Homes sold under the hammer cost buyers an average of £138,240, the research found, which was much lower than £231,240 average price tag on a property purchased through other methods.
What’s more, the study by bridging loans provider Octagon Capital also identified the areas of the country where homes sold at auction can provide an even better bargain than those being marketed via the local estate agents.
Indeed, the analysis found buyers from North East were snapping up 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 areas 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 tended 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.
Dan Kettle, commercial director at Octagon Capital, csaid: “Whether you’re fixing up a house to sell-on, or looking for a bargain for your perfect home, our analyses shows that buying houses at auction is a great way to hunt down a financially astute deal.
“If you’re thinking of buying a house at auction, Octagon Capital can help you secure up to 75% of the property value in 14 days or less, meaning you can have peace of mind that the deal will go through.”
Regional breakdown of difference in cost when buying a house through auction versus other means (source: auction)
| 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% |
