The latest edition of the SPPI publication highlights increases in the price of real estate agency services for commercial properties as one of the largest contributors to the aggregate SPPI rate for quarter 2 of 2015. The index has shown significant growth over the last two years. Does this indicate that estate agents have begun charging significantly higher fees? Estate agents do not tend to charge a fixed fee for their services. Instead they generally take a percentage of the value of the property sold or of the agreed letting. Figure A shows a breakdown of the data used in the calculation of the Real Estate SPPI: Figure A: Services Producer Price Index real estate breakdown Quarter 4 (Oct to Dec) 2009 to Quarter 2 (Apr to Jun) 2015, United Kingdom Source: Office for National Statistics Notes: Q1 refers to Quarter 1 (January to March), Q2 refers to Quarter 2 (April to June), Q3 refers to Quarter 3 (July to September) and Q4 refers to Qua...
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