Understanding how estate agent commission works in the UK helps sellers know exactly how much they’ll pay, when commission is charged, and whether fees can be negotiated.
This guide explains how much commission estate agents make, what commission covers, who pays it, and how commission fits into overall estate agent fees.
What Is Estate Agent Commission?
Estate agent commission is the fee an estate agent earns for successfully selling a property. In the UK, commission is usually charged as a percentage of the final sale price and is agreed before the property is marketed.
In most cases, estate agent commission is payable only when the sale completes.
How Much Commission Do Estate Agents Make?
Most estate agents in the UK charge between:
- 1% and 3% plus VAT
- The typical estate agent commission is around 1.2%–1.5% plus VAT
The exact commission rate depends on:
- Property value
- Local market conditions
- Whether the agent is high street or online
- Level of service provided
How Is Estate Agent Commission Calculated?
Estate agent commission is calculated using the final agreed sale price, not the asking price.
Example:
- Sale price: £300,000
- Commission rate: 1.5%
- Commission fee: £4,500 + VAT
Because commission increases with the sale price, rates are often negotiable.
What Commission Do Estate Agents Charge for Selling a House?
Most traditional estate agents charge commission on a no sale, no fee basis. This means:
- You don’t pay commission if your property doesn’t sell
- Fees are only charged after completion
- Commission is usually deducted by your solicitor
Online or fixed-fee estate agents may charge:
- A flat fee
- Upfront or staged payments
Who Pays Estate Agent Commission in the UK?
In the UK:
- The seller pays estate agent commission
- Buyers do not pay estate agent fees
This differs from some international property markets.
Do Estate Agents Earn Commission or a Salary?
Most estate agents receive:
- A basic salary
- Plus commission or performance bonuses
This structure encourages agents to:
- Secure a higher sale price
- Complete sales efficiently
Is VAT Charged on Estate Agent Commission?
Yes. VAT at 20% is charged on estate agent commission.
Always confirm whether quoted commission rates are:
- Inclusive of VAT
- Or quoted plus VAT
Failing to check this can significantly increase the final cost.
Can Estate Agent Commission Be Negotiated?
Yes — estate agent commission is fully negotiable.
You may be able to reduce commission by:
- Comparing multiple estate agents
- Negotiating upfront
- Agreeing to a sole agency agreement
- Selling a higher-value property
Even small reductions can save thousands of pounds.
How Commission Fits Into Total Estate Agent Fees
Commission is usually the largest part of what sellers pay, but it’s not the only cost involved.
👉 Read the full breakdown here: Estate Agent Fees
Final Thoughts on Estate Agent Commission
Understanding how much commission estate agents make, how it’s calculated, and when it’s paid allows sellers to make informed decisions and avoid unexpected costs.
Always confirm commission terms in writing before signing an agency agreement.
