For many people, the purchase or sale of a home is the most significant financial transaction of their lives. As a practising solicitor, having previously practised in residential conveyancing and later commercial property transactional work, I have seen how law firms struggle with the current model. People will pay thousands of pounds for a designer garment or accessory, but will seek the cheapest possible quote when looking to acquire an interest in property. I believe this has more to do with perceptions than informed decision-making.
Despite its significance, the current system for delivering conveyancing services is unsustainable.
Historically, conveyancing fees were based on a ‘minimum fee scale for conveyancing services’, until this model was abolished by the Monopolies and Mergers Commission in 1973. The Courts and Legal Services Act 1990 then reformed the legal profession. A significant change was how the legal profession was organised and regulated. The act broke the monopoly solicitors held on conveyancing work, creating an Authorised Conveyancing Practitioners Board which could certify ‘any individual, corporation or employee of a corporation’ as an authorised conveyancer subject to certain requirements. What resulted was a gradual drive towards lower fixed fees, leading to a ‘volume-based’ culture where firms must process ever-increasing caseloads to remain viable. The consequences have been increased errors, under-qualified case handlers, systemic delays and high levels of professional negligence claims. At the same time, there has been an expectation to invest heavily in IT systems and software to streamline processes.
I would argue that the introduction of a fixed-percentage fee model – for instance, 1% of the property value – would offer a more sustainable, equitable and client-focused system. By realigning incentives towards quality rather than volume, such reform could restore professional standards and public trust.
Current challenges
The commoditisation of conveyancing has had a corrosive effect on both the profession and the public. Reduced fixed fees have:
1. Compromised quality of service: firms often rely on paralegals or unqualified staff with limited supervision to manage large volumes of files.
2. Increased professional risk: conveyancing remains the leading source of negligence claims against solicitors, as reported by insurers. This reflects both the complexity of property transactions and the systemic pressures on practitioners.
3. Created structural delays: overburdened case-handlers contribute to bottlenecks in the transaction chain, frustrating clients and third parties such as estate agents and lenders.
4. Eroded professional respect: once seen as a core legal service, conveyancing is often now regarded as a low-value commodity, undermining its importance in safeguarding clients’ most valuable assets.
Altered incentives
A fixed percentage fee would fundamentally alter the incentives in the conveyancing market. Indeed, the model generally adopted in Spain is 1-2% of the property value. The advantages are:
- Enhanced service quality: by ensuring sustainable remuneration, firms could reduce reliance on excessive caseloads and dedicate more time to each matter. This would mitigate errors and enhance client care.
- Professionalisation of the workforce: a higher, fairer fee structure would enable firms to employ and retain qualified solicitors and experienced fee-earners, reversing the current trend towards deskilling. It would also attract skilled professionals to this area of legal practice.
- Systemic efficiency: lower caseloads would reduce transaction delays, creating a smoother process for clients, agents and lenders. Faster, more reliable transactions would enhance overall market confidence.
- Alignment with transaction value: a percentage-based model reflects the true significance of the transaction, ensuring fees are proportionate to the asset being transferred. It also aligns with the estate agency market.
- Reduction in negligence claims: with more qualified staff and greater attention per case, professional indemnity insurers would benefit from reduced claim volumes, leading to a more stable insurance market.
Restoring professional respect
Crucially, a fixed percentage fee would re-establish conveyancing as a respected legal discipline, in turn attracting qualified lawyers and case-handlers. Property transactions are not merely administrative processes, which may now be the public perception. They require an understanding of sometimes complex legal principles and undertakings with high stakes. Land law in England and Wales has evolved over hundreds of years. While registered land sought to demystify some of the issues, it is still crucial that the person reviewing legal title (including unregistered land) understands the common law principles and statutory framework surrounding land law. A remuneration model that acknowledges and reflects this complexity would signal a return to prioritising professional judgement and skill, and client and lender protection, over market-driven volume and targets.
Client and market benefits
While clients will incur higher fees in some transactions, this model is the same as that employed by estate agents (without carrying the same risk), as well as lawyers in other countries. The broader benefits outweigh the costs. Clients would, in consequence, enjoy:
- shorter transaction times, reducing the emotional and financial strain of moving home;
- greater confidence that their matter is being handled by qualified and skilled professionals; and
- a significant reduction in the risk of costly mistakes.
In turn, estate agents and lenders would benefit from increased certainty and efficiency, promoting a more stable and reliable property market.
Conclusion
The current volume-driven, low-fee conveyancing model is not fit for purpose. It compromises service quality, burdens practitioners and potentially exposes clients to avoidable risk. Introducing a fixed percentage fee would be a bold but necessary reform. By aligning remuneration with transaction value and the requisite legal skill and training, the profession could return to a system focused on quality, efficiency and client protection.
Such reform would not only reduce negligence claims and transaction delays, but also restore respect to a vital area of legal practice. In doing so, it would create a conveyancing system fit for purpose in the 21st century.
James O’Donnell is director and head of the commercial and corporate department at O’Donnell Solicitors, Oldham
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