A UK estate agency chief executive has called for property transaction times to be reduced to eight weeks, citing that average completions currently take between 16 to 18 weeks.
Nick Goble, chief executive of Noble Estates, said that before the internet era, transactions were routinely completed within six to eight weeks using post, telephones and fax machines, with sales taking longer than 12 weeks considered unusual.
“Despite today’s technology, access to data and digital communication, transaction times have effectively doubled,” Goble said.
Identified bottlenecks
According to Goble, several factors contribute to extended transaction times, including delays in mortgage offers, local authority searches, and Land Registry matters. Management companies and freeholders supplying LPE1 information also contribute to the extended timeframes.
The issue of transaction delays has broader implications for the property market, as agents face increasing regulatory pressures whilst attempting to manage client expectations.
“Estate agents cannot continue operating within a system where everybody waits for somebody else to act. We need to take greater responsibility for preparing sales properly from the outset,” Goble said.
New procedures implemented
Noble Estates has introduced new processes aimed at reducing completion times to closer to eight weeks. The company reports that these measures have so far reduced delays by approximately two to three weeks.
The process includes a vendor checklist outlining advance preparation requirements, such as instructing a solicitor simultaneously with appointing an agent. For leaseholders, the management pack is ordered early in the process.
Standard TA6, TA7 and TA10 forms are provided early to gather required sales information, whilst documents relating to alterations and building insurance policies are collated at the outset.
The approach contrasts with recent examples in the sector where speed has been achieved, such as a developer refinancing completed in three weeks, demonstrating that faster timelines are possible when processes are streamlined.
Goble stated that he would encourage other agents to introduce similar procedures and welcomed wider industry discussion about what agents and conveyancers can do to address the issue.
The call for reduced transaction times comes as the property industry continues to grapple with efficiency challenges despite technological advances in recent years.
