Estate agents have made nearly £1bn commission in 2020
Estate agents have made an eye-watering £1bn in sales commission since the start of the year, according to an estimate from Yes Homebuyers.
The homebuying platform looked at the average fee charged by estate agents in each area, the number of transactions completed so far this year, and calculated the total commission earned by estate agents across England and Wales.
The average commission charged by agents varies across the country, from £1,809 in the North East to £9,199 in London.
The capital has, unsurprisingly, seen the highest total level of commission earned by agents, with over £246m made from the sale of 27,000 properties so far this year.
The South East is home to the second-highest average commission at £5,101, and the region has also seen the most properties sold so far this year (37,951). As a result, estate agents in the South East have pulled in commission to the tune of £193.5m.
The East of England (£125m) and South West (£104.8m) have also seen estate agent commission exceed the £100m mark so far in 2020, while the North East has seen the lowest total at £12m.
With an average estate agent fee of £30,198, Kensington and Chelsea has seen the largest amount earned on a local level – a total of £18.9m.
Matthew Cooper, managing director of Yes Homebuyers, said: “Estate agent fees can be a bit of a minefield for home sellers. As it’s usually based on a percentage of sale price, many won’t know what they owe until the final bill comes through.
“Don’t be afraid to negotiate on fee either. The vast majority of sellers settle for the first quote they find, but you can often secure a better deal if you’re prepared to haggle or by researching other agents in the local area.
“Of course, if you don’t want to deal with the hassle, using a bonafide homebuying platform means you can sell your home without paying a single penny in estate agency fees.”