Figures from the Scottish executive show that 6,285 repossession decrees were made by Scottish courts last year — up 34% on the previous year and a 50% increase on 1990 figures compiled at the height of the most recent housing crash.

Two big property auctions are planned for Glasgow this month, with keen-eyed homeowners joining the usual array of property insiders, developers and builders looking for investment opportunities.

The impact of both sales by Countrywide Property Auctions (June 15) and SVA (June 28) at the Quality Central Hotel will be keenly monitored by housing professionals, as agents, landlords, lenders and investors seek information on current market conditions.

Stephen O’Neill, of Newton Letting, says the UK auction market last blossomed in the early 1990s as a result of the housebuilding recession and negative equity in England. With repossessions again on the increase, it’s no surprise that auctions are back in the minds of investors.

“Typically a lender with a repossessed property will run a three- or four-week conventional campaign before sending it to auction,” says O’Neill.

But that doesn’t mean there are easy profits to be made. The difficulty that novice auction buyers face is in distinguishing between cheap lots and homes that genuinely offer a bargain. “A lot of the repossessions I’m seeing are peripheral properties in indifferent locations,” says O’Neill. “Basically, if a property has legs the lender will be able to sell it on the open market to secure a greater return.”

There is certainly as much in most sale catalogues that conforms to what O’Neill describes as “the bad and the ugly,” as well as the good. But there is also much to arouse interest.

With a guide price of £78,000-£84,000, a ground-floor, two-bed flat in Nithsdale Street, Strathbungo, situated opposite architect Alexander Greek Thomson’s former home, is bound to attract significant interest, not least from first-time buyers. And a two-bed flat at Waverley Court, Titwood Road, in Glasgow’s southside may prove to be a bargain. With a guide price of £110,000, it was apparently bought for £170,000 originally.

A five-bedroom detached villa in Monifeith, Dundee, has a guide price of £300,000. It is unlikely to be short of bidders in an area that has many £500,000 homes.

Perhaps the most interesting lot is a two-bed flat at the Lindens, in Bothwell, Lanarkshire. There is no guide price available, but local agent Jamie Lonsdale says: “These are certainly quality homes, finished to a very high standard. They have an open market value of around £200,000 and are part of an upgraded nunnery complex built here about four years ago. It’s definitely a desirable home in a popular location.”

For Shaun Vigers of SVA, however, the culture of auction sales is changing. There are now opportunities for ordinary investors. “The perception of cheapness and desperation is being eroded and sales are not the ‘bucket shops’ of former times,” says Vigers. “Increasingly they’re the method of first resort, especially for corporate or public sector clients.”

Among the properties at SVA’s upcoming sale will be an attractive detached villa in Keith, with a guide price of £150,000-£175,000. And distillery workers’ cottages in Forres and Orkney are likely to appeal to holiday home investors. Vigers says: “Really we’re seeing the full gamut from suits to shellsuits at our sales and we regularly get 500-plus people turning up.”

He believes the impression of a repossessions spike is false, based on a dearth of comparable repossessed homes in the boom of the past decade. “The numbers aren’t high and the people who are coming unstuck now are often English-based vendors who are feeling the pinch down south and are selling their second homes here. Other casualties are off-plan buyers and buy-to-let investors who can’t get the yields to meet their outgoings.”

For those tempted by a saleroom bargain, Vigers advises that the phrases “due dilligence” and “caveat emptor” should be at the forefront of their minds. The white heat of an auction room is no place for the unprepared, the unrealistic or the financially compromised. When that hammer goes down there’s no cooling off period — you must be able to match the commitments you make.

There is no reason why a private individual should not buy at auction, but you do need to do your homework. Get a sale catalogue as early as possible and visit the properties you are interested in as you would a house that is being sold in the conventional way.

If you want to buy at auction and need a mortgage, approach lenders early. Make sure the lender knows you want to buy at auction and have credit and personal checks carried out as soon as possible. You will have to get a valuation survey on any house you intend to bid for. Local authority searches should also be carried out.

As many sale properties are not in first-class condition, a more thorough survey is often advisable. Many lenders will only cover a relatively small proportion of the value of an auctioned property. Also, consider making an offer before the sale starts — a lot of vendors prefer the certainty of an actual offer to the vagaries of the saleroom.

If successful, you will usually be expected to pay a deposit of around 10% on the night. Cash is often not acceptable, so you will need to have made arrangements with your bank for an instant transfer of funds. Settlement and completion is generally 28 days later. If you can’t settle there is a good chance you will lose your deposit.

Explore Property

• Buying & Selling

• New Homes

• Overseas

• Interiors

• Investment

• Gardens

• Specials

Times recommends

• Analysis: frustration for everyone - except investors
• Spanish property: why it's crunch time on the Costa del Sol
• Buy-to-let: professional investors cash in on the credit crunch