Leading online estate agent, eMoov.co.uk, has identified the true cost of selling a property in the capital, by calculating the total amount paid in high street estate agency fees last year.

Using data from the Office of National Statistics, eMoov identified the number of property transactions and average price paid for a property in each London borough, before applying the average UK estate agency fee to the average price. Once this fee was determined eMoov then multiplied it by the number of property transactions completed, to determine the total amount of fees paid.

The research found that London sellers paid out a whopping £861.5m to high street estate agents, across the 108,891 property transactions recorded during this period (12% of total UK transactions). On the average property sold price of £579,478 across the capital, that’s an average fee paid of £8,460 per a property. Despite the prime central London market spluttering and stalling throughout 2015, it will come as little surprise that the prestigious borough of Kensington and Chelsea accounted for the highest amount of fees paid.

London-Borough-Of-Ken-and-Chels

The royal borough clinched the top spot by more than £8m ahead of second place Wandsworth (£54m), with the borough’s 29 estate agents lining the pockets of their designer suits with £62.3m in transaction fees. That’s despite recording the second lowest number of property transactions, netting them an average fee of £27,875 per sale, a stifling amount of money to sell a property.

Graph

The two were joined by Westminster (£52m), Lambeth (£40.5m) and Camden (£35.6m) in the top five of boroughs where estate agents collected the largest fees.

dagenham

A combination of one of the lowest number of property transactions across the capital and, an average house price of just £233,000, means Barking and Dagenham was the borough with the lowest total of estate agency fees across the capital. With a total of £7.6m it is the only borough where estate agents failed to make double figure fees, netting its agents £3,400 per a property on average, still a considerable amount of money now that you can sell for as little £595 with an online estate agent.

Founder and CEO of eMoov.co.uk, Russell Quirk, commented:

“It’s no secret that high street agents are cashing in big time through commission based fees and, thanks to the inflated price of London property, nowhere more so than the capital. However when you actually break it down, the mind boggles as to how much money they are actually making and how they can justify doing so.

The commission based fee structure is as outdated as other high street practices – such as sole agency agreements. A house is a house whether it’s built in London or Lancashire and some may argue that, because of the nature of the market and demand for London property, selling in the capital actually requires less work than elsewhere.

There is a reason the rise of fixed fee, online agents have seen such a rapid rise in the last year. People now realise there is a better, more cost efficient route to sell and they don’t have to be held to ransom. Had London’s 108,891 transactions sold through eMoov, we could have saved the capital £796.7m in high street fees.”

London borough

Total sales (1)

Average house price (2)

Average fee (3)

Total fees paid

Kensington & Chelsea

2241

£1,905,860

£27,826

£62,357,071

Wandsworth

5267

£702,805

£10,261

£54,044,439

Westminster

2988

£1,194,054

£17,433

£52,090,367

Lambeth

4526

£613,548

£8,958

£40,543,006

Camden

2371

£1,030,118

£15,040

£35,659,183

Richmond upon Thames

3076

£783,035

£11,432

£35,165,789

Southwark

3430

£694,545

£10,140

£34,781,425

Barnet

4594

£513,709

£7,500

£34,455,696

Bromley

5669

£410,157

£5,988

£33,947,628

Hammersmith & Fulham

2432

£931,415

£13,599

£33,071,939

Ealing

3262

£643,675

£9,398

£30,655,151

Greenwich

3975

£497,517

£7,264

£28,873,399

Tower Hamlets

4202

£465,464

£6,796

£28,555,844

Islington

2555

£757,361

£11,057

£28,251,837

Lewisham

4230

£393,054

£5,739

£24,274,229

Croydon

5435

£296,430

£4,328

£23,522,017

Merton

2740

£531,802

£7,764

£21,274,207

Haringey

2643

£548,468

£8,008

£21,164,173

Kingston

2783

£515,903

£7,532

£20,962,068

Hillingdon

3496

£402,429

£5,875

£20,540,620

Hackney

2590

£540,420

£7,890

£20,435,442

Waltham Forest

3307

£403,907

£5,897

£19,501,519

Redbridge

3298

£383,547

£5,600

£18,468,095

Brent

2538

£493,001

£7,198

£18,268,053

Havering

3842

£312,115

£4,557

£17,507,529

Sutton

3349

£353,199

£5,157

£17,269,806

Enfield

3413

£343,743

£5,019

£17,128,645

Bexley

3765

£292,407

£4,269

£16,073,320

Harrow

2618

£403,818

£5,896

£15,435,055

Hounslow

2981

£318,989

£4,657

£13,883,231

Newham

2694

£283,435

£4,138

£11,148,179

Barking & Dagenham

2243

£233,232

£3,405

£7,637,835

City of London

338

£929,632

£13,573

£4,587,548

All boroughs

108,891

£579,478

£8,460

£861,534,344

  • (1) Source for Property Transactions: ONS – Total residential property transactions rolling 12 months to Q2 2015
  • (2) Source for average price paid for property in each borough: Zoopla Z-Index
  • (3) Source of average estate agent fee: MyHomeMove – Conveyancers Survey Nov 2015 – Average fee of 20,000 estate agency invoices settled, samples at 1.22% of an average house price of £250,000. Plus VAT at 20%
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