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In February 2019 The House of Commons released a briefing paper about Improving the Home buying and selling process across England. The paper identified the main concerns with our current home buying and selling process as:

-Time taken to complete a transaction

-Transactional failures 

-Consumer inexperience

-Lack of transparency

-Weak regulation of Estate Agents

-Lack of digitalisation

In October 2019, tmgroup hosted two events in Reading and Liverpool to discuss these challenges and to look at ways the current home buying process can be improved.

Our panel of industry experts looked at creating quality homes, providing modern homes for rent, what the consumer wants from the home purchase process, leasehold reform and how regulation can be aligned across the industry.

Theme 1: CREATING HOMES

How do we provide quality homes for all? 

Lord Taylor of Goss Moor walked us through the history of development planning and some of the key decisions that have led to the rise in sequential development and the negative impact this has on not only the local property market but the local infrastructure. 

He has been involved in creating a Garden Villages and Towns policy for the government and explained the advantages of creating this type of community. By placing the new development at a distance from existing towns and villages and ensuring it has its own infrastructure, to include transport links, community space, schools, health care and shops, car journeys into nearby towns would not be an excessive burden. This is in contrast to much of the current new build planning, where small estates are tacked onto the outskirts of existing towns and villages, with the assumption that they can use the existing town facilities.

Theme 2: RENTING HOMES

Providing habitable homes in multiple occupation (HMOs) – is this just a pipedream?

Vicki Peers (Inside Liverpool) showed us that some investors are creating modern safe spaces for renters. However, while habitable HMOs are possible it can also be costly, which means there are still investors that are cutting corners. So, what can be done to ensure all HMO owners meet the same basic standards?

We asked Vicki for three suggestions to help improve this area of the industry:

More industry education – the new wave of investors is keen to become educated and many attend seminars around the country. If the latest generation of landlords want to remain in property, there should be more CPD/education events they can attend. The only ones currently available are organised by RLA/NLA and are generally focused only on legislation.

Greater experience needed for HMO ownership – currently mortgage lenders are pretty relaxed about the experience necessary to buy an HMO. Simply being a single-let landlord for 1-2 years is enough for most lenders. But HMOs come with many more challenges, both during the refurbishment/development phase, and in the ongoing management. It could, for example, be made a term of the mortgage that a buyer must employ a reputable HMO specialist letting agent, to avoid the DIY attitude of some buyers to keep their costs down.

Regulation of the rent to rent (R2R) model – some investors who don’t have the cash to buy an HMO use R2R, whereby they take control of the house for a landlord and pay an agreed rent, then let out each room individually, retaining the profits. There appears to be little regulation around this and there is a grey area regarding who the HMO licence is held by, how much experience a renter needs to have and what happens to the tenants when the renter/landlord agreement breaks down.

How do we provide quality rental for all?

At the Reading event, Dr David Smith (Anthony Gold Solicitors) identified the main issues surrounding the rental market as:

-Tenant education

-Landlord knowledge and awareness

-Failure to deal with rogues

-Weak powers to deal with property

-Overly complex structures

-Lack of Local Housing Allowance (LHA) skills and findings

-Too many courts and tribunals

David’s three key suggestions to help improve and tackle some of the key issues are;

Better information to prospective landlords at the point of purchase regarding their obligations. Ideally the government would improve their How to Rent Guide, which would be distributed to potential landlords by estate agents and conveyancers.

More awareness of tenant rights and stronger signposting at all levels to existing sources of information such as Shelter.

Governmental approval of the existing private rented sector (PRS) Code and signup from every part of the sector, with some element of compulsion or the ability to deal with those who are not complying with that code. Some of the power to do this already exists but it is not properly implemented.

Panel Discussions

Theme 3: THE HOME PURCHASE PROCESS

What does the consumer really want from a property transaction?

Clear themes from both panel discussions were that the consumer wants certainty, minimal fuss, transparency, information/guidance, confidence in their purchase and finally trust in their investment.

Our panel of experts discussed how this could be delivered, questioning whether increasing the level of information would mean that the consumers would then need more education to understand it all. 

There was a consensus that the value of industry experts and their guidance is undervalued, for example it was noted that many consumers still choose not to have a home survey completed, even though without one a consumer could be around £5k worse off. So why is guidance by the experts sometimes dismissed by the consumer? Is it because the perception is that it isn’t needed?  Should we create an MOT/Service check for the Home Purchase Process? Does more need to be done to enlighten the consumer around the value of the expertise they are paying for? 

Theme 4: LEASEHOLD REFORM

What really caused the ground rent scandal? 

The 2018 report ‘Understanding the consumer experiences of the conveyancing legal services’ by the Solicitors Regulation Authority (SRA) states that 20% of consumers who bought a leasehold property cannot recall being provided with information regarding ground rent, service charges and/or length of lease.

With that in mind, was the ground rent scandal due to lack of information and knowledge? Should the conveyancer have provided more? Or does the consumer have a responsibility to understand what they are purchasing?

Beth Rudolf (Conveyancing Association) and Sebastian O’Kelly (The Leasehold Knowledge Partnership) identified that one way to help improve knowledge about leasehold is to establish a benchmark of information that is provided for any leasehold transaction.

Theme 5: ALIGNED EFFECTIVE REGULATION

How do we align regulation to create a better home process for all?

Regulation is a topic frequently mentioned at industry events. It is a vast and fragmented area, so we asked the panel for their suggestions on aligning it across the property sector with a view to providing the following: 

-A better understanding for the consumer

-More transparency

-Consistent data standards

Panellist: Alan Milstein, Chairman – RPSA

1. Snagging surveys for new build - consumers are disadvantaged by being discouraged from obtaining independent advice about the quality of their new home. We need an industry-wide initiative to create a set of snagging survey standards.

2. Surveys for home buyers - industry terminology and culture does not encourage buyers to commission independent condition reports on their proposed purchase. Property professionals need to understand the value surveys can bring to the process and advise clients of their importance.

3. Surveyor standards have been too low and inconsistent – the Residential Property Surveyors Association (RPSA) are launching the Certified Building Surveyor scheme to ensure that all buyers receive a thorough report that delivers high quality and value for money.

Panellist: Ana Bajri, Associate Director, Internal Standard Team – RICS

1.Consumer education - sharing of consumer education content, resources and information. Cross industry collaboration would ensure consistent messaging and well-informed consumers across the transaction timeline

2.Industry education and information - sharing best practice, who does what throughout the transaction process including information on the roles of professionals involved in the transaction process i.e. conveyancing, surveyor etc., economic statistics on property market, cross- sector training etc.

3. Property industry standards - cross- collaboration to ensure consistency and transparency between professionals and solution providers across the home buying & selling process in delivering high level of service to consumers.

 Panellist: Beth Rudolf, Director of Delivery – Conveyancing Association

1. Adoption of an agreed data model across the industry which technology providers could map to in order to enable the free flow of data between the stakeholders. This would deliver real time chain progress transparency to manage customer expectation and improve the customer experience.

2. Using the Buying and Selling Property Information to aggregate data much earlier in the process, stimulate the use of digital services, reduce additional enquiries and post valuation queries and provide one source of truth that the stakeholders can rely on. Ensure that the buyer has sufficient information prior to offer to avoid a repeat of the leasehold mis-selling scandal.

3. Establish digital identities which all stakeholders could rely upon and which would confirm that the seller was the genuine owner of the property. Also, verification of the source of the buyer’s funds and wealth, eradicating fraud and improving the consumer experience by removing the need to verify identity to multiple parties in multiple ways.

Panellist: David Pope, Entity Authorisation and Client Protection Manager – CILEx Regulation

1. Continuing to work with other stakeholders on how technology can be used throughout the process.

2. Looking at how information can be shared better to improve standards.

3. Restoring the value in the transaction.

Panellist: Eddie Goldsmith, Founder Member – Conveyancing Association

1. Establish a Rulebook synergy across the Conveyancing regulators instead of having three different sets of rules.

2. Create a Legal Services Authority to ensure consistency of regulation.

3. However, having the same set of rules when it comes to retirement/closing a business creates huge barriers and is unfair, so this needs to be taken into account.

Panellist: Paula Higgins, Partner and Head of Operations – Home Owners Alliance

1. Open and transparent communication amongst all parties during the homebuying process, including a clear timeline to help consumers. Technology can help here.

2. Earlier legal commitment from buyers and sellers. Reservation agreements (money down at point of agreed sale) could help here, as well as more upfront information provided about the property.

3. Streamline paperwork and anti-money laundering (AML) requirements - the principle of the consumer providing the information once and making best use of information held publicly.

Panellist: Sebastian O’Kelly, Founder – Leasehold Knowledge Partnership

1. Surreptitious investment assets in the homes of ordinary families need to cease, whether ground rents (which are not for services) or abused management and permission fees.

2. Blocks of flats should be built with a residents’ management company, so that those with the greatest financial commitment to a site actually control it.

3. The sale of flats (and houses) as leasehold tenancies is unique to England and Wales and is fundamentally flawed. Commonhold exists on the statute book, needs some updating (currently under way with the Law Commission) and needs to be compulsorily enforced owing to the repeated abuses of the leasehold system.

Panellist: Simon Wilkinson, Board Director – Propertymark

1. Encourage lawyers to engage with the Government’s transformation reform agenda. 

2. Technology and training are key and estate agents need to move forward or move on.

3. Implementing processes now will help to increase profit.

FCI’s Planning and Premium Plus Planning Reports – Coming November 1st 

Two new FCI reports focused around planning will be available to order on tmconvey from November 1st. 

FCI Planning sample report: Click here to view

FCI Premium Plus Planning sample report: Click here to view 

FCI Planning will highlight planning and development activity in the local area surrounding the property for the preceding 10 years, including planning restrictions and major developments, which may impact the homebuyer’s enjoyment or future property value. The search radius varies dependent on the property location, with application and development data displayed in order of proximity from the property.

With FCI’s typical clarity, current and historical planning results are presented clearly by type for ease of review:

• Extensions and Small New Builds

• Developments

• Change of Use

• Lawful Development Certificate Applications

• Telecoms

• Planning Restrictions

Pricing: £24+ VAT

Users of FCI Premium will be familiar with its comprehensive residential assessments, covering Environmental, Flood, Ground Stability, Energy & Infrastructure, and Air Quality risks. And now things are set to get even more comprehensive, with the addition of the Planning component detailed above. The new aggregated report is badged as FCI Premium Plus Planning.

Pricing: £65 + 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 really appreciate all the ongoing feedback from our users and, like any good tech company, we use this to continually innovate and develop our platform and services.  With this in mind, please see below a summary of some our most recent enhancements;

Mirror copy of AP1

As of the 7th November you will be able to download a mirror copy of the Land Registry AP1 application form for each case. Populated fields will be automatically pulled across from the form filled out on our post-completion service, and there’ll be the same look and feel for consistency.

Map Search enhancements

We’ve further improved Map Search creating a sharper, crisper version of the mapping district and improving load and rendering times for a quicker experience.  Below is the now sharper, crisper image quality

Share fees

Do you want to share the fees shown on tmconvey with your accounts department? Yes, but without printing all that extra search detail? No problem, as of the 7th November we’ve now simplified things so you only have to show the top-line fee information.

CMS integration

We touched last month on integrating tmconvey into case management systems, and we are continually developing our API to introduce more efficiencies and functional gains. We’ve been looking at improved ways of servicing information, and users can now see more concise order summaries lodged into their case plans.

Please keep the feedback coming.

When you add a new case using a Title Number the digital map outline will either display the Freehold outline in green or Leasehold outline in purple.

You will also see the type of Title along with the Title number displayed in the outlines box on the right-hand side of the screen.

Keep people who need to know in the know! You can select up to five people and have them receive notifications, delivery time updates and queries  - a real time-saver and great for holiday cover.

Based on research and client feedback, CLS are pleased to announce numerous enhancements to their policies. 

Please see below for more details;

Wording Changes

Absent Landlord - TP56 & TP253
Now our policy covers both absent and unresponsive landlord and Statement of Fact B has been updated to reflect this.

Lack of Planning and/or Building Regulations - TP51 & TP260
We have now made it clear that our policy covers for lack of building regulation certificate as well as works under the competent person scheme including Part L in respect of boiler installation and HETAS, Part P in respect of electrical installation and NICEIC & FENSA Certification.

Another positive change is that we have expanded cover to now include lack of certification for works carried out over 6 months old as standard.

Defective Lease - TP274
We have increased coverage on this policy, the additional insured risks include loss arising from missing pages in the Lease or, where a plan is referred to in the Lease and is missing or uncoloured.

Limited / No Title Guarantee – TP269
Now our policy covers both Limited Title Guarantee and No Title Guarantee and an additional Statement of Fact has been added to reflect this.

Forfeiture of Lease (Housing Act 1988) (Lender) – TP268
We have reworded this policy following customer feedback. The new wording ensures that the coverage is clear.

Lack of Support cover in the Flat/Maisonette policy – TP54
We have increased coverage on this policy, the additional insured risk now includes cover if your lease is defective and does not contain appropriate rights of support and/or shelter.

Number of Risks:
We have expanded cover for our lender only and non-successor policies to include cover for any subsequent lender under the original mortgage deed, on the following risks:

• Insolvency Act (Current transaction) Lender Only – TP199 & TP251
• Forfeiture of Lease (Bankruptcy/Insolvency) – TP57
• Forfeiture of Lease (Breach of Covenant) – TP58
• Forfeiture of Lease (Housing Act Repossession) – TP268
• Building Standards – TP87
• Right to Park – TP256
• Search Insurance (New Build/ Works in last 12 months) – TP240 & TP241
• Search Insurance (No search, validation or delay) – TP60 & TP64

We have also expanded cover for our 15 and 25 year policies to now include cover for the term of the mortgage, on the following risks:

• Absent Landlord – TP56 & TP253
• Contingent Buildings – TP55 & TP254
• Defective Lease – TP274
• Flat/Maisonette – TP54
• Forfeiture of Lease (Breach of Covenant) Purchaser – TP255
• Contaminated Land – TP221 & TP125

How law firms can take ownership

There have been multiple attempts to improve the home purchase process. Most have failed but there are, finally, signs of progress from the emergence of an array of ‘prop-tech’ start-ups through to some compelling proposals from the Home Buyers and Sellers Group.  

Whilst encouraging, it will be hard to secure widespread adoption of new working practices across a siloed transaction that is governed by multiple regulators, hamstrung by conflicting commercial interests and typically generates low margins. And that’s just some of the challenges that those who are trying to drive change, face. It is, therefore, likely to be several years before we see the universal adoption of some of the more recent proposals.   

In the meantime, savvy law firms are recognising that they can, independently, improve the consumer experience of a property transaction and that it makes commercial sense to do so.     

Why hasn’t the conveyancing process evolved?

Conveyancing has, in many instances become so low cost, that it is in effect a ‘lost leader’. The principle of a lost leader is based on the theory that you secure a customer with a great offer and then having undertaken one deal, you sell them a higher margin product or service.  Unfortunately many law firms have forgotten the second part of the equation and are conveyancing hundreds of matters a year, at a loss, with no likelihood of, or strategy for recouping the loss from the consumer by selling them another service.  

Managed well, conveyancing represents a great opportunity to upsell; to generate referrals from satisfied clients and to boost increasingly important trust pilot rankings. Over time this can help reduce reliance on lower margin referred business.  For those firms that rely on referrers, the ability to demonstrate, to referrers, that the firm’s client service makes a tangible difference to transaction times, reduces abort rates and results in a happy customer, is becoming more important in an increasingly competitive market. 

However the challenges associated with re-engineering a low margin process, dealing with the challenge of legacy systems, securing internal support for change and aligning innovation with regulatory requirements has meant that many law firms have struggled to justify the often complex and expensive process of adopting technology that makes a tangible difference to the consumer experience. 

A simple solution 

The emergence of ‘off the shelf’ consumer portals, like tmconnect, is making it easier for law firms to rapidly adopt platforms that have a positive impact on the consumer but also enhance efficiency, freeing up conveyancers to offer valued advice rather than dealing with  myriad low level tasks that can be managed via a portal that also provides consumers with meaningful updates on their transaction.  

Well-designed portals also provide a secure environment for the completion of documents and key stages in the conveyancing process from anti-money laundering checks through to search ordering.  Furthermore, choosing the right provider can mean that a law firm gets invaluable advice from a partner with technology and property transaction know how meaning that some of the challenges, for example integration with legacy systems can be easily overcome. 

The drive for change does not end with a consumer portal

Those reading this article will be all too aware of the fact that residential property transactions in England and Wales don’t work as efficiently as they should.  Consumer portals won’t, in isolation, mend a broken process which is why we are proactively working with all the key stakeholders in the property transaction to lobby for change and to help property professionals align myriad solutions and systems to provide a better consumer experience.  

We are encouraged by the output from the Home Buyers and Sellers Group and we are actively working on initiatives that improve the collection and distribution of data at both the start of and throughout a transaction.   However we do see regulation and the challenges of aligning the systems of multiple parties as a barrier to delivering really meaningful improvements, particularly in areas such as Anti-Money Laundering. 

There is and will continue to be a real need for all those involved in delivering and regulating property transactions to work together to deliver a truly streamlined process which allows property professionals to provide valuable and meaningful advice where it’s needed to those who need it most.    

About tmconnect

Developed by tmgroup, the UK’s leading provider of property searches for over 20 years, tmconnect is a secure and customisable conveyancing platform that allows multiple parties to access and share one view of a transaction. 

With thanks to Emma Vigus, CCO, tmgroup

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.

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