What role do property auctions play during a receivership process?

Did you know that thousands of the 5.5 million businesses here in the United Kingdom become insolvent every month? Creditsafe’s report highlighted that over 2,300 companies started these proceedings in June 2025 alone, with many feeling the pinch of ongoing financial pressures.

When a Borrower can no longer meet their financial commitments, lenders will seek to recover their outstanding liabilities by enforcing their security by way of a legal charge over a fixed charge asset. This will likely involve disposing of the distressed asset, and auctions can be a helpful solution.

Receivers are often appointed in these circumstances, and it will be their job to prepare reports and recommend the best course of action for successfully recovering the Bank’s debt from the properties.

What are the benefits of using property auctions for receivership proceedings?

• Maximising returns – Competitive bidding can help achieve the highest possible price, allowing lenders to potentially recover all of what they are owed in addition to the costs of the receivership
• Speed and efficiency – Traditional private treaty sales are currently taking up to 20 weeks to conclude. Cash buyers at auction can complete in just 28 days after the hammer falls
• Transparency and fairness – Auctions are publicly advertised and open, fully exposing the property to the market, reducing the risk of criticism of not maximising returns and achieving fair value

What property types can be auctioned?

You can list most property types at auction. Some examples of buildings we have experience selling via this method include:

• Commercial (including industrial, offices and retail)
• Residential (including investment properties)
• Hospitality and leisure properties
• Land

Properties valued between £50,000 and £250,000 are usually the most suitable for this sale method due to lot size, but this is not restricted.

Our partnership with the receivers

Pugh is part of Eddisons, and we have an experienced receivership team that we work closely with. Typically, a Lender will appoint them to sell a property and recover their funds.

After producing a report on the subject property, the receivers will advise whether a private treaty sale or auction is the best method of disposal to recover the Bank’s debt. We may be consulted to assist with the decision-making process. If a property auction is chosen, then we will be instructed to list, market and sell it.

Please visit the Eddisons Asset Advisory, Restructuring and Recovery page to learn more about how we assist with the receivership process.