Drop in conveyancing rates hits firms
11 June, 2015
The UK’s top five conveyancing firms have handled 36 per cent fewer transactions in the first quarter of this year, according to a new report.
The latest Conveyancing Market Tracker survey, conducted by Search Acumen, has revealed that firms as a whole dealt with an average of 14 per cent fewer conveyancing transactions in the first quarter of 2015.
The research, based upon data from the Land Registry, found that the number of firms offering conveyancing was in decline and that the reduction in services was based on a “long-term trend of firms disappearing at the lower end of the market”.
Of the 153 firms which ceased to be active at the start of 2015, 129 averaged no more than 10 transactions per month, significantly below the average of 57 per month for firms as a whole.
Mark Riddick, chairman of Search Acumen, said that the research had shown that “no-one is immune to competitive pressures in a temperamental housing market”.
He described the drop in transactions this year as “perhaps an inevitable result of stricter lending criteria and pre-election uncertainty”.
The last few years have seen a boom in the UK’s property market and many firms have experienced an increase in the number of conveyancing transactions they have handled.
However, this most recent dip in property sales has revealed that conveyancing services, unlike most other legal services, can be subject to quite drastic declines in turnover and client transactions.
It is important that firms take this in to account and successfully manage their cash flow, so that decline in turnover from one service can be easily dealt with. At Watson Buckle our team of legal finance specialists can help you forecast and manage your cashflow to ensure you remain financially healthy. For more information about our budget and cash flow services, please contact us.