Online estate agency eMoov, are claiming that vendors in the capital have spent around £861.5m on traditional estate agents’ fees in 2015 alone. They accuse agents of “lining the pockets of their designer suits,” and charging “a stifling amount of money to sell a property.”
Using the Office of National Statistics data on transactions, it is said that there were 108,891 property transactions in London for 2015, which accounts for around 12% of all transactions across the whole of the UK.
So, with an average property sold at £579,478 across London, the average fee paid per property was roughly £8,460.
The Barking and Dagenham borough had the lowest total of estate agency fees, with traditional agents receiving averagely £3,400 per property.
eMoov founder and chief executive, Russell Quirk comments saying “It’s no secret that high street agents are cashing in big time through commission based fees and, thanks to the inflated price of London property, nowhere more so than the capital”.
He continues “The commission based fee structure is as outdated as other high street practices – such as sole agency agreements. A house is a house whether it’s built in London or Lancashire and some may argue that, because of the nature of the market and demand for London property, selling in the capital actually requires less work than elsewhere”.
He also believes that “Had London’s 108,891 transactions sold through eMoov, we could have saved the capital £796.7m in high street fees”.