Estate agents have earned up to 9.5% more in commission per sale over the past 12 months thanks to the surge in house prices, claims GetAgent.co.uk.
The estate agent comparison site says that it pulled data from all of the major portals which was then cross-referenced with the Land Registry using their proprietary algorithms and input from partner agents.
The latest data, according to GetAgent, shows that the average agent fee charged is currently 1.48% inclusive of VAT, down slightly from 1.5% a year ago.
With the rate of commission charged by estate agents remaining largely unchanged over the last year, growth in property prices naturally means that agents are earning more money year-on-year.
The average fee of 1.5% earned 12 months ago equated to a fee of £3,591, however, since then house prices have climbed across Britain, meaning the current fee of 1.48% equates to £3,755 in today’s market – a 4.6% uplift.
Based on GetAgent’s calculations, agents in the North East have seen the biggest increase in earnings, with the average fee now £2,146 having increased by 9.5% from £1,960 in the last year.
In Wales, the average take-home fee has increased by 7.5%, with the East of England (6.1%) and East Midlands (5.1%) also seeing an increase of more than 5%.
The East of England has seen the biggest uplift in terms of the actual increase per transaction. A year ago, the average agent made £4,410 per transaction on average. Today this has increased to £4,678, an increase of £268 per property sold.
The London market has struggled to keep pace with the rest where the current house price boom is concerned and this is reflected in the average earnings on London estate agents, according to the research.
A year ago, the average London agent charged 1.74% and took home £8,401 per property. Today this average fee has climbed by just 1.8% to £8,555 per transaction. The lowest increase of all regions although it remains the highest monetary fee by far.
Colby Short, founder and CEO of GetAgent.co.uk, said: “The property market is currently booming and it’s fair to say that it could have been a very different story if it wasn’t for the nation’s estate agents who have put in a tremendous shift pretty much since the start of the pandemic. Not only have they had to negotiate lockdown restrictions and social distancing requirements, but they were also some of the first back in the trenches and since then they’ve had to service an overwhelming level of buyer demand.
“It’s also pretty commendable that despite the market going from strength to strength, agents haven’t tried to take advantage of this heightened activity by increasing the commission charged. Of course, they have seen a slight uplift in their take-home pay due to an increase in property values, but I think many will agree this is fully deserved.”
|Location||Ave house price – July 2020||Ave fee % (inc VAT) – July 2020||Average agent fee £ – July 2020||Latest average house price||Latest ave fee % (inc VAT)||Latest average agent fee (£)||Ave agent fee – annual change (£)||Ave agent fee – annual change (%)|
|East of England||£292,082||1.51%||£4,410||£313,964||1.49%||£4,678||£268||6.1%|
|West Midlands region||£203,692||1.45%||£2,954||£216,973||1.42%||£3,081||£127||4.3%|
|Yorkshire and the Humber||£169,347||1.48%||£2,506||£179,408||1.45%||£2,601||£95||3.8%|
|Average house price sourced from the Land Registry House Price Index (July 2020 to April 2021 – latest available data)|
|Average estate agent fee sourced from GetAgent (July 2020 to June 2021)|