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tmgroup, the leading provider of property searches and data, are excited to announce that they can now support their clients in meeting HM Land Registry’s Digital ID Standard (Safe Harbour) - thanks to their partnership with Thirdfort and the launch of a new ID check, which incorporates Government-grade security.

Try the new Thirdfort Standard ID (Safe Harbour) Check FOR FREE before Friday 18th June

To celebrate the launch of the new Thirdfort Standard ID (Safe Harbour) check – now available on tmconvey and tmconnect – tmgroup and Thirdfort are inviting property professionals to try this new service for FREE, for a limited period.

This offer is available Friday 4th June to Friday 18th June 2021 inclusive, and also extends to orders placed for the Thirdfort Original ID Check and the recently enhanced Source of Funds Check, too.

To claim their free checks, property professionals need to either get in touch with their tm Client Relationship Manager, or contact Martin Manning, Head of Account Management at tmgroup on martin.manning@tmgroup.co.uk. Please note, the offer is only open to new Thirdfort customers.   Please talk to your tm Client Relationship Manager if you have previously ordered any Thirdfort products and would like to try the NEW Thirdfort Standard ID (Safe Harbour) check.

Click here to read the full Terms and Conditions

What’s changed?

HM Land Registry’s Digital ID Standard was announced 12th March 2021. If followed, these standards mean HM Land Registry will not pursue conveyancers who comply with the Standard in any recourse claim resulting from the registration of a fraudulent transaction on the grounds that identity checks were inadequate.

The standards are set to benefit conveyancers and consumers alike by encouraging convenient and highly secure identity checks, streamlining the conveyancing process and providing much needed clarity by driving the industry towards a clear set of standards.

More information about how Thirdfort’s Standard ID (Safe Harbour) check meets HM Land Registry’s new requirements can be found in this webinar. 

Click here to see sample PD results – for a seller or purchaser client.

tmgroup, the leading provider of property searches and data, will soon be able to support their clients in meeting HM Land Registry’s Digital ID Standard (Safe Harbour) – thanks to their partnership with Thirdfort, who have been working with HM Land Registry to raise the compliance level of their ID check.  

Available via tmconvey and tmconnect from June 2021, the 'Digital ID Standard (Safe Harbour) Check' will incorporate Government-grade security to meet HM Land Registry’s Digital ID Standard (Safe Harbour).

What’s changed? 

HM Land Registry’s Digital ID Standards were announced 12th March 2021. If followed, these standards mean HM Land Registry will not pursue any conveyancer in any recourse claim resulting from the registration of a fraudulent transaction on the grounds that identity checks were inadequate. 

The standards are set to benefit conveyancers and consumers alike by encouraging the digitalising of the conveyancing process and providing much needed clarity by driving the industry towards a clear set of standards. 

How will Thirdfort help meet these new requirements? 

You can find more information about how the 'Digital ID Standard (Safe Harbour) Check' from Thirdfort will meet HM Land Registry’s new requirements below. 

Requirement 1: Obtain evidence from the client 

This requirement is about finding out if the person you are representing is who they say they are.

To meet this requirement, conveyancers must obtain from the client a form of evidence that includes security features, like a Near Field Communication (NFC) chip, that can be interrogated to extract information. These security features must also include an electronically held photo of the identity against which biometric facial recognition checks may be made. This can be a biometric passport, identity card or UK biometric residence permit.  

How Thirdfort are meeting this requirement

In the new 'Digital ID Standard (Safe Harbour) Check', that meets the HM Land Registry Digital ID Standard, Thirdfort will request use of a Passport as evidence of ID. To make sure the client’s passport is capable of meeting this requirement, the information contained in the MRZ code of the passport will be checked to determine its status as to whether it is a biometric passport.

Requirement 2: Check that this evidence is genuine 

Conveyancers must verify that the evidence they obtain from a client is current and isn’t forged. This can be done by using a Digital Identity Check provider like Thirdfort – this will check that the security features of the evidence are genuine.  

Now, here's the important part: the identity check provider's system must read the chip within the evidence using Near Field Communication (the tech that reads your passport at an airport gate) by providing any required cryptographic (coded) keys. By scanning an NFC chip, the provider will be able to match a digital signature to the organisation that issued the ID (e.g the Government) and extract biometric information from the evidence supplied by the client. When scanned, the NFC chip will also check that a ‘signing key’ belongs to the organisation that issued the ID, and hasn’t been tampered with.

How Thirdfort are meeting this requirement

As mentioned in Requirement #1, Thirdfort’s coming ID offering will, like their current product, verify documentary and cryptographic security features in ID documents to make sure they’re genuine. 

They won’t stop there, though. The 'Digital ID Standard (Safe Harbour) Check' will include Near Field Communication (NFC) chip reading to scan a chip in a user’s ePassport. A key point to emphasise here also is that Thirdfort, unlike other NFC products in the legal space currently, will check the digital signature AND signing key attached to a document to make sure it is a government-issued ID. They have partnered with the leading NFC-based document verification provider InnoValor to integrate their technology ReadID in the Thirdfort offering. ReadID read and verify the information in the electronic identity document in a secure and user friendly way, and even checks if the document was copied. The same technology is used by the UK Home Office as well as many banks and digital signature providers.

Requirement 3) Make sure the evidence matches the client 

Conveyancers must make sure the person presenting the evidence matches the photo on the documents gathered. This must be done using a Digital Identity Check provider, so that the biometric information gathered using the NFC chip can be matched with a ‘liveness test’.

What exactly is a ‘liveness test’? A ‘liveness test’ uses photographs or video (captured live during the ID checking process) to verify that the person taking the check is real. For this to meet the ‘Digital ID Standard’, the Digital Identity Check provider needs to also ensure this image/video is captured under controlled quality conditions (i.e., controlled light/noise). The ID provider also must have a false match rate of below 0.01% and use a biometric algorithm that’s proven to be effective against a recognised benchmark, like the National Institute of Standard and Technology’s (NIST’s) face recognition vendor test guidance. The ID provider must, in addition, meet a maximum non false match rate (where the system has incorrectly rejected the individual- also known as False Reject Rate (FRR) of 1% (one in on hundred).

How Thirdfort are meeting this requirement

Thirdfort have partnered with Digital ID Provider iProov (who have use cases including the NHS and UK Home Office) to use their Genuine Presence Assurance (GPA) capability to perform the enhanced ‘liveness’ test. iProov’s GPA technology will be embedded within our NFC-enabled app journey to assure the Genuine Presence of the individual. This includes face matching (to assure that the person matches the evidence provided), liveness (to be assured that they are a real person, and not presented imagery such as a mask, photo, or video), and assurance that the person is present in real-time (and not a digital replay attack or ‘deepfake’). 

iProov’s methodology for capturing users’ biometrics is optimised for accessibility, applicability, and usability. To achieve the high performance rates that iProov experiences, the capture of high-quality imagery, in the form of the ‘flashmark’ video, is crucial. iProov monitors the conditions of the user video and provides feedback to the user to maximise the chances of success, also allowing multiple attempts for the user as standard. iProov is also fully accredited by the National Institute of Standard and Technology, and meets the required false and non-false match rates.

Requirement 4) Obtain evidence to ensure the transferor, borrower or lessor is the same person as the owner

This requirement needs to be met by a conveyancer representing a transferor, borrower or lessor.

The conveyancer must connect the client to the property by obtaining two examples from the following list of evidence types and checking that the name and address of the person claiming the identity match those on the evidence provided:

> Utility bill, bank or building society statement, dated within the last three months
> Local authority council tax bill for the current financial year
> Original mortgage statement from a recognised lender for the last full year
> Current UK or EEA photocard driving licence
> HMRC self-assessment letters or tax demands dated within the current financial year
> Insurance policy schedule for the property
> Current firearm or shotgun certificate
> Credit card bearing the Mastercard or Visa logo, an American Express or Diners Club card, or a debit or multi-function card bearing the Maestro or Visa logo which was issued in the United Kingdom and is supported by an account statement less than three months old.
> Copy of the agreement for purchase of the property
> Lettings agent agreement on headed paper
> Local authority buildings regulations sign off for works undertaken to the property addressed to the client
> Management company service charge demands for the property addressed to the client
> Confirmation of tenancy deposit scheme registration

The statements referred to in the list above can be postal or online statements. Reliance can be placed on an online statement provided that it has been received or downloaded by the client and refers to the subject property. Screenshots of online statements will not satisfy the Digital ID Standard.

How Thirdfort are meeting this requirement

Thirdfort’s document upload feature enables a conveyancer's clients to quickly and easily upload evidence of ownership via Thirdfort's user-friendly app. 

Thirdfort have been working with HM Land Registry to raise the compliance level of their ID check. Available on tmconvey and tmconnect from June 2021, Thirdfort's most secure ID check will incorporate Government-grade security to not only set the quality bar even higher, but also meet HM Land Registry’s Digital ID Standard (Safe Harbour).

Any questions? 

If you have any questions or would like to find out more about Thirdfort, please get in touch with your Client Relationship Manager, or our friendly Helpdesk team on 0800 840 5571 or email helpdesk@tmgroup.co.uk 

Find below the latest Groundsure webinars, including recording links, so you can watch at your convenience.

1. Groundsure Transportation

Link: https://attendee.gotowebinar.com/recording/663455625191428354

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search. 

Standard searches will not report on issues arising from transportation activities. As part of the range of searches Groundsure Transportation report will identify whether there are any specific risks relating to existing and proposed transport infrastructure. An Energy and Transportation report will highlight if the property is within the vicinity of HS2, Crossrail 1 and 2,  underground railways, active and historical railways. If a residential Avista environmental report is purchased transportation will be included as standard.  

HS2

High Speed Two (HS2) is the UK’s new high speed rail network linking London, Birmingham, Leeds and Manchester. The route is split into two phases, Phase 1 (London to Birmingham) has been given the go ahead. The preferred route for Phase 2a (Birmingham to Crewe) and Phase 2b Birmingham to Leeds and Manchester) was announced in summer 2017, with the HS2 Phase 2A Bill receiving Royal Assent in February 2021. Phase 2b of the project is still under consultation. 

The property may be in an area that is later subject to compulsory purchase to allow the railway to be built. Alternatively, it may be impacted by noise and vibration or visual intrusion from construction and operation – an indication of which is included within the report. 

Crossrail 1

Crossrail 1, which will be known as the Elizabeth Line once services begin in 2018, is a new railway linking Reading and Heathrow in the west through 42km of tunnels under London to Shenfield and Abbey Wood in the east. The majority of construction is now complete but properties above or in proximity may experience issues arising from operational noise and vibration. 

Crossrail 2

Crossrail 2 is a new proposed railway linking Surrey and Hertfordshire via an underground tunnel through London. Crossrail 2 marks the next step in the ambitions to improve rail infrastructure and join major counties to the capital. The Crossrail 2 route, safeguarding areas, worksites and headhouses are all included. This project is currently suspended. 

Railways and subways

Active, historic and abandoned railways and tunnels, the London Underground and other subway systems have the potential to cause noise and vibration to properties in close proximity as well as providing essential transport links.

2. Groundsure Energy

Link: https://attendee.gotowebinar.com/recording/8353509218884714497

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search. 

Standard searches will not report on issues arising from energy activities. A Groundsure search will provide insight on the proximity of all existing and proposed major energy infrastructure up to 10km from the property that may have an impact on value or your enjoyment of the property. These include major projects such as hydraulic fracturing (‘fracking’) sites, large scale wind farms and power stations as well as smaller scale infrastructure. In addition, to oil and gas sites, large scale transmission networks, power stations including nuclear and wind and solar farms. If a residential Avista environmental report is purchased energy will be included as standard.  

Due to changes in Trespass Law as part of the Infrastructure Act 2015, oil and gas companies will be given automatic access for gas and oil development below 300m without having to seek land and home owner’s permission and leaving them without legal recourse. 

3. Groundsure Radon

Link: https://attendee.gotowebinar.com/recording/1987749210921690881

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search. 

Standard Con29 Local Authority Searches will cover the risk of radon gas, however due to the resolution of the data used it cannot be fully relied upon to assess the risk at a property-specific level. The data used by Groundsure is far more detailed radon information than the information used in the Local Authority search which highlights the radon potential at the specific property and if any protection measures are required.

Radon is a colourless, odourless gas which has the potential to cause adverse health issues to those occupying the property.  It is the second biggest cause of lung cancer in the UK after smoking. 

As part of the Groundsure range of searches, you either can include a standalone Groundsure Radon Check. If a residential or commercial Groundsure environmental report is purchased radon will be included as standard.  

4. Groundsure Flood

Link: https://attendee.gotowebinar.com/recording/5113859780498471425

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search.  The Law Society Practice Notes state that in every transaction the issue of flood risk should be considered and further investigations undertaken if appropriate. 

As part of the Groundsure range of searches you can order a Groundsure Flood to identify whether there are any specific risks relating to the issues of contaminated land, flooding, ground stability and radon. Groundsure Flood will also include a screening on energy, transportation and planning. If a residential Homebuyers or Avista environmental report is purchased transportation will be included as standard.  

Flooding can occur from a variety of sources including surface water, and you don’t have to live near a watercourse to be affected. In England and Wales 5.9 million properties are at risk of flooding, with the average cost of flood damage being £28,000.  Home insurance in flood prone areas may be more difficult to obtain, however the introduction of Flood Re means affordable insurance should be obtainable through a registered insurer.  A Flood report will highlight the risks from river, coastal, surface water and groundwater flooding as well as any flood defences and historic flood events. 

5. Contaminated Land

Link: https://attendee.gotowebinar.com/recording/3510924659113088770

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search.

Our industrial heritage and the drive to build on brownfield (previously used) land has meant that increasing numbers of properties have been built on land that could be contaminated. This could affect the value of the property, could lead to adverse health issues and under current legislation you could be responsible for paying for the clean-up of that land. 

If the contaminated land results as Action Required, this does not indicate the purchase should not proceed. Further enquiries can be undertaken of the sellers and other parties to either amend the result, provide further information to make an informed decision or, if appropriate, consider obtaining environmental insurance. If a residential or commercial Groundsure environmental report is purchased contaminated land will be included as standard.  Specific recommendations can be found within the Groundsure report.

6. Groundsure GeoRisk/ GeoRisk +

Link: https://attendee.gotowebinar.com/recording/1869837584163960323

About:

Many geo-environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and protect the interests of both you and the lender on your proposed property purchase you should get a relevant search. Law Society guidance also states that a property should be searched to identify whether further investigation of site-specific ground instability risks is required. If risks are likely to occur, obtain a site specific report from a commercial search company. 

As part of the Groundsure range of searches you can order Groundsure GeoRisk/ GeoRisk + report to identify historic non-coal mining, ground stability issues, coal mining and the risk from former brine extraction in Cheshire. A GeoRisk report will highlight any natural and man-made subsidence risks to property. It will identify whether there are any specific risks relating to historical and other geological features.  In addition, it will identify any oil and gas extraction, natural instability, infilled land, and sinkholes in close proximity to the property. The report also utilises satellite monitoring to identify ‘real-world’ ground movement accurate to the millimetre. A GeoRisk + report will include everything that standard GeoRisk report has plus an integrated CON29M Official Coal Search and a Cheshire Salt Search where necessary.

Is your client planning to buy one? Do you know what the implications are for insurability or what really happens if their cliff-top garden collapses onto the promenade below? This and more was discussed in a tm:tv session on Coastal Hazards, as part of the Climate Change and the Property Market series; hosted by Martin Manning, Head of Account Management at tmgroup, and joined by Tom Backhouse, Geologist and CEO of Terrafirma, and Sean Reeves, Associate Solicitor and Head of Residential Conveyancing at Letchers Solicitors.

The damage and costs associated with coastal hazards are extreme 

Coastal hazard risks are largely overlooked by many parties across the property transaction, and there is currently no guidance in place to support solicitors in best practice, partly as they simply don’t affect as many properties as higher profile environmental risks such as flood and contaminated land. For example, there’s roughly 2 million properties affected by flood, compared to 625,000 deemed at risk of damage (or collapse) by coastal erosion over the next 80 years. 

Yet, whilst the number of affected properties are fewer, the risks are far greater, as there’s no escaping coastal erosion, as Tom Backhouse commented: “Many properties across the UK are at risk of flooding, yet there are measures that can be (and often are) put in place to significantly reduce the risk. Despite the best efforts of coastal defences and shoreline management plans, homes are still at risk from the inevitable march of rising sea levels, landslip and erosion. The other key difference is that there is also financial support available to support those living in high flood risk areas (for example, Flood Re). Whilst there are projects underway to help reduce the effects of coastal erosion, nothing is currently in place to financially support homeowners, leaving people with huge personal risk should the worst happen.” It's not just about the properties currently sitting on a cliff edge either, but also about those getting increasingly closer to the sea as erosion continues. 

Liability is a real “can of worms” and can leave homeowners significantly out of pocket

The sheer level damage isn’t the only concern as, with no clear guidance on liability, the results for homeowners can be catastrophic, as Sean Reeves commented: “I had a client in Eastbourne who suffered part of their garden falling off a cliff edge and onto the beach huts below. This immediately raised questions of who was liable and what financial support was available – particularly as they hadn’t even been aware the cliff was unstable. Unfortunately, many home insurance policies don’t cover coastal erosion and the situation culminated in my client being deemed personally liable for the damage to the promenade and beach huts below – and then received a further bill for £58,000 for work to try and stabilise the cliff edge again.” 

There just isn’t the support in place to consistently advise clients on these hazards

Despite these events making the headlines, and some coastal towns experiencing daily events of gardens disappearing into the sea, there just isn’t the support in the industry on these matters, and it is currently down to the best judgement of the solicitor managing the case, and even then any insight often falls on deaf ears, as Sean Reeves commented: “As much as I err on the side of caution on coastal erosion matters, I find that often homebuyers aren’t too interested as they have already fallen in love with the property and want to proceed regardless, and even when reporting to the lender, they simply aren’t set up to make use of this information, and often it passes back to me with a response such as “If you are happy to submit a clear certificate title, then please proceed”, and that’s the point I typically then push back to get a surveyor involved for a professional opinion for my own peace of mind.”

Lenders and insurers are already beginning to change their position on coastal hazards 

Why do things need to change? Coastal erosion is not a new risk, but it is becoming a more predominant issue with the current rate of climate change. For example, recent research from Terrafirma has shown that since 1900 around 3,000 properties were totally lost to the sea, however as climate change accelerates, in next 25 years, a further 6,000 properties are predicted to be lost. 

Change is afoot in the insurance community, as whilst they aren’t currently set up to underwrite properties affected by coastal hazards, there are already projects underway to help give homebuyers additional protection and support as the risk increases – similar to what we’ve seen with Flood Re in recent years. 

Lenders are also becoming increasingly aware of this too, as Tom Backhouse commented; “Coastal hazards have the potential to impact on value, insurability and future sale, so it comes as no real surprise that lenders are now being forced to look at their portfolios to understand risk of climate change, and this is going to prompt a sea change in how lenders view these properties, and cause some real problems for buyers and sellers, as well as their acting conveyancers, in the years ahead.“

Are you working with properties by the sea? Do you want to find out more? Take a look at the full tm:tv session on ‘Coastal Hazards: Is there still a market by the sea?” here. 

Did you know subsidence is the most costly ground hazard in the UK? Around 64 million pounds of subsidence claims were made in the last year – and it’s only going to get worse as climate change wreaks havoc in the hotter and drier summers ahead, yet the full extent of the risk isn’t widely understood.

That’s why, as part of our tm:tv series on climate change, in partnership with Terrafirma, Dr Tim Farewell – one of the UKs leading academics on geohazards and the interaction between the natural and built environment – shared the top 5 questions every legal professional and homeowner should ask to better understand the future of subsidence.  

1. Can the soil shrink as it dries?

Soil is complex, but one of the key questions we need to ask is “can it shrink?”. This is because the expansion and contraction of the soil, as it gets wet and dries out again, creates movement and inevitably damages brickwork. 

It’s not the only soil factor to consider – as sandy soil types can also cause problems (for example, a consistent dripping of water can lead to the formation of a hole beneath the property) – but, by mapping which parts of the UK have a prevalence of shrinkable soil types, it’s possible to build an accurate picture of the properties most likely to be affected by subsidence as the climate changes. 

2. How’s the weather? 

Brits love to talk about the weather! However, it’s more than just small talk when it comes to subsidence risks, as in areas with a prevalence of shrinkable soils, the increasing shift towards hotter and drier summers – brought on by climate change – is a big problem.

This is expected to cause the most disruption in the next 20 years, as the depth the soil will dry out to will increasingly align with the 2-metre depth of foundations. 

3. Are there trees nearby?

Trees are another risk factor in areas with a prevalence of shrinkable soil. 

Whilst nearby trees are unlikely to directly cause subsidence issues, their presence can accelerate damage by sucking additional moisture out of the soil and contributing the depth the soil dries out to. 

4. When was the house built? Is there an extension? 

Certain types of construction also make properties more vulnerable to subsidence. For example, older houses tend to have quite shallow foundations, whilst newer ones are regulated to be substantially deeper.  

This may not cause too much of problem for properties kept in their original condition, but the addition of a new extension could complicate things; as differing foundation depths could result in one part of the house moving more than the other, leading to cracking between the original house and the extension. 

5. Are you looking backwards AND forwards in time?

Typically, conveyancers look at historical data (such a coal mining sites and areas of contaminated land) to understand the ground and perform their due diligence against their clients’ intended purchases. 

However, as the climate changes, and the ground also changes in response, the industry needs to be increasingly looking forwards and modelling against the anticipated impact of subsidence, if we are to take a more consistent approach in advising clients on the risks of climate change, and the likelihood of them needing to make a subsidence claim in future. 

It’s not just about modelling either, it’s about taking steps to future proof against the anticipated risk. For example, moving towards a point where developers are building New Build properties with “green” foundations and less concrete to help mitigate the risk of subsidence in the longer term. 

Do you want to know more? Take a look at the subsidence session on tm:tv here.

As part of a tm:tv series on climate change, in partnership with Terrafirma, the ‘Mining our way to a greener future’ episode brought together an expert panel to discuss how the property industry need to start making changes today, to prepare for the sustainability challenges of tomorrow. 

Hosted by Martin Manning, Head of Account Management at tmgroup, the panel included:

• Kate Charrington, Chartered Residential Surveyor & Valuer

• Megan Jenkins, Professional Support Lawyer - Real Estate, Shakespeare Martineau

• Tom Backhouse, Geologist and CEO of Terrafirma

Whilst it was immediately clear this is a complex issue, with no magic wand, there are many changes the industry can collectively make to move things in the right direction. 

Here are just some of the suggestions…

#1: More lender guidance and data to help make informed decisions 

The property industry is currently lacking the clear guidance it needs for professionals to advise consistently on sustainability matters, as Martin Manning commented: “Right now, so much comes down to the best judgement of the surveyor and solicitor involved in the transaction. We simply don’t have the steer from the likes of RICS, The Bank of England, The Law Society, and so on, of what exactly needs to be looked at across the breadth of the transaction.”

This current lack of direction creates challenges, as Kate Charrington commented: “To complete a survey or valuation, surveyors look at lots of different things, including capital value and who the average market participant is, but they won’t look at sustainability issues, as there’s simply not enough data or lender guidance out there to help them make informed decisions. Moving forward, we need to be integrating more systems to see what the flood, green, and radon risks are (and more!). As it currently stands, the industry doesn’t have enough insight to make valuations based on sustainability matters, and therefore homeowners don’t see the value either.”

Solicitors are in the same boat, as Megan Jenkins commented: “Like surveyors, solicitors also rely on guidance from lenders and governing bodies to manage the risk of the transaction, and so if the lender hasn’t yet taken onboard the impact of sustainability on property value, this isn’t going to be feeding into conveyancing practices. Energy Performance Certificates (EPCs) are a great example of this, as we’ve had them available on every property since 2008, but not needed to report on them. However, there’s now a call for lenders to report on EPCs, and while it’s only in the consultation period, it’s clear to see how factoring poor EPC ratings into lending risk assessments could help to reshape the conversation on sustainability and give solicitors and surveyors some much-needed guidance.” 

#2: Homebuyers need to be investing in sustainability measures in the same way as they currently think about adding an extension or downstairs toilet 

All homeowners know that if they want to increase the value of their property, they can look at making home improvements such as adding an extension, new driveway or downstairs toilet, but this narrative needs to change, as Martin Manning said: “I think we need to see more drive both from lenders and the media to make it clear to homeowners that they should expect a return on investment with sustainability measures too. We also need to start talking about how properties will be LESS valuable in the future without a ground source heat pump (for example), as changing the language we use can be very powerful.”

Such messages could be reinforced by the introduction of new incentive schemes or taxation measures, pushing the general public to make greener choices (similar to what we’ve seen more recently with car taxation). However, more needs to be done to make sure such schemes actually make a difference, as Kate Charrington added: “We regularly see new incentives pop up in the market, but they often don’t have the desired impact – especially in cases where the maths just doesn’t add up. When you only have a £5k grant for a £15k ground heating pump, it’s not surprising many homeowners choose to spend their money elsewhere.” 

Such negative experiences create additional barriers in moving towards a more sustainable future as well, as people are less likely to take up new initiatives if they’ve been “burnt” before – particularly when you think of the less scrupulous businesses that benefitted from the rollout of solar panels in recent years. 

#3: Everyone needs to better understand the implications of increased mining activity in the UK 

The mining of additional minerals in the UK is really important for the long term sustainability of our shores, but more education is needed to help homeowners and property professionals alike better understand this, as Tom Backhouse commented: “The challenge we have with mining is that living memory is all coal-related mining, as it was a massive industry and supported livelihoods across the UK. But this conversation needs to change. As we move towards a future of electric vehicles, more copper and critical minerals need to be extracted from the earth than have ever been mined in human history. Whilst a lot of this activity is taking place offshore, there’s a renewed interest in mining across the UK (for example, looking at mining parts of Cornwall for tin and lithium) in order to make us more resilient in mining commodities and meet the needs we will have in developing electric vehicles and solar farms, etc… We’re at a point where we should be reconsidering our day-to-day work processes within the scope of the property transaction to help the country prepare for a greener future, as well as better understand the impact increased mining activity will have on the value of nearby properties.”

…And that’s just the tip of the iceberg! Watch the full ‘Mining our way to a greener future’ tm:tv session for more on how the property industry can become sustainable. 

Barclays Bank, Halifax, Lloyds Bank, Nationwide, The Royal Bank of Scotland, Yorkshire Building Society, and Skipton Building Society are just a handful of an increasing number of lenders now accepting Search Delay Insurance – according to the UK Finance Mortgage Lenders’ Handbook for Conveyancers, as of 22nd February 2021. 

The use of Search Delay Insurance is also permitted under CoPSO guidance; “where local authority delays mean search information cannot be obtained within the timeframe required by the conveyancer and their client”. By contrast, “‘No Search’ Insurance products which provide insurance as a substitute for definitive search information, not just as cover for any delay until the search information is available, are not compliant with the Search Code.”

This clarification is a welcomed relief to residential conveyancers, many of whom are now feeling the pressure to pull out all the stops to get their transactions over the line before the end of the Stamp Duty holiday on 31st March – even with the expected announcement of a 3 month extension being confirmed in the Spring Budget.

Where can I find Search Delay Insurance?

Offered by tmgroup, in partnership with legal indemnity provider CLS Property Insight, Search Delay Insurance is available to order now on tmconvey and tmconnect:

• A limit of indemnity up to £1 million

• A site size of up to 2 acres

• £19.50 inc. IPT 

The policy provides the insured party with financial cover in the event that an entry that would have been revealed in a delayed search leads to a loss under the terms of the policy. 

Areas of potential cover include loss of market value and professional and legal costs associated with a loss event – for both New Build and existing properties – in relation to the following searches; official Local Authority, drainage and water searches, coal mining and Q22 commons/green enquiry. PCCB regulated equivalent enquiries are also included under the policy cover. 

For more information and to see a sample policy, please contact your Client Relationship Manager. 

Residential conveyancers and estate agents both anticipate the Stamp Duty holiday extension verdict to have a significantly greater impact on their role in 2021 than either the COVID-19 vaccination programme or Brexit – according to the findings of the ‘Thriving in a Pandemic’ report published by tmgroup and mio earlier this month. The survey of over 600 property professionals also revealed anxiety around an increased number of broken chains and fall-throughs this year.

These concerns were echoed in the verbatim comments captured within the survey, including:

• “Without an extension of the Stamp duty holiday or a revision of the rates, the pressure on conveyancers will continue. I worry how much the conveyancers can deal with.” (Residential Conveyancer)

• “If the March deadline is not extended, I would imagine we’ll see a higher fall through rate. I have spoken with a fair few clients who are only moving to take advantage of the freeze on SDLT.” (Estate Agent)

• “If the Stamp Duty holiday is not extended or eased properly then it’s going to fall off a cliff.” (Estate Agent)

The Spring Budget announcement will bring some certainty to the market

The good news is that the Spring Budget announcement is just around the corner, which will bring some much-needed certainty to the situation – if nothing else, which will also allow business leaders to pause, take stock and continue the year with a renewed focus on achieving their business priorities for 2021 – including business growth, better use of technology, integration and digitisation, as Joe Pepper CEO at tmgroup commented: 

“It’s fair to say that the industry has been somewhat distracted by the unusually high volumes of property transactions coming through the pipeline, as well as the uncertainty (and potentially false hope) around the Stamp Duty holiday extension, which remains a critical concern in residential property. However, with the Chancellor set to announce the Spring Budget on 3rd March, there’s not much longer to wait until the industry either welcomes an extension of sorts, or battens down the hatches to cope with the final charge towards the Stamp Duty deadline. Whatever happens, for many in the property industry, I’m sure the 31st March can’t come soon enough.”

Want to find out more? The ‘Thriving in a Pandemic’ report is available to download now. 

The findings of the new ‘Thriving in a Pandemic’ report, recently published by tmgroup and mio, have highlighted that the market has not been able to cope with the sheer volume of transactions brought on by the post-lockdown and Stamp Duty holiday surge.

Despite creating unprecedented demand for property services, and helping the industry to appear to be thriving on the surface, a survey of over 600 property professionals – including residential conveyancers, real estate professionals, estate agents, developers, surveyors, and more – has revealed what’s really been happening ‘behind the scenes’; with an inability to handle rapidly increasing work volumes resulting in significant delays and an underwhelming customer experience.

Multiple parties under huge personal pressure to work longer hours

Sadly, the report findings also highlighted a trend of multiple parties connected within the transaction, particularly residential conveyancers, feeling under huge personal pressure to work longer hours to cover for the inadequate processes and technology in their businesses, as reflected in this comment from a residential conveyancer; “Increased caseload together with search and mortgage delays leading to frustrated clients has had a hugely detrimental effect on conveyancers wellbeing.” 

Unsurprisingly, this has raised significant concerns about mental health in the industry, as recently cited in this article from LawCare which claimed; “The number of legal professionals contacting the charity for emotional support continues to rise year on year, with 738 legal professionals seeking help in 2020, a rise of 9% on the previous year.”

The challenges of 2020 have focused the industry on making better use of technology to ease the pressure on their processes and staff 

Yet there is positive change afoot, with many property professionals acknowledging the need to review their systems and processes in 2021, as Joe Pepper, CEO at tmgroup commented:

“Looking to the year ahead, the report findings showed a strong focus on better use of technology, including system integration, which could help improve overall business efficiency and ensure that all property professionals are better able to cope with an expected increase of volume again, as the economy returns to normal in the second half of the year – a prediction based on a widely-anticipated COVID-19 and Brexit bounce-back supported by the continued availability of historically cheap lending. It’s interesting to note that these priorities reached across all of the professional groups within the property market, but the demand for better technology and system integrations was especially high up the list for residential conveyancers, with a strong feeling that the industry must demonstrate that it can handle higher volumes more efficiently if it is to thrive in the future.”

Want to find out more? The ‘Thriving in a Pandemic’ report is available to download now. 

Just in case you missed the Stamp Duty debate yesterday, here’s a quick round up of some of the key contributions:

Elliot Colburn MP:

The debate opened with Elliot Colburn MP who championed the view of the petition and drew on data from the lender Paragon which suggested that 42% of borrowers would be unable to afford to proceed if they missed the current deadline, which would translate into a total of 51% of chains in serious danger of collapse.  He felt that the delays were largely outside of the control of the home-buyers, and therefore unfair.  He outlined several options for alternatives, but felt that given the current circumstances he would most welcome a phased or tapered extension.

Catherine West MP:

Swiftly followed by Catherine West MP, who noted the wider economic benefits of the Stamp Duty holiday – including confidence in the construction industry, as well as a hive of activity for connected services including removals and retail (e.g. furniture stores) when people move.  She highlighted some concern for the need for Stamp Duty feeding into the Treasury funds, such as for supporting social housing, and also that there were some buyers with whom she had little sympathy (most notably those buying second homes) but recognised the stress and worry of home movers at risk of missing out, and suggested that the government could follow the example of the devolved assembly in Wales in looking at how to provide targeted support to those who ‘needed to move’.

Kevin Hollinrake MP:

Next, Kevin Hollinrake MP (noting his interests and experience in the industry) surmised that there was no benefit to be gained from simply extending the Stamp Duty holiday, as this would just create another cliff edge for the industry to worry about.  Instead, he said that those at a significantly advanced stage (for example, those with a mortgage offer in place by the end of February) should be granted more time – particularly in reference to the estimated 400,000 properties currently stuck in the pipeline, partly owing to the limited capacity in mortgage and conveyancing services.

Dianne Abbott MP: 

Dianne Abbott MP then made a special plea for exceptional treatment for people buying in the London Borough of Hackney, allowing them to benefit from the stamp duty relief at a later date, due to the impact of the cyber-attack on the council on 11th October 2020.  This had meant that Hackney was unable to fulfil property searches currently, and that it was unfair therefore for home-buyers in Hackney to miss out on the stamp duty holiday for reasons outside of their control.

Greg Smith MP:

Next, Greg Smith MP commented on the success of the Stamp Duty holiday for stimulating the economy, and stressed we must make it count for those already in progress. He stated his opposition to Stamp Duty as a tax generally, and felt that the current holiday could be extended and in due course the way we tax property in the country could be reviewed.

Janet Daby MP:

Janet Daby MP noted that Stamp Duty was introduced to support the housing market in a period of a pandemic, and that pandemic had gone on longer than expected and therefore so should the relief.  She called attention to the wider positive impact on connected parties and services, with surveyors, architects, removal companies, and more, all also benefitting from the activity generated by the Stamp Duty holiday, and therefore also called for an extension to the Stamp Duty deadline. 

Matthew Offord MP:

Matthew Offord MP raised concerns that he’d heard from a number of his constituents who were worried they wouldn’t be financially able to go ahead with their transactions if they missed the 31st March deadline, and suggested an extension would help boost transactions by 10%, with all the associated benefits, if it were extended until the end of 2021.  He also noted that older people in particular had been disadvantaged as they were unable to get out and about during the pandemic, and many were looking at this as an opportunity in which to downsize.

Barbara Keeley MP:

Further support for an extension came from Barbara Keeley MP, who said that no one could have predicted the ongoing lockdowns and restrictions that came into effect after the Stamp Duty holiday was introduced, and that those who made a commitment to move in the good faith that they would not have to pay stamp duty should not be penalised. 

Sarah Olney MP:

The main exception to the call for some form of extension to the stamp duty holiday came from Sarah Olney MP, who reiterated her opposition to the initiative, as she said the money the Treasury had missed out on through offering this tax break could have been better spent on funding furlough or addressing the cladding scandal.   She did however say that she was open to longer-term reform of the way property is currently taxed.

Ben Everitt MP:

By immediate contrast, Ben Everitt MP showed his supported for a tapered end to the Stamp Duty holiday to avoid an overnight “cliff edge”, and also called for overall reform in SDLT. 

Abena Oppong-Asare MP:

Abena Oppong-Asare MP then provided a view from the Labour front bench and highlighted that this cliff-edge had been foreseen when the original holiday was announced, and that it was a clear fault in the design of the initiative.  As a result, there was now a clear case to look to amend the approach as it was clearly unfair to those who will be unable to complete before 31st March due to reasons clearly outside of their control.  A better solution should be found rather than a simple extension to the cliff-edge, and it should not be used as a tax benefit for those buying second homes.

Jesse Norman MP (responding for the Government): 

The debate concluded with Jesse Norman MP responding for the Government.  He reflected on the success of the Stamp Duty holiday in driving activity and stimulating the market by providing confidence but noted that part of that success had been driven by the time-limited nature of the relief.  He noted that he was unable to provide any view on government’s approach outside of a formal financial event, but did suggest that the government would always listen to the opinions of those engaged in the market.

As for what happens next, the industry has been vocal about the need for an extension, but exactly what this will look like (if at all) remains to be seen, as Joe Pepper, CEO at tmgroup commented:

“It was an interesting debate, with 9 MPs speaking in favour of some kind of change to the current plan to end the Stamp Duty Land Tax holiday at the end of March, and only 1 speaking against, although the majority felt that the creation of another cliff-edge in the future was not the right approach.  If the Government does move, then it would be more likely to involve a phased or tapered end to the duty, and potentially require home-movers to have reached some milestone in the home-buying journey, so we would suggest that anybody worried about the possibility of missing the current deadline speaks to their conveyancer to understand what they can do to make sure that they will have done as much as possible to speed up the process and demonstrate their commitment to the move.”