The commission charged by estate agents naturally varies across each region of England and Wales, with new research revealing that average fees start from just over £1,800 in the North East and increase to almost £9,200 in London.
Yes Homebuyers analysed data from the Land Registry as well as GetAgent.co.uk in order to calculate the average fee charged by agents in each area, along with the number of transactions that have completed so far this year, and what this equates to in terms of the commission earned by agents across England and Wales.
The study by the property acquisition firm found that London, where the average property sold for £525,660, at a median agent fee of 1.75%, predictably tops the table for agent commission so far this year, at an average of £9,199.
The South East has been identified as having the second-highest total with agents in the region earning an average commission of £5,101.
The East of England has seen agent commission hit an average of £4,512, while in the South West it now stands at £3,925.
Agents in the North East typically earn the lowest amount, at an average of £1,809.
Unsurprisingly, Kensington and Chelsea in London has seen the most considerable fees on a local level with an average agent earning £30,198.
Westminster ranks second at an average fee of £21,045, followed Wandsworth at an average of £11,934.
Cornwall ranks highly as one of the estate agency fee hotspots outside of London, along with Birmingham, Leeds, Bournemouth, Wiltshire and Bristol.
Matthew Cooper, founder and managing director of Yes Homebuyers, said: “It’s fair to say that many agents more than earn the fee they charge and have been adding significant value to the home selling process through what has been a tough few years of political uncertainty, followed by a dose of pandemic market madness.”
Comments (14)
Now is not the time for agents to be criticised for the fees they charge. The sector has just emerged from a severe crisis and who knows when the next cliff edge will come, either via another lockdown or the end of the SDLT holiday. There are not many businesses whose income can vary so dramatically with changes in the economy so agents need to be able to charge a fee that prices in all these risks.
Extracts from the book “No.1 Bastard Estate Agent. (someone no longer in their original form) How to Evolve in Property Selling” available on Amazon..
“Price to Charge
In traditional UK estate agency the fee that the client pays is determined by a number of factors. The value/eventual sale price of their home and whatever they can negotiate as a percentage or fixed commission figure with the valuation agent on the day they sign up. Their agents pricing is a dark art, a closely guarded secret, try calling a traditional retail estate agent and asking what they charge and you will see this perfectly demonstrated. Not very transparent and a factor in the general mis-trust of traditional estate agents.
Why Charge So Much?
A fee is a fee. It suits the traditional agent during a valuation to sell a commission fee of 1.5% of the eventual sale price as it gives the illusion that it’s only a small amount of money, just 1.5%, sounds like a small number!
When house prices were £30,000 in the 1990’s the percentage fee of 1-1.5% was ok at £300 to £450 but with an average UK sale price now of over £250,000 is the 1.5% fee of £3750 plus Vat still appropriate for the services received? Is it fair to charge eight times as much for work that is now far easier and cheaper than 30 years ago thanks to the internet, emails and desk top printing?
As well as this why does the owner of a million-pound house pay 1 percent (£10,000 plus vat) of their sale price to the agent when the owner of the £100,000 apartment pays £1000 and yet they sit side by side on the same property internet portal that both buyers will find it on. A few extra photos and a bigger floorplan on the more expensive property does not justify the extra £9000 the homeowner is required to pay the traditional agent.
Charge for your services what you should for your business and the clients benefit, not what you think you can get away with!”
….Discuss.
Morning, in short, YES…. I do believe that we are worth at least 1.25% if not more. Back in the 90’s, most of us worked on a minimum fee structure and believe it or not, had much lower costs without all the technology. These days, those additional costs, along with the excellent service that many of us provide proves to be good value for money. As long at the agent can work for their fee, the seller will not feel short changed.
We do not quite match the average fee for our area (South East) but, we pride ourselves on a quality service from start to finish, and beyond.
I could go on about increased building rents, staff wages, internet charges, software charges, etc. but as I am sure you can understand, many things have gone up since the 90’s
Anyway, happy days 🙂
I have recently sold 2 house vi an agent who charged 1%. The figure he achieved was more than quoted by 4 other more expensive agents.
Having run an agency in Australia, I can say the fee structure here is a joke. Nothwithstandibg regional differences, it’s Way too low to truly deliver benefit for both agent and vendor. Purple bricks in Australia charged about £2k but had to bail as it translated into sell at any price because it’s a volume game. The fee market here is a race to the bottom and vendors will be the absolute losers.
I’m sick to death of agents trying to win business by offering cheap fees. Why not try to increase your skills instead. If you win an instruction because you’re cheap don’t be proud of yourself, be embarrassed!
Agents shouldn’t be doing anything for less than £2000…….
Often more work goes into the cheaper empty houses…..
Thankfully most agents are putting their fees up at the moment.
Most realise that working for 1% or under isn’t viable…
Many agents add on getagent’s rip off 0.25% onto their fee pushing it up, so taking this and vat off brings fees nearer 1% net. A truer picture.
No massive surprises there. Always knew the northern agents worked harder for their money. Wonder how long any of southern rich boys would last in the job up north? To be fair they’d probably go back down south as soon as it started raining and someone called them ‘love’!
Very true. Northern agents should all be charging 2%…
grow up – I have worked ooop north and found the competition a joke – lazy and inept
Presumably inclusive of VAT?
These figures are wrong for my area by 50%.
0.9% on 200k be closer