Repossessed property auctions in the UK: how they work and where to find them

Most repossessed houses go to auction only after they fail to sell through an estate agent. At auction the contract is binding when the hammer falls. You pay a 10% deposit on the day and complete about 20 business days later.

Auction catalogues rarely use the word "repossessed". Lender and receiver lots are mixed in with every other lot. You find them by the legal wording in the lot description.

Part of our guides to buying repossessed property in the UK.

How do repossessed houses end up at auction?

A lender usually tries an estate agent first. If no acceptable offer comes in, the house goes to auction. A house that can't be mortgaged often goes straight to auction.

Buy-to-let repossessions often reach auction faster. They are usually sold by a Law of Property Act receiver, with no court order and no long wait. Our guide to buying a repossessed house explains why.

How do I spot a repossession in an auction catalogue?

Look for who is selling, not what is being sold. These phrases tell you the seller is a lender or someone acting for one.

Here's what a repossession looks like in the photos. Tape across the toilet or boiler saying "do not use" means the house has been winterised. Read how to spot a repossessed house for the other signs.

Where are repossession auctions held?

There is no single repossessions auction. Lender and receiver lots appear in ordinary property auctions across the UK. Auction houses range from national firms, such as Allsop and Auction House UK, to small regional firms.

Most auctions now take bids online, by phone and by proxy. Many also list their lots on Rightmove. Some publish their catalogues only on their own websites.

Repolist tracks auction lots alongside agent listings. Each lot shows who is selling and why.

What does it cost to buy at auction?

The legal pack may change any of these. Special conditions can shorten completion or add costs, such as the seller's legal fees or arrears. Read them before you bid.

What is the difference between the guide price and the reserve?

The reserve is the lowest price the seller will accept. It stays confidential. The guide price is the auction house's indication of the price.

Under Advertising Standards Authority rulings, a single-figure guide must be within 10% of the reserve. A guide range must contain the reserve. Repossessions often sell well above their guide, so bid on your own valuation, not the guide.

Are repossessed houses cheaper at auction?

Often, but not always. Auctions give the deepest discounts because fewer people can buy. Completing in 20 business days rules out most mortgage buyers. Read are repossessed houses cheaper? for the full picture.

What should I check before bidding?

1. Read the full legal pack with a solicitor. You are bound by it whether you read it or not.
2. View the property. Services may be capped, so take a builder if you can.
3. Check sold prices nearby on HM Land Registry data. Our Land Registry guide explains what it shows.
4. Arrange your money first. You need the deposit on the day and the rest in about 20 business days.
5. Set a top price that includes fees, stamp duty and repairs. Stick to it.
6. Insure from the fall of the hammer. The risk passes to you then.

Frequently asked questions

Are there auctions just for repossessed houses?

Rarely. Most repossessed houses are sold in general property auctions, alongside probate, insolvency and ordinary lots.

How do I find repossession auctions near me?

Check the catalogues of auction houses in your area for "mortgagee in possession" or "LPA receiver". Repolist brings these lots together with agent listings in one search.

Can I get a mortgage for an auction property?

Rarely in time. Most traditional auctions complete in about 20 business days, too fast for most mortgage lenders. Buyers use cash or bridging finance.

What happens if I win and can't pay?

You lose your deposit. The seller can also resell the property and claim any shortfall from you (Common Auction Conditions).

Can I buy a repossessed house before the auction?

Sometimes. Many auction houses accept offers before the sale, and the seller may agree to sell early. You usually sign the auction contract on the same terms.

Do repossessed houses at auction come with tenants?

Buy-to-let repossessions sold by receivers often do. You become the landlord. Check the tenancy documents in the legal pack.

Find repossession auction lots with Repolist

Repolist tracks lender, receiver and auction sales across England and Wales, and explains why each property is for sale. Start your free 7-day trial.

Related guides: how to buy a repossessed house, bank repossessed houses, distressed property in the UK and why there is no list of repossessed houses. Local guides: London, Birmingham and Manchester.

This guide is for information only. It is not financial, tax or legal advice. Always take independent advice before buying property.