The Prime Market Advantage: Unlocking Higher Fees in UK Real Estate

Conducted between November and December 2024, this report delves into two critical areas: the market (sales and lettings) and marketing, offering a comprehensive overview of the challenges and opportunities shaping the property industry.

Part two's survey is now live: https://www.surveymonkey.com/r/TVOTA25pt2

Confidence in the UK property market remains a shifting tide, influenced by economic policies, market conditions, and buyer sentiment. Since the turbulence of the Truss government, optimism has slowly regained momentum, particularly among active home movers who remain more bullish than the general public. While fiscal changes continue to generate mixed reactions—40% of estate agents took a dim view of the October 2024 Budget—adaptability remains key. Those who embrace strategic advisory roles and stay ahead of policy shifts will continue to maintain an edge.

In 2024, 76% of estate agents reported increased vendor instructions, reflecting steady market activity. A further 57% anticipate continued growth in 2025, but a cautious stance on property values tempers this confidence—only 51% predict price increases. Vendor trust, however, remains an elusive commodity. While 81% of sellers turn to friends and family for advice, only 16% consult workplace professionals, reinforcing the need for agents to enhance their digital presence and thought leadership.

While mid-range properties dominate the market, luxury and prime properties operate in a league of their own. The average agent fee hovers around 1.28%, with a tight cluster between 1% and 1.1%. Yet, in the higher-value segments, the story changes dramatically.

Landlord engagement remains a challenge, with 55% of letting agents reporting a decline in landlord clients. Yet, the rental market's resilience is evident—68% of agents anticipate rental value increases, driven by tenant demand and constrained supply. The average fully managed fee sits at 11.1%, with Let-Only arrangements at 9.2%. Still, these figures shift upward significantly in prime and super-prime rentals, where bespoke management services command higher margins.

The data reveals a striking disparity in fee generation across different property tiers. While the mass market operates on volume, agents focusing on high-value properties can drive significantly greater profitability with fewer transactions.

The strategic implications are clear: agents positioned at the upper end of the market enjoy significantly higher returns per transaction. The prime and super-prime segments operate efficiently, which outstrips the broader market, requiring a focus on tailored client relationships, premium marketing, and a concierge-level service to sustain and grow market share.

For those in the luxury segment, investment in branding, high-quality content, and targeted outreach to high-net-worth individuals is essential. Fee compression may be an issue in the mid-market, but service and expertise are the true differentiators at the top.

David, some special guests, and I will dive deeper into these insights on an upcoming podcast. We’ll discuss the Prime Market Report and reveal an exclusive prime cut of the data exclusively for newsletter subscribers. Watch this space.

The Voice of the Agent 2025 will continue to deliver crucial insights through its upcoming chapters. In Part Two (April - complete the survey here: https://www.surveymonkey.com/r/TVOTA25pt2), the focus shifts to Portals, Proptech, AI, and Sustainability, exploring the growing influence of technology and environmental trends on the real estate sector. Part Three (July) delves into Economics, Politics, and Housing, providing a detailed analysis of the Labour government’s first year in office and the impact of their housing policies. Finally, Part Four (October) concludes with a focus on Consumers and Conveyancing, offering a forward-looking perspective on 2026 through a downloadable report filled with actionable insights to help agents stay ahead in an ever-changing market.

This report captures an industry navigating complexity and opportunity. The Voice of the Agent 2025 equips agents to adapt, thrive, and maintain a competitive edge in an evolving marketplace by highlighting trends, challenges, and best practices.