One in 11 residential sales complaints linked to auctions, Property Ombudsman finds
Property auctions account for only 2% of residential home sales yet generate more than four times their proportional share of consumer complaints, according to a new report from the Property Ombudsman.
In 2025, the Ombudsman resolved more than 300 auction-related complaints — representing 5% of all complaints received and 9% of all residential sales complaints. Buyers and prospective buyers were responsible for 68% of auction-related residential sales complaints, significantly outnumbering those brought by sellers.
The report identifies insufficient consumer preparation and a lack of clarity around auction processes as key drivers of dissatisfaction. A recurring issue is confusion surrounding the Modern Method of Auction (MMoA), which, despite resembling a conventional estate agency sale, operates under different fee structures, deadlines and commitment points.
Reservation fees are cited as a major source of dispute, particularly where buyers incorrectly assume fees will be offset against the purchase price or refunded if the transaction does not proceed. The Ombudsman attributes such misunderstandings partly to inadequate disclosure and insufficiently prominent terms.
Marketing accuracy is also flagged as a concern. Given that auction buyers often make decisions rapidly and face financial or legal consequences sooner than in a conventional sale, the report says material information must be comprehensive and clearly presented. Issues in the Ombudsman's casework include inaccurate marketing, incomplete legal packs, unexpected fees and unclear processes.
"Property auctions can offer speed, certainty and a defined route to sale," said chief property ombudsman Lesley Horton (pictured right). "However, they also involve a different level of commitment, pace and risk.
"Our casework shows that complaints can arise where consumers do not clearly understand the process, where key information is not provided at the right time or where businesses rely on information being available rather than ensuring it is understood.
"Buyers must carry out appropriate checks before bidding or reserving a property, but businesses also have a responsibility to communicate fairly, clearly and transparently. The point of financial or legal commitment must be made impossible to miss."
The report calls on auction providers to clearly explain the type of auction being used, when financial and legal commitment begins, what fees apply and what happens if the sale does not proceed. It also recommends that businesses treat reservation fees as a high-risk consumer issue, provide clear written and verbal explanations before taking payment, and move beyond simply making legal packs available to actively ensuring that key risks are highlighted.
For consumers, the ombudsman advises buyers and sellers to review relevant guidance before participating, to ask questions about both the process and the property, and to conduct due diligence before bidding or listing.
"Property auctions help give buyers and sellers an alternative method to buy and sell property," commented NAVA Propertymark president Stuart Collar-Brown (pictured right). "Traditionally, auctioneering has always presented a robust method for those who either want or need to complete a property transaction within a strict timeframe.
"The profession has evolved immensely over the last few years, embracing new ways of thinking and innovative technology to assist both buyers and sellers. However, it is important that the sector is open and receptive to concerns at every opportunity to maintain a consumer-centric focus and to ensure needs are not just met but ideally exceeded.
"It is important that the profession is always approachable and receptive to direct consumer feedback and has a collective ambition to progress forward using best practice and a clear ambition to surpass expectations."
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