Houses at auction cost 40% less than 2020 property average

New research from bridging loans broker Octagon Capital reveals that houses bought at auction in 2020 are 40% cheaper than the average cost of a home.

Combining data on houses bought at auction in 20202 and ONS data on the average house prices for the year3, the research shows that on average houses sold at auction cost £138,240, two-fifths as much as the average price of housing through other methods (£231,885).

Those from North East are buying houses at auction at a rate furthest below the average property price in the area. On average, houses bought at auction in the County Durham, Tyne and Wear, Cleveland and Northampton in 2020 have been 76% cheaper.

Elsewhere, houses bought at auction in Lincolnshire in 2020 cost 73% below the average property price for the area, with Scotland auction hunters also finding bargains this year (72% below average property price).

At the other end of the scale, Leicestershire auctions tend to be more aligned with the average property prices for the county. Although, house-hunters in this area have still saved 19% on the average property price this year.

Regional breakdown of difference in cost when buying a house through auction versus other means

Region

Average Home Cost in Region 2020 (£)

Average Cost of House on Auction (£)

% Difference

North East

179,500

42,630

-76%

Scotland

204,000

58,052

-72%

Wales

198,500

75,064

-62%

London

545,000

216,509

-60%

Yorkshire

204,000

82,778

-59%

East Midlands

228,000

103,228

-55%

North West

209,500

108,297

-48%

West Midlands

240,000

130,675

-46%

South West

283,000

156,558

-45%

East

334,500

192,389

-42%

South East

376,000

275,286

-27%

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