Buying a house is an expensive business and never more so than at the moment.
House prices are at a record high, and they aren’t the only thing that’s gone up.
Anyone moving in recent months may have noticed conveyancing fees have also risen – in some cases, compared to pre-pandemic levels, by as much as 44%.
A survey by Property Solvers looking at the last 12 months found the average increase was around a fifth.
But while there is some evidence of fees levelling off, industry experts say the price hike has been a long time coming and for many firms, is here to stay.
Why have conveyancing fees gone up?
The stamp duty holiday, which ran from July 2020 and was extended until September last year, fuelled a record year for the UK housing market with around 1.5 million properties changing hands.
Put simply, demand outstripped supply – and in most markets when that happens, prices rise.
While property sales have started to slow down, there are other factors which mean firms may continue to charge more.
Conveyancing practices have been hit hard by experienced professionals quitting the industry after the pressures of the last two years.
Costs have increased in other areas such as HM Land Registry which last month put up fees for registers and transfers of title by as much as 21%.
A roundtable hosted by the CLC last year also heard that some companies planned to invest the extra cash in technology in order to keep up with rival firms, some of whom, for example, offer an almost fully automated service where customers can log in 24/7 and check what’s happening with their case in real time.
What should I be paying?
Instructing a conveyancer isn’t a legal requirement, but it is strongly recommended to make sure all the relevant checks and documentation are completed on your property purchase or sale. Mortgage providers are also highly likely to insist that you have one.
Fees vary but typically fall between £500 and £1,500 depending on the case plus disbursements, such as for local authority searches – looking for issues regarding planning permission or building regulations for example – and environmental searches, which determine the risk of flooding, contamination or similar problems.
As the old saying goes, you get what you pay for. And while it’s tempting to choose the cheaper option, there are several factors you should consider before deciding what’s right for you.
The good news is, as a result of new rules brought in by the legal sector regulators, including the CLC, all property lawyers must now publish information about pricing on their websites. You can also visit a number of comparison sites to research different firms.
How do I choose?
As with any major purchase, it’s a good idea to shop around when choosing a conveyancer. Ask family and friends who own homes who they used and whether they were happy with the service.
Ask the internet – several sites such as Trustpilot and ReviewSolicitors now invite clients to rate their experiences online.
If your estate agent recommends a conveyancer, bear in mind that they may be receiving referral fees for doing so. Rules state that while lawyers are not required to publish the specific details of referral arrangements, they do have to say if they enter into such agreements and the average fee, or range of fees, they pay.
The payment of a referral fee does not mean that you should not instruct that conveyancer, but it does underline that you should compare them with other providers. There will be more on referral fees in next month’s article from the CLC.
Check out a few firms and spend time on their websites to see what they offer. For example, what’s the average transaction time and what fees are you likely to incur if a sale falls through?
Finally, make sure the firm is regulated. This information should be on its website – we require our regulated practices to display the CLC secure badge in a prominent place.
You can click on the badge and it will link you through to a page on the CLC website that will confirm that the firm and website are genuinely regulated by us.
Regulation ensures that conveyancers are regularly monitored to make sure they comply with our high standards including that consumers are protected.
If you are planning to buy or sell a property, you can find a CLC-regulated conveyancer, as well as guides to buying and selling, on our website here.
Stephen Ward is director of strategy and external relations at the Council for Licensed Conveyancers
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