Where is the most lucrative place to be an estate agent?

Property recruitment specialists, Rayner Personnel, has revealed which areas of the UK offer the greatest potential earnings for estate agents operating in that particular market.

They looked at the average monthly earning potential on offer across each of the UK’s regions and major cities, based on the average fee and the average number of monthly property transactions.

The research shows that, across Britain, there is some £274.4m up for grabs in estate agency commission every month.

In England, the current average fee of 1.5% means that potential earnings hit £248,667,842 per month, based on the average earning potential of £3,774 per property completion, multiplied by the 65,895 transactions that take place on average every month.

Regionally, London tops the table as the most lucrative region for estate agents based on monthly earning potential.

With an average fee of £8,501 and an average of 6,867 sales each month over the last year, there is a potential £58.37m to be earnt each month in the capital.

The South East isn’t far behind (£56.29m), followed by the East of England (£34.18m), the South West (£32m) and the North West (£21.13m).

Outside of London, Edinburgh is the second most lucrative city.

On average, 953 transactions completed every month over the last year, generating a potential £3.26m in estate agency income on a monthly basis.

Birmingham (£2.99m), Leeds (£2.71m), Bristol (£2.31m), Bournemouth (£2.3m), Sheffield (£1.61m), Glasgow (£1.56m), Cardiff (£1.47m) and Manchester (£1.27m) also rank as some of the most potentially lucrative major cities for estate agents on a monthly basis.

Founder and CEO of Rayner Personnel, Josh Rayner, commented:

“London is always going to drive the market in terms of volume and estate agent earning potential due to the generally higher fees. However, it’s important to remember that while these potential earnings differ by region and city, so too does the number of agents battling it out for this business.

“The threat of the online and hybrid model hasn’t escalated to the levels previously expected, but they still pose a threat in terms of acquiring transactions across the UK which will also reduce available income.

“While we appreciate that not every agent charges the average fee for their services, we wanted to highlight that the UK property market is alive and well despite wider uncertainties and estate agents can still make a very good living.”

Tables show the average fee charged in each nation, region or city, the average monthly number of sales, as the potential fee earning available to estate agents based on this number of transactions.
Location Average House Price Average fee (%) Average fee (£) Average Monthly Sales (Last 12 Months) Potential Earnings on Offer
England £248,271 1.52% £3,774 65,895 £248,667,842
Wales £161,684 1.59% £2,571 3,807 £9,788,024
Scotland £151,856 1.25% £1,898 8,564 £16,256,849
Location Average House Price Average fee (%) Average fee (£) Average Monthly Sales (Last 12 Months) Potential Earnings on Offer
London £485,794 1.75% £8,501 6,867 £58,374,838
South East £323,353 1.55% £5,012 11,232 £56,292,802
East of England £291,254 1.51% £4,398 7,773 £34,182,940
South West £263,360 1.58% £4,161 7,695 £32,020,614
North West £166,202 1.38% £2,294 9,215 £21,136,367
East Midlands £194,664 1.46% £2,842 6,262 £17,797,916
Yorkshire and the Humber £159,208 1.48% £2,356 6,873 £16,193,932
West Midlands £186,868 1.45% £2,710 2,795 £7,572,826
North East £126,945 1.51% £1,917 3,210 £6,152,817
Top 10 Major Cities Average House Price Average fee (%) Average fee (£) Average Monthly Sales (Last 12 Months) Potential Earnings on Offer
London £485,794 1.8% £8,501 6,867 £58,374,838
Edinburgh £270,111 1.3% £3,430 953 £3,268,327
Birmingham £185,499 1.6% £2,912 1,027 £2,990,721
Leeds £183,707 1.5% £2,737 994 £2,719,663
Bristol £285,268 1.5% £4,279 540 £2,310,315
Bournemouth £283,469 1.5% £4,110 560 £2,300,395
Sheffield £167,332 1.6% £2,644 610 £1,612,303
Glasgow £134,500 1.2% £1,587 982 £1,558,796
Cardiff £210,909 1.6% £3,290 448 £1,474,275
Manchester £184,506 1.4% £2,657 481 £1,277,738

 

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