Property auctions generate complaints at four times the rate of the wider housing market
Property auctions account for just 2% of home sales but generate more than four times their share of complaints, according to a new insight report by the Property Ombudsman.
The report highlights that while auctions remain a relatively small part of the wider residential property market, they are generating a disproportionately high level of consumer dissatisfaction.
In 2025, The Property Ombudsman resolved over 300 complaints relating to property auctions. Auction complaints accounted for 5% of all complaints received by the Ombudsman and 9% of all residential sales complaints.
Buyers and prospective buyers were significantly more likely than sellers to bring complaints about auction sales. According to the report, 68% of auction-related residential sales complaints were brought by buyers or prospective buyers.
The report suggests that consumers can sometimes approach auctions insufficiently prepared for the process, with an incomplete understanding of the risks involved. In addition, TPO’s casework indicates that consumers may find information about the auction process to be complex and unclear.
A recurring issue identified by The Property Ombudsman is confusion around the Modern Method of Auction, which has seen a corresponding rise in the number of complaints in this area. While this route can appear similar to a traditional estate agency sale, it can involve different fees, deadlines and commitment points. As a result, consumers can become confused about the responsibilities and obligations of the parties.
Reservation fees are highlighted as a major area of dispute, particularly where buyers believe the fee will be applied towards the purchase price or are refundable if the transaction does not proceed. Buyer’s misconceptions about fees can arise due to confusing or insufficiently prominent terms.
The report also warns that marketing accuracy and material information are especially important in auction transactions, where buyers may make decisions quickly and face financial or legal consequences earlier than they would in a traditional property sale.
Issues identified in the Ombudsman’s casework include complaints about inaccurate marketing information, incomplete legal packs, unexpected fees, and unclear processes.
Lesley Horton, Chief Property Ombudsman, said:
“Property auctions can offer speed, certainty and a defined route to sale. 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 Property Ombudsman is calling on auction providers to clearly explain the type of auction being used, when financial and legal commitment begins, what fees are payable and what happens if the sale does not proceed.
The report also recommends that businesses treat reservation fees as a high-risk consumer issue, provide clear written and verbal explanations before taking payment and move from simply making legal packs available to ensuring that key risks are properly highlighted.
For consumers, the Ombudsman advises buyers and sellers to read the relevant guidance before taking part in an auction, ask questions about the process and the property and carry out due diligence before bidding or listing.
The Property Ombudsman will continue to monitor complaints in this area and use its casework to identify emerging risks, support learning across the sector and help improve outcomes for consumers buying and selling property at auction.
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