You’re missing 59% of opportunities...

Last year, the Voice of the Agent survey uncovered that the majority of fees were earned through properties priced in the upper quartile of the market, i.e., over £500,000. 

But only just… at 51% it was just over the ‘majority’ line in 2024. 

This year’s results are in, and it has increased; now 59% of all fees in the industry are awarded to agents selling properties over £500,000. 

To me, that is incredible; what is thought of as a ‘niche’ market and an upmarket property being the ‘icing on the cake’, is in fact the opposite… Or the cake is basically two-thirds icing! 

How is this the case?

Well, the premium market is exponentially more valuable than the volume/residential market. 

Higher priced properties multiplied by higher fees gives a disproportionately high return on investment, for agents prepared to make that investment. 

Fees are flat at 1.1% throughout the market, until you get to properties priced £750,000 and above; when they jump to 1.4%. 

So right there, even being conservative, average fees go from:

On a £300,000 house = £3,300

To

A £750,000 house = £10,500. Over three times more for one transaction, and that’s at the bottom end of where fees begin to get exciting. 

1.5% for properties priced £1,000,000 to £2,000,000 = £22,500 commission

1.75% for properties prices £2,000,000 to £3,000,000 = £43,750 commission

And rising to 2.1% on average once you reach the £5m mark… so £105,000 commission. 

Pie in the sky? Nope, we do this in By Design – agents boast about ‘£100k months’ and wear hats about it, when firstly that is ‘gross’ and their broker fees are deducted, and secondly we have done well in excess, in one deal, and By Design agents keep 100% of that income. 

Anyway, I got sidetracked there…

So, despite properties priced over £500,000 accounting for just 24% of all listings, they result in 59% of all the fees that all agents are chasing across the country. 

And here’s the kicker, its not even that competitive, in comparison to the volume market. 

To put it ‘bluntly’; I’ll wager you a tenner if you can, off the top of your head, name 10 competitors locally to you who are competing for those premium homes. Whereas, naming 10 agents competing in the volume market is pretty easy in comparison! 

Or, more statistically, properties under £500k represent 41% of all the total commission in the industry. So, funnily enough, that becomes the niche market, but ironically a niche market with a load more competition in it. 

I think people assume I am passionate about the premium market, and encouraging agents to focus on it, because I like the ‘prestige’ of big houses. I do, of course, it would be a lie to deny it, but it’s the cold hard reality of the numbers above that gives it so much importance, and why we started this newsletter, the Property-Porn Stars podcast, or even By Design… because the premium market is where the action is! 

I said as much last year when the Voice of the Agent survey came out, and I’m saying it again this year because the numbers tell me to, and a hat will get eaten if next year I am suddenly proven wrong, because this market is growing and becoming even more exciting. 

I offer free premium market reports to agents interested in what it means to them, and what the agents in that market are doing (financially, as well as their strengths and weaknesses), if you would like one done and sent to you I’d be pleased to – just use this link: https://share-eu1.hsforms.com/1eTDJMbZgQhCc3m1xw44QTwfh84d

I’ll get off my soapbox now, or at least, until next month! 

David Lindley.