The average time from conveyancers being instructed to completion for purchase transactions was 120 days in 2024, against 123 days in 2023; and for sale transactions that lengthened to 160 days in 2024, up slightly from 2023 (159). For sale transactions this represents an increase of 88% against 2007 timescales; and 60% up on 2007 for purchase transactions.
The research, which has been conducted by conveyancing case and workflow software provide Ochresoft, shows every other measurable metric in the home moving process has increased in the years since 2007, bar the ordering and return of searches. Sale matters instruction to exchange timelines have extended 101% since 2007, up from 75 days to 151 days; while purchase instruction to exchange timelines have increased by 65% over the same period, from 66 days to 109.
Despite improvements to decision making within the lending community, they too have seen extended timescales on the period from the instruction of the conveyancer, to receipt of the mortgage offer. In 2007 this was 38 days, in 2019 it was 48 days, and in 2024 it was 59 days; although this was a reduction in a peak of 65 days in 2021 during and after the impact of COID-19.
Given the current challenges associated with pre-contract enquiries it is unsurprising to see the time between enquiries raised to replies received more than double since 2007; from 26 days, to 60 days in 2023. On purchase matters this metric, and most other metrics around transaction timescales, have seen a decrease since peaking in 2022. In 2024 the average time between enquiries being raised and replies received reduced to 52 days, a decrease of 13%.
Efficiencies in the search ordering process has seen the time from ordering to return of searches reduced on average from 18 days in 2007, to 10 days in 2024.
“It is encouraging to see a 2% drop in the time taken from instructing a conveyancer to completing the purchase transaction (from 123 days in 2023 to 120 days in 2024). The time between instruction and exchange also reduced from a high of 118 days in 2022 to 109 in 2024.”
says Ochresoft Managing Director Rob Gurney
“However, when you consider that in 2007 the average time between conveyancer instruction to completion was 75 days and in 2019 it was 104 days, it is clear there is room for improvement.”
The report highlights some of the marginal reductions in timelines could be as a result of fewer transactions and more manageable caseloads. It is plausible the drive to instruct conveyancers earlier in the process is also having a positive effect on timelines, although matching consumer expectations of c 8.5 weeks to complete a sales and purchase still seems a way off say Landmark.
There should, says Landmark CEO Simon Brown, be a bigger drop in transaction times, but the complex nature of the work is hindering progress. One of the fundamental issues is scope creep with the report suggesting the extent of the due diligence carried out by conveyancers has doubled.
In theory, a softer market and increased capacity should lead to a bigger drop in transaction times. However, as the property transaction process remains incredibly complex and fragmented, timelines aren’t decreasing. The negative impacts of such delays are felt keenly, not only by sellers and purchasers, but by stakeholders right across the industry.
Contributors to the report from Landmark’s Valuation Services division and Estate Agency Service division highlight the impact on the wider property community, and home movers themselves.
“As we know, the longer a property transaction takes, the higher the risk of it falling through. This inevitably impacts lenders but there is also a hidden cost to consumers: longer transaction times make pricing harder. Given that a mortgage offer is valid for four to six months, the lag time must be ‘priced-in’ by lenders to shield them from market volatility.”
says Mike Holden, Divisional Director of Growth.
“For agents, long transaction times can result in cashflow problems, an increased chance of transactions falling through, and more energy and resources being spent on progressing existing sales rather than adding to their pipeline. It can be disheartening to put an enormous amount of energy into marketing a property, only for one party to pull out after becoming disenchanted with the lengthy process,”
adds Ben Robinson, Managing Director of Landmark Estate Agency Services.
Up front information, instruction of conveyancers at the point of listing, and earlier contract pack preparation are examples of inefficiencies that are more related to timing, than anything regulatory. They have their place, say Landmark, but every other facet of life has moved on since the the primary legislation governing property law was enacted 100 years ago;
The time has come to ‘break down silos and unite as an industry to tackle perennial hurdles together. There is no doubt that technology has a place in supporting our collective ambition to shorten transaction milestones. However, it’s abundantly clear that systemic processes must be addressed first if we’re to move forward with pace, clarity and confidence.
concludes Brown.
4 responses
I wonder if there’s any research into why this has happened or indeed into the business models of the various types of businesses to see which are more efficient and which are least efficient and then maybe systemic processes could be analysed and the assumption that technology will definitely make things better properly assessed.
Have you any idea how long it takes to get coherent source of funds information out of a client? It’s like pulling teeth. That is a major change since 2007.
Until we get that information, we can’t give advice to clients. We can get things underway (order searches etc), but can’t advise.
And how many money launderers are actually using dirty money to buy a three-bed semi in the suburbs and getting caught due to our tireless efforts? Not many, I am guessing.
Instruction to completion will lengthen as more people realise instruction before viewings commence is the most proactive and efficient way to manage the transaction.
Nobody seems to be talking about the cause of the lengthening time scales – it’s not solely as mentioned above due to conveyancing factories. Technology is an assist but not the complete answer. Think about this carefully, conveyancers have partially done this to themselves by bowing to pressure from developers and estate agents even when things are wrong to put the transaction through and are banking on the client not having the money to sue them. Every single new site has an estate management company and this is being exploited to rip people off on both freeholds and leasehold. Time to tackle the developers people.