The London property market is undoubtedly the largest and most expensive in the UK, with thousands of homes listed for sale at any time.
Trying to achieve a speedy sale can be complex, where prospective buyers can browse countless listings, making the market competitive and often creating delays for sellers keen to move on as soon as possible. Selling a London property at auction provides an efficient, fast and lucrative route to selling whilst achieving a fair sale price.
Trends in London Property Sales
With rising average living costs impacting London more profoundly than any other region, it is little surprise that so many London homeowners are deciding to sell and relocate to more affordable areas, with better air quality, reduced congestion, and lower property prices.
As a rough indication, the most recent House Price Index, published in July 2023, shows that the average property in London sells for just over £534,000 – with a 1.1% increase from the previous month.
The same home in the southeast would cost approximately 26% less, with average sale prices of £394,000, with a greater drop in the costs of homeownership in eastern England, where the average value is slightly under £353,000.
Although living in the capital can be convenient for some professionals, the prevalence of hybrid and remote working means the compromise of reducing living space may no longer be necessary, and many sellers find that they are able to repay their mortgage and buy a new or larger home elsewhere for a fraction of the value.
Other contributing factors, such as lower crime rates in smaller cities, towns and villages and access to local schools and colleges, mean that Londoners are prioritising quality of life over a central location, with no shortage of investors, developers and buyers looking for well-positioned homes.
Why Does it Take Longer to Sell a House in London?
According to Online Mortgage Advisor, London properties take the 5th longest time to sell in the country. Properties in the capital are on the market for 138 days on average (with the national average at 101 days).
As we’ve indicated, part of the issue is the sheer size of the London property market. Alongside local buyers and families, interested buyers can include business people looking for a residence in the capital close to their workplace or office.
Many sellers find themselves part of a property chain, where each party must wait for the buyers and sellers on either side to complete their purchase and sale transactions before the process can move on.
The average time needed to sell a house, from initial listing to completion, is between four and six months. However, that timescale can extend indefinitely if a party within a property chain drops out, a survey or valuation identifies concerns, or a buyer finds themselves unable to secure mortgage financing.
Rising interest rates and mortgage repayment costs are also a consideration, where a proportion of buyers are waiting for the market to cool or are reluctant to buy a new home during periods of inflation when mortgage affordability assessments and monthly interest charges are more challenging.
How Long Does it Take to Sell a London Property at Auction?
The unique benefit of selling at auction is that an auction sale concludes in 20 days from the auction date to the transfer of the funds to the seller. Once the property is sold, contracts are exchanged immediately.
Further to this the buyer pool is more diverse than sellers generally find when selling a property through a conventional private treaty sale. These buyer demographics are less concerned with mortgage repayments since all auction bidders are cash buyers and pay an initial deposit on the day of the auction to secure their bid.
In London, we typically find that bidders registering for property auctions include:
- Private Buyers and Investors
- London-based businesses and investors looking for plots, redevelopment opportunities and buildings where they can expand their portfolios.
- Renovation enthusiasts searching for London homes that they can refurbish or modernise and later sell, generating a return on the initial investment.
- Professional property companies and landlords increasing the number of residences they own within London to offer to private or commercial tenants.
While it is important to build in sufficient time for the property to be marketed to selected buyer groups and to allow for viewings, end-to-end, the process is expedited, meaning a smoother transition out of the Capital and into the countryside!
You can read more about why property owners are auctioning their properties here:Â Should I auction my house?Â
Does Selling a London Property at Auction Mean Accepting a Lower Price?
We often talk about auction pricing since it is commonly misunderstood. Indeed, many vacant properties and homes in need of repair work sell well at auction, but this does not imply that all auction listings are at a reduced price or lower quality structures.
Instead, the competitive bidding environment frequently means that properties sell far above their reserve and guide prices, where interested bidders have the flexibility to increase their offer – especially where a home is in a sought-after location or has features such as planning permission that generate strong demand.
The London housing market is the busiest for a reason: the demand is high. This increases competitive bidding as buyers compete for highly desirable real estate.
Homeowners selling a house in London due to the increased costs of buying a property may also find that the speed and efficiency of an auction sale deliver further value for money.
Rather than waiting several months to complete the sale and needing to cover the mortgage payments throughout that period, they can list their home, set a reserve price they are comfortable with, and receive their settlement funds quickly.
Related reading:Â Does a house sell for less at auction?
So how do I sell my London Property at auction?
There are 7 steps to selling your London property at one of our auctions:
- Finding an auction house and arrange an appraisal
- Instruct an auctioneer by returning an auction agency agreement
- Instruct a conveyancing solicitor
- Advertising the property
- Conducting block viewings
- Agreeing on an auction date
- Selling the property once the reserve is met
We recommend reading our guide to selling your property by auction here.  Or find out how property auction works here?
Expert Advice on London Property Auction Sales
Our advice for any seller concerned about the price they can reasonably expect to make at auction is to arrange a good time to meet with one of our experienced auction team.
Our auctioneers have years of experience in the local London market are in a great position to offer insights and advice and help set attractive pricing that reflects the value you would like to achieve.
For more information about listing your London property in a forthcoming auction, please contact the Clive Emson team and get a free appraisal. Alternatively, you can browse current listings and upcoming auction dates through our website to get a better idea of how the process works and the variety of properties we sell on behalf of their owners.
About the Author:
Sam Kinloch
Sam’s career in the dizzy world of property auctions began when he hung up his chainsaw and headed in from the forest. Joining the team in 2003 Sam now sits on the Board of Directors and has been instrumental in the adoption of online auction services. Out of the office you can find him flying around the velodrome or sipping coffee at a local café.