Skip to content

US style property auctions launch in UK

More than 500 properties that have been repossessed by banks and other lenders are due to go under the hammer at different locations in England, Wales, Scotland and Northern Ireland at a series of auctions being run by US auction house REDC starting on March 31.

The style is expected to be a bit more brash and upfront than the more sedate auctions that take place in the UK. Already the company, one of the US's leading auction businesses, has spent tens of thousands of pounds on a massive marketing campaign which has included adverts on the television, the newspapers and outdoor billboards.

Jeffrey Frieden, CEO and co-founder of REDC, said the aim is to attract ordinary people to the property auctions rather than just the professionals who tend to go to UK sales.

'Unlike traditional auction houses, which have restricted their pool of potential buyers to groups of savvy investors, REDC's model is built on exposing its auction properties to as many people and as many markets as possible,' he explained.

'We believe that everyone should be entitled to a bargain not just a select group of professional property investors,' he added.

Property consultant Keith Hollinrake who is advising REDC said they are expecting crowds of between 500 and 1,000 at each sale.

He admits he was not sure at first if the concept would work in the UK but after visiting some of their sales in the US he decided it was a great concept.

He has advised against some of the brasher aspects of the company's US auctions such as ringing bells when a lot is sold and spotters in the audience wearing tuxedos.

Hollinrake also believes that it could change auction property sales for the better. 'The industry will have a shake up and people will be looking at it more,' he said.