Agents’ fees have risen only four per cent in a decade
A survey released this morning shows that estate agents’ fees have risen only four per cent in real terms since 2007 – despite a substantial increase in house prices in some parts of the country in the interim.
The survey is by comparison site Reallymoving and reveals that even when adjusted for inflation, the average cost of moving in 2017 is the highest it’s been since 2010 at £7,381.
On a average some 44 per cent of the cost is taken up by estate agency fees representing a typical £3,254. This suggests the average commission being charged by agents is 1.2 per cent, the lowest recorded by the website’s annual survey.
However, the site points out that while estate agent commission percentage is falling, the 28 per cent increase in average house prices since 2007 means the total payment on fees is roughly similar.
This rise in house prices has also affected stamp duty, the second largest contributor to moving costs (27 per cent).
In 2017, the median property value would result in a stamp duty fee of £2,019. This is compared to £1,814 for the median property value in 2007.
Here’s the breakdown of charges:
- Conveyancing disbursement and expenses for sale: 2007=£48 2017=£74 (a 54% rise)
- Conveyancing disbursement and expenses for purchase: 2007= £245 2017-336 (37%)
- Conveyancing fees for sale: 2007=£264 2017=£376 (42%)
- Conveyancing fees for purchase: 2007=£264 2017=£363 (38%)
- Survey/Homebuyer Report: 2007=£347 2017=£399 (15%)
- Removals: 2007=£470 2017=£480 (2%)
- EPC: 2007=£116 2017=£55 (down 53%)
- Stamp Duty: 2007=£1,814 2017=£2,019 (up 11%)
- Estate Agent Fees: 2007=£3,117 2017=£3,254 (4%)
- Total Cost of Moving: 2007=£6,685 2017=£7,356 (10%)
- Inflation: Consumer Price Index (CPI) with 2007 as base = 29%
Reallymoving says that while stamp duty and estate agent fees make up the majority of costs, other less prominent expenses can equate to a large proportion of overall moving costs when they are combined.
Removal costs – the third most significant expense – can vary dramatically, depending on the distance of the move and the volume of possessions transported. With the national average currently at £380, these prices have not changed dramatically over the last decade.
Kindly shared by Estate Agent Today