Property auctions generated more than four times their share of complaints in 2025, with the Property Ombudsman warning that buyers are being caught out by unclear fees, incomplete legal packs and confusion over when financial commitment begins.
The Ombudsman’s new insight report says auctions account for about 2 percent of home sales but made up 9 percent of residential sales complaints and 5 percent of all complaints handled by the scheme last year. More than 300 auction-related complaints were resolved in 2025.
For landlords and property investors, the figures matter because auctions are often used to buy stock quickly, exit problem assets or secure refurbishment opportunities. The warning is that speed can come with higher dispute risk, especially where the Modern Method of Auction blurs the line between a reservation process and a traditional sale.
Auction buyers drove most complaints
The report says 68 percent of residential auction complaints came from buyers or prospective buyers rather than sellers. The main flashpoints were inaccurate marketing information, incomplete legal packs, unexpected fees and processes that consumers did not fully understand before bidding or paying a reservation fee.
Lesley Horton, chief property ombudsman, said auctions can offer speed and certainty but involve a different level of commitment, pace and risk. She said complaints arise when consumers do not clearly understand the process, key information is not provided at the right time or firms rely on information merely being available rather than making sure it is understood.
That matters for smaller investors because auction buying often depends on quick decisions. If a legal pack is thin, a reservation fee is poorly explained or the point of commitment is missed, the cost of getting it wrong can land before a buyer has time to step back.
Modern Method of Auction stays under scrutiny
A recurring issue in the Ombudsman’s casework was confusion around the Modern Method of Auction. The report says the model can look similar to an estate agency sale, but the fees, deadlines and obligations can be very different. That leaves scope for disputes where buyers assume fees will be refunded or offset against the purchase price when that is not the case.
The findings add to wider pressure on agents and intermediaries to present material information more clearly. Landlord Knowledge recently covered how the Property Ombudsman’s updated website is meant to sharpen standards for landlords and agents, while its broader PRS ombudsman guide explains how complaint handling is becoming a more important compliance issue across the sector.
This follows Landlord Knowledge’s coverage of ombudsman reforms, which pointed to a broader shift towards stricter complaint handling and clearer consumer information across the private rented sector. The latest auction data suggests that pressure is not limited to lettings. Sales channels used by investors are also under closer scrutiny where buyers face upfront financial risk.
The Ombudsman is calling on auction providers to explain more clearly what type of auction is being used, when legal or financial commitment starts, what fees apply and what happens if a transaction falls through. It also wants firms to treat reservation fees as a high-risk consumer issue and move beyond simply uploading legal packs to actively highlighting the main risks to buyers. The full findings are set out in the Property Ombudsman’s auction complaints report.
What this means for landlords
- If you’re buying at auction: Check exactly when you become financially committed and whether any reservation fee is refundable.
- Watch for: Modern Method of Auction listings where the fee structure or legal pack is not explained in plain English before you act.
- Bottom line: Auction speed can still suit investors, but only if the paperwork, fees and timeline are clear before bidding.
Editor’s view
Auctions work best when everyone knows the rules before money changes hands. If complaints are running this far above market share, the sector has a clarity problem, not just a consumer education problem.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 3 June 2026
Sources: The Property Ombudsman auction insight report, Holyrood PR press release
Related reading: Property Ombudsman launches new website to strengthen standards for landlords and agents
