Estate agents are paying an average 7.2% of their sales commission to Rightmove in fees, shocking new research reveals, and as much as 13.5% in some areas.

And estate agents in Glasgow and Newcastle are taking the “biggest hit” from the property search app The Property DriveBuy, which conducted the analysis, claims.

Commission earned

The average revenue per agent received by Rightmove is £1,524, according to the portal’s annual report. With an average house price of £275,923, and a typical agency fee of 1.4%, each agent is earning a commission of £3,918 per property sold.

And with the average branch selling 5.4 properties per month, this equates to a total monthly commission income of £21,158. So, agents are giving Rightmove 7.2% of their commission.

Hit hardest

Agents in Glasgow are being hit the hardest, with Rightmove’s fees accounting for 13.5% of earnings.

It’s similar in Newcastle where agents are giving Rightmove 12.4% of monthly commission, followed by Liverpool (10.8%), Edinburgh (9.5%), Cardiff (8.7%), Manchester (8.7%), and Birmingham (8.7%).

In London, however, Rightmove’s fees account for just 2.9% of earnings.

Steve Foreman, Founder and CEO at The Property DriveBuy, says: “It’s clear from our research that many agents are paying a disproportionate share of their hard-earned commission to Rightmove, particularly in regions where property values and fees are lower.

“At a time when operating costs are already under pressure, this model feels increasingly unsustainable for independent agents.

The reality on the ground is even more severe.”

Shaun Adams, Co-founder of Cooper Adams in West Sussex, who organised a petition against Rightmove fee hikes, told The Neg: “The reality on the ground is even more severe. I’ve spoken to many agents who tell me they are paying between £30,000 and £36,000 per branch each year to Rightmove.”

Adams set up a website focused on Rightmove’s fees www.portalfeescandal.co.uk.

The Neg has approached Rightmove for comment.

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