A property platform claims the current pipeline stock is so large that the average UK agency branch is waiting on £105,000 in fees.
The platforms says its calculation assumes the typical agency commission to be 1.5 per cent, with some 582,000 properties in the pipeline across the country.
Agents in London alone are dealing with a pipeline stock of almost 93,000 properties worth an accumulated £45.5 billion.
“I’m astounded by these figures which are far higher than anyone could have expected. It highlights the immediate need for systemic change in the industry; particularly the need to build a bridge between the agency and legal sides of homebuying to help clear this backlog” explains Silas J Lees, chief executive of the WiggyWam platform which commissioned the study.
“For agents in particular, this is proof that complacency is now your worst enemy. There is just too much to lose” he continues.
Top 10 UK Cities by Total Estate Agent Pipeline Stock (number of properties)
- London - 92,776
- Birmingham - 8,814
- Bristol - 7,359
- Manchester - 7,219
- Liverpool - 6,846
- Nottingham - 6,498
- Glasgow - 5,688
- Leeds - 4,844
- Sheffield - 4,438
- Leicester - 3,475
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Top 10 UK Cities by Estate Agent Pipeline Fees
- London - £687,757,073
- Bristol - £33,803,982
- Birmingham - £25,671,811
- Manchester - £20,873,913
- Nottingham - £15,631,743
- Liverpool - £15,499,738
- Leeds- £14,565,495
- Bournemouth - £13,868,000
- Glasgow - £12,605,258
- Edinburgh - £12,553,810
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A lot of tied up income for agents but where does EAT get this average fee of 1.5%. Most agents are charging 1-1.25% then factor in PB average fee, I'd love to know who's getting 2% plus? . If the average house price in the UK is £245,443 @ 1.5% that's a lovely £3,681.65p plus vat.... I would suggest they redo these figures or pick up the phone and actually talk to agents.
Taking nothing away from these numbers the industry has a massive challenge ahead and so do the solicitors in keeping as much of these pipelines alive. Any new sales that are being agreed now are looking at 20-24 week completions according to the solicitors. Busy busy times ahead.
"Most agents are charging 1-1.25%".
Can you tell us how you know this for sure Martin? So many assumptions are made about our industry so it would be good to know the source of both your cliam and of EAT with this report.
I would suggest the average fee to be more like 1.25% than 1.50% which would reduce the average pipeline to £87,500.
Working on a pipeline conversion of 14 weeks (and that’s optimistic) that gives an average weekly income of £6,250 and an annual gross income from sales of £325,000!
What an utterly pointless exercise.
If you listen to certain "trainers" here you will think 2% is the norn
I Know plenty of agents that claim 2% plus and then later on it transpires that they do on sum but not on most and its all their pitch to big themselves up. Most agents out of London are 0.75% to £1.25% in my view
Unless WE ALL put our actual fees out there somewhere, how will we ever know what the actual true figues are? Be good to know the source.
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