Navigating the Challenges of the Conveyancing Process

The journey of buying or selling a home can often feel overwhelming, with reports indicating that approximately one in three property transactions fall through after an offer has been made. This disruption can lead to significant financial losses and immense stress for all parties involved.

A major factor contributing to these difficulties is the outdated, largely paper-based conveyancing process, which is activated once an offer is accepted. This phase encompasses necessary tasks such as conducting searches, drafting and reviewing contracts, managing Land Registry dealings, and settling stamp duty obligations.

In addition to being slow, the conveyancing process is becoming increasingly costly as more professionals leave the industry, coupled with almost 20% of conveyancers declining to handle transactions involving flats due to uncertainties related to evolving government safety regulations.

A recent analysis by Reallymoving highlighted the rising costs of conveyancing, with the average expense now reaching £2,434—a 2.2% increase from the previous quarter.

The quality of service among conveyancing firms can differ dramatically, influencing the duration of house sales. Efficiency varies based on the speed at which local councils conduct searches and the different financial situations of buyers in chains, as well as the geographical areas involved.

As per statistics from the Ministry of Housing, over 300,000 property transactions fail every year in the UK, costing sellers a staggering £400 million. The property portal Zoopla revealed that the time taken from listing a home to its completion averages 185 days in England and Wales—nearly six months—compared to just 40 days in Australia, where the process is more digitized and binding.

In this article, we delve into the underlying issues within the conveyancing system and present suggestions to help streamline the experience.

Shortage of Conveyancers

A significant challenge for the industry is the decline in the number of active conveyancers in England and Wales, which has dropped by 15% from over 13,000 in September 2021 to approximately 11,140 by January 2025, according to Law Society data.

Monique Ramsey from RHJ Devonshire notes that the demanding nature of the job, combined with the influx of less experienced staff working remotely, contributes to job dissatisfaction. Many newcomers view conveyancing as merely a stepping stone rather than a sustainable career path.

Additionally, negligence claims in the conveyancing sector are on the rise, deterring potential entrants to the field. Fluctuating government deadlines, such as those associated with stamp duty, have added further pressure on firms, exacerbating staff shortages and increasing resignations.

Scott Bozinis, CEO of InfoTrack, a software provider for conveyancers, indicates that lower fees often correlate with inferior service levels. He highlights that many so-called “quickie” firms have junior staff—sometimes operating from abroad—supervised by a single conveyancer, which compromises quality.

What can you do?

When engaging with online conveyancers, it is advisable to limit their use to straightforward transactions. For more complex sales or purchases, it is best to select a larger firm with a solid track record.

To ensure a high standard of service, consider spending around £5,000 or more on a legal service, such as those offered by established firms like Farrer & Co. Most individuals will likely find themselves in a mid-range price bracket. Start your search with websites like Find My Move and Reallymoving.

Flat Transaction Obstacles

A prior investigation revealed that up to 1,200 conveyancing firms in the UK—roughly one-fifth—refuse to handle transactions involving blocks of flats over five stories due to concerns about flammable cladding and insulation.

The repercussions of the tragic Grenfell Tower fire in 2017 have affected many prospective buyers and sellers of high-rise flats. Conveyancers express confusion over the Building Safety Act of 2022, intended to ensure that building owners rectify safety defects without raising service charges for leaseholders. However, the act’s complexity has discouraged many from engaging in such transactions.

What can you do?

Ensure that you select a conveyancer who has experience with flats, particularly with leasehold transactions, as they come with intricate regulations and potential hidden fees. Gather recommendations and consider reaching out to organizations like the Leasehold Knowledge Partnership for guidance.

Coordination Issues

The current system resembles a precarious house of cards, with solicitors on both sides, mortgage brokers, and varying timelines for councils conducting area searches, creating potential chaos. Compounding this are outdated processes and poor data accessibility in digital formats; according to the Open Property Data Association, less than 1% of relevant data is digitally accessible, putting the UK behind numerous other countries in terms of efficiency.

Rayna Hunter, CEO of LH1 Global, remarks on the lack of transparent communication: “It resembles the Wild West. The system needs thorough reorganization; right now, it is chaotic.”

Tim Vooght, 39, is currently navigating the property market in southeast London with his partner, Stephen Fellows, 41. Tim shares his experiences of solicitors’ varying quotes during their search, revealing significant discrepancies in costs. They ultimately chose a well-rated firm that offered a balanced price and effective services.

Claire Whisker of First in the Door stresses the importance of efficiency in conveyancing, recounting an instance where delays led to a buyer losing their mortgage offer due to slow responses from solicitors.

Numerous factors other than conveyancing can contribute to transaction delays, including the desirability of various locations and property types, seasonal market fluctuations, and any impending government deadlines that can create additional demand.

Zoopla’s data shows that Waltham Forest is the quickest area for home purchases, with properties selling in an average of 19 days, while the slowest is Denbighshire in Wales at 62 days. Notably, the appeal of rural and coastal areas has diminished due to increased taxation following a pandemic-related property boom.

What can you do?

This scenario underscores the necessity to prepare your documentation in advance, especially your mortgage offer, to ensure solicitors can act promptly. Additionally, determine if it is feasible to conduct transactions without being part of a chain. Can you sell your existing property first and temporarily rent? Are you aware of the status of the seller’s chain?

The Push for Digitization

The need for an integrated and digitized conveyancing system has been advocated for some time, although advancements are emerging. For instance, Coadjute, founded in 2018, has introduced a blockchain-based communication tool for real estate purchasing, backed by the UK’s major mortgage lenders and utilized by leading estate agencies.

Rightmove recognized the transformative potential of Coadjute, describing it as “immense,” yet acknowledged the time required for proper implementation. Recently, a digital property exchange platform called Pexa completed the first entirely digital property transaction.

Structural issues also persist, with many vendors experiencing “gazumping” when another buyer presents a higher bid, and numerous sellers have faced “gazundering,” wherein buyers withdraw or reduce their purchase offer before contracts are exchanged. Such challenges are unique to England and Wales, as the statutory framework in Scotland mandates legally binding agreements when offers are accepted, minimizing these complications.

Exploring Reservation Agreements

An increasing number of firms, such as Gazeal, offer reservation agreements via estate agents as a safeguard for sellers when accepting buyer offers. Over 1,000 agents are currently utilizing Gazeal agreements, with 5,000 transactions successfully processed.

Research reservation agreements thoroughly to understand their functionality. Various products exist to support this process, with resources available on the Homeowners’ Alliance advisory website.