The number of active conveyancing firms handling property transactions in England and Wales has fallen to the lowest figure since records began in 2011.

Software provider Search Acumen found that the total number of conveyancing firms active in the market dropped 1% over the third quarter of 2018 to 4,100 and by 2% year-on-year.

The number of firms has dropped by 15% since 2011.

The decline has been focused on smaller players over the past five years, with the number of firms handling up to 25 transactions a month falling by 10% from 3,662 to 3,278.

At the same time, larger players in the market – those handling more than 50 transactions per month – have increased by 31% over the same period, from 268 to 353.

Back in the third quarter of 2013, the 3,402 firms outside the top 1,000 shared 29% of market activity, whereas in the third quarter of 2018, this has reduced to 3,100 firms handling just 25.5% of transactions.

Within the top 1,000, there has been a corresponding rise in their collective share of activity over the same five-year period from 70.5% to 75%.

Search Acumen’s data showed conveyancers are now doing 20% more cases per month on average compared with five years ago, but firms outside the top 1,000 have only seen 9% growth on average during that period – highlighting their struggles as the bigger firms have enjoyed greater long-term gains, Search Acumen said.

Those at the top end of the market have maintained business levels between the second and third quarter of 2018, with the number of firms averaging over 50 transactions a month up from 332 to 352.

Despite this, conveyancing firms have actually had the quietest third quarter since 2014.

Conveyancing firms dealt with 60 cases a month on average in the third quarter of 2018, compared with 61 in the same period of 2017, 64 in 2016, 65 in 2015 and 62 in 2014.

Andrew Lloyd, managing director of Search Acumen, said: “Over much of this decade, we have witnessed a clear consolidation of conveyancing business at the top end of the market.

“The wider political and economic landscape means the shape of things to come in terms of transaction volumes is to some extent still anyone’s guess as we approach the end of the year. What is clear though is that conveyancing consolidation looks set to continue.

“The task ahead for the established leaders and aspirational ‘challenger’ firms is to have a clear plan to prosper in the face of a potential weakening market.

“They cannot simply rely on transaction volumes increasing year-on-year, so will have to work smarter and deliver better, faster and more transparent services to give customers an incentive to pick them out of the crowd.”