Estate agents working in urban markets must complete significantly more transactions to generate earnings comparable to their colleagues in other areas, as flat-dominated housing stock delivers far lower commission per sale, according to Adam Day (pictured), Head of EXP UK and Europe.
New analysis from the self-employed estate agency platform shows that in England, the commission secured from selling a detached home is almost 73% higher on average than that achieved from a flat. The company analysed average estate agency fees in each region and applied them to typical sold prices by property type to understand how earning potential varies depending on the local housing mix.
Major disparity
The South East has the largest disparity. A detached home generates an estimated £10,641 in commission compared with £3,278 from a flat – a 105.8% difference. Agents in more urban parts of the region therefore have to sell more than three flats to match the return from a single detached property sale.
The West Midlands is not far behind, with a 99.7% gap between the two property types. There are similar differences in the East Midlands (96.1%), the North East (95.4%) and the South West (95.2%). London has the smallest gap, largely due to higher flat values, yet commission from a detached home in the capital remains 91.2% higher than from a flat.
An agent needs to sell more than two flats, and in some cases closer to three, just to match the commission earned from a single detached property transaction.”
Day says: “Agents working in urban markets are often dealing with higher volumes of flats, which on the surface can look positive, but the reality is that the commission secured per sale is significantly lower than for detached homes.
“In many regions, an agent needs to sell more than two flats, and in some cases closer to three, just to match the commission earned from a single detached property transaction. That has a real impact on workload, time pressures and long-term earning sustainability.
“Understanding how local housing stock shapes earning potential is critical for agents when building a business that balances volume, value and personal capacity.”
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