The latest research by leading property recruitment specialists, Rayner Personnel, has revealed which areas of the UK offer the greatest potential earnings for estate agents operating in that particular market.
Rayner Personnel looked at the average monthly earning potential on offer across each of the UK’s regions and major cities, based on the average fee and the average number of monthly property transactions. The research shows that across Britain, there is some £274.4m up for grabs in estate agency commission every month.
In England, the current average fee of 1.5% means that potential earnings hit £248,667,842 per month, based on the average earning potential of £3,774 per property completion, multiplied by the 65,895 transactions that take place on average every month.
Regionally, London tops the table as the most lucrative region for estate agents based on monthly earning potential. With an average fee of £8,501 and an average of 6,867 sales each month over the last year, there is a potential £58.37m to be earnt each month in the capital.
The South East isn’t far behind (£56.29m), followed by the East of England (£34.18m), the South West (£32m) and the North West (£21.13m).
Outside of London, Edinburgh is the second most lucrative city. On average, 953 transactions completed every month over the last year, generating a potential £3.26m in estate agency income on a monthly basis.
Birmingham (£2.99m), Leeds (£2.71m), Bristol (£2.31m), Bournemouth (£2.3m), Sheffield (£1.61m), Glasgow (£1.56m), Cardiff (£1.47m) and Manchester (£1.27m) also rank as some of the most potentially lucrative major cities for estate agents on a monthly basis.
Founder and CEO of Rayner Personnel, Josh Rayner, said: “London is always going to drive the market in terms of volume and estate agent earning potential due to the generally higher fees. However, it’s important to remember that while these potential earnings differ by region and city, so too does the number of agents battling it out for this business.
“The threat of the online and hybrid model hasn’t escalated to the levels previously expected, but they still pose a threat in terms of acquiring transactions across the UK which will also reduce available income.
“While we appreciate that not every agent charges the average fee for their services, we wanted to highlight that the UK property market is alive and well despite wider uncertainties and estate agents can still make a very good living.
“Of course, one way to ensure you acquire as much potential business as possible is to have the very best team, delivering the very best service in your given area. This comes down to hiring the right people, with the right attitude and this can be the difference when it comes to staying ahead of the competition.”