What Is An Online Property Auction and How Do They Work?

Posted in Nov 30 , 2021

When we think of a property auction, we probably imagine a room full of investors with an auctioneer up front – hammer in hand – spouting numbers at record speeds.

These days, this couldn’t be further from the truth!

Nowadays, property auctions are a place for everyone and there’s no need to physically attend one. Online auctions are rising in popularity as a convenient way of bidding for properties in the UK.

What Is An Online Property Auction?

Online property auctions are similar to traditional auctions. The main difference is that instead of bidding in person, you bid online.

Reputable online auction sites are completely safe and have huge benefits to bidders. You can bid from anywhere – whether you’re on holiday, at work or even in bed! The experience can be calmer and more efficient.

How Does An Online Property Auction Work?

Step #1: View Properties

Just like a traditional auction, you’ll have the opportunity to browse the properties on auction and schedule a visit. Most online property auctions will have open house dates, rather than individual viewing appointments.

Step #2: Create An Online Account

If you’ve found a property to bid on, you’ll usually need to create an account on the auction house website. It should be free to join and relatively simple to sign up. You’ll normally need an email address to create an account.

Most online auction houses will ask for proof of identity, so you may need a picture of your passport and a utility bill to hand.

Step #3: Add Your Payment Details

Once you’re registered, you’ll normally need to add your payment details before you bid. This is because you’ll be charged an immediate deposit as soon as you win an online auction.

Step #4: Check the Sale-Type

There are two types of sales at online auctions, and you’ll need to check which one applies to the property you plan on bidding for.

The two types include:

An unconditional auction – Which is the same as a traditional auction, where the sale becomes legally binding immediately after bidding has closed. This means you’ll need to have everything agreed and sorted in advance of bidding (like mortgages or surveys).
A conditional auction – Which gives you the right to buy the property after you’ve won the auction. You’ll still be charged an immediate deposit. But you don’t need to have your mortgage, survey, or anything else finalised before you bid.

Step #5: Partake in Online Bidding

There are usually two ways to bid at an online auction. You can either:

Bid via proxy – Which is an automated bidding option. You set your maximum bid in advance and the system will automatically bid in small increments until you’ve reached your maximum.
Bid in real-time – Which is when you bid live against others. Each time you are outbid, you can enter your new amount on the system. Usually, online auctions have rules where the end time is extended if a buyer bids with less than five minutes to spare.

Thinking Of Bidding For a London Property?

Cribs Estates Ltd are your local property experts in the London area. If you’re looking at buying a London property, we’d love to help!

Get in touch on 0203 441 1571 or email us at info@cribsestates.co.uk.

Shared on social media

Comments

Latest Blogs

Government Mini-Budget 2024: Key Highlights for Landlords

Finally, the autumn budget 2024 is here! The chancellor, Rachel Reeves, has just revealed Labour’s first budget since 2010. It comes after their party’s return to power in this year’s July general election. She announced a raise of taxes worth £40bn to fund the NHS and other public services. So, if you are thinking about what implications this budget will have on landlords and the rental market in London, here’s a summary: Key Highlights: Capital Gains Tax (CGT) Increase: The basic rate increased from 10% to 18%, and the higher rate increased from 20% to 24%. Entrepreneurs’ relief increased from 10% to 14% starting April 2025. Stamp Duty Land Tax Surcharge: For second properties, the surcharge increased from 3% to 5%. Employers National Insurance Hike: Increased from 13.8% to 15% starting April 2025. Minimum Wage Increase: For 21+ year olds, it's now £12.21 per hour, and for 18+ year olds, it's £10.00 per hour. New Resident Base Scheme: Replacing the Non-Domicile system; details will be clarified. Mini Budget Insights The government has revealed its 2024 mini-budget, introducing several significant changes to address economic challenges and generate additional revenue. The key measures include increases in Capital Gains Tax (CGT), changes to Stamp Duty Land Tax surcharges, and hikes in employers' National Insurance contributions. The budget also outlines an increase in the minimum wage and introduces a new Resident Base Scheme to replace the current non-domicile tax system. Impact of the Budget on the Rental Market in London Capital Gains Tax (CGT) The increase in CGT rates may encourage property investors to sell their properties due to the higher tax burden. However, CGT on property remains unchanged, meaning landlords and investors in London might not be heavily affected in this aspect. Stamp Duty Land Tax Surcharge The hike from 3% to 5% for second properties will likely impact landlords looking to expand their portfolios. This could lead to a cooling effect on the market for buy-to-let properties, reducing demand and potentially slowing down the growth of rental inventories in London. Employers National Insurance The increase in employers' National Insurance contributions will raise the cost of employment for agencies and property management companies. This added expense might be passed on to clients, including landlords, which could increase the operational costs associated with property management. Minimum Wage Increase With the minimum wage now set at £12.21 for over 21s and £10.00 for those aged 18-21, landlords and property managers may face higher costs if they employ staff at these rates. This could result in higher service charges for tenants as landlords look to offset these increased expenses. The Challenges and Benefits Challenges The increase in Stamp Duty Land Tax will make purchasing additional properties more expensive, reducing the number of new landlords entering the market. Higher wages and National Insurance contributions will increase property management services costs. Higher CGT rates could deter investors from selling properties, potentially leading to a less fluid market. Benefits Keeping CGT property rates unchanged provides stability for current landlords. Provisions under the Renters' Rights Bill will lead to better living conditions and more robust tenant protections, potentially improving tenant satisfaction and reducing turnover. What to Take Away from Mini-Budget The 2024 mini-budget introduces several measures that will significantly impact the property and rental market in London. While the increased Stamp Duty Land Tax and National Insurance contributions will give challenges, maintaining the current CGT rates on property will offer some relief. Landlords must get used to these changes by reevaluating their investment strategies and preparing for higher operational costs. Additionally, the introduction of the new Resident Base Scheme and improved tenant protections under the Renters' Rights Bill requires that landlords stay informed and compliant with changing regulations. Proactive measures, such as improving property conditions and educating tenants, will be the key to facing these changes and maintaining a viable rental business. Overall, the mini-budget presents a mix of challenges and opportunities for landlords and property managers in London, requiring careful planning and strategic adjustments to stay alive in the London rental market.

Renting My House Out: Tips for UK Homeowners

Renting out your home can be an excellent opportunity to earn extra income, but it also comes with responsibilities and considerations. Whether you’re a first-time landlord or looking to enhance your renting experience, it is important to understand what can be done to add more value while you rent out the house. With years of experience in the UK rental and housing market, we have some valuable tips for all landlords. Let’s review the process and see some key points to guide you: 1. Research the Rental Market Before listing your property, it’s important to research the rental market in your area. You will need to understand the average rental prices for similar properties, the demand for rentals, and the types of tenants looking for homes. This information will help you set a competitive rent that attracts potential tenants while ensuring you get a fair return on your investment. Tip: Use online platforms or get help from Cribs Estate to compare local listings and build an understanding of the market trends. These tools can provide valuable insights into pricing and tenant expectations. 2. Prepare Your Property First impressions matter the most. If you prepare your property for potential tenants, it can impact your ability to rent it quickly. Consider making necessary repairs, freshening up the decor with a new coat of paint, and ensuring the garden is tidy. Staging your home can also appeal to a broader audience, making it more inviting and desirable. Additional Tips: Cleaning: A professional cleaning can make a significant difference. Decluttering: Remove personal items to allow tenants to envision their lives in the space. Safety: Ensure smoke alarms and carbon monoxide detectors are installed and functioning. 3. Know Your Legal Obligations As a landlord, you have specific legal responsibilities. Familiarise yourself with the laws and regulations governing rental properties in the UK. Some key obligations include: Gas Safety: Obtain a gas safety certificate and ensure all gas appliances are safe. Energy Performance: Provide tenants an Energy Performance Certificate (EPC) to demonstrate the property’s energy efficiency. Tenancy Agreements: Draft a clear tenancy agreement outlining the rights and responsibilities of both parties. Tip: Consider joining a landlord association, which can provide resources and updates on legal changes affecting landlords, or take help from Cribs Estate. 4. Screen Potential Tenants Finding the right tenants is critical for a successful rental experience. Implement a thorough screening process that includes: Reference Checks: Contact previous landlords or employers to gauge reliability. Credit Checks: Conduct credit checks to assess financial stability. Interviewing: Arrange interviews to understand the tenant’s character and compatibility with your property. Red Flags: Be cautious of tenants who seem suspicious during the screening process or provide incomplete information. 5. Consider Property Management Services If managing a rental property feels overwhelming, consider hiring a company like Cribs Estate. We have the best professionals to handle tenant communications, maintenance issues, and legal compliance, giving you peace of mind. We can also assist with marketing your property and screening potential tenants, making the renting process much more manageable. Benefits of Property Management: Expertise: We know the local market and can optimise your rental income. Time-Saving: You won’t have to deal with day-to-day management issues. Tenant Relations: We act as a buffer between you and your tenants, which can be beneficial in disputes. 6. Create a Maintenance Plan Maintenance is an ongoing responsibility for landlords, and they must evaluate all tasks that need to be done. As a landlord, you must establish a plan for regular inspections and upkeep of your property. Being proactive about maintenance can prevent small issues from escalating into costly repairs and help maintain tenant satisfaction. Checklist: Schedule seasonal checks on heating systems and appliances. Respond promptly to tenant maintenance requests to build trust and ensure tenant retention. 7. Stay Communicative and Accessible Communication is the key to getting the best experience in your rental cycle. You must be responsive to their needs and concerns and ensure they can contact you in emergencies. Building a good relationship with your tenants can lead to longer tenancies and a more pleasant rental experience for both parties. Tips for Effective Communication: Use digital tools for communication, such as messaging apps or email, to streamline the process. Set regular check-ins to ensure tenants feel supported and valued. 8. Understand Tax Implications As a landlord, you must be aware of the tax obligations of renting your property. Rental income is taxable, and you must declare it on your Self Assessment tax return. Points to consider: Allowable Expenses: Familiarise yourself with deductible expenses, such as maintenance costs, property management fees, and insurance. Capital Gains Tax: Understand the implications if you decide to sell the property in the future. Tip: Consult with a tax advisor to ensure you’re compliant and taking advantage of available deductions. 9. Stay Informed about Market Trends The rental market can change rapidly, influenced by factors such as economic conditions, legislation changes, and tenant demand shifts. Staying informed about these trends can help you make better decisions regarding your rental property. Resources: Subscribe to property news outlets or join landlord forums to keep abreast of the latest developments. Take Help From Cribs Estate Renting your house out can be rewarding with the proper knowledge and preparation. Following these essential tips allows UK homeowners to navigate the renting process more effectively, ensuring profitability and compliance. If you're considering renting out your property or need assistance, Cribs Estates is here to help. Our team will handle everything from market research to tenant screening, ensuring a smooth and successful rental experience.

The Role of a Guarantor for Renting in the UK

As a renter in the UK market, you need a credit history or a stable income to search for a landlord who will accept you. Similarly, for the landlords, you will not want to give your house to someone who has a low credit history. This is where the role of a guarantor comes in! To give you an idea, a guarantor is the safety shield for landlords as they offer reassurance that rent will be paid per the decided date and time. As a person in the UK market who is looking for a guarantor, here is what it's all about: Understanding the Guarantor's RoleA guarantor is typically a family member or close friend who agrees to take on the financial responsibilities associated with a rental agreement if the tenant defaults. This includes covering unpaid rent, damages, or other obligations outlined in the tenancy agreement.The role of a guarantor has gained importance, especially as landlords seek additional security amid rising rental prices and economic uncertainties. Many landlords now require potential tenants to provide a guarantor, particularly students or first-time renters with limited credit history. According to a recent survey, nearly 30% of landlords in the UK reported that they would not consider renting to tenants without a guarantor, highlighting the importance of this role in the current market. The responsibilities of a guarantor include:Financial Obligation: The primary responsibility of a guarantor is to ensure that the landlord receives payment if the tenant cannot. This financial backing is often crucial in securing a rental agreement, particularly in competitive markets where landlords prefer tenants with solid financial profiles.Legal Commitment: Guarantors must sign a guarantor agreement outlining their responsibilities and the extent of their liability. This legally binding document is enforceable in court, so it’s essential for guarantors to fully understand the terms before signing. They may be liable for the total unpaid rent plus any associated costs.Financial Responsibilities: Before agreeing to act as a guarantor, individuals should assess their financial situation and ability to meet potential obligations. Landlords typically conduct credit checks and background assessments to determine the suitability of a guarantor. Guarantors must be aware that they may be liable not just for their relative's rent but also for any damages or financial obligations that arise during the tenancy.What Is The Process of Guarantor?For anyone considering the role of a guarantor, the key is to know the process:Application: The potential guarantor typically completes an application form similar to the tenant's. This includes providing personal information, proof of identity, and financial details.Credit Check: Landlords usually conduct a credit check to assess the financial reliability of the guarantor. A solid credit history and stable income can significantly enhance the chances of approval.Signing the Agreement: Onc, the guarantor signs the guarantor agreement, outlining their obligations and liabilities. They should read this document carefully, as the wording can impact the extent of their responsibilities. Some agreements may contain clauses that limit the guarantor's liability to a certain amount, while others may hold them responsible for all debts incurred by the tenant.Important Implications for GuarantorsSome of the most common implications include:Financial Liability: Guarantors should know that they may be held liable for substantial sums if the tenant defaults. This can impact their credit rating and financial standing. A default by the tenant can lead to the guarantor facing recovery actions from the landlord.Long-Term Commitment: The guarantor's obligations include lease terms, especially if the tenant renews the agreement or transitions to a periodic tenancy. This long-term commitment should be considered before agreeing to act as a guarantor.Joint Liability: In cases where multiple tenants share a property, guarantors may be jointly liable for the actions of all tenants. If one tenant fails to meet their obligations, the guarantor could be held responsible for the entire amount. Consequently, guarantors must communicate effectively with tenants and understand the dynamics of shared living situations.Tips for Potential GuarantorsAssess Your Financial Situation: As a guarantor, evaluate your financial stability. Ensure you have the means to cover potential liabilities.Understand the Terms: Read the guarantor agreement thoroughly. Ensure that you understand your responsibilities and what circumstances may trigger your liability.Discuss Expectations: Have an open discussion with the tenant about their financial situation and responsibilities. Transparency can prevent misunderstandings later.Seek Legal Advice: If unsure about the terms or implications of the agreement, consult a legal professional to clarify your obligations.Commitment Required From GuarantorThe role of a guarantor in the UK rental market is multifaceted, offering tenants a pathway to secure housing. It also imposes considerable responsibilities on those who choose to take on this role. Prospective guarantors should ensure they fully understand the commitments involved and assess their financial stability before agreeing to guarantee a tenancy.How Can Cribs Estates Help?At Cribs Estates, we understand the complexities of renting in the UK and are here to assist both tenants and guarantors. Our expert team can provide guidance on tenant obligations, help draft clear guarantor agreements, and ensure that both parties are protected. We also offer resources to help you navigate the rental process effectively. Contact us today to learn how we can support your rental journey.Read More: renters rights 2024

Understanding Renters Rights in the UK: What Every Tenant Should Know

For tenants across the UK, renting a property can sometimes feel daunting due to complex contract rules that may shift towards the landlords. But, if you’re fully aware of the rights, it can change the scenario instantly, ensuring that you are protected and given power during your renting time. The government has created the right to offer a fair environment with a competitive grounding in the rental market. What are Renters' Rights in the UK? Renters rights in the UK are primarily governed by a series of regulations aimed at safeguarding tenants, regardless of their rental situation. Whether you are renting through a private landlord, housing association, or a letting agent, these protections are fundamental to ensuring your wellbeing as a tenant. These rights don’t just benefit tenants; they also create a clear structure for landlords, ensuring mutual respect and clear communication. Let’s have a look at some of the common rights in the Government Act: 1. Right to a Safe and Habitable Home One of the most common rights for renters is the right to live in a safe and habitable home. Under the Homes (Fitness for Human Habitation) Act 2018, landlords are required to maintain the property to a standard that is free from hazards. This includes primary areas like heating, electrical safety, and the overall structural condition of the building. If your landlord fails to address safety concerns, tenants are encouraged to report these issues and can even take legal action if necessary. 2. Deposit Protection There was a time when tenants would lose their deposits for no actual reason, but this law was changed after the Tenancy Deposit Protection (TDP) schemes. Government-backed schemes ensure that your deposit is safe and will be returned if the terms of your tenancy are met. This means landlords cannot simply withhold your deposit, and if they do, tenants have the power to file a case against this. As a tenant, you should understand how these schemes work and your ability to claim compensation if your deposit is mishandled. 3. Fair Rent and Transparency UK rental agreements must be transparent, meaning landlords cannot increase rent suddenly. Under UK law, landlords must outline rent increases within the tenancy agreement, and these must reflect the rental market rates. Suppose you feel that your rent increase is unfair. In that case, there are possibilities to challenge this via the First-tier Tribunal, which is a valuable protection for renters in today’s economic climate. 4. Right to Peaceful Enjoyment Renters are legally entitled to enjoy their rented home without unnecessary interference from the landlord. This protection, known as the right to quiet enjoyment, ensures that landlords cannot enter your property without appropriate notice. If a landlord consistently violates this right by showing up unannounced, or behaves in a harassing manner, tenants have the ability to seek legal recourse. It is a vital protection, ensuring that tenants feel secure and respected during their tenancy. 5. Eviction Procedures Eviction is a stressful situation for any tenant, but landlords must follow strict procedures in the UK to carry out a lawful eviction. There are two main eviction routes: a Section 21 notice (no fault) and a Section 8 notice (breach of tenancy terms). If you understand these processes, you can clarify your rights to challenge an eviction, especially if it seems unjust or improperly handled. Knowing when and how you can contest an eviction is the key, especially as the rental landscape becomes increasingly competitive. 6. Right to Information Landlords are legally required to provide tenants with certain documents, such as the How to Rent guide, an Energy Performance Certificate (EPC), and a Gas Safety Certificate. These documents ensure that you are informed about your rights and the condition of the property. If your landlord does not provide these, it could affect their ability to legally evict you. So, you can ask about these documents; if they still fail to provide, you can take it up to the council. 7. Maintenance and Repairs One of the most common issues faced by tenants is maintenance. As a renter, you have the right to live in a property that is in good condition. This includes functioning heating systems, plumbing, and structural integrity. If repairs are not carried out in a timely manner, you may request compensation or carry out the repairs yourself and deduct the cost from your rent (with proper legal advice from a company like Cribs Estate). 8. Protection from Discrimination The Equality Act 2010 protects tenants from discrimination based on characteristics such as race, gender, disability, and more. If you feel that you have been discriminated against when renting, whether during the application process or as a current tenant, you can take legal action to ensure your rights are upheld. 9. Rent Repayment Orders If your landlord operates without the required licenses or breaches housing laws, tenants can apply for a Rent Repayment Order (RRO). With this step, you can claim back up to 12 months' worth of rent if the landlord still needs to follow the correct legal procedures. This is relevant mainly in areas with Selective Licensing schemes. 10. Freedom to Challenge Unfair Fees Under the Tenant Fees Act 2019, tenants are protected from being charged excessive or hidden fees by letting agents or landlords. The law has a bracket for holding deposits, bans administrative fees, and restricts charges related to contract changes, key replacements, and late rent payments. If you think you are charged unfairly, you can report it to your local council or the Trading Standards authority. How Can Cribs Estates Help? Cribs Estates supports tenants across the UK, ensuring that renters are well-informed about their rights and protected throughout their tenancy. Whether you need help understanding your contract, resolving disputes with your landlord, or ensuring your deposit is secured properly, Cribs Estates is there to assist. Our expertise in property management and tenant advocacy ensures that you get the fair treatment you deserve, making your renting experience smooth and transparent.

Property search

Residential Lettings

Residential Sales

HMO

Commercial Sales

Price

Min price

Max price

Number of Bedrooms

Min bedrooms

Max bedrooms

Find properties