Home Property UK home sellers see up to 21% increase in estate agency costs

UK home sellers see up to 21% increase in estate agency costs

26th Jun 24 11:46 am

The latest data analysis from quick sale specialists, Open Property Group, reveals that home sellers are now paying up to 21% more in estate agency fees than they were five years ago, just one reason why selling a property is getting more and more expensive by the year.

Open Property Group has analysed the change in average estate agency fees* in the UK and its regions between 2019 – 2024 to reveal how the cost of selling a home has changed over the past five years.

The data reveals that back in 2019, the UK’s average house price was £230,612*. Meanwhile, the average estate agency fee was 1.53%.  As such, the cost of agency fees in 2019 was an estimated £3,528.

Fast forward to today and the average UK house price now stands at £280,311. Over those five years, the average estate agency fee has fallen to 1.42%, but due to the increase in house prices, the pounds-and-pence cost of the fee has actually risen to hit £3,980. This is a five-year increase to the seller of 12.8%, or £452.

However, due to vast regional variations in average house price, there are some parts of the UK in which sellers have seen the cost of agency fees increase significantly more.

In the North West, the average house price has increased from £164,419 in 2019 to £214,592. As such, the average fee has increased from £2,516 to £3,047, This is equivalent to a cost increase of 21.1% for sellers.

Hefty cost increases have also occurred in Northern Ireland where fees are up 20% on 2019 levels, followed by Wales (19.4%), Yorkshire & Humber (16.3%), the East Midlands (15.6%), Scotland (14.8%), West Midlands (14.9%), South West (14.4%), and North East (14%).

Meanwhile, London is the only place where the cost of agency fees has fallen, having dropped by -0.5% over the five-year period.

CEO of Open Property Group, Jason Harris-Cohen, said, “A lot of people don’t realise how much it costs to sell a home. Agency fees, which amount to thousands of pounds, are just one of many outgoings that sellers endure, and the longer your property sits on the market waiting for a buyer, the more the costs go up. This is because you’re having to pay mortgage costs, insurance bills, utilities, and so on while you remain the owner of the property.

But by taking the quick sale option, you are able to bypass all of these expenses. There is no agent involved, so there’s no fees. And the sale processes incredibly quickly which means you’re not paying to run the property while waiting months and months for a seller.

Furthermore, you still benefit from the value that has been added to your home over the years because Open Property Group always pays 80%-85% of the home’s current market value.

After a couple of stagnant years, it looks like the UK market is going to pick back up in the second half of 2024, which means house prices will rise pulling agency fees up with them. Sellers should consider going down the quick sale route instead, avoiding all of the covert costs associated with the open market, and getting the transaction completed in a fraction of the time.”

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