Property auctions account for just 2% of home sales in the UK but generate more than four times their proportionate share of complaints, according to new data from The Property Ombudsman.
The organisation resolved over 300 auction-related complaints in 2025, representing 5% of all complaints received and 9% of residential sales complaints. The majority of complainants – 68% – were buyers or prospective buyers.
Modern method auctions drive complaints
Chief Property Ombudsman Lesley Horton stated that the modern method of auction has become a growing source of complaints because it can appear similar to a traditional estate agency sale while involving different fees, deadlines and commitment points.
“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,” Horton said.
Reservation fees have emerged as a particular point of contention, especially where buyers believe the payment will be deducted from the purchase price or refunded if a transaction falls through. Similar issues around transparency have affected other property sectors, as seen when Winkworth removed AI-enhanced property images after complaint.
Information gaps and unclear processes
The report identified several recurring complaint themes, including inaccurate marketing information, incomplete legal packs, unexpected fees and unclear processes. Buyers can face financial or legal consequences significantly earlier than in a traditional property sale.
“Buyers must carry out appropriate checks before bidding or reserving a property, but businesses also have a responsibility to communicate fairly, clearly and transparently,” Horton said. “The point of financial or legal commitment must be made impossible to miss.”
Recommendations for auction providers
The Ombudsman is calling on auction providers to clearly state which type of auction is being used, when legal and financial commitments begin, what fees are payable and what happens if a sale falls through.
The organisation also wants reservation fees to be treated as a high-risk consumer issue, with clear written and verbal explanations given before any payment is taken.
The findings highlight ongoing challenges in property transaction transparency, an issue that extends beyond auctions to various aspects of the market. The disparity between auction transaction volumes and complaint rates suggests systemic communication failures that may require regulatory attention to protect consumers entering this segment of the property market.
