Research from WiggyWam estimates that estate agents have generated an average of £120,770 per branch in fees since July 2020 thanks in part to the stamp duty holiday, which has helped boost housing market activity across the country.
The online property platform has based its calculation on the basis that an estimated 772,830 transactions have completed between July 2020 and May 2021 at an average price of £245,079.
It also assumes that the average UK agency earns a fee of 1.42% per transaction – equivalent to £3,480.
With an estimated 22,270 agency branches in the UK, WiggyWam says that this makes for an average of £120,770 per branch in fees since July 2020.
When analysing the fees generated on a per branch level, Scottish agents have had, by far, the most successful year, according to the study.
With around 20,661 agency branches in England, each one has earned an average of £112,213 in fees, while in Scotland where there are roughly 784 agency branches, each one has generated a remarkable £282,347 in fees.
Each of the 533 agents in Wales have generated £150,535 per branch, and in Northern Ireland, 291 branches have generated £146,943 each.
WiggyWam CEO, Silas J. Lees, said: “Most are making hay whilst the sun shines, yet those forward-thinking agents with an eye on the future are also contemplating what could be a very different market later this year once furlough ends and the extent of possible job losses are known.”
He added: “Agents need to make plans to differentiate their services from their competition, whilst looking to increase their fees during a slower market.”
The table below shows the estimated fees accumulated by estate agents in each region based on:
– An average fee of 1.42% Inc VAT – source the Advisory
– This fee applied to the average house price in each region and then multiplied by the volume of sales to find total fees paid – Source UK House Price Index
– Total fees then divided by the number of estate agents in each region to find the average fees per estate agent
| Location | Estimated number of estate agents | Estimated Total fees | Estimated fees per estate agent |
| United Kingdom | 22,270 | £2,733,224,554 | £122,731 |
| England | 20,661 | £2,388,637,652 | £115,612 |
| Wales | 533 | £80,278,885 | £150,535 |
| Scotland | 784 | £221,481,556 | £282,347 |
| Northern Ireland | 291 | £42,826,461 | £146,943 |
| East Midlands | 1,072 | £165,263,577 | £154,200 |
| East of England | 2,042 | £317,602,008 | £155,519 |
| London | 7,514 | £464,222,893 | £61,784 |
| North East | 491 | £59,642,591 | £121,493 |
| North West | 1,901 | £213,691,475 | £112,433 |
| South East | 3,279 | £539,434,551 | £164,496 |
| South West | 1,551 | £291,408,836 | £187,849 |
| West Midlands region | 1,484 | £177,865,221 | £119,846 |
| Yorkshire and the Humber | 1,327 | £159,506,499 | £120,199 |
More silly attention grabbing headlines that our industry just doesn’t need!
Why not base a story on facts rather than assumptions?
With the current fee war going on I would be surprised if the average fee was over 1%!
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In our area, Reading, agents have just panicked and slashed fees, often quoting 0.75 or flat fees of £2500 plus vat on 500k houses! It’s not the consumer pushing fees down, it’s the agents who seem happy to sell themselves short.
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Average fee in 2020 was £4,120 per unit completed.
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