Extra paperwork, poorly-resourced solicitors and a lack of upfront material information have all been cited as factors contributing to delays in property transactions.
It comes as research by Propertymark found that while 78% of sales progressed from offer to exchange within 12 weeks in March 2016, this dropped to 29% in March 2024.
The analysis, which labelled the current legal process for purchasing a home as Dickensian, highlighted a growth in the number of exchanges taking 13–16 weeks and 17-plus weeks, at the expense of those taking five to eight and nine to 12 weeks.
Propertymark members blamed the legal system, adding that the existing conveyancing process was not designed to deal with large information flows and many solicitors aren’t up to speed with using technology.
Agents also pointed to lengthy delays local authority searches and some suggested that solicitors had ‘slowed’ because of challenges in the operating environment, which had made them more risk averse.
More broadly, agents reported that there was a ‘shortage of solicitors’ meaning that firms were ‘under resourced,’ with 59% suggesting that solicitor resource constraints were the key reason for extended exchange times.
The report also recognised that ‘agents also need to have their houses in order’. As one member reported, ‘some agents don't use a Property Information Questionnaire at instruction’ or ‘fail to disclose material information’.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “It is not new news that the amount of time taken to complete a purchase on a home is becoming increasingly tedious and lengthy. However, it’s important more than ever considering that the time taken to complete is up to six months and longer in some cases, to understand the fundamental issues causing this.
“Our member agents are on the ground witnessing delays and have bought their concerns and thoughts to the fore. Policy makers and the new Government at Westminster need to address these in order to speed up the house buying and selling process to keep the wheels of the housing market turning as it’s a vital cog in boosting the economy.”
https://www.propertymark.co.uk/static/f8a0debb-90b3-455e-b7d617e29d6c03a9/f43d8873-300f-4673-92b0ef571cb43d9d/Spotlight-A-Dickensian-legal-process.pdf
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Some 5-7 years ago I spent a lot of time with Mark Hayward influencing the “upfront information” debate as I was convinced that more effort at that stage would help reduce transaction times. Time has proven I was right.
It now seems that the slowest link in the chain may not just be the conveyancer without technology, but the seller whose agent hasn’t gathered material information.
I remain convinced that if agents put as much energy into gaining upfront material information as they do sales progression then transaction times would reduce.
Can we stop dancing around this topic. Material information has almost nothing to do with it. Before all this technology and MI we did exchanges in 4 weeks and completions 2 weeks after.
Solicitors are being confused with conveyancing firms who compete on price so have to work on scale but aren't making enough to employ experienced staff, and instead recruit youngsters who refer issues up to conveyancing practitioners who work from home and or part time and who can't cope with the workload.
These people are getting burnt out.
All the while the firms are risk averse and aren't making enough margin to cover their ever increasing PI cover, so continually ask ever more stupid questions as they follow a "process" designed to mitigate their risk rather than serve their clients best interest.
You get what you pay for.
Whilst I agree that MI has virtually nothing to do with the delay there are plenty of solicitors and conveyancers who are to blame for transactions taking weeks longer to exchange than they should.
When I have files with solicitors who are taking 3-4 weeks for their onboarding and compliance checks and another week to get the draft contract paperwork out then it is no surprise that the timescales have shifted. Too many files, not enough staff, not enough tech knowledge or over-reliance on archaic systems, conveyancing is broken...
What amazes me is so many who are pushing up front material information fail to remember horrendous similar legislation. I headed a delegation including RICS,Birmingham Trading Standards and others to repeal similar worded legislation, the Property Misdescriptions Act 1991 that was being badly abused and leading to unfair criminal convictions. The Minster agreed despite civil servants not being happy, so amazing NAEA is happy for their members to have tremendous more liability in civil and criminal law.
In 30 years of property law I see the real problem is factory farming conveyancers that are pushed on the public because of massive commissions paid. A leading estate agent told me they made more out of commission referrals than they did from normal estate agency business.
Some 5-7 years ago I spent a lot of time with Mark Hayward influencing the “upfront information” debate as I was convinced that more effort at that stage would help reduce transaction times. Time has proven I was right.
It now seems that the slowest link in the chain may not just be the conveyancer without technology, but the seller whose agent hasn’t gathered material information.
I remain convinced that if agents put as much energy into gaining upfront material information as they do sales progression then transaction times would reduce.
We have no issue with most solicitors - it is the mortgage companies who delay matters with their ever increasing demands to know your entire life’s banking history, your inside leg measurement and your Mothers recipe secrets. It is way out of control
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