Conveyancers experience first annual drop in workload in six years

Conveyancers experience first annual drop in workload in six years

Search Acumen Conveyancing Market Tracker – 2017 end-of-year edition

  • Conveyancing volumes shrunk by 12% last year – from 1,077,959 in 2016 to 952,966 in 2017 – the first annual drop in workloads since 2011, reflecting a subdued property market
  • The average firm completed 171 transactions in 2017, down 11% on 2016 and down 1% from a decade ago
  • The number of active firms in the market remained steady in 2017, dropping less than 1% year-on-year but still down 28% since 2007
  • The top 1,000 firms held 72% of the market, up by one percentage point from 2016 while the top five maintained their 6% market share

After six years of continued growth in activity, conveyancers experienced a drop in case volumes in 2017 according to Search Acumen’s Q4 2017 Conveyancing Market Tracker. This annual decline saw conveyancing volumes shrink by 12% last year – from 1,077,959 in 2016 to 952,966 in 2017 – as the stagnant UK property market weighed down on conveyancers.

Despite this, the number of active firms in the market remained steady in 2017, dropping less than 1% year-on-year. Firms in operation have nevertheless dropped 28% over the past ten years – from 7,733 to 5,559 – as fewer conveyancers deal with a higher volume of transactions over the past decade.

Stagnated UK property market hits conveyancers

During a testing year for the UK property market, conveyancing firms have been fed a lower volume of transactions, resulting in the average caseload dropping across the sector.

The Search Acumen Conveyancing Market Tracker – which uses HM Land Registry data to examine competitive pressures in the conveyancing market – shows the average firm completed 171 transactions in 2017, down 11% on 2016 when the total sat at 193 per active firm. This figure has dropped 1% since 2007, when conveyancing firms averaged 173 cases per year.

 

Volumes hit across the board

The decrease in conveyancing volumes in 2017 was felt across a majority of the market. The top five firms suffered a 9% drop in average monthly volumes (from 1005 to 918), while all firms in the top 1000 experienced a 10% decline. Meanwhile, the only categories that saw an uptick in volumes throughout the year were occasional conveyancers – those completing between one and ten transactions per month.

Throughout the year, top five firms on transaction volumes completed 11,010 transactions on average, dropping by 9% year-on-year from 12,056. Categories of firms within the top 1000 all witnessed drops in average monthly volumes in 2017 as the property market lulled.

Competition in the market remained almost stationary in 2017, compared with the previous year. Throughout the year, the top 1,000 firms held 72% of the market – up by one percentage point from 2016 – while the top five kept 6% of the market. In percentage terms, the top five firms have seen their market share double since 2007 (3%), while those outside the top 1000 have experienced a drop from 43% to 28%.

 

 

Among different types of transactions, Dispositionary First Lease transactions saw the highest increase in volumes for the second year running, rising by 29% over the year from 2,208 to 2,857. Meanwhile, Dealings and Transfer of Part transactions saw a 13% and 6% annual drop respectively. On a quarterly basis, Dealings suffered the largest drop in volumes (-13%), while Dispositionary First Lease transactions saw the largest increase, rising 29% in Q4 2017.

Andrew Lloyd, Managing Director of Search Acumen said:

“2017 was another year of uncertainty in the property market, and conveyancers are feeling the impact of a housing sector in need of a jumpstart. The Market Tracker has revealed a downward shift in transaction volumes for the first time in six years. Despite these odds however, the market remains resilient and the number of operating conveyancers has not yet felt downward pressure.

“At the beginning of the year, the Prime Minister vowed that UK housing was to be an area of absolute focus for the current government, and policies like the abolishment of SDLT for first-time buyers will undoubtedly reduce the chasm between young market hopefuls and established homeowners. However, housebuilding activity fell last month for the first time since the EU referendum. The property industry continues to be frustrated with the inertia it finds itself in, fuelled by bureaucracy, politicking and set-backs.

“The next twelve months will be full of challenges for conveyancers while the housing market tries find its feet again. We must operate with absolute efficiency to ensure we are prepared for a recovery in property transactions, embracing technology to create a transparent, productive offering which works for everyone. This is the only way we can ensure the conveyancing market effectively adapts to whatever the property market feeds it.”

This article was submitted to be published by Search Acumen 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.

Search Acumen

http://www.search-acumen.co.uk/

Next Generation Data

Whether your property transaction is big or small, commercial or residential; you can rely on us for accurate property data. We collaborate with forward-thinking law firms who have an appetite to use authentic data in consultation with their clients. Our relentless focus on the next generation of property law, means all our customers already benefit from our easy access instant data, saving them critical time and resource.

What we do

We provide more than 40 layers of essential property data, digitally and on-demand through our intuitive ForeSite Platform. Our advanced system allows our customers to analyse real estate sites before the purchasing process has even started. Early warning indicators create a highly efficient consultation process between our customers and their clients, significantly improving the purchasing experience.

What makes us different?

Our customers choose us and stay with us because we’re different. They like being part of our community because our vision for the market allows us to deliver future proofed innovations which is good for their business. Here’s some examples from the past twelve months that have helped us receive recognition as thought leaders in the property data space:
  • Data Snapshot - An instantly available property report that Conveyancers and Commercial Real Estate Lawyers can use to mitigate risk from the outset of their due diligence.
  • AI & Machine Learning - We’ve developed our own Machine Learning tool using Amazon based AI which is specifically designed for the property data industry.
  • Blockchain - We continue to work with industry leaders in the Blockchain Technology space to create positive change and we were the sole property data provider in the UK’s first Blockchain property trial (2019).
Contact: Sam Jordan Tel: 01622 478843 (ext 4460) Email: Sam.Jordan@search-acumen.co.uk Address The Maidstone Studios, New Cut Road, Vinters Park, Maidstone, Kent ME14 5NZ

Leave a Reply

Your email address will not be published. Required fields are marked *