“Over £89 million a week is paid in commission to high street estate agents”
Weekly commission calculated by Purplebricks, using number of homes sold, average house price data and an average high street estate agent commission rate of 1.3%.
Average high street estate agent commission rate of 1.3% based on research commissioned by Purplebricks and conducted by independent research agency, The Nursery, August 22. Number of homes sold and average house price data sourced from TwentyCi.
In order to calculate the total amount spent on high street estate agency commission each week, the 1.3% average high street commission rate first needed substantiating for use in the calculation.
The average high street commission substantiation and research methodology are detailed below:
As part of a wider piece of customer research, independent research agency, The Nursery, were commissioned by Purplebricks to provide data on the average commission rate used by high street estates.
Fieldwork was conducted between 5th – 26th August 2022
All 501 interviewees were asked the question “How much were your estate agency fees” and were given the below options to choose from:
The average high street commission rate of 1.30% was calculated using the weighted average of all responses.
|Category||Category||Commission %||Number of response Total||% (exc don't know)||% (inc don't know)|
|Less than 0.5%||Less than 0.5% (0.25)||0.25%||27||6%||5%|
|0.5% - 1%||0.5% - 1% (0.75)||0.75%||179||39%||36%|
|1% - 1.5%||1% - 1.5% (1.25)||1.25%||128||28%||26%|
|1.5% - 2%||1.5% - 2% (1.75)||1.75%||77||17%||15%|
|2% - 2.5%||2% - 2.5% (2.25)||2.25%||22||5%||4%|
|2.5% - 3%||2.5% - 3% (2.75)||2.75%||9||2%||2%|
|3% - 5%||3% - 5% (4.0)||4.00%||18||4%||4%|
|Over 5%||Over 5% (please specify) (5.0)||5.00%||4||1%||1%|
|Don't know||Don't know||37||7%|
|Total exc don't know||464|
|Weighted average %||1.30%|
In order to substantiate the statement “Over £89 million a week is paid in commission to high street estate agents", the below data points were used by Purplebricks to calculate the amount of money spent in commission to high street estate agents, on average each week.
The data below displays the national average house price and total number of homes sold by high street agents last year - Jan 2021 - Jan 2022 (Source: Twenty Ci).
These data points were used to calculate the average amount paid in commission to high street estate agents, each week.
Average house price x number of properties sold = Total value sold
Total value sold x 0.013 = Total commission
Total commission / 52 = Average commission paid to high street agents, each week
346779 x 1031037 = 357541979823
357541979823 x 0.013 = 4648045737.7
4648045737.7 / 52 = 89,385,494.9557