the deverell smith uk residential salary survey 2014 The key findings
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1 the deverell smith uk residential salary survey 2014 The key findings
2 introduction 59,375 average commission for property agents in the last financial year. Welcome to the key findings of Deverell Smith s UK Residential Salary Survey. This comprehensive research reviews the salaries, bonuses, fee income and market opinion of 1278 UK residential property professionals. The results are your benchmark for current market salary and rewards whilst giving you an insight into attitudes towards employment and the market in the UK residential property sector. 397K average fee income for property agents in the last financial year. We are in a dramatically different market compared with 12 months ago. This is reflected by 65% receiving an increase in their base salaries in the past 12 months. Market sentiment is overall very positive with 75% of respondents viewing the current market conditions as strong or very strong. 65% of employees report that salaries have increased over the past 12 months. 41,392average 35% of employees are very or fairly certain they will change jobs in the next 6 months. 12,363 average 75% of employees describe the UK residential market conditions in the past 12 months as strong or very strong. bonus in the last financial year salary for respondents in the UK residential property market. 3 4
3 respondents gender Breakdown of the research sample 3% 5 43% 0% 4% 6% 12% sector 15% Private Public Both 3% 8% 9% 10% 78% 14% 31% 5 6
4 respondents qualifications seniority Degree 41% 4% 12% Masters 16% 16% MRICS 12% 16% FRICS 1% ARLA 4% HNC/HND None 33% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 21% 31% Graduate/Trainee/Assistant Surveyor/Consultant Manager/Associate Senior Manager/Junior Partner Director/Partner MD/CEO/Equity Partner/Owner 41% of respondents are educated to degree level compared to the UK average of 38%*. * According to the Office for National Statistics 38% of the UK labour force are educated to degree level The largest proportion of respondents by seniority are at Manager/Associate level. 41% of respondents are in senior level positions from Senior Manager/Junior Partner upwards. experience age Over 21 years 11% years 9% % % years 16% % 9-11 years 15% % 6-8 years % 3-5 years 22% % Up to 2 years 10% % 0% 5% 10% 15% 20% 25% 36% of respondents have over 12 years experience in the residential property market. The largest group of respondents at 22% is those with 3 to 5 years experience. 65% of respondents are over the age of 30. The largest proportion of respondents are between the age of 31 and 35 years of age. 7 8
5 overview The UK residential market remains a lucrative sector to work in with the average salary for respondents at 41,392, which is 14,892 higher than the national average for full time employment.* discipline % of respondents average basic salary average bonus average salary increase in past 12 months Architect/Design 1% 46,062 7,000 Unchanged Auction 1% 37,559 12,238 Unchanged Building Surveying 2.5% 35,666 9,000 Unchanged Business Development 2.5% 45,830 16, % Estate Agency 5% 23,848 58, % Estate/Block Management 6.5% 45,763 9, % Facilities Management 2% 38,185 9, % Investment 8% 49,103 60, % Land and Development (agency) 55,888 71, % Marketing 5% 41,068 7, % New Homes Sales and Marketing 15% 29,654 46, % Project Management 8% 50,818 13, % Property Management 4% 38,830 8, % Quantity Surveying 2% 37,560 8, % Residential Development 21% 67,013 40, % Retirement Housing 1% 33,075 5,600 Unchanged Social Housing 3% 31,595 4, % Valuation 5.5% 37,450 8, % Salaries are annual incomes based on a mean average before tax and other deductions and does not include earnings of selfemployed people. * According to the Office for National Statistics the average salary in the UK for full time employment is 26,
6 salaries average salary by qualification average salary by experience 60,000 50,000 40,000 44,875 45,055 50,955 54,966 39,529 41,456 Over 21 years years years 50,272 61,227 83,895 30,000 28, years 49,677 20, years 42,921 10, years 39,905 0 Degree Masters MRICS FRICS ARLA HNC/HND None Up to 2 years 27,355 The highest earners by qualification are FRICS who earn an average of 54,966, 32% higher than the industry average of 41,392 according to this survey. The majority of those who have obtained a fellowship are of senior level and are therefore likely to earn a higher salary. Employees with MRICS qualifications are reporting to earn 23% higher than the industry average. The wage groups from up to 2 years to 3 to 5 years and from 16 to 20 to over 21 years see the most significant salary increases. average salary by seniority overall salary changes in past 12 months MD/CEO/Equity Partner/Owner 172,375 Up by 16>% Director/Partner 73,361 Up by 11 15% 8% Senior Manager/Junior Partner 57,114 Up by 6 10% 15% Manager/Associate 38,289 Surveyor/Consultant 29,181 Up by <5% 35% Graduate/Trainee 26,452 Unchanged 35% 0 40,000 80, , , ,000 Respondents in positions of Managing Directors, Chief Executives, Equity Partners and Owners are earning a mean average of 172,375, 46% higher than the national average for Chief Executives at 117,700 according to the Office for National Statistics. 0% 5% 10% 15% 20% 25% 30% 35% 40% 65% of respondents have received an increase in their salary in the past 12 months with the largest proportion of these receiving an increase of less than 5%
7 gender breakdown of respondents by specialism and gender More female respondents work in new homes, marketing and business development compared to male respondents who make up the majority of employees in building surveying, investment and land and development positions. Architect/Design Auction 33% 44% 6 56% The residential property industry is still lagging behind in equality. The gender pay gap for base salaries between male and female respondents is 34%, 70% higher than the overall national average of 20% reported by the Office for National Statistics. Building Surveying Business Development Estate Agency 39% 86% 93% 61% 14% Bonuses for male respondents is 56% higher. The low proportion of female respondents in Managing Director, Chief Executive, Equity Partner and Owner positions and the higher ratio of women in lower income roles such as new homes and social housing contribute to this average pay gap. Estate/Block Management 19% 81% gender breakdown by seniority Facilities Management Investment Land and Development (agency) Marketing 20% 22% 4 88% 80% 78% 53% 12% MD/CEO/Equity Partner/Owner Senior Manager/Junior Partner Manager/Associate 25% 42% 51% 75% 58% 49% New Homes Sales and Marketing Project Management Property Management 33% 59% 89% 6 41% 11% Surveyor/Consultant Graduate/Trainee 59% 41% Female Male Quantity Surveying 51% 49% Residential Development 39% 61% Retirement Housing 46% 54% Social Housing 62% 38% Valuation 21% 79% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Female Male 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% base salary and bonus by gender 100,000 80,000 40,761 60,000 17,922 40,000 55,923 20,000 37,056 Base Salary 0 Female Male Bonus 13 14
8 retention & satisfaction how long respondents have been in their current role 10 > years how satisfied are respondents in their current roles 3% 18% 26% years years 10% years 32% < 1 year 34% 0% 5% 10% 15% 20% 25% 30% 35% Overall 79% of respondents are very or fairly satisfied with their current roles. Of the 3% who responded as not at all satisfied with their current job it is interesting to note that 5 of these respondents have seen no change in their salary over the past twelve months, compared to 38% overall. 24% 11% 53% 20% Very Fairly Not Very Not at all how likely are respondents to change jobs in the next six months D.)*.<$%$ 66% of respondents have been in their current role for 3 years or less. breakdown of job satisfaction by seniority MD/CEO/Equity Partner/Owner Director/Partner Senior Manager/Junior Partner Manager/Associate Surveyor/Consultant Graduate/Trainee 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very Fairly Not Very Not at all 45% Not at all Unlikey Fairly Very 8 of respondents in senior positions from Senior Manager/Junior Partner upwards are very or fairly satisfied with their current role compared to 5 of those in more junior positions from Manager/Associate to Graduate/Trainee. Additionally the 3% of respondents who are not at all satisfied in their current jobs are within the more junior positions. 35% of respondents are fairly or very likely to change jobs in the next six months
9 market sentiment market sentiment by location Very Strong Strong Average Weak Very Weak East Anglia Yorkshire and the Humber West Midlands Wales South West South East Scotland North West North East London East Midlands 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 17 18
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