Since the Stamp Duty holiday was introduced last July in an attempt to get the property market moving again, almost £2.7 billion has been generated in agency fees.
Estate agents have been working flat out to keep up with unprecedented demand and according to research from property platform, WiggyWam, an estimated 772,830 transactions have completed between July 2020 and May 2021 at an average price of £245,079.
With an average UK agency fee of 1.42% per transaction (equivalent to £3,480), total fees generated have reached just below £2.7 billion in only 10 months. This is equivalent to £120,770 per branch across the UK.
Regionally, agents in England are estimated to have generated the most at £2.38 billion but when analysing the fees generated on a per branch level, Scottish agents have had, by far, the most successful year.
With around 20,661 agency branches in England, each one has earned an average of £112,213 in fees, while in Scotland where there are roughly 784 agency branches, each one has generated a remarkable £282,347 in fees.
Each of the 533 agents in Wales have generated £150,535 per branch, and in Northern Ireland, 291 branches have generated £146,943 each.
Table shows the estimated fees accumulated by estate agents in each region based on:
- An average fee of 1.42% Inc VAT – source the Advisory
- This fee applied to the average house price in each region and then multiplied by the volume of sales to find total fees paid – Source UK House Price Index
- Total fees then divided by the number of estate agents in each region to find the average fees per estate agent – Source the Negotiator
|Location||Estimated number of estate agents||Estimated Total fees||Estimated fees per estate agent|
|East of England||2,042||£317,602,008||£155,519|
|West Midlands region||1,484||£177,865,221||£119,846|
|Yorkshire and the Humber||1,327||£159,506,499||£120,199|
Diving into the different regions of England, agents in the South West have enjoyed the most income from fees, with each regional branch generating an average of £187,849 since July 2020. At the bottom of the list is London where each of the estimated 7,514 agency branches has generated an average of £61,784 in the same period.
WiggyWam CEO, Silas J. Lees, said: “It’s great to see agents enjoying such prosperity following what was a very uncertain time a year ago. But the question on most agent’s lips right now is; ‘How long can this last?’
“Most are making hay whilst the sun shines, yet those forward-thinking agents with an eye on the future are also contemplating what could be a very different market later this year once furlough ends and the extent of possible job losses are known.”
“Agents need to make plans to differentiate their services from their competition, whilst looking to increase their fees during a slower market,” added Lees. “Less sales require more profit to be made from each transaction, and it’s here where working with WiggyWam can add significant value to each agents’ service offering.”