Some 27% of conveyancers believe transaction levels will increase by up to 20% this year, according to the report from Searchflow.
It also says that with the UK Government encouraging first time buyers to the market and pledging to build new homes there will be change in the industry.
The conveyancing industry is very likely to see a rush to complete property purchases prior to April when the extra stamp duty on buy to let and second home purchases becomes active.
But according to Maud Rousseau, the firm’s group marketing and communications director this is likely to settle later in the year. ‘If rents remain high and housing stock is still in short supply, buy to let will remain a profitable investment for many. The market will continue to be boosted by new homes,’ she added.
She also pointed out that last year saw a record level of new homes being built, up 25% year on year and reaching the highest annual increase in a generation. This trend is set to continue as the Government continues to roll out planning reforms to help increase housing supply.
Technology is also set to have an impact. ‘With the advancement of agile technology and big data analytics, search companies are seizing upon the opportunities to drive through major changes. Data and technology providers are working together to create a one stop shop to not only streamline the process but help improve risk management,’ said Rousseau.
‘The trend for transparency within the conveyancing sector will continue to drive the delivery of new product offerings tailored for the homebuyers. These products will enable conveyancers to provide their customers with an improved service, whilst also benefiting from reducing their time required to update clients,’ she explained.
The impact of online estate agents is set to be a major topic of debate this year is another issue highlighted in the report and it says that the conveyancing industry needs to be prepared to adapt quickly if online estate agents achieve their ambition of being ‘highly disruptive in the world of estate agency’.
This year, there are a number of planned consultations that could have a very significant impact on the conveyancing sector. They included the Government’s consultation on the privatisation of the Land Registry will be closely monitored. And in advance of the review of Legal Services Act which is scheduled to be reviewed during this parliament, the Government has announced its consultation on alternative business models entering into the legal sector. The Government claims that it wants to ensure that innovative businesses are able to enter the market, providing greater choice for consumers.
The Solicitors Regulation Authority (SRA) is responding in kind and has announced they will be reviewing their regulatory model, whereby they plan to give legal firms greater freedom to run their businesses as they need to.
‘There is no denying, 2016 could be the year the conveyancing industry sees the most significant change in generations. There is a sea change underway and we are in the midst of this transition,’ Rousseau pointed out.
‘Conveyancers are a crucial part of the home buying process and they will have to adapt to the changing sector; to fully embrace the digitalisation of the industry by utilising data and technology to create efficiencies, improve risk protection and customer satisfaction to enable them to compete,’ she added.
