The number of ‘allegations’ made against solicitors which have led to risk assessments by the profession’s regulator has fallen, with a sharp drop in the number relating to mortgages and property, figures have shown.

A paper submitted to the Law Society’s management board last week suggested that, if the trend towards a fall in property-related allegations continues, it would indicate that ‘the worst of the regulatory problems caused by the credit crunch may be over’.

Solicitors Regulation Authority figures show that the number of allegations received by its compliance unit which led to risk assessments fell 15% in the three months to 30 June, to 2,783. The number made by lenders and other bodies in relation to mortgages and property fell 43%, to 146.

A paper on ‘Monitoring the SRA’s performance’ written by the Law Society’s government relations directorate said: ‘Allegations relating to mortgages and property have shown a significant decrease from the high levels during 2009. If this trend continues, then it will indicate that the worst of the regulatory problems caused by the credit crunch are over.

‘This is potentially good news as it could lead to a more stable professional indemnity insurance market.’

SRA figures also indicate that the number of regulatory interventions in law firms where dishonesty is suspected has fallen.

In the 12 months to 30 June, 27% of interventions related to suspected dishonesty, compared to 35% in the previous year. In the three months from March to June, only 7% of cases involved suspected dishonesty.

However, the total number of interventions carried out by the SRA grew 22% in the 12 months to 30 June this year, to 90.