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Any updates about known County Council delays can now be found on a live Twitter feed on our tmconvey login page:

https://www.tmgroup.co.uk/TMHome/Account/Login

We will continue to monitor the situation and provide further updates.

There’s no shortage of changes and trends to keep an eye on in 2018. 

Here are 10 things you will definitely hear more about in the months ahead:

1. Blockchain

2017 gave us all a peek into the future of property transactions, after a property in Wiltshire was claimed to be the first to be digitally exchanged online and moved instantly to a live blockchain. Impressively, progressing from initial marketing advert to a verified online exchange in just seven days. 

As the industry continues to experiment with this potentially-revolutionary technology, we’ll hear even more about blockchain in 2018 – for better or for worse. 

[If you haven’t’ already read the “Blockchain: Buying a Property in 60 seconds...” article from John Danahy, Partner at Squire Patton Boggs LLP, we suggest you take a look.]

2. Brexit 

Despite progressing into the second phase of negotiations with the European Union, Brexit will continue to be a point of uncertainty in 2018 and pull us all into another challenging year in the property market.

It is already making its mark on the property market, with predictions that London property prices could fall by another 2% in 2018. So, unless you’re planning on moving to Frankfurt to cash in on the increase in commercial property transactions (thanks to US and Japanese businesses), it’s time to hunker down. 

3. Mining risks and mortgage refusals  

Mining risks and sinkholes repeatedly made the headlines in 2017, with some lenders refusing to secure mortgages against properties in close proximity to mineshafts. This has put conveyancers under increasing pressure to understand the mining risks in their local area. 

Are you making assumptions about your local mining risks? According to recent research, a third of conveyancers are dramatically underestimating the prevalence of non-coal mining risks across the UK – raising concerns that hazards are being overlooked. 

4. The Bank of England’s Rate Rise

When The Bank of England raised its rates for the first time in 10 years from 0.25% to 0.5%, it was a shock to many home movers – especially those who’d never experienced a rise in their mortgage interest rates. 

From experiencing the impact of the 2017 rate rise, to speculating about the date of the next one, there will certainly be plenty to talk about in the New Year.

…And when will we next see a move from the Bank of England? Well, initial speculation has coined August 2018. 

5. Improvements to the home buying and selling process?

With the initial findings expected to be published in January 2018, The Call for Evidence is likely to kick-start some interesting debate about how the property transaction could be cheaper, faster and less stressful. 

Some controversial ideas have already been suggested, from challenging the role of estate agents in making sure every home is ‘sale ready’ and even bringing each chain under the control of one conveyancer. Yet the one thing we can all agree on is that we must find a way to reduce the 20%-30% failure rate of all property transactions – for everyone’s benefit. 

6. Stamp Duty Land Tax (SDLT) 

Changes to Stamp Duty Land Tax (SDLT) can be very disruptive, so make sure you’re prepared for…

• Land Transaction Tax (LTT) replacing SDLT in Wales on 1st April 2018

From 1st April 2018, Land Transaction Tax (LTT) will replace Stamp Duty Land Tax (SDLT) in Wales. Mostly consistent with SDLT, LTT even includes the higher rates of SDLT on second homes that came into effect in April 2016. The new process echoes the Scottish introduction of land and buildings transaction tax (LBTT) in 2015. 

How will it affect you? Not only will conveyancers need to apply LTT fees to properties in Wales, but will need to make a conscious effort to correctly process land tax for properties that straddle the border of England and Wales.

• The SDLT filing and payment window reducing to 14 days

Following a consultation in summer 2016, the government has committed to reduce the SDLT filing and payment window from 30 days to 14 days. 

In response to concerns about the filing limit however, the introduction has been delayed from 2017-18 to 2018-19. There’s no need to worry yet - the exact commencement date will be communicated well ahead of time. Click here for more information.

• The impact of the abolishing SDLT for First Time Buyers

The abolishment of Stamp Duty Land Tax for First Time Buyers – as announced in The Budget – was a good intentioned move to benefit approximately 80% of first-time buyers purchasing properties worth up to £300,000. 

Whilst a great idea in principle, it only makes a small dent in the somewhat larger problem of saving up for a deposit. As 2018 takes hold, we will begin to see whether this new initiative has had any impact on helping First Time Buyers onto the property ladder.

7. General Data Protection Regulations (GDPR)  

Are you ready for 25th May 2018? If you didn’t know already, this is the date that the new General Data Protection Regulations (GDPR) come into effect, bringing a whole host of protective measures for our personal data. 

This will have a noticeable impact on how firms market their services, as well as how they store client and employee data – and time is running out for businesses to prepare. Proactive first steps include understanding exactly what data you hold in your firm and the processes involved in collecting, using, storing and destroying it… Have you started yet? 

8. Cyber crime and fraud 

Cases of cyber crime and fraud have continued to plague firms across the year – and there is no sign of this easing off in 2018. 

According to our own research, over half of conveyancers relied on unsecured emails to communicate sensitive information to their clients in 2017 – leaving clients vulnerable to Friday Afternoon Fraud. 

What information are you giving your clients about cyber crime? Are you communicating safely? Could you be doing more to protect every property transaction? Knowing the answers to these questions is key to maintaining resilience. 

9. Artificial Intelligence (AI)

While we may never see robots carrying out end-to-property transactions, we’re already seeing examples of digitisation in the market, which are shedding new light on the potential of Artificial Intelligence (AI). 

From online SDLT submission to the digitisation of the Land Registry data, an increasing number of services are moving away from traditional paper methods to help improve workflows and drive new levels of efficiency. 

With potential to save even more time for conveyancers, it is highly likely that these services will continue to evolve across 2018. Is it only a matter of time until some of these processes are automated too?

10. Consumer transparency

Due to the discrepancies between fees paid and quality of service (with little consumer awareness of what the average is), The Competition and Markets Authority (CMA) has launched a ‘Policy consultation on transparency’. 

Set to close on 5th January 2018, we’ll hear increasingly more about transparency as the rules consultation in March and the new rules coming into force by the end of the year. 

For those committed to quality service, a shift towards greater visibility should be seen as an opportunity to thrive, with positive ratings promoting your services to new business prospects. 

Simon Wood, Sales Director at tmgroup comments: 

“The industry is set to change rapidly across 2018. Whilst Brexit and the possibility of another rate rise will continue to bring uncertainty to the property market, it is exciting to see plans in motion to make conveyancing quicker and easier for everyone involved in the transaction.”

Simon Wood

Simon joined tmgroup in 2016 as Sales Director for tmconvey. He leads sales and account management teams in helping customers grow their business, drive internal organisational efficiency and manage the risk around property searches.

 

It is no secret that conveyancing is a risky business. While conveyancers are, of course, aware of the full extent of the risks, clients bring their own opinions to the property transaction. 

These views are often based on their personal experience (or lack of) of buying and selling, as well as issues that have made the headlines – and the hearsay of friends and family.

This is why we're interested to know… In your personal experience, what issues are clients typically most concerned about in the property transaction? 

Fracking? Flood risks? Cyber crime?

Take part in our quick poll and have your say : https://www.surveymonkey.co.uk/r/GCNMXGM 

From Chalk in the South East, to Fireclay in Yorkshire, mining risks vary dramatically across the UK. 

Here are some regional facts and figures to help you better understand the ground beneath your client’s doorstep, as well as your own.

East Midlands

Regional Case Study : 

Mine shaft collapse in Castleton : Derbyshire

Watch our Mining Risks : Are you prepared? webinar to find out more.

East of England 

*This is the highest number of sinkhole appearances in the last 24 months across England and Wales. 

Regional case study : 

Hole in Eden Street : Cambridgeshire

Watch our Mining Risks : Are you prepared? webinar to find out more.

North East

Regional case study : 

Gateshead School Mine Shaft : Tyne and Wear

Watch our Mining Risks : Are you prepared? webinar to find out more.

North West

Regional case study : 

Sinkhole in residential Manchester Street : Greater Manchester

Watch our Mining Risks : Are you prepared? webinar to find out more.

South East

Regional case study :

Car swallowed in High Wycombe : Buckinghamshire

Watch our Mining Risks : Are you prepared? webinar to find out more.

South West

Regional case study :

Sinkhole opens in Well road : Somerset

Watch our Mining Risks : Are you prepared? webinar to find out more.

Wales 

Regional case study : 

Man falls down sinkhole : Bridgend

Watch our Mining Risks : Are you prepared? webinar to find out more.

West Midlands

Regional case study :

Huge sinkhole opens up in front of B&B : Staffordshire

Watch our Mining Risks : Are you prepared? webinar to find out more.

Yorkshire & Humber

*This is the highest number of Recorded Coal Mine Entries (Coal Authority) in England and Wales. 

Regional case study : 

Garden mineshaft size of Nelson's Column : West Yorkshire

Watch our Mining Risks : Are you prepared? webinar to find out more.

Our "Mining Risks : Are you prepared?" webinar - featuring Tom Backhouse from Terrafirma, alongside Clare Yates from tmgroup - discusses how new data sets are challenging traditional assumptions about mining risks.

“It’s been a remarkable year in Residential Property, but there is still more to be done.” This was the resounding message at this year’s EG UK Residential Summit in Birmingham, as the panel tackled some of the pertinent issues set to obstruct the forecasted delivery of new build homes into 2018 and beyond.

Only a fifth of the forecasted new homes in 2017 have been delivered

The panels’ vibrant discussions uncovered a sobering fact that only a fifth of the forecasted new homes in 2017 have been delivered – and called for the government to act to release more land, remove cumbersome planning restrictions, support good finance deals for SME builders and fund more social housing projects. 

There is undoubtedly a need to address other incumbent issues too, such as Stamp Duty Land Tax (SDLT) and the impact of “Help to Buy” schemes, which some panellists expressed had over inflated house prices – adding to the problem, not relieving it.

As 2018 takes shape, it will be interesting to see how The Budget announcements will increase activity within the housing market – and how soon the funds will be pushed through to the Local Authorities for building social housing.

Owning your own home may become less of a priority for millennials 

As the disparity between earnings and house prices becomes increasingly greater, I also asked myself “why are we so obsessed with owning our own homes?” The thought-provoking panel traded ideas on changing this landscape and how we could live in the future (when I retire). For example, making way for Build to Rent (BTR) and Modular Living. We do seem to be on the cusp of a significant sea change for our millennials. Possibly, as this will be the only option available to them. 

However, experts said this demographic are not as obsessive about owning their own homes. So, does the future look set for co-living? State of the art buildings with on-site concierge services, cinema rooms, spas and gymnasiums all in one building?

Owning your own home may be less of a priority for millennials and long-term renting doesn’t seem such a bad trade-off… when you have all those luxuries on your doorstep.

All in all, this year’s EG UK Residential Summit in Birmingham has encouraged conveyancers to look to the future of the residential property market with open minds. 

As an industry, I anticipate that we will be striding forwards in solving the key issues in the market and be well on our way to greater house building numbers in 2018, whether that be through Build to Rent (BTR), social housing or private homes.

With thanks to Nicola Wilson-Sanders, Key Account Manager at tmgroup

Human activity has had a disastrous impact on ground stability, inflicting misery on unsuspecting victims across the UK and beyond, as sinkholes continue to open up in the voids where our ancestors once mined the mineral-rich earth. 

The problem is likely to continue, as Tom Backhouse from Terrafirma explained in the Channel 5 Documentary series “Sinkholes”: “There are 170,000 coal mineshafts in the UK and over 400,000 non-coal mineshafts – and less than 5% are capped properly in a way that wouldn’t collapse.” 

This is not a new problem, but the sheer scale of it and the costs involved of it are increasingly making the headlines – and took centre-stage in the second episode of the documentary series that aired this week : “Sucked Under”. 

A sinkhole that opened up in Newcastle upon Tyne was just one example of how the costs and complications can quickly spiral out of control. In Gosforth, residents awoke to a 30ft deep sinkhole at the end of a driveway, which turned out to be an entrance to a disused coal mine that had been capped and forgotten over 100 years ago. 

Unfortunately, a large, unstable sinkhole can’t just be filled in overnight. From digging it out and backfilling with rock, to topping it off with 65 cubic metres of reinforced concrete, it took 7 months to make the Gosforth sinkhole safe again – at an eye-watering cost of £300,000, as well as ongoing inconvenience and worry for residents.

…And this isn’t just a residential issue. Following the discovery of an abandoned chalk mine beneath Pinner Wood School in 2015, the school has been closed for almost 2 years, whilst extensive work took place to fill the voids and make the school safe to use again. 

However, it is not always possible to fix the problem and, as seen in the case of Jacqueline Close over 50 years ago, entire streets can end up being demolished following the discovery of unstable, abandoned mines beneath the properties. 

The UK isn’t alone in its battle against sinkholes 

The problem isn’t isolated to the UK either, as revealed in the case of Bayou Corne, Louisiana. Following extensive salt mining activity over 40 years ago, 58 caverns were left behind once the brine had been successfully extracted. 

When one of them failed in 2012, 1,000 tons of earth and trees were sucked underground in a void the size of 2 football pitches. The nearby town was quickly abandoned and only 15 of the 159 residents now remain in the once-idyllic ghost town. The mining company has denied responsibility, and only time will tell if another of the 57 remaining caverns will also fail.

Interactive mapping tools are making it easier to see the full extent of the risks

Terrafirma are working across the UK to understand the ground and provide detailed information to conveyancers and their clients. 

The following TerraSearch^® products are now available on tmconvey to order against residential and commercial properties, both including professional opinion that helps to make it quicker and easier for conveyancers to convey important information to their clients:

• TerraSearch^® Coal Extra is a regulated ‘Con29M-Compliant’ coal mining search offering an equivalent to the Coal Authority report, including a professional opinion of all coal mining risks and CON29M questions and additionally alerting to 55 further mining hazards.

• TerraSearch^® Assess is a single search that comprehensively assesses the risk to a site (property and land) from all 60 mining hazards, including past, present and planned extraction.

Terrafirma have also released new interactive mapping tools to make it easier for the general public and their conveyancers to see the full extent of the risks beneath their door steps – simply by adding in their postcode. 

For more information, you can watch the "Sinkholes" documentary series here : http://www.channel5.com/show/sinkholes/

CLS have made improvement changes to the ChancelCheck^® and ChancelCheck^® Premium wording to provide greater clarity on each of the Chancel Repair Liability searches. 

The new changes are outlined below, which took effect from Monday 11th December 2017.

• ChancelCheck^® 

ChancelCheck^® search is now applicable for all residential and commercial properties where the property radius is less than 25 metres.

Previously, ChancelCheck^® only searched against a single property, while ChancelCheck^® Premium searched against a wider radius. 

• ChancelCheck^® Premium 

ChancelCheck^® Premium search is now applicable for all residential and commercial properties where the property radius is over 25 metres. 

Previously, ChancelCheck^® Premium searched against a wider radius, as ChancelCheck^® only searched against a single property.

These changes will be reflected in any ChancelCheck^® and ChancelCheck^® Premium searches ordered on tmconvey on or after Monday 11th December 2017.  

If you have any questions, please contact your Account Manager, or our friendly Helpdesk team on 0844 249 9200 or helpdesk@tmgroup.co.uk.

Housing was a much-anticipated point on the agenda, as Philip Hammond announced the budget for 2017. Following the earlier revelation of plans to build 300,000 new homes a year, many were keen to hear how this could be delivered, and some even took to Twitter to express their scepticism – given that this figure hasn’t peaked beyond 225,000 in the last decade.

Fragmented land will be assembled into “ready-to-go” sites for developers 

One of the most innovative propositions was the £1.1bn Land Assembly Fund, which will assemble fragmented pieces of land into “ready-to-go” sites for developers – and help to make good use of the less attractive pockets of land already available.  

This initiative will be supported by a variety of other measures including; a £1.5bn boost to the existing £3bn Home Building Fund for loans to SME housebuilders, a £630m of grant funding for remediation and infrastructure works on small and stalled sites, and a new consultation into speeding up the planning process. In a further move, housing associations will be reclassified as private bodies to allow their £70bn debt to be removed from the government's balance sheet and for more affordable homes to be built. 

Initiatives were also announced to help free up existing housing stock, including new legislation to give local authorities the power to charge a 100% council tax premium on empty properties – in a bid to encourage empty properties to be sold on and not left vacant when so many people need them.

Abolishing Stamp Duty would be a great help - if first-time buyers didn’t also need a large deposit 

While no one was expecting a “single magic bullet” to the housing crisis, one of the biggest surprises was the confirmation of the abolishment of Stamp Duty for first-time buyers. This is intended to benefit approximately 80% of first-time buyers purchasing properties worth up to £300,000 – as they will no longer need to find the additional funds needed to pay tax. This will also apply to the first £300,000 of the purchase price of properties up to £500,000.

This is a great idea in principle and would certainly be a boost to first-time buyers… If Stamp Duty was the only cost attached to buying their first home. The harsh reality is that the deposit is the biggest barrier to those hoping to get their foot on the property ladder – and the latest Budget announcement does little to change this.

With figures from the Office of National Statistics (ONS) confirming that the average deposit for a first-time buyer is £49,639, even a £5,000 Stamp Duty saving against a £300,000 property is a small consolation. 

This WILL be a boost to those “almost there” with saving their deposit

First-time buyers who are “almost there” with saving their deposit will benefit the most from this new initiative, as this decrease in the overall cost might encourage them to kick-start the house buying process a few months sooner than planned. 

It will also be a pleasant surprise for those due to complete in the next few days, who will be able to put that bit more towards furnishing their new homes. However, for those still faced with the mammoth task of raising the thousands of pounds needed to get their deposit together, the small discount is likely to do little to support their cause.

It is reassuring to see the housing crisis high on the government’s agenda 

Despite the mixed reviews, it is reassuring to see the housing crisis high on the government’s agenda and some new practical ideas for bringing positive change to the market in the immediate future – only time will tell how well these ideas will fare in the months ahead. 

Imagine being told that you only have 15 minutes to pack a bag and leave your family home. That’s the reality residents of Ripon, North Yorkshire, faced back in 2016 when a sinkhole opened up and swallowed their garages, outhouses and even their garden plants. All in all, 10 houses were evacuated and it took 46 months to rebuild their gardens – and their lives. 

That was just one of the many cases explored in the new 3-part TV documentary series “Sinkholes”, which aired this week on Channel 5, revealing the true extent of sinkhole devastation. Additional cases included yet another sinkhole (35ft deep!) in Ripon that had split a house in two, as well as a housing estate in Hemel Hempstead that had been evacuated when a sinkhole not only damaged houses and roads, but damaged pipes and threated a gas leak explosion! 

While these incidents are barely comprehendible, they are superseded by the devastation routinely experienced in Florida, where sinkholes have been known to swallow entire houses in less than 30 minutes – and even cost lives. 

The ground is simply dissolving beneath these homes 

So what is causing all of these problems? Although thousands of miles apart, Florida and Ripon have one thing in common : The ground beneath their homes is made of a substance that dissolves in acid rain. For Florida, this is Limestone. For Ripon, Gypsum. 

Over time, water trickles underground, dissolving the rock and creating caverns. When the weight above them gets too much, the ground collapses into the void creating holes on the surface that take anything and everything down with them. 

The fear of the unknown is what’s really keeping people awake at night

While these cases certainly make for scary reading, the fear of the unknown is even harder to live with – especially for residents of Ripon and Florida who know it is a question of ‘where’ and not ‘if’ another sinkhole will open up in their neighbourhood. 

Fortunately, The British Geological Survey are working extensively in areas such as Ripon to map a true picture of the land beneath the ground. Similar bodies in America are making good use of technology and data too, to help ensure that new houses won’t be built in areas of high risk.  

Terrafirma have also released new interactive mapping tools to make it easier for the general public and their conveyancers to see the full extent of the risks beneath their door steps – simply by adding in their postcode. 

You can try it here: 

Find out more about sinkholes 

To try Terrafirma’s full range of interactive tools and find out what’s going on beneath your doorstep, please visit : https://www.terrafirmasearch.co.uk/understand-the-ground/ 

You can also tune into the rest of the Channel 5 “Sinkholes” series on Mondays at 8pm : http://www.radiotimes.com/tv-programme/e/fzn9yf/sinkholes-buried-underground--s1-e1-sinkholes-buried-underground/  

With keynote speakers and panel members from LandSec, Savills, British Land and Shoosmiths, to name but a few, this year’s EG London Development Summit was a day rich in varied opinions and predictions in relation to the future landscape of London’s residential and commercial property market.  

This variety of opinion was abundantly clear when guest speakers looked ahead to the May 2018 local elections and the unknown future effects of Brexit. But all variety aside, one central topic was the striking recent growth in London’s residential market, and the question mark over how long it can continue for.

Katy Warrick, Head of London Residential Development Research at Savills, highlighted that in the last 10 years, London’s house prices have grown a staggering 70%.  When combined with the average London house deposit of £99K, against an average London wage of £35K, it’s no surprise that first time buyers are finding it increasingly difficult to get their foot on the all-important property ladder.

The national statistics speak for themselves. Across the UK, there are 28% more first time buyers than 3 years ago.  Comparatively, however, there are 13% less first time buyers in London in this same time period.

The reality is that the disparity between earnings and house prices in London continues to grow.  Deloitte recently had to buy properties in order to provide homes for some of their London staff, as residential property in the Capital was just too expensive.

But how long can this affordability chasm continue to grow for?  What struck me was that even professional forecasters, such as Noble Francis, Economic Director at Constructive Products Association, feel that due to the huge amount of variables, they are not able to predict beyond 2019.

With thanks to Charlotte Cripps, Key Account Manager at tmgroup