Guide price vs reserve in UK property auctions
Why two different figures exist
Most residential lots show a guide price. That is essentially marketing: a band or single figure the auctioneer thinks will attract interest. It is not a valuation promise, and it is not where bidding will necessarily stop.
The reserve is the minimum the seller will accept. You will not know the exact number unless the auctioneer chooses to tell you, and many will not until you are close to the sale. If bidding does not reach the reserve, the lot is “passed in” or withdrawn unsold.
What actually matters on the day
Assume the hammer price can sit well above the guide. I have seen terraced houses in the Midlands open with a modest guide and finish at a level that matched recent sold prices on the street — not the opening figure on the catalogue page.
Do your own comps. Land Registry and portal sold data still beat anything printed in bold at the top of a PDF catalogue.
Questions worth asking the auction room
- Has the reserve been fixed, and can it be lowered before auction day?
- Is the guide price a single lot or a shared guide across a group title?
- Will unsold lots be available for private negotiation immediately after?
Budgeting without nasty surprises
Work backwards from the maximum exchange deposit you can place (often ten percent of your bid on modern residential auctions) plus buyer’s premium or admin fees if they apply. Leave headroom for surveys you might still want, insurance from exchange, and your solicitor’s time to review the legal pack.
If the guide price looks “cheap” for the postcode, treat that as a prompt to read the special conditions, not as a green light to skip due diligence.