Costs for Selling a House at Auction in the UK

How much does it cost to sell a property at auction?  A guide for UK property owners. How much does it cost to sell a property at auction and how do the sale costs compare to an estate agency sale? Find out about the costs for selling your house or flat at auction and how to save money by passing some of your costs to the buyer.

Last updated by Mark Grantham on 2 June 2026

How much are property auction fees?

Selling a property at auction costs less than most people think. The total cost is about the same you would expect to pay a traditional high street estate agent. There are 3 costs to consider when selling a property at auction:

(1) COMMISSION – The auctioneers commission is around 2% + VAT of the final sale price and that’s only paid when the property successfully sells.

(2) ENTRY FEE – Most auctioneers request an upfront catalogue/entry fee of around £300 + VAT or more, but it may be possible to postpone payment until after the property has successfully sold.

(3) AUCTION LEGAL PACK – The seller’s solicitor is responsible for preparing the auction legal pack at the cost of £200 or more, which is payable before the auction.

Passing your auction sale costs to the buyer

By adding a simple clause to the contract of sale it’s possible to pass all (or part) of your auction costs and legal fees to the buyer, in fact it’s standard practice for regular auction sellers (e.g. property traders, banks and local authorities).  Some buyers will not bid as high for the property if they spot the clause in the legal pack, but others will not worry.

Negotiating sales commission with the auctioneer

The starting rate for an auctioneer’s commission will usually be around 2% + VAT or more  and that’s only paid when the property successfully sells. So if a property sells for £200,000 the commission payable to the auctioneer would be £4,000 + VAT.

The costs for selling a house at auction include a commission of 2%+VAT of the final sale price, only paid upon successful sale. Plus an entry fee, although some auctioneers don’t charge for this.  Your solicitor will need to prepare an auction legal pack costing upwards of £200.
You can save money by passing some costs to the buyer.

For higher value or particularly saleable properties the auctioneer might be prepared to reduce their commission, but there is a lot of organising and marketing that takes place for the auctioneer to be able to justify their fee.

Auctioneers usually charge a minimum selling fee of anything from £1,500 upwards – so if a low value property (such as a garage) sells for £10,000 the 2% commission rate will not apply, otherwise the fee would only be £200. Instead the auctioneer will charge the minimum selling fee.

TIP: Compared to some of the newer methods of selling, such as paying an online estate agent a fixed fee, selling a property at auction may seem relatively expensive. So it’s worth a quick cost benefit analysis to see if auction will pay off for you.

How much does it cost to prepare the auction legal pack?

The auction legal pack is crucial for the successful sale of a property at auction, it contains all the legal information (e.g. land registry documents, deeds, searches, property information questionnaires, lease documents, tenancy agreements etc) relating to the property. So the more information there is in the legal pack the more confident prospective buyers will be when bidding on auction day. It’s therefore important not to cut costs when preparing the legal pack as it may adversely affect the final sale price. Costs for preparing an auction legal pack for a freehold property can be anything from £200 upwards. For a leasehold property the cost of obtaining the management information pack from the freeholder/landlord will add another £200 or more.

Most of these legal costs are not unique to selling at auction. When selling through an estate agent or privately the seller will also need to prepare legal documents for the prospective buyer. It’s only the searches (local authority search, water search etc) that are obtained by the buyer in the case of an estate agency sale, but by the seller in the case of an auciton sale.

Who pays for the survey?

We’re occasionally asked whether the seller needs to include a survey report for their property in the auction legal pack. The survey report is NOT the responsibility of seller. There is no expectation for a survey report to be included in the auction legal pack.

Many of the buyers at auction are cash buyers, so will not require a survey. However, if the buyer does require a survey, they will need to have sorted that out (and seen the report) before bid on auction day. With an unconditional auction sale, the buyer is bidding to buy – full stop! They’re not bidding to buy subject to contract or survey.

Costs for cancelling or withdrawing from auction

It’s worth noting that if you signed the auctioneers’ terms remotely (i.e. not in the auctioneers office) there will usually be a 14 day cooling off period. However, since the timescales for selling at auction are very quick, the auctioneer might ask you to tick a box on the auction contract that waives your right to cancel, in order for them to commence their service immediately, and begin marketing your property as soon as possible.

Other costs to consider when selling a property at auction

As with selling a property through an estate agent or privately, there are other costs to be considered when selling a property, they include; legal fees, moving costs and taxes that might be due. For example capital gains tax on buy-to-let properties and inheritance taxes for probate sale. Also consider whether any early redemption penalties might be due on your mortgage or secured loans. These are all payments your solicitor will be able to help you calculate when determining your bottom line sale price i.e. your reserve price.

If the property doesn’t sell at auction there will usually not be any costs or obligations to the seller, unless stated in the auctioneers terms.

Are there any costs to pay if a property fails to sell at auction?

Cost benefit analysis – is it worth selling at auction?

With so many low-cost online estate agents to choose from, does an auction sale provide value for money? Apart from the speed and reliability an auction sale offers, from a purely financial perspective, is it worth it? Can you achieve a higher sale price at auction compared to any other method of sale? The answer depends on the type of property being sold – some properties sell for considerably more at auction compared to estate agency sales due to two key features of auction; competition and transparency.

Competition – Property developers, amateur DIYer’s and ambitious owner occupiers will compete to buy a property at auction in the knowledge they’ll be able to refurbish it cost-effectively and either sell on for a profit or live there themselves. The key word being compete. In an auction environment, where the price can only go one way (up) it’s the competitive bidding environment that drives the price up.

Transparency – In a closed/private sale environment, such as an estate agent sale (also known as a “private treaty” sale) the estate agent has a high level of influence over negotiations. If after a few months of marketing a property the estate agent tells the seller that £100,000 is a fair price, the seller will probably be inclined to accept an offer around that level. By keeping the property in the hands of one or two estate agents the the sale lacks transparency.

In fact, a highly lucrative market exists for property traders who purchase problem properties through estate agents one week and flip them at auction the next week – the properties are sold for considerably higher prices as “properties with potential” in the the transparent and competitive bidding environment that’s found at public auction!

Questions and Answers

✅ Do properties sell for lower prices at auction?

Some types of property are particularly well suited to sale by auction; properties in need of modernisation or with potential are ideal for auction and will achieve a higher sale price at auction compared to an estate agency sale. But properties with their potential exhausted will usually sell for more by private treaty (estate agency) sale, unless the property is unique or in a very good location, in which case the top price may be found through competitive bidding at auction.

✅ What happens if an auction property doesn’t sell?

Most properties do successfully sell at auction, it’s considered the most reliable method of sale. If bidding doesn’t reach the reserve price on auction day your property will be made available as an unsold lot. The auction company will contact all interested buyers and ask for their best and final offers. If a property doesn’t sell first time around it can be entered into a subsequent auction, that might be 4 or 6 weeks later.

✅ What costs are paid upfront and after an auction sale?

The costs for selling at auction works out to be about the same as using a good high street estate agent. Commission at around 2% + VAT if the final sale price is only payable on successful sale. Some auctioneers charge an upfront entry fee of £200 to £500, but this can be negotiable and only payable after sale.

✅ How quickly can a property be sold at auction?

Legal exchange of contracts can take place within 3 to 4 weeks, with completion of sale a further 4 weeks later. Timings are flexible; if a seller needs to complete sooner or later, they can ask their solicitor to shorten or extend the completion date.

✅ How do you find a good local property auctioneer?

There are hundreds of property auctioneers in the UK. The best suited auctioneer for your property will depend on the property type and location. Looking at the past auction results (usually available on the auctioneer’s website) can be a good starting point to short list a suitable auctioneer.

Popular auction resources

Next steps…

UK Property Market Update: June 2026

The UK property market has taken a more cautious turn this month. The ongoing war in Iran continues to push up energy costs, and that pressure is now feeding through into forecasts, mortgage pricing and buyer confidence in a way that was not yet obvious a few weeks ago.

The biggest development comes from two of the country’s most respected forecasters. In the past few days, Savills has revised its 2026 house price forecast from growth of 2% to a fall of 2%. Lucian Cook, the firm’s head of residential research, pointed to higher borrowing costs and weaker sentiment weighing on demand for the rest of the year, set against high levels of stock as landlords continue to sell up. Savills has also trimmed its longer-term view, now expecting average prices to rise 18.5% by 2030 rather than the 22.2% it forecast previously. Knight Frank has struck a similar note, warning of continued downward pressure on activity through 2026, with transactions falling 3% between March and April at a time of year when the market would normally be gaining momentum.

It is worth keeping this in perspective. Both firms still expect the market to recover over the medium term, and the revisions describe a softer year rather than a collapse. But the direction of travel has clearly changed, and sellers should plan around it.

House prices and activity

Headline prices are holding up better than the new forecasts imply, but momentum has slowed and choice has widened for those who are buying. The Knight Frank transaction figures tell the story of the moment: a market that would usually be building through spring is instead drifting, as higher mortgage costs and nervous sentiment keep a lid on demand. Well-priced homes are still selling, but buyers are in no rush and they have plenty to look at.

Interest rates: held, but the mood has hardened

Interest rates remain the pivot point. The Bank of England held the base rate at 3.75% at the end of April, and its next decision lands on 18 June. Where markets had been expecting cuts at the start of the year, attention has now switched firmly to the prospect of an increase, with some commentators suggesting the rate could climb as high as 5.25% during 2026. Governor Andrew Bailey has warned that higher inflation is hard to avoid given the energy shock, which tells you which way the Bank is leaning.

Inflation: a dip now, but few expect it to last

Inflation is the reason for all this, though the picture is less clear-cut than it was a month ago. The most recent figures, released in May, showed CPI actually fell to 2.8% in April, down from 3.3% in March, helped by a reduction in the household energy price cap. That is a welcome step down, but it is unlikely to hold. The OECD has warned that UK inflation could rise towards 4% later this year, the second highest in the G7, a reflection of how exposed the country is to energy prices while the conflict drags on.

Mortgages

Borrowers are feeling the strain. The average two-year fixed rate now sits at around 5.7%, up from roughly 5.4% a month ago and well above where it stood before the war. Lenders have been repricing as swap rates stay elevated, and while a handful have trimmed their best deals, the broader direction for the rest of the year is uncertain. Anyone approaching the end of a fixed deal would be wise to speak to a broker sooner rather than later.

What does this mean for property auctions?

In conditions like these, the auction room earns its keep. When buyer confidence is soft, mortgage costs are unpredictable and chains move slowly, auction continues to offer the two things the wider market is struggling to provide: speed and certainty.

Landlord disposals remain a major driver of activity. The Renters’ Rights Act, which came into force on 1 May, has pushed more small and mid-sized landlords to sell, and many of those properties are finding their way to auction. Tenanted lots in particular are attracting strong interest from portfolio buyers who are happy to take on a property with a tenancy already in place.

For sellers, the message is unchanged but matters more than ever. Realistic pricing wins the day. A well-presented lot with a sensible guide will still draw competitive bidding and exchange on the fall of the hammer. Those holding out for the more buoyant mood of early 2025 are likely to be disappointed, but sellers who price to today’s market continue to do well.