The Competition and Markets Authority has warned that home movers do not always get the best legal information from conveyancing services.
It said yesterday that many consumers rely on word of mouth recommendations, without doing further research – and that this does not guarantee value for money or good service.
The CMA said that as a result of a market study, it has made a number of recommendations.
These include conveyancers making their prices transparent online; engaging with reviews and ratings websites; developing price comparison tools by getting regulators to make data available; and asking regulators to work with consumer and small business groups to deliver better information and guidance.
Proposals also include a revamping the current ‘Legal Choices’ website so that it becomes a go-to tool for would-be home hunters.
The CMA said that changes to this website will enable consumers to identify their legal needs better – before they start the process of buying or renting and to help them understand the choices available to them to choose a legal provider.
Acting executive director for the legal services market study Rachel Merelie said: “You might not require a legal service very often but when you do it will often be at a crucial point in your life – whether it is buying a property, resolving disputes or getting expert advice on financial and employment matters.
“Better informed consumers who are more equipped to assess and make choices will increase competition, not just on price – where currently a similar service can cost twice as much depending on the provider – but also on quality and innovation. It will also mean fewer consumers are discouraged from seeking the help they need.
“We will be working very closely with regulators in delivering the changes and keeping a close eye on the progress they make.
“We also think that the regulatory system will need to change to make it fit for the future and have recommended that the Ministry of Justice conduct a review of the current framework.”
Comments (4)
Agree with you Rob. Additional problem is that very often clients are ill informed what they are buying and it is sometimes very difficult to provide a definitive quote at the start . The conveyancer does not always know at the start of a matter what additional issues they may face . Bit like asking a builder for a quote and then finding out either he needs to do extra work or you ask him to do something he didn’t quote for .
The problem isn’t about not publishing online, the problem is getting a like for like quote.
One firm may advertise conveyancing at £99.00 then add on numerous extras, another may advertise £650.00 and add nothing on. The £99.00 quote could turn out more expensive.
Others may mark up their CHAPS/BACS fees and carry out fewer searches than their competitors.
On a mystery shop exercise I recently carried out, I obtained six written (conveyancing) quotes. It took me (with decades of experience) well over an hour to work out which was the cheapest and which was the dearest. I am not suggesting that either of those would provide the best or worst service.
Their should be a standard quote template so that the public can compare apples with apples and not apples with oranges.
“Relying on word of mouth” shouldn’t this be promoted as a good thing. Dare these people not phrase it as “People often use a solicitor after a personal recommendation of good service”
I am amazed yet again, that these people with any sort of authority are pushing the cheap is best route rather than promoting a good service that you pay the correct fee for
Just, please, please make sure that buyers and seller never, ever, use the bucket shop conveyancers. They are the bain of our lives and we should do all be can to point home movers to a PROPER solicitor/conveyancer rather than a factory farm. Why would anyone in their right mind spend £395 to buy or sell a £500,000 property? Maybe if they were also using edontmoooov as well??