The process of buying a home from instruction through to completion took nearly a third (28%) longer in 2022 than it did in 2019 prior to the pandemic, new data has revealed.
In a report authored by Landmark Information Group, Why are property transactions taking so long?, it’s revealed that the average time from instruction to completion on a purchase in 2022 was 133 days.
In 2019, this figure stood at just 104 days. Even more striking is that the process took just 75 days on average in 2007, which has since increased by 77%.
Similar figures are presented regarding the timeline between instruction and exchange: the 119-day wait in 2022 was 80% higher than the 66 days it took in 2007 and 29% higher than the time taken in 2019.
The picture with regards to sales reflects that of purchases, with the time between instruction and completion rising by 69% between 2007 and 2022.
Why is this the case?
It is unsurprising that, looking at Landmark’s data, enquiries seem to be a driving force behind this trend. In 2007, the average time between enquiries being raised and replies to those enquiries being received was 26 days. Now, this process takes 56 days – or nearly half of the total transaction timeline.
This is a 115% increase since 2007 and a 40% increase in just three years between 2019 and 2022.
It is also taking longer for enquiries to be raised in the first place, taking 35 days on average in 2022 compared with 18 days in 2007.
Mortgage offers are also taking longer to be received, increasing by 74% and 38% since 2007 and 2019 respectively, now sitting at 66 days. Mike Holden, Divisional Director, Landmark Information Group puts this down to the volume of sales when the market re-opened post-pandemic, which saw a high load on surveyors and subsequent delays. He does, however, suggest that, with sales slowing down, “there is [now] less bread and butter work for surveyors to do so they can complete valuations more quickly”.
Searches, on the other hand, have become quicker during this period, taking an average of 18 days to come back in 2007 compared with just 15 days in 2022.
The picture painted by the data is endorsed by Rob Gurney, Managing Director, Ochresoft, who is keen to dispel the “myth” that searches are what’s holding up the conveyancing process. Rather, he says, the back-and-forth enquiries process is to blame.
Gurney also says consumer behaviour has changed in a “click and buy” society, leading to more intense interaction between lawyers and consumers and a rise in complaints. “But, is this the full picture for lawyers?” asked Gurney:
“We know that a conveyancer’s remit is constantly shifting. As society evolves then risk levels need to adapt. For example, we hadn’t heard of Japanese knotweed 20 years ago – which is now a common line of questioning. How about solar panels? How about the – dare I say it – Building Safety Act?
When we add together this plethora of micro examples, they add up to a doubling of a conveyancer’s workload over the past 20 years. All the while, conveyancing fees certainly haven’t followed suit.
But it doesn’t stop there: the legal process itself has also changed. Lending requirements are constantly shifting with each player having their own unique framework. Since a conveyancer’s duty is to the lender too, they must also walk a careful path to protecting their panel status.”
On potential solutions, Gurney continued:
“A relatively straight forward change has the biggest potential for gains: the seller’s lawyer should be involved at the point of listing. Crucially, this means they’ll have a reasonable amount of time to complete the contract pack and remove the lengthy enquires process.
It’s worth noting that National Trading Standards (NTS) is changing the way properties are listed for sale. Part C of NTS’s Material Information roll-out will see the agent providing potential purchasers with details of any encumbrances on the property. At this stage, it’s likely that conveyancers will have to be instructed at the point of listing.”
4 responses
For some reason, despite having less work and searches coming through quicker, it is taking Conveyancers/Solicitors longer to see through matters. What are the reasons? Clients are not pushing matters through I am finding. They are quite happy to sit and wait. Is this because expectations are being managed? Maybe. Are clients happy to wait to see what happens with the market to see if prices drop or interest rates fall? Almost certainly. Mortgage offers are not the quickest and I think this is because a lot of people are porting. Having said that it seems that certain lenders will mortgage anything without a valuation. I think estate agents chain checking/sales chasing is abysmal. Sadly a lot of cases I am seeing incomplete chains, properties being marketed and sold without probate and people waiting on mortgages where the agents labelled the chain as cash. Surveys are relatively swift but clients tend to be waiting to instruct these until they are 1/2 way or 3/4 way through to make sure the chain is proceeding. Oh and it is taking some conveyancers/solicitors a month to provide protocol forms…once they have issued contracts. Strange times out there.
Reasons:-
Too many bad conveyancers
Lack of experience in the profession
Bad or no regulation
No leadership
Referral fees and panel managers
Land Registry delays
Mortgage delays and in particular the use of portals to interact with Lenders
Vested interests-too many indians
To name but a few. Conveyancing is a profession with a tiny minority of professionals remaining.
Interesting report thank you Landmark. We can expect to see technology playing a part in solving the “black hole” of Conveyancing enquiries as witnessed in other areas of the Conveyancing process.
Too much reliance on standard enquiries or tech created enquiries rather than enquiries based on legal thinking.
There are a multitude of different regulators out there for different providers if conveyancing services which means some businesses are filled with inexperienced and unqualified people who go through a case progression process and have little or no property law knowledge.
One Regulator
One Code of Conduct