Research by the estate agent comparison site, GetAgent.co.uk, has found that despite the rate of commission charged by estate agents remaining largely unchanged over the last year, a house price boom has seen some earn as much as 9.5% more per sale.
Britain's Estate Agents See A 4.6% Uplift In Profits
GetAgent keeps a comprehensive record of the commission fees charged by estate agents across Britain and their latest data shows that the average agent fee charged is currently 1.48% inclusive of VAT.
Despite the property market rebounding at an astounding rate since lockdown restrictions were eased, estate agents are actually charging marginally less now than they were a year ago when the average commission fee was 1.5%.
A year ago this 1.5% 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.
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 five per cent.
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. 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.
The Boom In The Property Market
Founder and CEO of GetAgent.co.uk, Colby Short, commented:
“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)
- GetAgent pulls data from all of the major portals which are then cross-referenced with the Land Registry using their proprietary algorithms and input from partner agents.
- GetAgent is a UK wide whole of market estate agency comparison website. Analysing performance through data to inform home sellers of the best agents.
- Founded in 2015 by Colby Short (Stevenson Cartwright; SMG Worldwide) and Peter Thum-Bonanno (Find Properly; Analysys Mason)
- Backed by Seedcamp, the prolific venture capital technology investor
- And has to date received over 100,000 enquiries for agents from property sellers to a total property value of £30bn and are now serving over 10,000 enquiries per month.