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Londoners pay over £10,000 in estate agent fees

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  • 11/05/2016
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High street estate agents in London pocketed over £1.1bn in fees during 2015, an average of £10,228 for each property sale, research by online estate agents HouseSimple.com reveals.

This pushed the earnings of London’s traditional estate agents up by more than £4m on the previous year while representing a 21% hike on 2013.

However, the findings suggested that if just one fifth of Londoners had chosen to sell their property online in 2015, rather than through a high street estate agent, they would have saved a staggering £211m in fees.

Estate agents in Wandsworth take the prize for earning the most in 2015, raking in more than £70m, up 3% on the previous year. Having topped the list in 2014, Kensington and Chelsea dropped to second place, earning more than £57m in 2015.

But it’s not just the prestigious areas of London where high street estate agents are cashing in. Agents in London’s more affordable areas such as Barking and Dagenham, and Lewisham have also seen large percentage increases in fees earned in 2015 compared to 2014 – up 16% and 12% respectively.

Alex Gosling, chief executive of HouseSimple.com, said: “Over the past two years, London’s high street estate agents have benefited from record high property prices, and banked more than £2bn in fees. That is a staggering level of fees in a market where there is strong demand and limited supply, which means good properties are practically selling themselves.

“How London agents can continue to charge, and justify, such high commission rates when there are buyers galore desperate to purchase, is beyond comprehension. It’s daylight robbery.”

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