View more on these topics

Average estate agent fee down a third in seven years: The Advisory

Figures from The Advisory show the average sole agency fee for UK estate agents has fallen 34 per cent since 2011, a decrease it attributes to competition and the rise of low fee online agents.

Vendors now pay estate agents an average sole agency fee of 1.18 per cent (plus VAT) to sell their home, down from a typical fee of 1.8 per cent in 2011.

The Advisory also found UK estate agents charge the lowest commission compared to most major global locations. Agents in Mexico typically charge 7.5 per cent, Japan 6 per cent, and France and the USA 5 per cent. Only China, with a typical fee of 0.5 per cent, and Hong Kong (1 per cent) are cheaper than the UK.

However, The Advisory’s research found that almost half of sellers (47 per cent) paid more than 1.18 per cent with 11 per cent paying between 1.5 per cent and 2 per cent.

More than 95 per cent of sellers chose to sell with a traditional high street estate charging a ‘no sale no fee’ commission that usually includes all marketing materials and accompanied viewings. Less than 5 per cent opted for hybrid online agents who charge lower fees upfront, but levy additional costs on top.

The Advisory found sole agency agreements were the most common fee structure (71.4 per cent), followed by fixed fee (19.1 per cent) and multi-agency (4.8 per cent).

The Advisory founder Gavin Brazg says: “It’s sad to see so many agents dropping their fees in response to the ‘perceived online threat’. It’s also a mistake as the threat is far larger in the mind than it is in reality. Market share for hybrid agents is actually very low given the amount of money they’ve spent on marketing.

“Most sellers do not want ‘cheap’. They want the extensive local expertise and high professionalism of a bricks and mortar high street agent. As long as you can justify your fees and differentiate your service, our figures show many sellers are prepared to pay up to 2 per cent (+VAT), if not more.”



New apprenticeships available for trainee estate agents

The National Association of Estate Agents Propertymark has launched a new apprenticeship standard for junior estate agents. This apprenticeship scheme will cover both the residential and commercial property sales as well as the auction sector. NAEA Propertymark says this new standard has been developed to raise entry levels of professional competence. The scheme was created […]

Online estate agency Hatched closes

Connells Group has announced that it will close online estate agency Hatched to all new business with immediate effect. The group believes that the online-only/hybrid business model is not commercially sustainable and that it wishes to commit entirely to its high street estate agents. In a statement the group says that it will “seek to […]


Complaint about estate agent Moveli upheld by ASA

The Advertising Standards Authority has ruled that estate agent Moveli must remove a testimonial relating to an estate agent because it was written when said agent worked for a previous company. The complaint, issued by Courtenay Estate Agents, asked whether a testimonial for a named estate agent from a “Mrs LD,” which stated that the […]


Landlords to benefit from raised income tax thresholds

Raised income tax thresholds could allow some landlords to borrow more, according to mortgage experts. They welcomed the chancellor’s announcement in the Autumn Budget that the higher rate income tax threshold will be raised to £50,000 in April 2019, a year earlier than planned. Specialist buy-to-let broker Commercial Trust says this was “positive news” for […]

A question of service

Roy Armitage, head of credit, LendInvest Selling a loan is the part of a lender’s workload most visible to brokers and borrowers. Just as crucial – but less frequently observed – is how that lender services that loan. A commitment to quality servicing is one that’s front and centre for us at LendInvest and it’s […]


News and expert analysis straight to your inbox

Sign up