The current state of the UK housing market, leaves conveyancers with an uphill battle.
The latest reports from the Clydesdale and Yorkshire banks almost certainly spell trouble for the conveyancing market. According to the survey, the number of people hoping to complete their new home purchase has dropped by up to 14% compared to the beginning of 2015 and 17% in the summer of 2014.
The motives behind staying put during a time of extortionate housing costs and lack of value for money are certainly valid. However this seems to be less so in the London area. The reason for Londoners taking a more active role in the property market is because, in 2015, the value of London properties have experienced a boom, meaning property owners who have always resided in the capital are seeking to cash-in on the current market.
Rocketing of the valuation of London homes has seen over 19% of people in the survey hoping to make a transaction, which in comparison to the East of England’s more modest 5%, is extraordinary. However, with 44% of those surveyed staying put, and 22% planning to improve their current homes, conveyancing could potentially be hard hit.
With London being the most active in terms of transaction levels according to the survey, the money sellers receive will leave buyers struggling to find their dream home in their preferable area; this being something the spokesman for the two banks agrees with due to a lack of availability.
Low stock levels within the housing market and also lack of activity leaves conveyancers with the difficult task of seeking new business, which for the meantime can be a difficult task.
The substantial rise in the valuation of property also sees a dichotomous relationship between the North and the South. Those in the South are experiencing the extreme rise in value, whilst the Northern powerhouses such as Manchester, Liverpool and Newcastle have experienced a far less dramatic rise. This dichotomy will see more conveyancing business generated within surrounding areas of the capital, however the current state of the market could have a negative impact on business in coming months.