Study reveals cost of estate agent fees around the country
Estate agents across the UK are currently charging an average fee of 1.2% which equates to a fee of £3,846 on the average house price, according to new research.
The highest percentage fees per postcode area was in East Ayrshire in Scotland where agents in the KA15 postcode are charging 2.9% to sell a home. However, on the average house price of £89,729, this equates to £2,646.
The study from agent comparison website GetAgent also shows that at 0.6%, PH7 in Perth and Kinross, IV19 in Highland, PA20 in Argyll and Bute and KA2 in East Ayrshire have the lowest average fee in the UK.
Outside of London, KT11 in Elmbridge the highest fee paid by sellers, with a 1.6% commission equating to £14,921, followed by GU25 in Runnymede at £13,408. While the average commission in Chiltern’s HP9 drops to 1.4%, the average fee paid is still £12,780.
KT24 in East Horsley at £11,811, GU20 in Surrey Heath at £11,290, KT10 in Elmbridge t £11,115 and RG9 in South Oxfordshire at £10,122, also have a double-digit fee to sell a home.
In London, the biggest fees to sell are all located in Kensington and Chelsea and Westminster. SW7 is the highest with the average commission of 1.9% equating to a fee of £36,540 on the average house price in this postcode.
While the average commission increases to 2% in SW3, a slightly lower average house price sees the fee paid come in at £35,343 and W1, W8 and WC2 have an average fee of over £30,000.
The postcode with the lowest fee paid in London is IG11 in Barking and Dagenham at £3,282, while outside of London it’s PA20 in Argyll and Bute at just £567.
‘A mixture of competition from online and hybrid agencies and a Brexit inspired market slowdown has seen many traditional agents lower the levels of commission they are charging UK homeowners in order to remain competitive,’ said Colby Short, chief executive officer of GetAgent.
‘Of course, the actual money paid is all relative to the area and the price at which you sell and therefore 1.4% commission in London will set you back a great deal more than the same charge in Scotland. The difference is quite drastic and even between the largest fees paid in the capital compared to those outside of it, there is a gulf of some £20,000,’ he pointed out.
‘That said, if the rapid rise and fall of the online model has taught us anything, it’s that you really do get what you pay for. A number of high profile company collapses and nightmare stories from customers have made home sellers realise that the high street agent, the service they provide, and the cost of selling,’ he added.