New research reveals that while the average estate agency commission has sunk to 1.4% recent house prices have pushed the average commission income from £3,528 to £3,900 over the past five years.

The research is from ‘quick sale’ buying firm the Open Property Group (OPG) which has a vested interest in highlighting estate agency costs, nevertheless it highlights that while white hot competition between agents in many postcodes is pushing down commission rates, agency bottom lines are saved by ever-rising house prices.

In 2019 the average house price was £230,612 while today it’s £280,311, driving up agency commission rates and payments overall by 12.8% or £452 per transaction.

Agents in the North West have seen the largest increase in fees at 21.1% since 2019 followed by those in Northern Ireland (20%) , 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%).

London agents have been less lucky – their fee income has dropped by half a percent, says the OPG

Jason Harris-Cohen, its CEO, adds: “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.

“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.”