First-time buyers are increasingly turning to property auctions to secure homes more quickly, as long transaction times continue to frustrate the traditional buying process.
New data from Propertymark shows growing momentum in the auction sector, with 54% of auctioneers reporting a year-on-year rise in available lots across all property types.
The shift comes as conventional sales continue to drag, with many transactions taking more than 17 weeks to complete, prompting buyers to look for faster and more secure routes to purchase.
Auctions offer a key advantage in this regard, as once bidding concludes, contracts are effectively exchanged, reducing the risk of deals collapsing or buyers being gazumped.
COMPETITIVE BIDDING
Affordability is also playing a role, with guide prices often set to attract early interest and competitive bidding.
Sophie (main picture, inset), a first-time buyer from London, opted to purchase a property in Putney via an online auction after being gazumped twice through traditional estate agency routes.
“I definitely found the properties being auctioned more affordable, though the one I purchased needed a lot of renovation,” she says.
“I had gone down the estate agency route before, and I had been gazumped twice. I saw a property that was being sold via auctioning. I did research into the auctioning route, and I thought I would give it a go.”
DEMYSTIFY THE PROCESS
She adds that online research and access to legal documentation helped demystify the process, which initially felt daunting.
“I found it very exciting. It was a quick process, which can be a little bit exhilarating. The day of the auction itself made me think I was going to be outbid for the property, but I got it!”
Sophie says that working with a qualified auctioneer helped build confidence, particularly around the legal aspects of the purchase.
“Yes, I would recommend it to other first-time buyers because I think you get a fantastic outcome that is ideal for my generation. It is not daunting, as many people make it out to be, because you can state the maximum price you want to pay, and you avoid getting gazumped.”
Propertymark says the findings reflect a broader shift in buyer behaviour, as speed, certainty and transparency become increasingly important in a more complex and regulated housing market.
