Estate agents in the UK who are reportedly “among the worst paid in the world”, could improve their earning potential by embracing disruptive business models, according to Agent and Homes.
The agency, based in London, said that a “more modern” approach to estate agency could reverse the trend of businesses closing and help them to become more profitable.
Recent research from Yell Business ranked the UK 24th out of 25 countries when looking at the average earnings for real estate jobs across the globe.
Taking into account annual salary and the cost of living, agents working in the UK were estimated to have an average take home of £19,843 – only higher than the £18,845 recorded in New Zealand.
Meanwhile, the typical annual earnings of agents in other locations such as Saudi Arabia (£62,931), China (£55,481) and Brazil (£44,482) dwarfed those of property professionals operating in the UK.
In recent years, the “typical estate agency” commission fee in the UK has fallen significantly. GetAgent estimated that it fell to an average of 1.2% during 2019.
According to Agent and Homes, a combination of factors means that the traditional estate agency model in the UK “stifles earning potential for agents”.
Rollo Miles, co-founder at Agent and Homes said: “High street offices cost a lot and that inevitably has an impact on agents’ salaries – particularly those not operating in the most senior positions.
“What’s more, the commission structure in which the company receives the selling fee from which the agent receives a small cut is limiting and does not provide the incentive to be a top performer.”
Agent and Homes’ co-founder, Bob Crowley, added: “High street agents have created this situation of low-salaried staff by expanding in the same geographical areas to such a degree that the number of high street agents simply outweighs the needs of the consumer.
“Sitting around in a high street office all day is energy-sapping. A happy agent is a productive agent. The agents should be able to dictate their own time and how they expend their energies. They should be able to choose when and where they want to work to fit in with the modern consumer.”