High street estate agents slash average fees to just over 1%, claim

Agency fees now range from 0.84% to 1.7% across the main regions of the UK, research claims. The national average is now 1.06%.

Data from leads generator and comparison website NetAnAgent – based on commissions that agencies enter on its website – found that firms in Glasgow and Leicester have the lowest rates at 0.84%, while London agents charge most at an average of 1.7%.

In the most expensive parts of the capital, sellers pay more: commissions in Chelsea average 2.3% and 2.04% in Kensington, while sellers in Notting Hill pay 1.89%.

All these figures include VAT and are from the first half of 2018.

The website said agency fees have fallen across the UK, from an average of 1.25% in 2016.

Leicester saw the biggest reduction in fees, going from 1.41% in 2016 to 0.84% this year.

One exception was agents selling properties in high-value areas such as N1 in London where there has been a hike of 45% from 1.5% in 2016 to 2.18% this  year.

Alex Thorpe, chief executive of NetAnAgent, said: “It’s no surprise that, over the last few years traditional agents have increasingly brought fees down to compete with online and hybrid agents.

“We provide a level playing field for both traditional and online agents, so sellers can find the best option for them.”

NetAnAgent lets sellers post details of the type of property they want to sell and then matches them to agents who have signed up to the service. Users can then select agents by fee and level of service and arrange for a valuation.

The website says it has had more than 8,500 different agency brands using its service, ranging from local independent firms to well-known names such as Winkworth and Currell.

When a property is sold, the successful agent agrees to pay NetAnAgent 0.1% of the property price, subject to a minimum of £150 and maximum of £450 plus VAT.

x

Email the story to a friend

3 Comments

  1. Chris Wood

    “the Av house price in the UK is £232,554” Source @HMLandRegistry Sept 2018

    “The national Av (estate agent fee) is now 1.06%. (Inc VAT)” Source @netanagent via Property Industry Eye

    Av cost per completion per customer High St. agent = £2,465

    Av cost per completion per customer with @PurplebricksUK #purp = £2,231

    Based on Jefferies (conservative) 51% listing to sold (legal completion) ratio of 51% and PURP published revenue per customer figure of £1,138

    Therefore “saving” per sale (if you are one of the lucky 51%) = £234 on a £1,138 upfront gamble with Purplebricks

    Report
    1. SLF

      The article doesn’t mention PB Chris but as usual you have to get a snipe in there somewhere.

      Report
  2. bob388

    Hello Everyone,

    Can all uk estate agents please work together like every other country. Lets start with I have a buyer for your house. You can have the buyer for 30% or I can show them the house and we can split the sales  fee.

    We are a country where we have a listing and another agent goes ” I have a buyer for that” the selling agent says ” give me them” Agent with buyer says “give me something” . selling agent says no. Why? Why not just get an offer for your your seller.Stop this rubbish and work together and get rid of these cheapo people who do not get best price for all there properties. Eventually you can have buyer agents …. eventually.

    If all agents where helping selling all properties like other countries ( we can start slowly with referral fees) then where would the cheapo agents be. Who would want to share £1 commision. Would the seller like to be marketed to all agents or hope that a buyer is found by £1 agent. Agents would be selling best fee homes.

    Report
X

You must be logged in to report this comment!

Leave a Reply

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.