Home Buyers Can Save 40 Per Cent At Auctions

According to research from bridging loans broker Octagon Capital, houses bought at auction during 2020 are saving buyers 40 per cent on the average cost of a home.

Financial Reporter has reported that the combined data on houses purchased at auction and Office for National Statistics (ONS) data on the average house prices for 2020 showed that the average cost of a house bought at auction is £138,240, compared to the £231,885 average cost of homes bought by other methods.

The North East of England had house prices at auction at the lowest rate below the average property price for the area, and on average, sold at auction in 2020 for 76 per cent less in County Durham, Tyne and Wear, Cleveland and Northampton

In Lincolnshire, houses bought at auction in 2020 cost 73 per cent below the average house price for the area, and bargain hunter in Scotland could also find bargains, with 2020 auction prices being 72 per cent below the average property price.

However, while auctions in Leicestershire tended to be closer to the average property prices for the county, house hunters in the area can still find savings of up to 19 per cent on the 2020 average house price.

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 show that buying houses at auction is a great way to hunt down a financially astute deal.”

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