In depth: What the latest homebuying overhaul could mean for conveyancers

It was déjà vu all over again for conveyancers this week when the government announced ‘the biggest shakeup to the homebuying system in this country’s history’.

In 2018, the Conservatives unveiled an action plan that included a mandatory professional qualification for estate agents, transparent data on conveyancers, better technology and more upfront information. Reforms announced on Monday included... mandatory qualifications for estate agents, transparent information about conveyancers, the deployment of digital tools and upfront information.

‘Previous attempts to improve the process did not deliver lasting change,’ the latest consultation document said. ‘We want to ensure future reforms are practical, enforceable, and built to last, and that both consumers and professionals can be assured that the system will change in a meaningful and sustainable way.’

Sellers would be required to provide upfront information that goes beyond the ‘material information’ that must be included in property listings. The additional information could include EPC rating, title information, seller ID verification, leasehold terms, building safety data, standard searches, property information captured in the Law Society’s TA6 form and a property condition assessment.

The consultation acknowledges that home information packs (HIPs) raised issues relating to trust, reliance and outdated information. HIPs, which put sellers under a duty to provide standard information to potential buyers when marketing the property, were scrapped in 2010 after they were deemed to be expensive, unnecessary and stifling a then fragile housing market.

This time round, data would be drawn from trusted sources, underpinned by clear standards, and updated. Searches would be valid for six months. Search providers would provide free refreshes.

However, Liz Ramsden, a residential property lawyer at Knights, pointed out that lender requirements dictate that all searches undertaken (except for Land Registry pre-completion searches) must be less than six months old at the point of completion.

'Reforms have to look at the whole process and not just part of it. Estate agents should be regulated. There needs to be more transparency in chains. It would be helpful for conveyancers to be instructed early in the transaction'

Sarah Dwight

‘The government can’t change this, as it’s a reasonable requirement that gives lenders confidence to offer mortgages, and lawyers must comply with their instructions,’ Ramsden said. ‘So, if it takes five months for a sale to be agreed, new searches will still need to be done. This previously caused problems with HIPs, as it

was ambiguous whether the buyer or seller would be required to pay for this new search. In addition, some lenders don’t accept certain types of searches so, again, new ones would need to be commissioned.’

Conveyancers’ track record on performance would be published to increase consumer education and transparency.

This sounds good in theory, said solicitor David Bridge, a director on the board of the Conveyancing Association, but ‘who decides who leaves a review, and how do you guard against malicious ones? Even basic metrics like transaction times can’t be compared fairly unless they’re measured consistently and mandated. For example, a conveyancer acting for a client who wants to complete three months after exchange shouldn’t be judged against someone doing a same-day exchange and completion’.

An important issue missing from the consultation, said fellow board director and solicitor Mark Slade, is the shrinking pool of conveyancers to do the work, leaving those remaining with high workloads.

Slade said: ‘We should be pushing for conveyancers to charge properly for the work they do, which will let them have a lower caseload, in turn reducing stress and allowing them to provide a better (and speedier) service. This would hopefully make it more attractive for more conveyancers to join the profession, which is desperately needed.’

Birmingham-based conveyancer Sarah Dwight, a member of the Law Society’s conveyancing and land law committee, said buyers will call her for an initial discussion, full of excitement about buying their new home. ‘By the end, it is common for them to be relieved that the process is over.

‘However much we try to reassure them as we go through the process and manage their expectations, the confusion as to who does what and when, what information is available quickly, and what has to be obtained from third parties makes it a difficult process. The right reforms would help with these issues. But such reforms have to look at the whole process and not just part of it. Estate agents should be regulated. There needs to be more transparency in chains. It would be helpful for conveyancers to be instructed early in the transaction.’

Society president Mark Evans, a high street conveyancer for three decades, said Chancery Lane will seek views from members as it considers the government’s proposals carefully. The consultation closes on 29 December.