Conveyancing transactions down by 16%
Data released today has showed that conveyancing transactions slowed during the first quarter of 2015.
Figures from Search Acumen indicate that transactions fell by 16% during the first period of the year, in comparison to the final quarter of 2014. The introduction of measures to increase regulation, combined with election uncertainty, also led to a 5% fall in activity volumes.[1]
Decline
The results from Search Acumen also show that the level of transactions has dropped at a greater rate than the number of firms in the market on a monthly and year-on-year basis. With competition becoming greater, the average conveyancing firm recorded 57 transactions during the first three months of 2015, down 14% from 67 in the final quarter of this year.[1]
Comparatively, the number of conveyancing firms that were registered in the market fell during quarter one of this year, down to 4,177 firms from 4,259 in quarter four of 2014. This was also 4% less than the 4,330 registered as active in the first three months of last year.[1]
However, dealing applications, which include transfers or title, charges or notices, were up in the first period of this year. These types of application totalled 204,860, up a substantial 63% from the 125,421 recorded at the same period twelve months ago.[1]
Conveyancing transactions down by 16%
Competitive pressure
Mark Riddick, Chairman of Search Acumen, observed that, ‘the fact that larger conveyancing firms have been impacted most by the slow start to 2015 is a clear sign that no-one is immune to competitive pressures in a temperamental housing market.’ He feels that a fall in transactions during the first period of this year was perhaps an, ‘inevitable result of stricter lending criteria and pre-election uncertainty.’ However, Riddick believes that, ‘conveyancers can take some comfort from the fact that the average firm is still clocking up considerably more transactions than they were two or three years ago.’[1]
Looking to the future, Riddick feels that the, ‘quick transaction from Coalition to Conservative governments will help to avoid the market disruption that might have come from weeks of post-election party negotiations.’ He thinks that,’ there is still real need for major supply side policies to create more movement in the property market.’ On a more positive note, he went on to suggest that, ‘factors such as negative inflation, low mortgage pricing and the improving outlooks for jobs should help to boost activity this year.’[1]
Riddick concluded by stating that, ‘all the same, our analysis clearly shows that conveyancing firms cannot simply rely on there being more customers to go round if they want to maintain and grow their own volumes. At the start of the year, they reported that improving systems and processes was the biggest challenge to growing their business. Fierce competition means there is no room for operational inefficiencies and no time for any firm to take their eye off the ball if they want to hit – or exceed – their 2015 targets.’[1]
[1] http://www.propertyreporter.co.uk/features/conveyancing-transactions-dr0p-16.html
