This will make your blood boil.
Joe Public are slowly seeing a return to wage inflation after a number of years of stagnation. Yet perhaps it should be little surprise that our good friends, the estate agent, are faring somewhat better than everyone else. And in London, significantly so.
According to research undertaken by eMoov.co.uk, the Office of National Statistics states that UK salaries have risen by 0.7% this year to a weekly rate of £475.00 including bonuses.
But estate agents salaries, those that we revel in despising, have risen by up to 17.5% in just three months alone.
How so? Those that work in the property business work on a commission basis related to the fees that their firm earns and which in turn are predicated around home values.
In Southwark, as an example, typical property prices leapt from £385,000 to over £450,000 between April and June this year. A near 20% hike. And with estate agency fees at an average of 1.6% commission of sale price, this means that the monies ‘earned’ by a local, high street agent will have risen by the same amount. An astonishing demonstration of how the London market is performing and how the capital’s property professionals are personally benefiting.
Does the work done by traditional commission based estate agents justify their wages? Is it fair that they earn twice as much for selling a £500,000 property than one at £250,000 for no extra effort? And why should they pocket a boost in salary that directly reflects house price inflation? Especially when prices rise because the market is better and therefore homes are even easier to sell?
Good reason at last to dislike them again….
eMoov.co.uk are a fixed fee estate agent with low cost selling packages to suit all.
Sources: http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/november-2013/sty-average-weekly-earnings.html and http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/counties/html/county39.stm?q#table