Conveyancing: Fees surge in North of England
Conveyancing fees hit an “all-time high” in the first quarter of this year in the run-up to the stamp duty deadline, with the average figure up by almost 12% on the same period last year.
Meanwhile, the Council for Licensed Conveyancers (CLC) has reported that most conveyancers felt the stamp duty period went well.
Reallymoving, which provides instant quotes for property services, said the race to beat the stamp duty deadline of 31 March “drove fierce demand and competition for services”.
Average conveyancing fees for a purchase, including disbursements and other expenses (but not stamp duty), came to £1,492 in the first quarter of this year, and for a sale to £942.
The North-West saw the largest year-on-year fee growth, 18% to £2,244 (combined sale and purchase), followed by the North-East, 16% to £2,185.
In London, fees went up 9% over the 12 months to £3,078. The lowest fees were in the West Midlands, £2,017, despite a 10% rise.
Rob Houghton, chief executive of Reallymoving, said: “The conveyancing industry is breathing a sigh of relief after working flat out for six months leading up to the stamp duty deadline.
“This surge in demand, combined with the pressure of time-sensitive transactions and the fact that many firms are currently understaffed, pushed the cost of conveyancing to record levels – but this growth may not be sustainable long-term if buyer demand softens.”
According to the CLC’s quarterly Confidence Tracker, despite many conveyancers hailing the stamp duty run-up as their busiest period on record, 82% were able to complete the vast majority of transactions before the cut-off.
The tracker said confidence was growing despite the predicted slump following the stamp duty hike, with 72% of the 150 conveyancers polled confident in the stability of the current market, up from 55% in the first tracker.
More than a quarter (27%) thought the conveyancing process was getting faster and more efficient, up by 10% from the previous quarter.
Transaction times showed little sign of speeding up, though, with 82% still taking three to four months to complete from an offer being accepted.
Client confidence in the market remained low. Only a third of conveyancers believed sellers were confident and 46% that buyers were confident.
Stephen Ward, head of strategy and external relations at the CLC, said: “It’s pleasing that confidence in the market has not waned despite the predicted slowdown in activity once the stamp duty deadline had passed.
“However, it still means that almost one in three conveyancers are not confident about the current climate and client confidence is far from where we would like it to be.”
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