Property auctions account for only a small fraction of home sales but generate a significantly higher proportion of consumer complaints, according to a new report from the Property Ombudsman.
The Property Ombudsman (TPO) has warned that property auctions are generating more than four times their share of complaints relative to their size within the housing market, with buyers frequently caught out by fees, unclear processes and hidden risks.
According to TPO’s latest insight report, auctions account for around 2% of residential property sales but were responsible for 5% of all complaints received by the Ombudsman in 2025 and 9% of all residential sales complaints.
During the year, TPO resolved more than 300 complaints relating to property auctions, with buyers and prospective buyers accounting for the majority of cases. The report found that 68% of auction-related residential sales complaints were brought by buyers or prospective buyers rather than sellers.
The Ombudsman said many consumers enter the auction process without fully understanding the level of commitment involved or the risks associated with purchasing property through this route.
A particular area of concern is the growing use of the Modern Method of Auction, which has been accompanied by a rise in complaints. While the process can resemble a conventional estate agency transaction, it often involves different fee structures, deadlines and commitment points, leading to confusion among consumers.
Reservation fees were identified as one of the most common sources of dispute. Complaints frequently arise when buyers believe these fees will either be deducted from the purchase price or refunded if the transaction fails to complete. The report suggests that misunderstandings can occur when terms and conditions are not presented clearly or prominently enough.
The Ombudsman also highlighted the importance of accurate marketing and the provision of material information in auction sales, where buyers may be required to make decisions quickly and face financial or legal obligations earlier than in a traditional transaction.
Casework reviewed by TPO revealed complaints relating to inaccurate marketing information, incomplete legal packs, unexpected charges and a lack of clarity around the auction process.
Lesley Horton, chief property ombudsman, says: “Property auctions can offer speed, certainty and a defined route to sale. However, they also involve a different level of commitment, pace and risk.
“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.
“Buyers must carry out appropriate checks before bidding or reserving a property, but businesses also have a responsibility to communicate fairly, clearly and transparently. The point of financial or legal commitment must be made impossible to miss.”
TPO is calling on auction providers to provide clearer explanations of the auction method being used, when legal and financial obligations begin, what fees apply and what happens if a sale falls through.
The report also recommends that reservation fees should be treated as a high-risk consumer issue, with businesses providing clear written and verbal explanations before taking payment. It further urges auction providers to move beyond simply making legal packs available and instead ensure that key risks are clearly highlighted to prospective buyers.
For consumers, TPO advises carrying out thorough due diligence before bidding or listing a property, reading guidance on the auction process and asking questions about both the property and the terms of sale.
The Ombudsman said it will continue monitoring complaints in the sector to identify emerging risks and support improvements in consumer outcomes across the auction market.
