Insight by leading online estate agent eMoov.co.uk has found that throughout 2014 the British public paid more in estate agency fees, than they donated to 23 of the UK’s best loved and supported charities.
Figures from the Land Registry show there were a total of 1,226,460 property transactions throughout 2014 to a value of £330 billion in sales. With the average estate agent fee of 1.6% + VAT in commission, this equates to a total amount of £6.3 billion paid in fees, in comparison to the £4 billion paid to the 23 charities in question.
Charity starts at home for many, but trying to make our pay cheque stretch means it can often be the first cost cut when making ends meet. Unfortunately where selling our homes are concerned, the high street is often unwilling to budge on the fee they demand, regardless of the service they provide.
However digital disruptors such as eMoov.co.uk are an exception to an otherwise disheartening rule. They charge a fraction of the cost of the high street and had the 1,226,460 properties sold in 2014 done so through eMoov.co.uk, it would have cost British sellers just under £607 million to do so. That’s more than a whopping £5.7 billion saved in fees.
The difference between contributions to charity and estate agent fees in 2014 was over £2.3 billion. Arguably the complete opposite of a charitable ideology, the high fees charged take advantage of sellers in a position, where they have little other choice but to pay large sums of money for very little service.
Founder and CEO of eMoov.co.uk Russell Quirk commented “Its bitter sweet news really isn’t it, I think Britain’s capability to pull together and help those in their time of need is a beautiful thing. It’s certainly that united spirit that helped the country get back on its feet post war and has continued to make us the nation we are right up to the present day.
It is however infuriating that we are almost forced to pay more to high street estate agents, who offer little in return.
They are arguably the largest charity in Britain, but in this case those being donated to are driving around in sports cars and doing less to earn it than the hard working individuals employed at actual charities.”
*Total value of sales obtained by multiplying total number of transactions (Land Registry) by the average UK house price for December (ONS)
*Total paid in fees obtained by fee of total sales @ 1.6% +VAT (OFT/WHICH?)
*Data on contributions to the UK’s best known charities in 2014 complied by the Charities Aid Foundation: http://www.charitytrends.org/Default.aspx
*Saving by using online agent obtained using eMoov’s standard package of £495.