There has been a notable increase in the number of estate agents reporting that the average time from offer accepted to exchanging contracts has grown.
According to Propertymark, 41% of agents have reported average times stretching over four months within the past few weeks.
The latest housing market snapshot reveals that the number of new buyers registering per member branch in July has remained lower than in the spring months as summer market conditions continue.
There were nine sales agreed on average per member branch in July – the same number as the previous three months. This figure is close to the pre-pandemic average of eight for July (based on 2010-2019 figures).
Sales agreed as a percentage of stock remains high = at 39% in July. This is compared to the pre-pandemic average of 16% of stock sold in the month of July between 2010 to 2019.
The average number of properties available to buy per member branch was 24 in July. This is still well below the pre-pandemic average of 51 properties available in July (based on 2010-2019 figures). There was little change month-to-month on the number of new instructions per member branch, which sat at nine in July.
When it comes to time to exchange, 41% of Propertymark’s member branches said that the average time from offer accepted to exchanging contracts in July was 17 weeks or more. This is a new record and stands well above the pre-pandemic average for July of only six per cent (based on 2015-2019 figures).
Nathan Emerson, CEO Propertymark, commented: “Our latest data shows a sharp spike in the number of agents reporting the average time taken for sales to complete being 17 weeks or longer.
“This, coupled with lack of stock and high demand in the market, is proving difficult for some first-time buyers or current homeowners as an existing mortgage in principle obtained before setting out to view a property will likely expire before completing on the purchase.”
I have just sold a relatively low value flat where I was one of the RTM Directors. As such, I had access to all the current documents required and provided them upfront, and could expedite the LPE01. It was a cash sale, yet still took my solicitor nearly 7 months, during which time I was prevented from talking to my solicitor. If a mortgage offer had been involved, it would have expired, and been subject to an increased rate.
Out estate agent was great; providing a back-channel between me and the buyer’s solicitor to keep them updated with copies of relevant documents and answers to their questions which my solicitor wasn’t providing in a timely manner. Otherwise, they would have pulled out. I had all the answers, but I despair for sellers who are reliant on their MA/freeholder.
I really don’t understand why conveyancing is taking so long today. I have bought and sold many times, and my last 2 (high-value) residentials were done quickly, efficiently and remotely, albeit 2 & 4 years ago.
What’s changed? Volume? Working from home? Insufficient suitable staff?
It will be interesting to see if timescales improve with less volume, as the market contracts. Or, will they simply do what they did during lockdown, and cut staff again?
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All of the above maybe:
Volume, working from home, lack of conveyancers, low fees, more work (hoops to jump through), too many interruptions.
Out of circa 4000 or so conveyancing firms maybe three quarters are not as tech savvy and modern etc as they should be. We call it the ‘long tail’.
Oh, and not getting instructed when a property is first marketed.
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Cut it anyway you like but the conveyancing standards are the worst today that I’ve seen in many decades. Some are good, others plod along, while the rest are a law to themselves and every agent in the country will relate to this. A common theme that has run for I don’t know how long now is, incompetent 1-31 management. Very little has actually changed with what goes on in ‘conveyancing requirements’ to cause extra delays and yet 40 plus years ago, no computers, no high tech, not even a photocopier and yet they could get it all wrapped up with a mortgage in 12 weeks and wouldn’t touch a ‘listing’ until an accepted an offer with solicitors details of both parties.
Fact check: The workload isn’t there today, so what are they planning on doing when the sales return to normal, higher levels?
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It isn’t about “cutting it anyway you like”, 21st century conveyancing is very different (and far more challenging) to 20th century conveyancing and I don’t think many appreciate that or understand and allow for that.
Correct fact check: The workload is still there for conveyancers because (and this is the point of the article, so how you missed it Woodentop I have no idea) many are still doing work that reached their desks months ago.
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I know exactly what is involved in conveyancing and watched the goings on for decades all over the country. The fact is, conveyancing has not got more difficult. Yes there is more paper trail but that doesn’t make it difficult to do. After all they eventually get around to doing it.
As I said there are some good conveyancers but in the end the problem is the conveyancing industries problem. No matter how hard we try and help, it makes very little impression on time with many conveyancers work at tier speed.
1. Maybe a service standard charter would be something they could work to, because at the moment there is nothing making them get their act together (exclude good conveyancers) and that is a matter for conveyancing industry to sort out …. not seeing anyone do it!
2. As I posted a couple of weeks back why cannot the conveyancing industry formulate a secure web site with an account for every sale agreed?
Access to confidential information would be password secure.
An index (which can be added to when necessary) of what is required, by whom and when raised and when completed would make it far easier to see what is outstanding. No annoying phone calls from agents to get in the way!
Everyone including conveyancers, agents, surveyors, lenders, local authorities, buyers and sellers could add documents to the account for the conveyancers only to review etc. Pretty much an instant response for answers or when then can get it to upload.
Trouble is it would show who is good and who is bad in the process as its real time information of progress. Not difficult to implement, as many organisations already have something very similar for over a decade or more.
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SDLT is more difficult
Leasehold is more difficult
Dealing with lenders is nigh on impossible
Compliance is more involved
Client (and agent) expectations are more different (the Amazon effect)
HMLR delays are greater
Help to Buy is a nightmare
Shared ownership is tricky
There are more searches to carry out and advise on
Let’s not forget, AML, ID and Source of Funds
I could go on and into far more detail, but the phrase banging one’s head again a brick wall springs to mind.
As for a charter, the Law Society introduced the Conveyancing Quality Scheme, great in theory, but it is not policed or enforced anywhere near enough.
As for your secure website idea, there are many tech developers etc out there introducing new systems and procedures on an almost weekly basis. If your idea is any good, I am sure it would have been developed by now, or, maybe (hopefully) someone with enough knowledge and gumption will pick up on it now. If so, problem solved.
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All I see is work that can be done, and isn’t it being done now and can only be done by the conveyancer? You have highlighted exactly the problem in the system …. conveyancing processes.
My idea from an experienced estate agent is a brilliant idea ………. so why hasn’t the conveyancing industry taken up the task? Its been obvious for far too long and agents have had IT advanced systems for years to help their industry. After all, my idea makes most of those extra jobs a breeze to submit ….. which is where the delay is ………… waiting and waiting and waiting for responses.
All the conveyancing industry have to do is ask someone to develop it. You could make a name for yourself! So many IT guru’s out there persistently knocking on agents doors over web sites, would clean up with a fortune if they get it right. Money is on never been asked for and some wouldn’t want it as it shows up any deficiencies. Maybe it would weed out the ones who shouldn’t be doing the job and a discredit to your industry …. they would stick out like a sore thumb, particularly if the customer was allowed to right a review at the end…. now that’s a definite for inclusion.
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After nearly 40 years in the business it is shocking how bad things have got. Before everything went digital, pre millennium, we regularly had sales to exchange in a fortnight and complete in 3 weeks. Now solicitors are quoting a minimum time of 14-weeks, even on modern freehold houses that they have acted on previously, but the reality is that it is more likely to be over 5 months until completion.
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