August’s mortgage details mean estate agents earned £241 per *office*
Estate agents typically get about 2% of a house sale, don’t they? Hang on, it’s 1.5% + VAT. (They don’t get to keep the VAT, of course - it’s passed on to the government.)
OK. Now notice that mortgage lending rose by barely anything in August:
Mortgage lending rose by just £143 million last month, a mere two percent of what was advanced in August 2007 and the weakest growth since the series began in April 1993.
Of course, the mortgage won’t be the whole price of the house - but it’ll typically be quite a large slice. Let us, for the purposes of a vague argument, assume that in fact in those mortgages, a full 50% of the house sale price was actually covered by cash (from the sale of the previous property in the chain, say).
That means that estate agents got 1.5% of £286m. In other words, £4.29m, in August.
Not bad, you think? Except that that’s for every estate agent across Britain.
And a 2006 figure tells us…
According to latest statistics from UK Property Shop, publishers of the online National Directory of Estate Agents, the total number of offices of UK estate agents and letting agents now exceeds 17,800. There are over 14,700 offices providing estate agency services with property for sale, 10,000 offices providing letting agency services with property to rent and around 1,100 offices offering student accommodation.
OK, so they’ll have turned their hands to letting, and we’re ignoring commercial property lettings and sales (not that those are anything to cheer about, I hear), and closures since then. But if those figures have stayed anything like static, then the average estate agent in August brought in from house sales a grand total of…
£241.
And of course, that’s allowing (generously) for the mortgage being quite a small part of the house sale (50%). Rank it up higher - say, to 90% of the sale price - and you’re getting £133 per office. It hardly covers the bill for the electricity.
- These posts might be related (the database thinks..):
- So how good is the CEBR at predicting things, given its prediction of a 3% shrinkage in 2009? (27 December 2008; score: 35.79%)
- Not required on voyage: an understanding of journalists (24 September 2004; score: 33.29%)
- Please, don't send me your Office-beta-created documents (26 July 2006; score: 30.93%)




