How Auctions Work in the UK — A Complete Guide

Whether you have never set foot in an auction room or you are a seasoned collector, understanding how auctions work in the UK can help you get the best deals and avoid common pitfalls. This comprehensive guide covers everything from registration to collection.

What is an Auction?

An auction is a public sale where items (called “lots”) are sold to the highest bidder. In the UK, auctions are governed by the Sale of Goods Act and the Auctioneers Act. Every auction house operates under published Terms and Conditions that outline the rules of the sale.

Types of Auction

Traditional Saleroom Auctions

The classic format where an auctioneer stands at a rostrum and takes bids from the room. At Clumber Auction House, we hold fortnightly saleroom auctions at our premises in Dinnington, Sheffield.

Online Auctions

Many auction houses, including Clumber Auction House, offer live online bidding via platforms like BidSpirit. This allows you to bid in real-time from anywhere in the world.

Timed Auctions

Lots are available for bidding over a set period (similar to eBay). The highest bid when the timer expires wins the lot.

How to Register

Before you can bid, you need to register with the auction house. This typically involves:

• Providing your name, address, and contact details
• Showing photo identification (passport or driving licence)
• Receiving a bidder number or paddle
• For online bidding, creating an account on the auction platform

How Bidding Works

The auctioneer opens bidding at the starting price or below the lower estimate. Bidding increments typically follow a standard pattern:

• £0 – £100: increments of £5 or £10
• £100 – £500: increments of £10 or £20
• £500 – £1,000: increments of £50
• £1,000+: increments of £100 or more

The auctioneer will call “Going once, going twice, sold!” and bring down the gavel to confirm the sale. The final price is called the hammer price.

Understanding the Buyer’s Premium

On top of the hammer price, buyers pay a buyer’s premium. This is a percentage added to the hammer price as the auction house’s fee. At Clumber Auction House, the buyer’s premium is 20% + VAT (24% inclusive). This is standard across the UK auction industry.

Example: If you win a lot at a hammer price of £100, you would pay £100 + £24 (buyer’s premium inc. VAT) = £124 total.

Payment and Collection

After the auction, successful bidders are expected to pay promptly — usually within 5 working days. Most auction houses accept:

• Cash (subject to anti-money laundering limits)
• Debit/credit cards
• Bank transfer

Items must be collected within the timeframe specified in the Terms and Conditions. Uncollected items may incur storage charges.

Tips for First-Time Auction Buyers

1. Attend a viewing — Always inspect items before the auction. Lots are sold “as seen” with no returns.
2. Set a budget — Decide your maximum bid before the auction and stick to it. Remember to factor in the buyer’s premium.
3. Research estimates — Auction catalogues include estimated values. Use these as a guide, but remember that items can sell above or below estimate.
4. Start small — Begin with lower-value lots to get comfortable with the process.
5. Ask questions — Auction staff are always happy to help newcomers.

Ready to Start Bidding?

View our upcoming auctions and browse the catalogue. If you have items you would like to sell, visit our free valuations page or contact us to discuss consignment.

How to Sell at Auction: Your Step-by-Step Guide

Selling at auction is one of the best ways to achieve fair market value for antiques, collectables, jewellery, and specialist items. This guide explains the entire process, from initial valuation to receiving your payment.

Step 1: Get a Free Valuation

The first step is to find out what your items are worth. At Clumber Auction House, we offer free valuations with no obligation to sell. You can:

• Bring items to our saleroom in Dinnington, Sheffield
• Email photographs to info@clumberauctionhouse.com
• Arrange a free home visit for larger collections

Step 2: Consign Your Items

If you decide to sell, you will complete a consignment form. This documents the items being entered into the auction and confirms the agreed commission rate and any reserve prices.

What is a Reserve Price?

A reserve is the minimum price you are willing to accept. If bidding does not reach the reserve, the item is “bought in” (unsold). Your auctioneer will advise on setting realistic reserves to maximise your chances of a sale.

Step 3: Cataloguing and Photography

Our team photographs and describes each lot for the auction catalogue. Items are listed online ahead of the sale, giving potential buyers time to research and plan their bidding. Good descriptions and photographs attract more interest and higher prices.

Step 4: The Auction

On sale day, your items are presented to a room full of bidders — plus online bidders from across the UK and beyond. Our experienced auctioneers create excitement and competition to achieve the best possible prices.

Step 5: Payment

After the auction, you will receive a settlement statement detailing each lot sold, the hammer price, and the commission deducted. Payment is typically made within 15–21 working days after the sale.

Understanding Auction Commission Rates

Auction houses charge commission to the seller (and separately to the buyer via the buyer’s premium). At Clumber Auction House:

• Seller’s commission: 15% + VAT of the hammer price
• No lotting fees — We do not charge per-lot entry fees
• No unsold fees — If your item does not sell, there is no charge
• Insurance: Items are covered by our insurance whilst in our care

Example: If your item sells for £200 hammer price, you would receive £200 minus £36 (15% + VAT commission) = £164.

What Sells Well at Auction?

Almost anything can be sold at auction, but items that consistently perform well include:

• Gold, silver, and precious jewellery
• Antique furniture (Georgian, Victorian, mid-century)
• Art — original paintings, signed prints, sculptures
• Coins, medals, and banknotes
• Militaria — uniforms, medals, weapons, ephemera
• Vintage toys — Dinky, Corgi, Hornby, Lego
• Comics — especially Silver Age Marvel and DC
• Quality tools and industrial equipment

Start Selling Today

Submit your items online or contact us to arrange a free valuation. Call 01909 560 005 or email info@clumberauctionhouse.com.

What is a Buyer’s Premium? Everything You Need to Know

If you are new to auctions, the term “buyer’s premium” can be confusing. This guide explains exactly what it is, how it works, why it exists, and how to factor it into your bidding strategy.

Buyer’s Premium Explained

A buyer’s premium is an additional fee charged to the winning bidder on top of the hammer price. It is the auction house’s fee for facilitating the sale — covering costs such as cataloguing, photography, marketing, insurance, and running the saleroom.

The buyer’s premium is expressed as a percentage of the hammer price and is always stated in the auction house’s Terms and Conditions and catalogue.

How is the Buyer’s Premium Calculated?

At Clumber Auction House, the buyer’s premium is 20% + VAT (24% inclusive of VAT at the current standard rate). Here is how the total cost is calculated:

Hammer Price	Buyer’s Premium (20%)	VAT on Premium	Total Cost
£50	£10	£2	£62
£100	£20	£4	£124
£500	£100	£20	£620
£1,000	£200	£40	£1,240

Why Do Auction Houses Charge a Buyer’s Premium?

The buyer’s premium is an industry-standard practice used by virtually every auction house in the UK, from small regional salerooms to major houses like Christie’s, Sotheby’s, and Bonhams. It helps cover:

• Cataloguing and photography — Professional descriptions and images for each lot
• Marketing and advertising — Promoting auctions to attract buyers
• Saleroom facilities — Viewing days, storage, and auction day operations
• Online platforms — Live streaming, online bidding infrastructure
• Insurance — Covering items whilst in the auction house’s care
• Staff expertise — Qualified auctioneers and specialist valuers

Tips for Bidding with the Premium in Mind

1. Always calculate the total cost — Before bidding, work out the hammer price plus premium. If your budget is £124, your maximum hammer price bid should be £100.
2. Check the Terms — Premium rates vary between auction houses. Always check before bidding.
3. Factor in VAT — For standard lots, VAT applies to the premium only. For VAT-registered lots (marked with a dagger †), VAT may apply to the hammer price too.
4. Compare total costs — Even with premium, auctions often offer better value than retail for antiques and collectables.

Start Bidding at Clumber Auction House

Browse our upcoming auctions and start bidding today. New to auctions? Read our complete guide to how auctions work or contact us with any questions.