Information about auction sales must be more clear for consumers amid a rise in complaints, an industry watchdog has warned.
A report from The Property Ombudsman (TPO), warns that while auctions account for just 2 per cent of home sales, they generate more than four times their share of complaints.
In 2025, The Property Ombudsman said it resolved more than 300 complaints relating to property auctions.
Of the auction-related residential sales cases that proceeded to a full Ombudsman decision in 2025, 31 per cent were decided in favour of the consumer.
In comparison, among non-auction residential sales cases, 67 per cent were decided in favour of the consumer.
TPO suggests this shows a level of misunderstanding among auction buyers and sellers.
A recurring issue identified by TPO was confusion around the Modern Method of Auction due to the different fees involved.
Reservation fees are highlighted as a major area of dispute, particularly where buyers mistakenly believe the fee will be applied towards the purchase price or are refundable if the transaction does not proceed.
TPO said buyer’s misconceptions about fees can arise due to confusing or insufficiently prominent terms.
The report warns that marketing accuracy and material information are especially important in auction transactions, where buyers may make decisions quickly and face financial or legal consequences earlier than they would in a traditional property sale.
It suggests that there should also be targeted warnings for mortgage-dependent buyers on factors that may block lending such as non-standard construction or a missing certification.
TPO is also calling on auction providers to clearly explain the type of auction being used, when financial and legal commitment begins, what fees are payable and what happens if the sale does not proceed.
The report recommends that businesses treat reservation fees as a high-risk consumer issue, provide clear written and verbal explanations before taking payment and move from simply making legal packs available to ensuring that key risks are properly highlighted.
Lesley Horton, chief property ombudsman, said: “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.”
Marc Shoffman is a freelance financial journalist