The number of solicitors and firms conducting conveyancing work is falling, and new research has suggested that automation is one key factor leading to the change.
Across the UK in September 2022, there were over 6,500 legal practices involved in residential conveyancing work, according to IRN Legal in their latest UK Residential Conveyancing Market Trends Report. This is a drop of 2.8% form a year prior – equivalent to nearly 200 firms ceasing conveyancing activity.
It is therefore unsurprising that the number of individual solicitors working in residential conveyancing has been declining in recent years according to Law Society data. In September 2022 there were 11,952, decreasing from 12,850 solicitors in September 2021 and 13,455 in June 2020.
There are also now 2,869 firms registered on the Law Society’s CQS – a fall from the 2,920 firms registered a year earlier. The number of firms registered with the CLC also fell from 227 to 225, though individual license holders climbed from 1,457 to 1,520.
“The automation of the conveyancing process is one influence behind the decrease in solicitor numbers,” said IRN Legal, adding:
“These volume conveyancers operate nationally and are investing heavily in technology and digital platforms where clients can complete the process online and track progress online so there is less of a regular need for a legal professional at various stages. During COVID, many conveyancers left the sector and have not come back while paralegals are taking on more of the work.”
With transactions on an upward trend and conveyancers leaving the profession in their droves, many will be concerned about the capacity of the industry to cope.
Even before the SDLT cuts were announced, conveyancers were struggling to deal with the growing volume of transactions, according to IRN Legal. They continued:
“There are still shortages of skilled conveyancers and many of those still working in the industry are facing longer working days to try and deal with the number of transactions.
Growing demand has led to some increases in conveyancing fees but, in contrast, the average length of time to complete the process is increasing.
The pandemic did accelerate the use of online conveyancing services, but this has primarily helped many volume conveyancers that have invested in improved online systems. The overwhelming majority of conveyancers have still to develop new IT systems.
The use of tools such as digital signatures and digital ID verification will increase. Many clients are used to using these digital tools in other areas, financial services and banking for example, and more will expect a similar service from their conveyancer, along with end-to-end digital delivery and 24/7 online access.
However, the strong spike in transactions and heavy workloads for conveyancers may have actually slowed down the spread of online services: there has been no time to progress IT plans or to train conveyancers in new systems, for example.”
The make-up of the firms who remain within the conveyancing market is also changing. According to IRN Legal, while most conveyancing solicitors remain based in high street law firms, specialist volume players are increasing their share of the market.
My Home Move is the clear market leader, dealing with almost twice as many transactions as its closest competitor O’Neill Patient Solicitors. My Home Move still only accounts for just over 2% of all transactions but it is one of a number of brands in the Simplify Group which, across its brands, has a market share of over 4%. The other top five brands are Taylor Rose MW, Countrywide Property Lawyers, and Setfords.
