sure your auctioneer knows the London market inside out. A property in Lewisham won’t sell the same way as one in Hampstead. Local knowledge matters everywhere, and even more so in London.

Need speed, not stress? We’ve got you.

Auctions can work out fine, but they’re not for everyone. If you’d rather skip the uncertainty, extra costs and drawn-out timelines, a cash sale could be the simpler option for you.

At Sell House Fast, we buy any house, flat or bungalow across London and the UK. Here’s what you can expect:

• A fair cash offer based on local market data
• A sale completed fast, often in a matter of days
• No estate agent fees and no viewings
• A personal service tailored to your situation
• Full transparency from start to finish

Get your free cash offer today. Just pop in your postcode and a few details in, and we’ll take care of the rest.