Home sellers see 21 per cent rise in estate agency costs as increases now ‘expected’ every year

Data has revealed that those looking to sell their home are reportedly paying almost a quarter more more in estate agency fees than five years ago, with costs set to rise each year.

The latest data analysis from quick sale company, Open Property Group, has shown that home sellers are now paying up to 21% more in estate agency fees than they were in 2019, with the quick sale company saying this is ‘just one reason why selling a property is getting more and more expensive by the year’.

Open Property Group has analysed the change in average estate agency fees in the UK regions between 2019 and 2024 to disclose how the home selling landscape has morphed over the last five years.

The data reveals that back in 2019, the UK’s average house price was £230,612. Meanwhile, the average estate agency fee was 1.53% of that cost. As such, the cost of agency fees in 2019 was an estimated £3,528.

Fast forward to today and the average UK house price now stands at £280,311. Over the period analysed by Open Property Group, the average estate agency fee has fallen to 1.42%, but due to the increase in house prices, the pounds-and-pence cost of the fee reportedly risen to hit £3,980. This means a five-year increase to the seller of 12.8%, or £452.

CEO of Open Property Group, Jason Harris-Cohen, commented:

“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. This is because you’re having to pay mortgage costs, insurance bills, utilities, and so on while you remain the owner of the property.

“But by taking the quick sale option, you are able to bypass all of these expenses. There is no agent involved, so there’s no fees. And the sale processes incredibly quickly which means you’re not paying to run the property while waiting months and months for a seller.

“Furthermore, you still benefit from the value that has been added to your home over the years because Open Property Group always pays 80%-85% of the home’s current market value.

“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. Sellers should consider going down the quick sale route instead, avoiding all of the covert costs associated with the open market, and getting the transaction completed in a fraction of the time.”

The data has shown that due to ‘vast’ regional variations in average house price, there are some parts of the UK in which sellers have seen the cost of agency fees increase significantly more.

Data has shown that in the North West, the average house price has increased from £164,419 in 2019 to £214,592. As such, the average fee has increased from £2,516 to £3,047, This is equivalent to a cost increase of 21.1% for sellers.

Hefty cost increases have also occurred in Northern Ireland where fees are up 20% on 2019 levels, followed by 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%).

Meanwhile, London is the only place where the cost of agency fees has fallen, having dropped by -0.5% over the five-year period.

One Response

  1. Costs are rising but agency service is falling/failing vendors. It staggers me how many times I see chains go on for 3, 4, 5 months and the common answer as to the delays are; the survey has not been arranged, the valuation has not been called for, the chain is not complete, the mortgage offer is yet to arrive. If we are 3, 4, 5 months in then something has gone seriously wrong. Due diligence is not being carried out at the outset by agents. If I see a sales memo land on my desk I expect a complete chain, full ID taken, full source of funds available and a mortgage agreed in principle with a final valuation/survey only a week away. Sales chasing? What sales chasing? All agents are interested is signing up a client to a 24 week contract, making them pay 1.5% + VAT, agreeing any old offer that is put forward and then moving on to their next client.

    Conveyancers are not perfect but at least we are governed properly. The agency system is a joke at present.

    But I guess, agent’s need to some how keep their 2024 Mini’s and BMW’s on the road.

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