With estate agents increasingly offering auction options to vendors, new research makes interesting reading - and suggests that homes sold via auction achieve 40 per cent less than those sold via private treaty.
Combining data on houses bought at auction in 2020 and official government house price data, the research shows that on average houses sold at auction cost £138,240.
Those sold through other methods achieve an average £231,885.
The research appears not to have taken into account property condition or other factors which may account for why some have been sold through auctions. Nor does it separate traditional ‘ballroom’ property auctions from the Modern Method of Auction now being offered by a growing number of High Street estate agencies.
Overall, properties auctioned in the north east appeared to have the largest disparity with those sold through private treaty. On average, houses bought at auction in the County Durham, Tyne and Wear, Cleveland and Northampton in 2020 have been 76 per cent cheaper.
Elsewhere, houses bought at auction in Lincolnshire this year cost 73 per cent below the average property price for the area, with Scotland 72 per cent down.
In London the difference was 60 per cent; however, in the wider south east of England the gap was only 27 per cent.
The research was conducted by auction finance specialist Octagon Capital.