LPL vows to bring conveyancing into the 21st century

New conveyancing firm LPL has promised to deliver 21st century conveyancing to its clients, allowing them to sign legal documents digitally.
The homebuying process can drag on for months, becoming ever more expensive and stressful. A significant factor behind those delays is the time taken to get legal documentation signed, particularly when clients are required to print out pages of paperwork or rely on the postal service.
LPL has vowed to change all that, offering clients the chance to sign paperwork digitally, whether on their mobile phones, tablets or PCs.
The digital signature feature is being rolled out alongside the firm’s electronic client care packs, giving customers the ability to sign the initial paperwork within just ten minutes of instruction. LPL intends to roll out electronic signatures into other areas of the conveyancing process in the final quarter of the year.
The digital signature capability is just the latest example of how LPL intends to utilise technology to improve the conveyancing process, following the announcement of LPL Cloud, a cloud-based conveyancing system which will allow clients to check the progress of their transaction, as well as upload, complete and sign forms. Introducers will be invited to monitor the progress of referred client’s transactions.
Fiaz Khalid from LPL said: “We firmly believe that bringing greater use of technology into the conveyancing process can relieve some of the stress homebuyers go through, and ensure that transactions go through much quicker. It’s a much more efficient way of working, eliminating duplication of data input and helping the environment to boot. I’m confident that our personal approach, combined with the way we are using the latest technology, is a winning combination.”
LPL, a brand new division of Read Roper & Read Solicitors launches on the 1^st August 2017. For updates on the firm’s launch, check out the LPL website or email Newbusiness@lpropertylawyers.co.uk.

Wales Release Autumn Housing Budget

There has been much speculation regarding the Autumn Budget and how it will impact the housing market in recent weeks. The Welsh Government have offered details that suggest strong support for housing professionals.
Although the initial announcement indicated a significant increase in NHS spending, local authorities were left considering how they can support their services following the eighth successive budget cut.
Potentially, a huge winner from the budget is the housing market starting with a £45 million investment, shattering the initial £90 million estimate over a three year period, being offered towards the innovative housing programme which aims to stimulate the design and delivery of new quality, affordable homes.
In compliance with the central Government’s wishes to support vulnerable people and reduce homelessness, the budget has focused energy towards improving the situation for many people struggling in this area. £126 million has been given to the Housing Support Grant which helps in homelessness prevention in Wales.
Additionally, the Integrated Care Fund, which aims to help people remain in their homes when they are struggling, has been given an investment increase of £35 million; they will now receive £85 million overall.
Finally, continued annual funding of £108 million to support local authorities and stock transfer organisation in achieving and maintaining the Welsh Housing Quality Standard has been provided through the Welsh Budget.
Commenting on the announcement, CIH Cymru director Matt Dicks said: “This budget reflects Welsh Government’s strong commitment to supporting housing professionals to deliver on the housing aspiration and ambitions of communities across Wales.
“We must remain fully grounded however in the realities facing many of those communities, where poverty, the ongoing impact of welfare reform, in particular, the roll-out of Universal Credit, and access to affordable and suitable housing continue to have a very real impact.
“If this and future budgets are to have a positive effect on these communities it is vital that the ongoing review into affordable housing supply in Wales carries through the momentum of the positive work currently taking place. In our view in relation to the financial planning this must include providing greater certainty to housing providers over long-term funding.”
Whilst the improved funding to the sector and a determination to combat homelessness will benefit many, the concern on how to deliver the needed affordable housing stock through this investment could be a concern moving forward.
Will these investments help improve the housing market? Will this ensure that housing stock is provided?

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Bulk business: why larger conveyancing firms offer a better quality service

Harpal Singh - Broker Conveyancing

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14th September 2018

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"Advisers, and certainly their clients, do not want to be working with a firm where the conveyancer works one day a week, and/or where the time taken to deal with a case can be far too long."

For those advisers recommending conveyancing firms, and using platforms like Broker Conveyancing, there has been a significant increase in the number of firms conducting, what we might call, bulk business. That is important, because while conveyancing has traditionally been something of a cottage industry, our belief is that it is via the larger firms, who carry out large numbers of cases, where clients are most likely to get a quality service and who are best placed to meet the timings required.
The quarterly Conveyancing Market Tracker from Search Acumen often gives a real insight into the levels of business being undertaken by all conveyancing firms, and this latest one is no different. If anything, it proves that the vast majority of cases are handled by the larger conveyancing firms and the progression away from lots of firms carrying out very small numbers of cases continues.
Interestingly, the latest data shows that it is firms outside the ‘Top 50’ who have made the most progress recently. It calls these the ‘challenger firms’ and there is clearly a growing amount of competition in this space – the Top 50 look likely to face much more in the way of ‘peer group pressure’ in the future with a number of these firms having significant and ambitious expansion plans.
The lower half of the Top 100 saw the biggest increase in transactions during quarter two this year with their cases up 23% on Q1, compared to the ‘Top 50’ who saw a not too dissimilar 19% uplift. Those Top 50 increased their share of the market to 20%, and there was an increase in the number of firms carrying out more than 50 transactions, up to 332. Unsurprisingly – and this has been a trend for a number of years – the number of firms carrying out less than 50 has continued to drop, now down to 3,812 from 3,870.
In the not too distant past you might have seen 5-6,000 firms carrying out some form of conveyancing work each quarter, but that is now down to 4,144. And, as can be seen, the bulk of those firms are only doing a very small number of cases – you might wonder whether such activity is sustainable, especially if you are taking a ‘part-time’ approach to this type of work. Advisers, and certainly their clients, do not want to be working with a firm where the conveyancer works one day a week, and/or where the time taken to deal with a case can be far too long.

We’ve always pushed the message for advisers to recommend large conveyancing operators who are best placed to deal with large numbers of cases, and have the specialist expertise and resources to take a case through to completion quickly. That message is as relevant as it has ever been, but it is also heartening to see the growth in the number of ‘challenger’ firms who clearly want to make their own mark and will ultimately provide greater choice for advisers.
One thing this type of growth and competition should provide is an ongoing commitment to excellence and efficiency. The conveyancing industry as a whole is doing much to champion and support the changes necessary to speed up the home-buying process, and with the leading firms feeling the metaphorical ‘breath on their neck’ from these challengers, it should drive even greater standards and quality.
The one ‘fly in the ointment’ here of course is the number of overall transactions and this is an issue for the entire housing market, not just conveyancers. The Search Acumen data suggests total transactions fell during Q2 from 271,500 in the first three months of the year to 241,200. That is a significant drop and, even if this figure was 14% up on Q2 last year, we are all aware of how subdued the market feels at present especially when it comes to purchases. Indeed, we remain very reliant on the strength of the remortgage market and thankfully this has been the case for some time and I believe will be maintained.
That said, there are a great number of uncertainties swirling around, not just our market, but the entire economy. Brexit truly is the great unknown but what we can all do is deliver as much certainty as possible for our clients in as many areas as possible. In conveyancing this means utilising the skills and experience of a growing number of quality, larger firms who can be easily accessed through Broker Conveyancing and others, and will give you and your client the very best chance of getting that case completed within the desired timeframe.

Asking prices for new listings reach record high

Recent data has revealed that May saw asking prices for new listings hit an all-time high despite levels of demand softening in the South.
According to Rightmove, newly-listed properties saw growth of 0.8% in asking prices during May – from £305, 732 in April to £308,075. Of the 11 regions, seven observed asking prices hit record highs during the month.
The fastest growth was recorded in the East Midlands, West Midlands and Wales; year-on-year, asking prices in these regions rose in excess of 4%.
At the other end of the spectrum, London saw asking prices drop by 0.2% in comparison to last year, with prices in the South East experiencing the first decline since 2011 at a drop of 0.1%.
Commenting on the figures was Miles Shipside. The director of Rightmove said: “The last time the South East recorded an annual price fall was in 2011, indicating that the softening in the London market is now spreading to its commuter belt, while there are signs that Inner London may be closer to a price recovery.”
CEO of Emoov.co.uk, Russell Quirk commented: “There is still an appetite for homeownership amongst UK buyers evident by the record number of visits to Rightmove, but a lack of commitment is resulting in a reduction in the number of sales agreed.
“This is hardly surprising when you consider the reality gap between the expectations of stubborn sellers and the current market climate. While actual price growth is remaining somewhat static, over-optimism on the side of UK home sellers is continuing to push asking prices ever higher.
“This is becoming a big problem and the widening gap between asking price and sold price will only result in a further decline in buyer interest and a continued market slowdown.”

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Firm anticipates fall in SDLT receipts despite yearly growth

The latest figures have shown that receipts for Stamp Duty Land Tax are continuing to rise despite the fall in UK property transactions.
According to HM Revenue & Customs (HMRC), the past year has seen total receipts reach £13 billion for the tax, having increased by £1.3 billion in the year to the end of February.
Despite the rise, some suggest that the abolition of the tax for many first-time buyers is beginning to have an impact. Blick Rothenberg, a tax advisory firm, stated that it anticipated falls in stamp duty receipts in the near future.
Setting out his thoughts on the tax and the potential impact on the market was Paul Haywood-Schiefer. The assistant manager at Blick Rothenberg stated: “The number of property transactions in the UK has declined, with 0.33% or 4,010 fewer transactions taking place in the last 12 months and with a decrease of 2.28% or 28,580 over the last two years.
“However, SDLT receipts are still rising, with a £1.3bn (11.55%) increase in the last 12 months.
“Much of that increase can be put down to the 3% surcharge on second and additional property purchases.”
“The first-time buyer relief for those buying properties under £500,000 announced in the Autumn Budget is starting to show signs that some of the year on year receipts are going to be lower and we would expect to see this have a further impact on the receipts in the coming months.”

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Conveyancing work falls for the first time in six years

 

Conveyancers have suffered a drop in their workload for the first time in six years, according to an end-of-year edition of a regular benchmarking survey. 
The latest market tracker by search company Search Acumen, which uses HM Land Registry data to examine competitive pressures, shows that  conveyancing volumes, both residential and commercial, shrunk by 12% last year - from 1,077,959 in 2016 to 952,966 in 2017. Firms completed, on average, 171 transactions last year compared with 193 in 2016.
Firms that completed between 100 and 200 transactions a month experienced the largest decrease in yearly activity. For the top five firms, average monthly volumes fell from 1,005 to 918. There was better news for 'occasional' conveyancers, defined as completing up to 10 transactions a month. Search Acumen says they did more work last year.
Despite the fall in volume, competition remained broadly static. The top 1,000 firms covered 72% of the market; the top five firms handled 6%. 
Andrew Lloyd, Search Acumen managing director, said: '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 stamp duty land tax 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 setbacks.'
Lloyd said the conveyancing sector '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'.