Homeowners in England and Wales could be out of pocket by £303.6 million in estate agent fees so far in 2017, according to research by eMoov.co.uk.
Using the new traditional sector’s lower fee of 1.3 percent including VAT (lowered from 1.6 percent plus VAT), eMoov analysed the number of properties that have completed so far this year, and what for, before applying the 1.3 percent charge to see how much homeowners have already paid to sell their property.
eMoov also accounted for the online share, accounting for 5.51 percent of the market, and removed this from the total fees charged. The research found that £26 billion worth of property so far this year has already been sold, which equates to £303.6 million in high-street commission.
The higher price of London properties means the capital has seen the largest amount of fees paid (£70,146,490), while the south east of England is also home to the majority of the highest fees paid, including Surrey (£13,303,190); Essex (£10,250,462); and Kent (£9,404,396) also seeing millions paid in commission.
Greater Manchester is home to the fifth highest amount at £9,094,250, while the top 10 is completed by Hertfordshire (£9,093,068); Hampshire (£8,964,127); the West Midlands (£7,473,729); West Yorkshire (£6,726,050); and West Sussex (£6,369,375).
Chief executive and founder of eMoov.co.uk, Russell Quirk, said the research “demonstrates the eye-watering amount of money that’s still being paid due to the outdated practice of charging based on a property’s value”.
He added: “Of course, not all agents charge as much but there are many agents that will still charge more, and with hybrid and online agents charging a fixed fee with a now proven service track record, it remains to be seen why you should pay more to sell your house because it is of a higher value.
“The only silver lining to this research is that in years gone by, this figure would have been a lot higher. Although the online and hybrid sector still only accounts for 5.51 percent of the market, it still represents a considerable saving and one that is only set to keep increasing as we take more market share.”
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