It turns out London’s streets really are paved with gold – for estate agents, anyway, who have earn £10m in fees for sales in London’s 20 most expensive roads over the past 18 months.
According to research from website HouseSimple, 80 properties sold in the top 20 prime locations sold for an average of £5.3m, generating roughly £9,9m in estate agent fees – an average of £124,449 a sale.
The chart below shows where the money came from.
HouseSimple said Eaton (£73.2m) and Cadogan (£72.9m) Squares brought in the bulk of the commission (based on the high street average of 1.8 per cent + VAT).
Prime property sold fastest in Elgin Crescent in Notting Hill – 17 properties sold in the past 18 months – netting agents almost almost £1m in fees (£958,953).
Alex Gosling, chief executive of HouseSimple, acknowledged that there wouldn't be "too many ordinary Londoners shedding a tear for the fees these homeowners paid out to high street agents". However, he added:
What these figures do highlight is just how much London estate agents are making from homeowners across the board. Even though property prices in the capital have dropped off from their peak, agents steadfastly stick to their fee structure. And now that the market is picking up again following the General Election, they’ll be making hay while the sun shines.
London’s 20 most expensive streets were taken from Lloyds Banking Group
The average house prices and number of properties sold were researched from the property website Zoopla.
Average high street agent fee of 1.8 per cent used – this is the national average according to Which?