The privatisation of the Land Registry will be abandoned for a second time according to Search Acumen’s Director, Andy Sommerville.
Making predictions for 2016, Andy Sommerville sees the suggested privatisation of the Land Registry as a non-starter due to industry opposition as well as the risk it would put “all of the progress made to date at risk” when it comes to open data.
Mr Sommerville also predicts the market will stall at 15% to 20% behind 2007’s sales peak.
Andy Sommerville said: “Land Registry’s future will also be a major topic of debate in the year ahead after the Treasury again raised the prospect of privatisation in November’s Autumn Statement. It’s the second time privatisation has been suggested, and we expect it will be abandoned for a second time too. It is very difficult to see how the sale would work in practice, and most lawyers are opposed to the idea in principle.
“Furthermore, Land Registry has made considerable progress in opening up its data for commercial use and has in turn saved time and money for lawyers and conveyancers. Privatisation would put all of the progress made to date at risk.
“2016 is set to be a positive year for conveyancers and the wider property industry. If the government’s promised planning reforms are implemented quickly, an increase in housebuilding will ensure a healthy supply of new homes to the market.
“At the same time, government incentives like Help to Buy will continue to sustain demand for new homes and get more buyers on to the ladder without a big deposit. Despite the positive trajectory, sales volumes will remain around 15 – 20% behind the market’s 2007 peak.”
George Osborne announced a new consultation on privatising Land Registry in his Autumn Statement with a view to selling it into private hands in 2017. Osborne also announced an additional 3% stamp duty charge on second homes due to come into force in the next financial year.
Andy Sommerville continued: “For buy-to-let investors, a key moment will be the run-up to April, when we are likely to see a spike in market activity as buyers look to complete their purchases before new rules on stamp duty come into force. Nevertheless, London will retain its status as a safe haven for international property investors into 2016 and beyond.
“Although higher sales volumes will provide plenty of work for conveyancers, we expect to see further consolidation amongst the top 1,000 firms, which has been a key trend in our Conveyancing Market Tracker during 2015.
“The pressure on smaller firms will only grow if, as reported, the likes of Tesco are able to offer more legal services. Conveyancers will increasingly have to demonstrate their value as a trusted advisor and a crucial part of any property purchase – not something that buyers should cut corners on.
“Next year will also see a step change in the use of technology within law firms. In the search market, assuming the sale of Land Registry is abandoned, then the greater availability of ‘big data’ will continue to create efficiencies through time-saving new software. Search Acumen will be launching a number of new services in 2016 that aim to do just that.
“The wider property industry too will see a shift towards digitalisation. Online estate agents like Purple Bricks, which saw huge interest when launched on the stock market this month, are likely to grow in popularity with sellers. The industry will have to adapt to the new wave of online estate agencies.
“Throughout 2016 conveyancers will have to increasingly demonstrate that they understand the digital world and can utilise tech to create efficiencies and savings, both for themselves and their customers.”
