What does the future hold for residential conveyancing in 2024?

Landmark’s recent market research unveils key insights from across the residential conveyancing sector. Here, Rob Gurney reveals his top five highlights from the research and shares his thoughts on some of the sector’s biggest frustrations – and how they could be mitigated.

1. Instruction at the point of sale: a recipe for delay?

Our research found that almost half (46%) of conveyancing cases needed additional enquiries to be raised due to incomplete information. So, why is this percentage so high??

At present, the typical position is for a seller to wait until they’ve accepted a buyers offer before instructing their conveyancer. With many lawyers contractually under pressure to get a draft contract pack out within as little as 24–48 hours, that’s a recipe for incomplete packs and inevitably needless enquiries and avoidable delays.??

Crucially, these delays when the clock is ticking could be reduced were the seller’s conveyancer to be instructed at the point of listing, giving them a golden window of opportunity to prepare accordingly.??

2. The impact of longer timescales on efficiency

Our research shows that the average property purchase now takes 123 days, a 64% increase from 2007. No wonder the length of time it’s taking to complete a transaction is one of the top five frustrations for property professionals across the sector.??

For conveyancers, the impact is threefold:?

• First, it affects cash flow, which is obviously a concern in an area already known for being a low-margin legal service. Particularly as conveyancers don’t get paid until completion.?
• Secondly, there’s a negative impact on capacity. If caseloads don’t turn as frequently, conveyancers either have to carry more cases – to the detriment of speed and service – or they have to place restrictions on new business.?
• Thirdly, it’s harder to meet and maintain client satisfaction levels. Longer transaction times can often lead to complaints. Dealing with those complaints then takes up valuable resources that could otherwise be directed at progressing cases.???

3. New legislation weighing heavily on all professionals

It’s no surprise that a whopping 89% of conveyancers have felt the impact of legislative changes in the last 12 months. That’s almost certainly down to the Building Safety Act 2022 coming into force.??

Most lawyers consider the Act to be overly complex and burdensome. Different lender requirements have only added to the complexity.?

As a result, many firms have outright refused to deal with properties caught by the Act because of the extra requirements it imposes and the associated risks. Those who are prepared to take on this type of work have justifiably increased their fees in order to cover the additional work required.??

4. A familiar foe: chasing for updates

Our research found that conveyancers are dedicating as much as 39% of their day, on average, to the task of chasing or being chased for updates. So, what’s behind that??

Again, a major culprit is incomplete information, which leads to additional and avoidable enquiries being raised.??

In general, there are two types of updates: chasing up outstanding information and asking other parties whether they are ready to exchange. In both cases, chasing can be reduced or become obsolete if the seller’s lawyer has time to initially prepare and issue the perfect contract pack.?

5. Unleashing productivity through technology

We also asked property professionals what would make the biggest positive impact on their productivity. Again, there was marked consensus. ‘Improved / more efficient technology’ scored highly across the sector, as did ‘digitising workflows’.??

Many law firms will already be benefitting from technology by using case management systems to enhance the efficiency, regulatory adherence and consistency of their practice.?

They can also now rely on technology adoption to take care of many time-consuming responsibilities, such as AML and source-of-funds checks etc. That means conveyancers can spend more time on case progression and enhancing their service levels.?

Access the full report: Residential Conveyancing: What does the future hold for 2024?