How Much Commission Could Be Quietly Disappearing From Your Pipeline?

Every estate agency experiences transactions that fall through. While some properties return to the market and eventually complete, not all do.

Research suggests that around 6% of transactions fall through and do not return to market within 12 months, contributing to an estimated £392 million in lost estate agency commission across England.

Use the formula below to estimate the potential commission leakage within your business:

Commission Leakage Formula

Annual completions × 6% × average fee per completion = estimated annual commission leakage

Example

If your agency completes:

• 10,000 transactions per year
• Average fee of £4,500
• 6% permanently lost transactions

Result:

£2,700,000 potential commission leakage per year

Potential Commission Protected (25%): £675,000

Illustrative example based on improving outcomes in a proportion of at-risk transactions.

Why Commission Leakage Matters

The impact of a failed transaction extends beyond a lost fee.

Even where a proportion of transactions eventually come back to market, the consequences often extend beyond the immediate lost fee:

• Delayed revenue
• Additional sales progression effort
• Increased administration
• Reduced forecasting certainty
• Lower branch productivity
• Disrupted cash flow

For larger agencies, even small improvements in completion rates can translate into significant commercial gains across the wider business.

Where Commission Leakage Typically Occurs

Property transactions rarely fall through because of a single issue. More often, momentum slows when risks are identified too late or communication breaks down.

Common causes include:

• Unresolved legal enquiries
• Mortgage offer issues
• Buyer confidence concerns
• Property chain complications
• Delayed third-party responses
• Communication breakdowns
• Unidentified transaction risks

By the time a transaction formally falls through, warning signs have often been present for weeks.

Why Early Visibility Matters

Not every fall-through can be prevented. Property transactions are complex, and some circumstances remain outside anyone’s control.

However, early identification of risk can give agents, sales progressors, and conveyancers more opportunity to intervene before problems become irreversible.

Effective transaction visibility helps teams:

• Identify risk earlier
• Prioritise vulnerable transactions
• Maintain momentum
• Improve communication
• Reduce avoidable delays
• Increase completion confidence

The earlier a potential issue becomes visible, the more options there are to address it.

The Wider Cost of a Failed Transaction

Revenue is only one part of the picture.

Every collapsed transaction also represents:

• Time already invested
• Progression resource already allocated
• Client relationships under pressure
• Delayed instructions further down the pipeline
• Reduced confidence in forecasting

For larger agency groups, small improvements in completion performance can translate into significant commercial gains across hundreds or thousands of transactions annually.

How Nova Helps Protect Pipeline Value

Nova is designed to reduce uncertainty, surface risk earlier, and maintain visibility throughout the transaction journey.

Sale Ready From Day One

By completing key forms and checks upfront, Nova helps reduce delays, increase buyer confidence and maintain momentum from the start.

Spot Risk Earlier

Clear transaction visibility helps identify stalled progress and emerging issues before deals drift towards failure.

Protect Pipeline Value

Maintaining transaction momentum helps safeguard future revenue and improve completion outcomes.

More Predictable Outcomes

Greater transparency throughout the transaction gives agents increased confidence when managing expectations and forecasting revenue.

Frequently Asked Questions

What is commission leakage?

Commission leakage is the revenue lost when property transactions collapse and never complete, preventing an estate agency from earning its anticipated fee.

What causes estate agency commission leakage?

Common causes include fall-throughs, collapsed chains, mortgage issues, legal delays, communication breakdowns and unresolved transaction risks.

How much commission do estate agents lose through fall-throughs?

The amount varies by agency, transaction volumes and fee structures. Even a relatively small percentage of permanently lost transactions can represent significant annual revenue.

Can all transaction fall-throughs be prevented?

No. Some transaction failures occur for reasons outside an agent’s control. However, earlier risk identification and stronger transaction visibility can help reduce avoidable losses.

Why should agencies calculate commission leakage?

Understanding potential revenue loss helps agencies evaluate the commercial impact of fall-throughs and identify opportunities to improve transaction outcomes.

Find Out How Much Revenue Could Be at Risk

Use the formula to estimate your potential annual commission leakage.

Then ask a more valuable question:

How much of that revenue could be protected through better visibility, earlier risk identification and stronger transaction momentum?

REQUEST A CALLBACK

Source: Rightmove