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When the government published its paper, Improving the home buying and selling process, in April 2019, it made a clear request for technological improvements. The whole lifecycle, from estate agent listing to land registration faces modernisation, with technology led innovation such as digital signatures, ID verification and the adoption of e-conveyancing combined with a closer monitoring of the people involved and the progress of the transaction.

In this article we take a look at the improvements so far and provide a view as to the changes that are likely to be coming next.

Digitising the land register

HMLR has the ambition “to become the world’s leading land registry for speed, simplicity and an open approach to data” and in order to help to achieve this it has initiated a number of partnership programs which are aimed at showcasing the possibilities that technology solutions can bring through its Digital Street project and also empowering start up organisations through the Geovation Hub which is a joint program with OS.

There are some key challenges that need to be faced to speed up the registration process, as whilst the HMLR have focused on electronic services and the removal of paper from the process over the last 15 years, we now need to look at what needs to happen to automate the processes within the LR and remove the need for physical signatures.  The two key areas to investigate here are digital signatures and this cannot be decoupled from the need for digital identities.

Both the Digital Street program and the Geovation Hub have generated a great deal of interest from companies with an interest in solving these problems, ranging from embryonic startup where the term Data Scientist appears to be the norm, to the larger well-established organisation that are trying to work out what role they have to play. Having participated in some of their workshops it is encouraging to see a cross section of the industry represented from technology and service providers, to forward thinking law firms and lenders. Refreshingly these sessions are not just talking shops but are often followed up by hackathons where solutions are prototyped in a day.

There are some key technological advances that are taking place, not least the implementation of  Blockchain solutions and open banking standards but you have to question if any of these will be widely adopted without legislation or government funding.  A significant challenge in today’s environment is that there is a plethora of technology led widgets, and businesses, whose aim is to solve a small part of the overall problem.  Is it possible to truly commercialise a small part of the problem?  I think the real challenge is how we can join the widgets together to create a seamless journey for the homemover and in order to do this we need to consider data standards and compliance around an API framework.  This is, however, where legislation then gets in the way, as homemovers are forced to start bits of their journey using different providers and specifically around ID checking, this can lead to multiple checks through multiple providers.

Upfront data and early title information

So far, we have looked at what needs to happen to speed up the registration process.  At this point the homemover has the keys and is in their property of course – or is very close at least.  The real stresses of the process exist far earlier on – namely about 14 weeks earlier on in today’s terms when the transaction begins, and anywhere in between.  

There is a swell of momentum beginning to look at upfront information, this includes the ID check, but also uses other information sources such as the OC1 register from the HMLR.  These two early steps allow us to determine who you are, and your relationship to the property you are trying to sell.  Whilst these could be considered compliance steps, they are also being used to inform the process.  For instance, it is now well documented that if the property is a leasehold transaction then it will add a number of weeks to the process.  If this information is uncovered at the outset, then the estate agent can ask the correct questions of the homemover and try to progress the collation of the required data much earlier on in the process.  The challenge with this is when the transaction is then moved in to the conveyancing process.  How is the information transferred and can it, or will it, be trusted by the law firm?  This issue pertains to our earlier argument concerning data standards and interoperability between systems.

True e-conveyancing?

To summarise, some of the threads we have raised, the delivery of a true electronic conveyance is technically possible and has been anecdotally proven, certainly in the remortgage space where the transaction is far simpler.  There are two fundamental questions that still need to be answered before we can truly say we are operating in an e-conveyancing world.  The first is to determine which widgets we should use, and how commercially sustainable many of the emerging organisations are.  The second and bigger problem we face, is how to generate adoption of the technology and solve the problem of various data silos throughout the transaction.  For the latter to be solved we probably need a level of legislation which leads to mandation. 

Having been involved in providing technology led solutions to the conveyancing and estate agency industry for the last 17 years, I am encouraged by the energy and rate of change we are experiencing for adoption of new solutions and all of this without a mention of what AI is beginning to do for us, maybe that’s a focus for a future article.

With thanks to Paul Albone, COO, tmgroup

The old saying about a week being a long time in politics is clearly relevant at the moment, so to look back over the last 18 months in terms of the home buying and selling process is somewhat problematic simply because there has been so much going on, with progress made across a large number of areas. 

Plus of course we have had the not-so-small matter of there now being a new Prime Minister in Downing Street, plus the personnel changes that have come as a result, with a new Secretary of State and Housing Minister as a result of the recent reshuffle. 

However, in the last year and a half, the Government, Select Committees, Law Commission and Regulation of Property Agents (ROPA) Working Group have all undertaken consultations and call for evidence projects designed to look at the issues impacting the home moving process, and to come up with a variety of solutions to various problems that are regularly encountered. 

During that time, the Home Buying and Selling Group (HBSG) - which has been set up by Kate Faulkner and includes the CA – has been providing the Ministry for Housing, Communities & Local Government (MHCLG) with feedback from 100 stakeholders involved in the industry and considering just how to practically deliver on the solutions suggested in the Government’s response to its own Call for Evidence. 

As part of that, Home Buying and Selling Guides have been published for the consumer and an industry-approved standard wording for Reservation Agreements is being reviewed by the behavioural insight researcher, Kantar, who were appointed by the Government to see how Reservation Agreements would impact the process, ahead of a pilot, which is to take place later in the year.

Overall, the Reservation Agreement would have to be conditional upon the supply of information which does not currently bode well for the consumer. The upfront provision of information is therefore key in improving the whole process and the working party within HBSG believes that this could be the ‘Trojan horse’ to providing the consumer with what they desperately want - namely transparency, certainty and to be able to interact with the process using technology.

Imagine therefore being able to obtain a digital summary of the relevant legal and financial points prior to viewing or valuation and having all of the due diligence data available prior to offer? Imagine a seller being able to complete an interactive digital form which does not display questions about septic tanks for a property which is on mains drainage. Imagine a set of information which could be verified by the relevant authority and provide the single source of truth through the whole process, accessible to both buyer and seller and their conveyancers, valuers and lenders, and capable of importing into case management systems to reduce claims, improve advice and reduce additional enquiries and post-valuation queries. 

What about a digital summary, signed digitally and supported by biometric identity verification for the seller to establish that they own that identity and that it is the identity of the registered proprietor? How far would this go in terms of eradicating seller impersonation fraud and reducing claims, which in turn would reduce insurance premiums that have currently reached an eyewatering high this year thanks to several big claims. That is all possible and would create a significant improvement across the entire process for all stakeholders.

As I write, the NAEA PropertyMark Transaction Reform Group are also busy working on a standardised memorandum of sale which will ensure that the correct information is available to all parties. Crucially this involves chain information. We know that by far the biggest improvement to customer satisfaction on the underground rail network, for example, is not necessarily more trains, less crowding or even trains arriving on time, it is ensuring the dot-matrix signs on the platforms, which tell you how long your train is going to be, work properly. Human beings are hard-wired to see more value in knowing their true position rather than the speed of service and that’s exactly the case in the conveyancing process. 

Providing chain data will therefore be vital to improving the lot of the home mover whether they receive that manually via the estate agent or through products like mio and ViewMyChain which can provide this transparency. This will be important not just for managing customer expectation but also for conveyancers managing their workloads to ensure they can work efficiently and are not wasting time or client money working on transactions which have an incomplete chain.

These are just some of the linked initiatives that have been progressed over the past 18 months and, I have no doubt, that with continued commitment and ongoing industry collaboration, these will continue to blossom in the months ahead, and will eventually bring a vast improvement to the home-moving process for all those involved. 

Beth Rudolf is Director of Delivery at the Conveyancing Association (CA)

In its report looking at the need for improvements in the home buying process, the government outlined three key areas of concern. Firstly, the quality of the consumer experience, secondly the length of time a transaction takes and thirdly the number of purchases that fall through.

Technology should offer improvements in all of these areas and it is particularly true of the consumer experience problem. Buyers and sellers want better communication and clarity in the transaction, something that can be offered via online portals explaining what needs to happen next.

In respect of the time taken, automation will reduce the amount of repetitive data entry type work and should free up conveyancers to focus on trickier transactions and to be more available to clients who need them. 

We asked a panel of experts for their thoughts on progress so far in the 18 months since publication of the government’s request for improvement and where they believe focus should be over the next 18 months. Their responses include concerns that conveyancing is now too cheap for lawyers to properly manage large caseloads and doubts that any of the suggested solutions relate to the main causes of delay in the process.

On the positive side, the importance of proptech companies in creating new systems such as improved client portals is noted, as well as the likelihood that soon far more information will be provided to clients up front. A powerful new tool for conveyancers in finding new business in the rise of the online review site is also discussed.

Kathryn Taylor, Managing Partner, Gordon Brown Law Firm LLP

Clients’ expectations are changing rapidly

From a conveyancing solicitor perspective, how the files are handled day to day and the timescales involved have not really changed in the last 18 months. Transactions do still fall through and if anything I am seeing more hesitancy in the market given the uncertain economic climate.

What has become even more evident over of the last 18 months is that clients’ expectations are changing rapidly. As a society we are all used buying products in a certain way, we want quick delivery, on a day we want, at a price we want and we want to track progress at any given time. Clients are moving into the realms of wanting to buy legal services in the same way. The conveyancing landscape is really changing and practitioners do struggle to keep up with the pace.

Completion days are still fraught with risk

The government’s call for evidence identified conveyancing completion days as being an issue for the industry. I would say nothing has changed at all on that front and completion days are still fraught with risk; only two weeks ago a transaction we were involved in did not complete in a chain of six where the mortgage monies at the top of the chain were delayed. For me this aspect of the industry really needs to change. There is nothing worse for a conveyancer than dealing with a client and their family and telling them they aren’t going to get their keys on the day of completion.  

I was pleased to see that in the summer the government set out what it intends to do on leasehold reform. I was extremely pleased to see that a maximum fee of £200 plus VAT will now apply to the LPE1 pack; I have seen great concern from clients and professionals over the years regarding the high costs that can be involved. I feel it is the leasehold sector in particular that is going to benefit most in the shorter term.

For me there is still a long way to go, but I look forward to the changes that are yet to come.

Suman Dally, Partner, Shoosmiths

Proptech companies have risen to the challenge

The Call for Evidence has brought Residential Conveyancing to the fore and created a determination to improve the home buying process. Proptech companies have risen to the challenge, recognising law reform will be slow, but that much can be done in terms of technical support to improve process. They provide case management systems; facilities to order searches online; simplified SDLT returns online; integration with HMLR to enable online land registry applications; chain visibility (MIO); client portals with online form filling and ability for clients to view all their paperwork in one secure platform; and systems to validate client identity through facial recognition and source of funds through open banking. They have created standalone systems, enabling conveyancers to have access to the latest tech without the complexities and cost of integration with case management systems.

Driving automated efficiencies will continue to remain key

However, against the backdrop of improved systems the legal profession continues to be thwarted with new challenges. The rather unsatisfactory outcome of the Dreamvar case placed risk firmly with conveyancers. Pricing pressures for conveyancers to do more for less, skills shortages, ground rents / rent reviews, estate rent charges and increase in cybercrime and fraud all create more work and, added to slow reform, the ‘legals’ offset any gain made through the use of technology.

Prioritising next steps, tech will continue to reign

I hope to see further enhancements to ‘Client Portals’ offering a secure medium of communication to counteract the rise in cybercrime and speed up client on boarding. Online/APP communication will become the norm, enabling clients to communicate with their lawyers, make payments, access their reports, tasks and milestones, surfeiting the clients’ appetite for upfront information and instant updates, all in one space. AI that can read documents and create reports already exists. Searches need to be simplified so relevant data can be condensed on a summary page. AI generating reports and sale contracts for example will be more commonplace.

Lenders and surveyors need to get on board and review their expectations of conveyancers, often duplicating verification of matters on which they are already satisfied. Integration with lender portals would be of benefit.

Discussions around reservation agreements, property log books, crypto currency, electronic signatures, Alexa and chatbots will no doubt continue.

The technological revolution will continue to evolve, but the law and the lawyers need to continue to keep pace. In the words of Charles Darwin, ‘It is not the strongest… nor the most intelligent that survives. It is the one that is most adaptable to change’.

Eduardo Reyes, Commissioning and Features Editor at The Law Society Gazette:

The plan of action was timid by any measure

While the ministers at the Ministry of Housing, Communities and Local Government were right to assert that there was no ‘silver bullet’, the range of measures identified for reducing time from offer to completion, and reducing failed transactions did not present as a coherent package.

The plan of action was timid by any measure. These included improving continuing professional development for estate agents and considering a professional qualification for agents. Developing ‘how to buy’ and ‘how to sell’ guides was another idea. And there was to be a consultation with removal firms and lenders around the way funds were released and travelled up the chain.

None of the solutions identified seemed to relate the causes of the long and drawn out experiences I have had of the conveyancing process, or those that others relate to me when I write on this topic.

Chief among the causes of delay is that no-one in an average transaction chain is willing to identify and act on buyers’ appetite for risk. This means lengthy to-and-fro over minor queries, involving much repetition, and the proliferation of indemnity polices whose cost seems unrelated to the actual risk.

Conveyancing is also too cheap

With low margins, conveyancers and solicitors often have too many matters on, and under such stress proper project management seems to be deprioritised. 

The growth of online-only estate agents, for whom post-offer services (essentially ‘progressing’) are not part of what they do, are also reportedly a problem.

A heavy hand is probably needed in tackling unfair practices in the leasehold market, where strict regulation is needed to restore faith in the model used by many new developments in particular. I see no progress there. 

On transactions failing, the use of ‘reservation agreements’ was an interesting idea, but a clear steer from a pilot is needed ahead of them becoming a standardised part of the process.

It feels as though the conveyancing system is still muddling along, paying the price for undervaluing professional services and a failure by the parties to own the concept of ‘risk’. Meanwhile, the time from offer to completion has lengthened.

Rob Hailstone, CEO and founder of the Bold Legal Group

Over the last 18 months a lot has been done to progress the Call for Evidence both by MHCLG and by the industry

Within 18 months, the government has produced and the industry approved the new Buying and Selling Guides (https://www.gov.uk/government/collections/housing-how-to-guides).

It has worked with National Trading Standards to introduce guidance requiring estate agents disclose referral fees.

Leasehold is getting a makeover to achieve making buying and selling ‘quicker and cheaper’ in the not too distant future with leasehold packs having to be delivered within 15 days, pack prices limited to £200 and, for new build leases, ground rents to be £0. 

And, although most searches are delivered within days, some local authorities are taking weeks and even months, but the government has given a clear directive to deliver them within 10 days and the latest data shows that 87.5% of authorities are delivering on this.

New build house buyers who can currently struggle to secure help from developers to fix problems once they have moved in, are going to be able to secure free help in the future from the launch of the New Build Ombudsman. 

And the government is about to conduct research into the introduction of reservation agreements and the role of upfront information to test if these would make a real difference to the process.

All this work has been done in conjunction with the industry, specifically the Home Buying and Selling Group (HBSG), headed up by Kate Faulkner, which encourages representatives from numerous stakeholder groups including property lawyers, estate agents, surveyors, lenders, insurers, and removers, who meet and support the government’s initiatives. 

Obtaining more information up front

I have attended all of these meetings and along with others given my time, free of charge, to ensure we introduce new ideas and procedures that will help improve the home buying and selling process. The HBSG is not just a talking shop. If it was, I would not be involved, life is too short!

My personal belief, and without my HBSG hat on, is that we will be obtaining more information up-front so that:

•Potential property buyers can make a more informed decision before making an offer for a property;

•Property lawyers will be instructed, by sellers, before an offer for a property has been accepted;

•In many cases, some form of seller’s pack will be compiled;

•Property Logbooks will become commonplace;

•Reservation Agreements will be available for those that wish to enter into them.

There will be the usual naysayers who will criticise every effort being made by the MHCLG and the HBSG who will suggest that other solutions are the best way forward. They will also quite rightly point out that the above initiatives will not resolve all of the current home buying and selling problems. I agree that mortgage offer issues, search delays, poor client communication etc will still need to be looked at. But you need to start somewhere.

I began my legal career back in the mid 70s, when we had unregistered land, snail mail and personal completions. Yet, somehow, the process (although more technically complicated) was on the whole, quicker and less stressful for all involved.

The home buying and selling process has gone backwards and not forwards over the last 40 plus years, and that has to be addressed. HMLR’s Chain Matrix didn’t get off the ground, HIPs came and went in a flash and, then there was Veyo.

This time, we will get it right, well some of it at least, but we will need the help, support and buy in of those at the ‘coal face’ to get it 100% right over the coming years. Work with us, not against us.

Richard Hinton, Pitsford Consulting

Delivering a better consumer experience when choosing a conveyancer

You can lead the proverbial horse to water – but how on earth do you make it drink?

Especially when the legal profession just isn’t thirsty for improvements to the consumer experience. Implementing the MHCLG’s and the CMA’s plans for more transparent pricing, performance data, standard metrics, kite marks and quality standards hasn’t in my view, gone well.

The evidence to date is that mandatory price transparency has encouraged either bare minimum compliance (with little improvement of the consumer experience) or, given the lack of effective enforcement, in many cases no action whatsoever. 

Efforts to introduce new comparable metrics haven’t yet broken through to the market (including my own) so there aren’t any new operational standards to act as a benchmark for consumers and at the same time kite marks and quality standards haven’t shed their historical baggage.

So, where is the catalyst that’s going to kick start meaningful change in an industry whose nature and composition makes it such a difficult ship to turn?

I think the answer is twofold: data and consumers 

I say twofold – in fact both themes are closely interrelated. Data around conveyancing performance has always been at best sparse and at worst non-existent. Similarly, consumers have always been relatively powerless as they are largely ignorant of the conveyancing process and infrequent users of it. 

In this becalmed market for innovation, the bombshell that has landed is the new world of client reviews – and this is where I think change will be driven. Companies like Trustpilot are now using data to give an aggregated voice to consumers that has never been heard before and which is proving immensely powerful in all walks of life including legal services. 

In fact, the conveyancing market could have been designed specifically to maximise the impact of client reviews. Conveyancing is an intangible service that is poorly understood, infrequently used and opaque at the point of engagement. Set against that, 92% of consumers read reviews and 90% trust a site more with Trustpilot reviews. The company has 55 million reviews and adds 1 million every month. This is the new force that conveyancers will not be able resist as consumers share their experiences of conveyancing.

Without doubt, client reviews will be the catalyst for real change and innovation in how conveyancers encourage consumers to choose them. There is more that could, should and will follow from this, but because Trustpilot unlocks the power of consumers, it has the unique ability to make conveyancers thirsty.

Want to share your thoughts on industry events, trends and predictions?

Get in touch with our marketing team on marketing@tmgroup.co.uk to find out more about adding your voice to our next panel discussion.

Terrafirma’s updated Ground Report – Coming 1st October

Terrafirma’s updated Ground Report will be available to order on tmconvey from October 1st. Pricing remains unchanged.

This will be the first domestic search product to give an accurate prediction of properties which are likely to suffer clay-related shrink-swell movements or be affected by nearby tree roots – including an insight into the possible long-term effects of a changing climate on subsidence risk.

Sample report: Click here to see a sample report

About the report

The updated Ground Report includes a simple-to-understand guide to the potential amount of ground movement and the zone of influence of large trees, providing clear guidance on the scope of building surveys and subsidence insurance for affected properties.  

It includes:

·An additional clay subsidence summary on the front page, highlighting recommended actions for the purchaser.

·Terrafirma’s unique sinkhole alert now forms part of the front-page location map, highlighting recorded collapses near to the purchasers’ property.

·A revised Natural Ground Perils module which identifies the likely risks from slope movement as well as any mapped landslide areas.

· A new comprehensive Clay Subsidence module.

Pricing: Unchanged at £50+ VAT

If you have any questions, please get in touch with your Account Manager or our friendly Helpdesk team on 0800 840 5571 or helpdesk@tmgroup.co.uk

We’ll start with something that is not so much on the horizon, more in our near field view but it’s such a useful development that it’s worth highlighting here. 

The ability to integrate tmconvey with the mainstream case management systems (CMS) has existed for some time - it’s highly desirable as everything can happen directly within the CMS e.g. searches ordered, results received back, all logged in the respective case plan, with no need to rekey. It saves time, improves accuracy, builds an audit trail and is generally more convenient and efficient all around. 

However, firms’ attempts to complete the required integration project often stumble because of a lack of support or time, or even basic IT resource. So tmconvey is now in a position to help drive those projects through, with dedicated resource and assistance available, either helping in-house IT teams or providing an end-to-end solution for firms who don’t have in-house IT to call on. Integration has huge benefit and we want our customers to be in a position to take advantage of it - if that means giving you a hand to get you there, we’d be happy to oblige.

We’ve always got new features up our sleeve and this month we’ve got something for all those users tired of doing screengrabs of search alerts! We’re adding a button that will allow you to simply download a PDF of all the screen contents - the property details and the risks associated with it - which can then be shared via email to relevant parties.

Sometimes, our good works are not always obvious. In the background, there is always an on-going effort to enhance the user journey and experience in small, incremental ways - little changes that add up to big positives. That’s why we’re currently experimenting with button positions and navigation, things that you may or may not pick up on - but are definitely being done for the right reasons.

 We all know it pays to get the mapping part of the search equation right and that sometimes you need to manually map your own areas of interest before merging them into a single extent. 

Previously there was no way of going back after merging but now with our ‘Undo Merge’ function you can have another go if the result wasn’t quite what you were looking for. 

‘Undo Merge’ becomes available immediately after a user has either clicked ‘Merge Selected’ or ‘Merge Visible’. It will rollback to the previous ‘unmerged’ state.  

We’ve also added an allied piece of functionality to the ‘Edit Outline’ panel , ‘Reset’, allowing users to reset any modifications to an outline and return them to the point at which they started editing.

1. User selects 'Edit Outline' 

2. User edits outline 

3. User select 'Reset' to rollback changes in current 'Edit' session 

Click 'mapsearch' on the Home Screen and then 'VIEW MAP'

Once you have located the property you are presented with the option of doing a Companies House search on the right-hand side.  

You will see a summary page first and click on the Company Registration number to take you to Companies House 

If you don’t want to set up a case but still want an accurate quote for your Con29, remember that you can request any relevant optional enquiries by just ticking the appropriate boxes in the Quick Quote tool.

tmgroup is delighted to announce the appointment of Martin Manning as Head of Account Management. 

The newly created role is pivotal to ensuring that tmgroup continuously meets the needs of the legal sector in terms of both client service and product development.  

Commenting on Martin’s new position, Emma Vigus, Chief Commercial Officer at tmgroup said: 

“Martin is a very experienced operator.  He has over 20 years of sales and account management experience within property and legal and a recent involvement in evaluating how machine learning and blockchain can be leveraged across the property lifecycle.  Adding his expertise to our business complements an already strong Senior Leadership team with experience across all facets of commercial and residential property.  It is a testament to the strength of the tmgroup and our proposition that we can continually attract great talent to help us meet our aim of improving the property transaction for the benefit of all.”

Commenting on his new role, Martin Manning said:

“This is such an exciting time to join tmgroup and to assist in driving their progressive agenda. The UK property market is being faced with renewed calls for innovation whist law firms are continuously having to balance busy, complex caseloads with evolving client demands and increasing risk and regulation. We’ll be tapping into some of the very latest technologies to ease that burden and to support our clients’ efforts to deliver improvements.”

tmgroup are inviting residential property specialists to events in Reading and Liverpool in October to join expert led discussions on improving the home purchase process and delivering better quality housing. 

Speakers include; Beth Rudolf from The Conveyancing Association, Paula Higgins from the Home Owners Alliance, Alan Milstein from RSPA & Sebastian O’Kelly from Leasehold Knowledge Partnership. 

We are currently running an early bird offer of £20 per ticket. All money raised will be donated to the charity Emmaus 

The events will provide the opportunity to hear from guest speakers on a range of topics to discuss; 

•What does the consumer really want from a property transaction?

•What really caused the Ground rent scandal? What will the reforms deliver? What more needs to be done?

•How do we make regulation work across the transaction?

•How do you provide quality homes for all within the North West/ Thames Valley?

•How do we provide quality rental for all?

•Habitable HMOs is this just a pipedream? 

From these events delegates will get be able to take away suggestions and ideas on cross sector collaboration as well as the opportunity to network with local experts after the event

Event Details

• Reading: 10th October 2019 (3.45pm - 7.30pm)

Reading Town Hall, Blagrave Street, Reading, England, RG1 1QH

Click here to register for Reading  

• Liverpool: 15th October 2019 (3.45pm - 7.30pm)

Malmaison Liverpool, 7 William Jessop Way, Liverpool, Merseyside, L3 1QZ

Click here to register for Liverpool

For more information, please contact Hannah Dukes at marketing@tmgroup.co.uk