Agents’ declining income - the result of the lockdown and the collapse in transaction volumes - has been revealed for the first time.
Comparison website GetAgent looked at the average fee charged by estate agents and the total potential value of residential transactions.
Back in the financial year of 2015-2016, the average estate agent charged a fee of 1.3 per cent plus VAT which equated to £2,622 on the average house price of £201,695.
Now, five years later, the average fee has dropped marginally to 1.25 per cent plus VAT; however, the typical house price has climbed to £231,906.
That means the average agent has seen income from each transaction climb by 10.6 per cent to £2,899, not including VAT.
However, GetAgent calculates there has been an 11.8 per cent drop in transactions compared to this point in previous years.
This has produced - across the industry - a shortfall in fees of some £86.4m.
“The property industry has endured a tough couple of months and the government’s lockdown of the market has had a notable impact on transactions and as a result, the revenue of many agents. This struggle is likely to continue over the coming months as we inevitably see a further reduction in transactions” according to GetAgent founder Colby Short.
“Many [agents] will have to knuckle down, manage overheads and potentially jettison branch offices. Some may also reconsider Rightmove as one of their biggest expenses” he adds.