The majority of consumers would be likely to buy legal services from banks when the market is liberalised, a survey of more than 1,000 people revealed this week.

The research showed that, while 76% of people would still consider themselves likely to use a solicitor, they were also open to alternative service providers.


Some 56% said they anticipated buying legal services from banks or building societies, and 13% said they were 'very likely' to do so. Insurers were the next most popular alternative providers, with 42% saying they were likely to use them, followed by motoring organisations, with 39%. More than one-third expected to use accountancy firms for legal services, and one-quarter thought they would use supermarkets.


Just under one-third said they would consider buying legal services from estate agents, but only 9% were likely to use claims management companies.


Younger consumers were more enthusiastic about new service providers than older people, according to the research. Three-quarters of 16 to 24-year-olds, and 64% of 25 to 34-year-olds, said they were likely to buy legal services from banks - with one-quarter of the younger category saying they were 'very likely' to do so. Women were also slightly more open to new providers than men.


David Mort, director of IRN research, who wrote the report for market intelligence service Key Note, said: 'This was a survey of individual consumers, not corporate clients, and so it is about buying commodity services such as conveyancing, wills, and personal injury. High street law firms should pay some attention to the fact that 56% of people are saying they would go to a bank for these services. This will be another worry, on top of their other pressures. I suspect price competition will be one of the criteria that consumers will use in choosing providers.


'At the moment, there has been no heavy marketing from these other potential suppliers. You can make an assumption that the numbers would go up after marketing.'


Law Society President Kevin Martin said:


'Liberalising the legal services market will bring challenges for solicitors, as well as opportunities. We know that consumers are already willing to shop around for a good deal, and I am confident that solicitors who offer a good-quality service and high levels of client care will prosper in an increasingly competitive market.'


Paul Marsh, chairman of the Law Society's land law and conveyancing committee, said: '[By using banks and insurance companies] the public will be exposed to a "one stop stitch-up". The profession has to make it clear to the public that it provides better value and independent advice.'


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