There is a high level of anxiety among solicitors over the impact of legal services reforms, with conveyancers showing the greatest alarm, according to research seen exclusively by the Gazette.
A survey of more than 300 solicitors by law firm network Contact Law found that attitudes towards the introduction of alternative business structures from October next year differed considerably according to practice area.
Conveyancers showed the greatest apprehension, with 93% describing ABSs as a ‘threat’. Of these, 53% said the threat level was ‘high’, and 40% said it was ‘medium’.
However, even commercial lawyers were concerned about the reforms, with 64% categorising them as a medium threat, and only 36% showing no concern.
Family lawyers showed a more positive attitude, with 56% unconcerned by the advent of ABSs. However, 22% said the reforms represented a high level of threat, and the same percentage classed it as a medium threat.
When asked who would derive the greatest benefit from the Legal Services Act reforms, more than two-thirds of family lawyers said it would be the consumer, with the rest seeing no benefit to solicitors or consumers.
In conveyancing, 53% thought consumers would be the main winners, while 13% thought both conveyancers and consumers would benefit, and 7% thought solicitors would benefit most.
Most commercial lawyers thought the reforms would be positive for clients, with 57% saying that consumers would benefit most, and 7% saying that both clients and solicitors would benefit. However, 36% said neither would be better off.
Dan Watkins, director of Contact Law’s find-a-solicitor service, said: ‘The survey results highlight how views on the impact of "Tesco law" on the legal sector differ widely from practice area to practice area. Conveyancers seem to be the most apprehensive. They clearly feel that the more process-driven nature of conveyancing will be especially vulnerable to new entrants into the market.
‘Likewise, the 44% of family lawyers who see the new legislation as representing a medium or high threat level may be concerned about the increased competition they will face from ABSs for uncontested divorce work, which can again be very process-driven and therefore easier to replicate.
‘It is perhaps not surprising, given the varied and often very complex nature of their work, that commercial lawyers do not see the new legislation as representing a high threat level; many business clients want a face-to-face relationship with their lawyer. However, with nearly two-thirds saying it represents a medium threat, there are clearly still concerns within commercial practices, especially those dealing with the more commoditised part of the market, such as employment contracts and terms and conditions for small businesses.’
Watkins added: ‘If there is one fairly consistent view held by respondents across the three sectors polled, it is that the changes will benefit consumers more than they will practices.’
No comments yet