In December 2023, houses at auction sold for £116k less than market value

By Georgia Galloway | Monday 19th February | 2 minute read

The answer to "Are auction properties cheaper?" is a resounding YES.

Property investors looking to find below-market-value properties should look towards auction houses as our analysis of the latest national auction figures found that in December 2023, on average, residential properties sold for £168,152 - over £116k and 41% less than the UK average house price of £284,691.

For sale sign outside residential property. The sign says, 'For Sale 41% cheaper at auction''

Property investors should be on alert as the number of residential properties available at auction is increasing. In 2023, 19% more residential lots were offered at auction compared to 2022 (31,549 in 2023 vs. 26,559 in 2022).

In addition to auctions offering the potential to secure properties at significantly below-market prices, the speed of auction purchases ensures quick transactions and fast opportunities for significant returns. 

The chance to find unique or undervalued properties ready for renovation or rental purposes makes auctions a favourite for experienced and first-time investors and developers alike.

Most auctions require a 10% deposit on the day of the auction sale, and the remainder of the balance is usually required within 28 days. Buyers must access the funds to complete their purchase quickly. Auction finance can ensure the purchase is completed without the risk of losing the purchase and any deposit. Up to £300k can be sourced in 3 days, £750k in 7 days and up to £250m can even be available within 14 days.

Where are the biggest differences between auction prices and market value in the UK?

On average, in December 2023, residential properties sold at auction for £116k less than market value. 

But there are locations where even more significant savings than £116k can be found!

The East of England (including Cambridgeshire, Norfolk and Suffolk) has the best opportunities for property investors to buy below market value.

Auction properties in East England sold for £180k below the market value!

Other regions where properties sold at auction sell for more than £100k below market value are South East, South West, West Midlands, North West, East Midlands, Scotland and Wales.

London's residential properties sold at auction are the closest to their market value in the UK. However, London properties still sell for £70k below market value at auction.

The price difference across the UK for properties sold at auction vs average house price per region are:

Region Average house price December 2023 Average price sold at auction Q4 2023 Price difference between buying at auction vs average house price (highest to lowest)
East of England £342,489 £161,724 £180,765 cheaper at auction
South East £377,162 £207,264 £169,898 cheaper at auction
South West £318,966 £195,116 £123,850 cheaper at auction
West Midlands £252,532 £133,887 £118,645 cheaper at auction
North West £218,353 £104,932 £113,421 cheaper at auction
East Midlands £248,390 £139,035 £109,355 cheaper at auction
Scotland £190,341 £81,818 £108,523 cheaper at auction
Wales £213,816 £109,142 £104,674 cheaper at auction
Yorkshire and The Humber £207,501 £114,457 £93,044 cheaper at auction
North East £157,557 £65,938 £91,619 cheaper at auction
Northern Ireland £177,611 £105,263 £72,348 cheaper at auction
London £508,037 £438,135 £69,902 cheaper at auction

Source: Essential Information Group, House Price Index

Based on total residential auction sales vs total residential lots sold per region (October 2023-December 2023) and average house price per government office region.

Are you looking to buy a house at Auction?

What do you need to know about buying property at auction? What will you need on the day? And what are the pros and cons of buying a house at auction? Find out how to buy a house at auction.

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