If you are curious about a career in property, you probably want to know the real estate agent starting salary. Many people choose this career because it offers freedom, excitement and the chance to earn well. Every day is different—you might be showing a cosy flat in the morning and a luxury home in the afternoon. It feels great to help someone find the home they love, and it gives real satisfaction.
At the start, a real estate agent’s salary in the UK is usually modest. However, most agents also earn commission on sales, which can quickly boost your income. With dedication, good communication skills and a strong work ethic, your earnings can rise significantly within a few years. In the UK, most real estate agents earn around £36,000 to £43,000 a year, no matter their experience. Moreover, experienced agents often earn far more than many traditional jobs, making this career highly attractive.
In this article, we take a close look at what new real estate agents earn. You’ll learn how starting pay works, how commissions can increase your income, how salaries differ across the UK and what opportunities exist for growth. By the end, you’ll have a clear idea of what to expect if you want to start a career in real estate.
What Is the Real Estate Agent Starting Salary?
If you are just starting, you might wonder how much you can earn. In the UK, the typical starting salary ranges are:
- Basic/Starter Salary: £23,000 – £30,000 per year (or hourly minimum wage). This gives you a steady start while you learn the job.
- OTE (On-Target Earnings): £35,000 – £50,000+ in the first year, including commission. Your earnings can grow fast if you make sales.
Many agencies also give a guaranteed salary for a few months. This helps you learn and gain confidence without worrying about money.
Starting in real estate can feel tough, but it is exciting too. Then, every sale you make can increase your income, and with effort, your first-year earnings can grow quickly.
How Do Real Estate Agent Salaries Work?
Understanding real estate pay can seem tricky at first. But once you know the basics, it becomes much easier.
Base salary explained
Most agents start with a base salary. This is a fixed amount you earn each month. However, it gives you security while you learn the job and build confidence.
Commission structure in sales
On top of your base salary, you earn commission when you sell a property. So, the more houses you sell, the more money you make. Also, this makes the job exciting because your hard work directly earns you
Commission structure in lettings
If you work in lettings (renting homes), you can also earn commission. Usually, this is a percentage of the rent for the first year. Then, even smaller deals can add up and boost your total pay.
Example commission breakdown
For example, if you sell a house for £300,000 with a 1% commission, you earn £3,000 from that sale. And if you rent out a flat for £1,000 a month with a 10% commission, you get £100. This shows how commissions can quickly increase your total earnings.
Real Estate Agent Career Path and Progression
It’s thrilling to begin a career in real estate since there is potential for advancement. With effort and good skills, your career can move quickly. Let’s look at the main paths for sales and lettings.
Career Progression in Sales
If you want to work in sales, you usually start at the bottom and move up step by step. The typical path is:
- Trainee sales negotiator
- Sales negotiator
- Senior sales negotiator
- Valuer
- Sales manager
- Area sales manager
- Regional sales director
- Sales director
- Chief executive
As you gain experience, you take on more responsibility, and your pay increases. For example, experienced agents often earn between £50,000 and £120,000 a year. In top areas, some can earn over £500,000. Roles like sales director or regional sales director come with bigger responsibilities but also much higher pay.
Career Progression in Lettings
In lettings, the career path is similar but focuses on rentals. You usually start as a:
- Trainee lettings negotiator
- Lettings negotiator
- Senior lettings negotiator
- Assistant lettings manager
- Lettings manager
- Area lettings manager
- Regional lettings director
- Lettings director
As you move up, you gain more experience and earn more. Also, higher positions like lettings manager and director come with larger salaries and higher commissions. So, your income can grow steadily as you handle bigger portfolios and more clients.
How Much Do Real Estate Agents Earn in Commission?
Commission is a big part of an agent’s pay. It makes the job exciting because your work directly earns you money.
Average commission percentages
Most agents earn between 0.75% and 3% of the property sale price. So, selling expensive homes can bring bigger rewards. Even a tiny percentage can have a significant impact.
Monthly vs yearly earnings
Some agents earn commission every month. Others calculate it yearly. Then, your income depends on how many sales you make and their value. For example, selling a £300,000 house at 1% commission gives £3,000 from that sale. Multiple sales can add up quickly.
Is there an earnings limit?
There is no limit. Also, top agents in big markets can earn hundreds of thousands a year. So, the more effort you put in, the more you can earn.
Bonuses and Incentives for Real Estate Agents
Besides salary and commission, agents can earn bonuses and extra rewards. These make the job more fun and motivate you to do well.
Monthly, quarterly, and annual bonuses
There are some agencies that give bonuses every month or every few months when you meet targets. Then, there are yearly bonuses for big achievements. These extra payments can really increase your income.
Performance-based incentives
Many bonuses depend on how well you perform. So, the more houses you sell, the more rewards you can get. Some agencies give cash, vouchers, or even trips for top performance.
High-performer reward examples
Top agents can earn extra cash, trips or gifts. For example, closing several high-value deals in a year might give you an extra £5,000 or more. Also, being a top performer can lead to promotions and higher pay in the future.
Skills That Increase Real Estate Agent Earnings
Some skills can really help you earn more as a real estate agent. The good news is that you can learn and improve them over time.
Relationship-building skills: Being friendly and trustworthy with clients is very important. So, building strong relationships can lead to repeat business and referrals. Besides, happy clients often bring more sales.
Sales and negotiation skills: The better you are at selling and negotiating, the more deals you can close. Then, your commissions increase. Strong negotiation skills can give a big difference in your earnings.
Lead generation and networking: Finding new clients is key. Also, networking with other agents and local businesses can bring more opportunities. The more leads you have, the more chances to earn.
Transition from employee to business owner: Some agents choose to run their own agency. This step takes courage and effort, but it can greatly increase income and give you freedom. So, growing your skills can help you move from being an employee to owning your own business.
Regional Variations in Real Estate Agent Earnings
Earnings for real estate agents in the UK vary a lot depending on location. Some areas offer bigger opportunities than others.
London
- Earnings Range: £35,000 to £100,000+ for experienced agents; top performers in super-prime areas like Mayfair or Kensington can earn £200,000 to £800,000+.
- Why: Because London has the UK’s most expensive homes, with averages of £750,000 to £1 million and luxury homes over £10 million. A £1 million sale at 1.5% commission gives a £15,000 agency fee, so agents earn £1,500 to £7,500. High demand and international buyers boost earnings.
- Lettings: Average rent is £1,319/month; agents earn £200–£1,800 per tenancy. Top luxury lettings agents can make £80,000–£150,000+.
South East (Surrey, Hertfordshire, Kent)
- Earnings: £30,000–£60,000+; top earners £80,000–£100,000.
- Why: Property prices (£500,000–£800,000) generate strong commissions, plus proximity to London increases luxury demand.
- Lettings: Rents £1,200–£2,000/month; earnings £25,000–£50,000.
Scotland (Edinburgh, Glasgow)
- Earnings: £30,000–£70,000+; top agents £100,000.
- Why: Homes cost £350,000–£600,000. The offers-over system pushes prices up.
- Lettings: Managing 20–50 tenancies earns £10,000–£20,000; senior agents can reach £50,000–£80,000.
North West (Manchester, Liverpool)
- Earnings: £25,000–£50,000+; top £60,000–£80,000.
- Why: Prices are lower (£250,000–£400,000), but regeneration projects attract buyers.
- Lettings: Rents £1,000–£1,800/month; earnings £25,000–£50,000.
Other Regions
- South West: £25,000–£50,000+; top £60,000–£80,000.
- North East & Yorkshire: £20,000–£40,000+; top £50,000–£60,000.
- Northern Ireland: £25,000–£50,000+; top £60,000–£80,000.
Lower property prices limit earnings in some areas, while strong rental demand and luxury markets boost income elsewhere.
Sales vs Lettings Agents – Who Earns More?
Here is a clear comparison to help you understand:
1. Income Potential
- Sales Agents: Can earn big money from selling homes. For example, selling a £500,000 house at 1.5% commission gives £7,500. Top agents in expensive areas can earn much more.
- Letting Agents: Earn smaller amounts from rentals, usually 7–15% of yearly rent. Also, managing many properties adds up over time.
2. Stability of Earnings
- Sales Agents: Income changes every month. Then, a good month can bring a lot of money, but slow months can happen.
- Letting Agents: Income is steadier because rent comes in regularly. So, you can plan your money better.
3. Personality Fit
- Sales Agents: Best for people who like selling, negotiating and chasing big rewards as well. Also, you need confidence and energy.
- Letting Agents: Best for people who like managing relationships and organising properties. You help landlords and tenants over time.
4. Combining Both
There are some agents who do both sales and lettings. This gives balanced income, steady work and chances for higher earnings. Then, you get the best of both worlds: stability and commission.
Running Your Own Real Estate Agency
Owning a self-real estate agency can be exciting and rewarding. Because you are the boss, you choose how the business grows, which clients to work with, and what kind of properties to focus on. This freedom can make your work much more enjoyable.
Benefits of owning an agency
Running your own agency gives you control over your schedule. You can decide when to work and how to organise your team. In addition, you can create own brand and reputation in the market. Clients may choose your agency because of your style, service, and trustworthiness. Seeing your agency succeed brings a huge sense of pride and satisfaction.
Income streams for agency owners
Agency owners have several ways to earn money. You make commission from property sales, fees from lettings and income from property management services. Meanwhile, hiring a skilled team helps grow the business. Their sales and lettings also increase your overall earnings. You can also add extra services, like property valuations or marketing packages, to create more income streams.
Long-term wealth and exit value
Owning an agency can build wealth over time. Therefore, if you decide to sell the business later, it could be worth a lot of money. Even while running it, you gain financial security because your income is not limited to a single salary. Over time, a successful agency can become a valuable asset and provide opportunities for expansion into new areas or markets.
Extra advantages
You also develop valuable skills, like leadership, business planning and client management. In addition, running your own agency gives you a sense of independence and achievement that few other jobs offer. It can be challenging, but for those willing to work hard, the rewards are huge—both financially and personally.
Becoming a Belvoir Group Franchisee
One wise method to launch your own real estate company is to become a franchisee of the Belvoir Group. Because you use a trusted brand, you face less risk than starting completely on your own. This support makes it easier to succeed and grow.
Why franchising reduces risk
- You get proven systems for running the business.
- Training and marketing support help you from day one.
- Guidance from experienced professionals reduces mistakes.
- In addition, you don’t have to figure everything out alone.
Four ways franchisees earn income
- Sales commissions from property sales.
- Letting fees from rental properties.
- Property management services.
- Extra services like valuations or marketing packages.
- Meanwhile, managing more properties increases your income.
Growth and acquisition opportunities
- Expand your business by opening new branches.
- Acquire other offices to grow your client base.
- Then, your income potential grows with your network.
Funding and lender support
- Belvoir helps franchisees access loans and funding.
- So, you can start or grow your business with financial support.
- Planning your business and reaching your goals becomes easier.
The Pros and Cons of a Career in Real Estate
Real estate work may be exciting and rewarding. Because the work is busy and fast, you need to know what to expect.
Advantages of the profession
- You can earn good money from sales and lettings.
- Every day is different, so work is never boring.
- Helping people find their dream home feels great.
- Also, you can have flexible hours and work more independently.
Challenges to expect
- Pay can go up and down, especially at the start.
- Some days can be stressful when business is busy or slow.
- Negotiating and dealing with clients can be tricky.
- However, you need to stay organised and manage your time well.
Is it right for you?
Real estate suits people who enjoy meeting clients, making deals, and working hard for rewards. So, if you like variety, freedom and helping people, it could be a good choice. But if you want steady hours and fixed pay, this job may not be the best fit.
Final Thoughts
It can be challenging and satisfying to begin working as a real estate agent in the UK. First, while the starting salary might seem modest, your hard work, sales skills, and dedication can quickly boost your earnings. Additionally, there is a lot of space for progress if you concentrate on sales, rentals, or even managing your own agency. Every day is different, and helping people find their dream home brings absolute satisfaction.
Finally, real estate can be the ideal option if you’re looking for a job that offers flexibility, variety, and the potential to make a good living. For a complete guide on salaries, commission, career paths, and tips to succeed, check out our complete blog above. It will give you everything you need to start your journey in property with confidence.
Real Estate Agent Starting Salary FAQs
1. How much do real estate agents earn in the UK?
- On Reed.co.uk, pay for these roles ranges from £31,876 to £42,459.
2. Is real estate a well-paid job?
- Yes, earnings can be high, especially with commission, experience, or owning your own agency.
3. Do estate agents get a base salary?
- Yes, most start with a fixed base salary plus commission on sales or lettings.
4. What is a top 1% salary in the UK?
- About £174,000–£186,000.
5. How much is £13.50 an hour annually?
- About £28,000 per year (full-time, 40 hours/week).
