With no end in sight where Brexit uncertainty is concerned and the Land Registry recently reporting the slowest rate of price growth in almost six years, for sale by owner platform, OkayLah.co.uk has looked at how much high street estate agents are still making in commission fees despite wider market conditions.
With the current average fee of 1.4% Inc VAT across the UK and an average house price of £228,147, high street estate agents are still bagging commission fees of £3,240 per sale despite the rate of price growth deteriorating.
While the overall time to sell a house is around 15 weeks, the time actually spent by estate agents on an individual property sale equates to between five and 15 hours of total work. When dividing their commission by these hours (av.10), estate agents are taking home an eye-watering £319 per hour.
This surpasses other professions by quite some margin with a GP making just £35 an hour, a solicitor only bringing home £22 an hour and nurse earning just £18 an hour.
While London has been worst hit with Brexit based price reductions, the capital’s higher fees and house prices mean that its estate agents are still profiting at the expense of London home sellers.
The average hourly fee hits £963 in the capital, climbing to £1,295 across inner London.
The worst offenders are those in the prime central market and the much higher price of property means that agents in Kensington and Chelsea are bagging £3,209 an hour. Agents in Westminster, the City of London, Camden, Hammersmith and Fulham, Islington, Wandsworth, Hackney, Richmond, Lambeth and Southwark are all also making more than £1,000 per hour on each property they sell.
Elsewhere across the UK, high street agents in Cambridge (£625), Oxford (£561), Bristol (£390) and Edinburgh (£365) are also charging some of the highest fees per hour.
At £180 per hour, Glasgow is home to the lowest commission fee, along with Liverpool, Nottingham, Aberdeen and Newcastle.
Founder and CEO of OkayLah.co.uk, Paul Telford said, “Despite the chaos of Brexit resulting in a market slowdown and many of us seeing the value of our bricks and mortar assets drop, high street estate agents continue to cash in at our expense as a result of an archaic commission-based structure.
There’s no other profession around that will see the money they make fluctuate based on an external influence such as the property market, while all the time offering the same service despite the fluid rates they charge. Even in uncertain times such as these, high street agents are earning over £300 an hour on each property they list while our doctors and nurses in the NHS continue to stretch themselves across a service that is under staffed and underfunded.
When you consider the service provided in comparison to an estate agent, the mind really does boggle at the contrast in pay and this coupled with notoriously low service levels is the reason I started www.OkayLah.co.uk to offer an alternative way for homeowners to sell without an estate agent for £65 or Free.”
|Profession||Average fee per hour|
|Postman / Mail Carrier||£11|
|Area||Average house price||Average fee (%)||Average fee (£)||Average fee per hour|
|East of England||£288,494||1.40%||£4,039||£404|
|Yorkshire and the Humber||£160,420||1.40%||£2,246||£225|
|Average fee per hour = average fee/10 hours work required to sell a single property
All average fees inclusive of VAT.
|Average Estate Agent Fee by City|
|City||Average house price||Average Fee (£)||Average Fee per Hour|
|City of Bristol||£278,872||£3,904||£390|
|City of Edinburgh||£260,758||£3,651||£365|
|City of Plymouth||177620.95||£2,487||£249|
|Newcastle upon Tyne||£159,389||£2,231||£223|
|City of Aberdeen||£150,381||£2,105||£211|
|City of Nottingham||£142,561||£1,996||£200|
|City of Glasgow||£128,810||£1,803||£180|
|Average Estate Agency Fee by Borough|
|Location||Average house price||Average Fee (%)||Average Fee (£)||Average Fee per Hour|
|Kensington and Chelsea||£1,407,430||2.28%||£32,089||£3,209|
|City of Westminster||£959,466||2.28%||£21,876||£2,188|
|City of London||£868,258||2.28%||£19,796||£1,980|
|Hammersmith and Fulham||£732,206||2.28%||£16,694||£1,669|
|Richmond upon Thames||£653,388||1.80%||£11,761||£1,176|
|Kingston upon Thames||£471,659||1.80%||£8,490||£849|
|Barking and Dagenham||£299,399||1.80%||£5,389||£539|