THAT’S YOUR LOT: HOUSES AT AUCTION COST 40% LESS THAN NATIONAL PROPERTY AVERAGE
New research from bridging loans broker Octagon Capital reveals that houses bought at auction in 2020 are 40% cheaper than the average cost of a home.
Combining data on houses bought at auction in 20202 and ONS data on the average house prices for the year3, the research shows that on average houses sold at auction cost £138,240, two-fifths as much as the average price of housing through other methods (£231,885).
Those from North East are buying houses at auction at a rate furthest below the average property price in the area. On average, houses bought at auction in the County Durham, Tyne and Wear, Cleveland and Northampton in 2020 have been 76% cheaper.
Elsewhere, houses bought at auction in Lincolnshire in 2020 cost 73% below the average property price for the area, with Scotland auction hunters also finding bargains this year (72% below average property price).
At the other end of the scale, Leicestershire auctions tend to be more aligned with the average property prices for the county. Although, house-hunters in this area have still saved 19% on the average property price this year.
Regional breakdown of difference in cost when buying a house through auction versus other means
|
Region |
Average Home Cost in Region 2020 (£) |
Average Cost of House on Auction (£) |
% Difference |
|
North East |
179,500 |
42,630 |
-76% |
|
Scotland |
204,000 |
58,052 |
-72% |
|
Wales |
198,500 |
75,064 |
-62% |
|
London |
545,000 |
216,509 |
-60% |
|
Yorkshire |
204,000 |
82,778 |
-59% |
|
East Midlands |
228,000 |
103,228 |
-55% |
|
North West |
209,500 |
108,297 |
-48% |
|
West Midlands |
240,000 |
130,675 |
-46% |
|
South West |
283,000 |
156,558 |
-45% |
|
East |
334,500 |
192,389 |
-42% |
|
South East |
376,000 |
275,286 |
-27% |
Dan Kettle, Commercial Director at Octagon Capital, commented: “Whether you’re fixing up a house to sell-on, or looking for a bargain for your perfect home, our analyses shows that buying houses at auction is a great way to hunt down a financially astute deal.
“If you’re thinking of buying a house at auction, Octagon Capital can help you secure up to 75% of the property value in 14 days or less, meaning you can have peace of mind that the deal will go through.
To find out more about Octagon Capital and auction finance loans, visit https://octagoncapital.co.uk/auction-finance/
