SPECIAL FEATURE: A digital future for conveyancing – Propertymark

Special Feature: Nathan Emerson, CEO at Propertymark, discusses the digital shift progressing its way throughout the conveyancing process and the digital future for conveyancing.

According to Conveyancing 2030, the discussion paper, there are 200 conveyancers equating to around 40 per cent of the market who want to and can invest in technology leaving a considerable amount unable or not wanting to drive their processes into the future.

From a property professionals’ perspective, the world of conveyancing for many businesses has not changed nor adapted for a considerable period of time. Many conveyancing firms still openly stick to more traditional formats when carrying through transactions, and what was clearly highlighted during the COVID-19 pandemic was the lack of digital integration throughout the sector which caused many firms to have to adapt and improve their technology systems.

However, many still relied on desktop computer software, site-based servers and predominantly paper files, which meant they struggled to work from home during the restrictions and meet the needs of a growing housing market.

For those that had already adapted to more modern practices of working, there were still noticeable delays in completing transactions, although the service from an estate agency point of view appeared to be more fluid and continuous with the reliance of cloud-based servers, digital paperwork, and the use of integrated phone systems.

There are now several main drivers to improve the transparency around property transactions, with the Home Buying and Selling Group working between property professionals and legal/conveyancing representatives to deliver more upfront information. Trading Standards, the Department for Levelling Up, Housing & Communities (DLUHC) and the Commission and Markets Authority are looking to require estate agencies to provide more upfront information both individually and through the main property portals, effectively restricting property listings until such time as the material information is compiled.

The drive to do this was to ensure consumers have more awareness of the potential properties they are buying to reduce the number of cancelled transactions and enable the conveyancing process to speed up to previous levels.

Conveyancers have been criticised for their inability to adapt tech solutions but indeed the suppliers to the industry need to provide viable products which enable small and medium conveyancing firms to function and operate as larger entities are able to.

It should also be recognised that, over the past 15 years, conveyancing firms have been openly paying referral fees to estate agencies which has arguably had an impact of the profitability of many firms and in turn, restricted the ability to evolve and invest in new practices.

With many conveyancing firms moving from director partner processed cases to partner-led junior teams in order to increase the volumes of transactions processed, in most cases, this has hampered conveyancers’ abilities to conclude transactions speedily.

In addition to this, the availability and supply of much of the required information in order to assist the transactions is in many cases taking longer to procure due to unrealistic expectations from both clients and agents who can slow down their work due to constant chasing and demands for communication.

For many parties, simply burying their heads in the sand and sticking with the option of ‘this is how we’ve always done it’ can no longer be an option as the pressure being exerted by government and the growing dissatisfaction from consumers over the amount of time the entire housing process takes to come together is coming to the fore.

It should also be noted that part of this has been distorted further by the increased number of transactions which has taken place over the COVID-19 pandemic and the continued rampant housing market driving both the cost of housing and the requirements by estate agents.

This makes estate agencies more reliant on referral commissions as they agree lower and lower fees to win instructions and in turn, robs conveyancing companies of the ability to invest money due to paying out for referral business.

All in all, we currently sit in a situation where housing transactions now take 16 to 18 weeks, compared with 4 to 6 weeks 20 years ago. This can only be resolved by all parties in the transaction supporting one another, investment in the process and by trusting fellow professionals to help manage expectations, acquire relevant information, and reduce the amount of duplication that is currently happening across the sector.

We at Propertymark have been an essential part to the Home Buying and Selling Group, as well as Trading Standards, DLUHC and the Commission and Markets Authority, to position the property sector to support the conveyancing process by ensuring all the upfront information is available to consumers and conveyancers at the beginning of the process.