Council searches are the biggest cause of transaction delays for search users, according to research by SearchFlow.
SearchFlow’s conveyancing sentiment survey on council versus regulated searches states 33% of conveyancers that only buy council searches blame a delay in transaction on local searches, with delays due to lenders second at 28%.
Correspondingly, respondents only using regulated searchers only blamed local searches in 6% of delays.
Council searches have been under scrutiny recently after Today’s Conveyancer revealed they will be subject to VAT as a commercial activity from 1st February following a decision by HMRC.
The survey also revealed that whilst Council searches are generally more expensive they are thought of as reliable and trustworthy according to 46% of respondents, with 35% saying lenders preferred them.
Maud Rousseau, Group Marketing and Communications Director at SearchFlow said: “There is clearly a difference in customer experience between conveyancers who use council searches and those that use regulated searches. Council searches are causing concern when it comes to speed of delivery.
“Historically, personal searches have had a patchy reputation. In the past, there were a number of one-man bands and unregulated search providers and the quality from some was not the most reliable. However, the industry has moved on a lot since then and this outdated perception can’t be substantiated anymore.
“Members of the Council of Property Search Organisation (CoPSO) have to abide by the Search Code, ensuring members adopt the same practices used by local authorities. Comparing our extremely low level query rate and PI claims between council and regulated searches, we can categorically state that the difference is negligible and this has always been the case.
“As a leading provider of both council and regulated searches, it is vital we at SearchFlow engage with the industry to gather and reflect their sentiments. Imposing VAT on Con29 will have a significant impact on the price of council searches; they are already more expensive and are set to be even more so in most regions. In addition, our survey reveals that they cause the greatest concern for delay.
“However, many conveyancers have historically chosen council searches because they are perceived to be more reliable and trusted. But regulated search providers are evolving at a great pace and successfully challenging this misconception and in the last year regulated local searches have claimed a greater market share than ever before. It will be interesting to review the industry’s sentiment on council versus regulated searches later in the year.”
This report was submitted to be published by SearchFlow as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
