The legal system faces the biggest conveyancing logjam in a decade as the stamp duty deadline looms, according to Chris Ward, CEO of SDLT Compass.
Rightmove recently reported that more than 700,000 homes across Britain are currently nearing completion as conveyancers struggle to keep up
It is the highest number of sales subject to contract that the property website has recorded over the past 10 years.
This figure is 78% higher than in May 2019, while at the start of the year the sales pipeline across Great Britain stood at 613,000.
Separate data from Search Acumen, the property data insight and technology provider, shows that the number of property transactions registered in England and Wales increased 26% in the first three months of the year, rising to 241,916 in Q1 2021, up 2% from 192,063 in Q4 2020.
This is the first time quarterly transactions have topped to pre-pandemic levels since the onset of Covid.
Q1 2021 transaction volumes were up 193% compared with those recorded in Q2 2020 after the shutting down of the property market caused transactions to fall to just 82,385.
As the June stamp duty holiday deadline fast approaches, more buyers are rushing to complete their property purchase, placing even greater pressure on the conveyancing process.
Ward believes that a raft of new government initiatives, such as the First Homes scheme, will continue to incentivise new buyers, putting continued pressure on conveyancers calculating stamp duty.
He says that a technological solution is needed to help speed up the conveyancing process, which will speed up the entire property industry, and ultimately, every individual home move.
Ward commented: “The entire legal industry is slow, methodical and precise, and for good reason.
“The stamp duty holiday has pushed it to its limits, as conveyancers frantically try and process the million plus people who have moved home in the last year.
“It is no easy job, especially right now, but there are technological solutions that can help speed up the process, and have the added benefit of covering the backs of ever-rising PI premium costs.”
Comments (18)
I didn’t say you’re not busy. Conveyancers are also dealing with those new sales you are busy tying up for post June. But, every client that signed up pre-June (and post!!) is hoping to complete by 30th June. 1st July is not an option. THAT is the issue here. A bit like the January sales in Oxford Street – everyone trying to surge through the doors at 9am… I don’t know what tech can solve that problem.
Some ridiculous comments on here. Why would a buyer still be ringing conveyancers now saying they want to complete at the end of June on a property they found on Saturday? Because their expectations have not been managed by the Estate agent of course. But that is the conveyancer’s fault of course?
If part 1 of the process is wrong then there will be a knock on effect.
Tech is not the answer suggesting otherwise shows an ignorance of the process. I’ll show you a firm in my area with supposedly the best tech yet they are one of the worst firms to deal with because they have not invested in good staff. And as for the factories who of course exist only through the greed of Agents taking the high referral fees, well if you create a monster don’t complain.
Yes there are bad conveyancers, far far too many. Yes bizarrely too many are still taking Fridays off. But we all get the ridiculous chase up emails and calls from Agents wasting our time that leave us perplexed and laughing at the pointlessness of them. Presumably they are our fault too.
I suggest to any Agents making the sort of ridiculous remarks as above they should be checking their mirrors are hung on the wall the correct way round?
Tech, employing more (qualified) staff – of course, why did we not think of that… Sorry, did you not read the article before passing comment ? Transaction volumes up 193%! 78% more completions in one month. Hello….!
All you have done is shown everyone your complete lack of ‘knowledge’ of your own industry in which you think you ‘specialise’. Go learn your trade like a ‘savvy’ agent and stop embarrassing yourselves by banging the – it’s not my fault; it’s not the stamp duty fault; it’s not the fact that lenders need more notice, and there are no removal companies left …. It’s ALL the conveyancers fault drum! If only they had gone and picked more conveyancers off the Conveyancing tree !!!
We’re not asking for your sympathy. A little help wouldn’t go amiss…. This is a terrible time and if you can’t recognise that even now, you do your profession no credit. Open your eyes and go check in with reality.
You are not the only ones with increased workloads.
Where do you think the cases come from? Agents selling the property!
Not only do we deal with sales going through we also have to find and sell more properties. Our workload is probably double yours.
As for help, we ask all conveyancers we work with let us know what you are waiting for and we will do the leg work for you.
Sadly most don’t take us up on the option and communication is abysmal with them.
Conveyancing is still stuck 50 years in the past, thats the issue.
There’s a reason we don’t want agents help.. because most (not all) cause more issues than they sort, because they just see £££
as for lawyers/conveyancers
I’ve seen emails from other lawyers well after midnight and on also on weekends.
personally I’ve worked 6 day weeks for over a year now, the most time I’ve had off was four days over Christmas, I’ve forgotten what 9-5 is!
yes conveyancing needs to modernise, but how dare you question the commitment of me and my fellow conveyancers/lawyers.
This is upturn is unprecedented and won’t last forever and we had no way to plan for it.
being kind clearly isn’t something you or your agency follow.
“Sorry, did you not read the article before passing comment ? Transaction volumes up 193%! 78% more completions in one month. Hello….!”
Unlike you, it seems, I did read the article. That’s not really what it says, is it?
Transaction volumes up 193% – maybe they are; maybe not… but the comparison is being made with a period which the article rightly labels “the shutting down of the property market”. Actual increase looks to be about +30% when compared to the previous 5 years (2015-2019 inclusive) Q2 figures.
And the 78% “more completions” you have quoted is in fact a 78% increase in the total UK sales pipeline on the Rightmove portal – nothing whatsoever to do with property transactions that actually crossed the finish line.
If anyone is having a “Hello….!” moment – I would suggest it’s you.
In the last 15 months I have never heard as many clients criticise estate agents for closing up shop, abandoning them, lack of contact. A suggestion that their fees should be Government capped at a maximum fee whatever the property value. A bit too directed to mortgage advisers for mistakes which the conveyancers then have to involve themselves with correcting. Surveyors too for being unable to help for weeks. And now removal companies are getting the heat for being unavailable, no extra staff, and being inflexible when it counts the most.
And don’t get me started on all the praising of conveyancers. My goodness many have worked hard, almost 24/7 it feels, and they deserve Government recognition for keeping everyone paid let alone people moving. But so too has the quality of so many been worse than pre-lockdown and NOW is a time to review the quality of conveyancers.
The point seems to be that all sectors need to examine how they performed and make changes for the better. NO one part of it should have the focus.
Problem is, post-Covid, nothing will happen, let’s be honest – we are all going to go back to the same. That’s what we do in Britain – we need our strawberry, vanilla and chocolate ice cream, we don’t like change.
From my perspective it has been a case of the tail wagging the dog, conveyancers not saying no when the order book was already full. Someone somewhere should have taken responsibility and said no as volumes of new clients started to “come over the hill”! When the glass is full, turn off the tap and preserve the contents, do not leave the tap running wasting the contents.
Actually a lot of really good conveyancing firms turned the tap off some time ago, refusing to take on any new clients, limiting the cases they would take on from existing clients etc. Don’t tar everyone with the same brush!
How long does it take to train an agent Smile? It takes years to train a conveyancer, and training someone takes the person/people responsible for training away from their day jobs.
Many have invested in new tech and most are working their socks off. Your lack of sympathy I (which indicates a lack of understanding about conveyancing/land law) does not help at this moment in time.
Let’s start ripping each other apart again after the end of the month, eh?
Invest in support staff that would be a start.
Why are so many conveyancers taking Fridays off??
Why are so many conveyancers still working from home or even furloughed.
As always the majority of conveyancers have no focus on service or plan past the end of their current day.
There you go, showing your own ineptitude up. I see conveyancers doing 60+ hours a week (and their support staff working overtime evenings and weekends) to try and keep transactions moving against huge odds (local search applied for mid-May – due to be delivered in AUGUST! Now who is lacking the tech there???). Go on, I dare you, train to become a conveyancer and come back in ten years time and tell us how awful it is!
We are working 12 hours + a day; working weekends trying to get as many as possible in before the deadline. So yeah, we take the odd day off, not weeks, the odd day and to be honest most of the time we are working just not answering the phones. You have no idea about the pressure on conveyancing staff. As for getting more assistants, where are they going to magically appear from because there is no time to train them. But hey, thanks for the support!
The problem is Conveyancers have resisted any modernisation , haven’t invested in training or tech , won’t collaborate with others and have in effect allowed themselves in the main to be left behind . It’s hard to have any sympathy for them and this boom has simply highlighted the awful systems and processes in place.
Change can’t come quick enough, those who push it away will cease to be relevant in today’s world
Most have systems in place, submit searches on line; use the Land Registry portal where possible; and have case software to help, but titles need to be checked properly and it’s not a 5 minute job. There are Still unregistered sales coming through.
Where agents have invested in more staff, more tech, more training Conveyancers have stood still.
No sympathy for them. We are all busy, some of us are more business savvy and customer focused.
You do know there is a big difference in being able to sell a property… and being able to do the legal work….
Anyone can sell a Property. You have to be qualified to CONVEY a Property. I have worked for Estate Agents prior to becoming a Residential Conveyancer. I know which I have the utmost respect for. Agents get way too much for too little work which is why they can afford staff, tech etc. Conveyancers have huge overheads and shot themselves in the foot years ago by not doing what the AGents do and charging a set percentage of the sale price. Last twice I sold a property, despite knowing what I did for a living, i WAS LIED TO BY BOTH AGENTS – they both thought they would not get found out, but actually had witnesses both times and in the first case paper evidence also.