Figures from HMRC indicate that the number of transactions for residential properties valued at over £40,000 increased year on year by 32% in England and Wales between February 2013 and 2014
In February 2013 there were 58730 residential conveyancing transactions in England and Wales however this figure rose to 77,720 this February.
With each purchase conveyancing transaction also representing a sale conveyancing transaction this mean that there were almost 38,000 additional transactions this February.
If we assume an average conveyancer conducts 20 transactions per month and the average price of a transaction is £500 to the conveyancer then this mean the market needed an additional 1900 conveyancing staff. Clearly most of this will have been taken up by underused labour in firms but it indicates the scale of the growth in the market. Financially this would be worth £19M in fee income growth year on year.
It seems no wonder that twitter is full of adverts for conveyancers and agents are complaining that the conveyancing process is too slow.
Peter Rollings, CEO at Marsh & Parsons, comments: “With sales volumes in February up by nearly a third year-on-year, the momentum of economic growth continues to lift the UK property market and shows little sign of abating. Despite the introduction of 15% stamp duty for companies purchasing properties worth over £500,000, by extending the Help to Buy scheme for new build properties in Wednesday’s budget, the Government seems intent on oiling the cogs of the housing market, facilitating property transactions at all rungs of the ladder.
“Prime London continues to be a strong seller’s market, as the limited supply of housing stock struggles to keep pace with the influx of buyers competing for the best properties. Despite Osborne’s ‘budget for savers’, Prime London property continues to be a highly desirable investment opportunity, which is helping to stoke demand. We witnessed one of our busiest starts to the year ever in January, with many properties being sold in record time, for the full asking price or above. As we gear up for the even busier spring season, we can typically expect more properties to become available, helping to relieve some of the pressure and normalising market conditions.”
