EDITION 16
Main Feature
Are consumers ready to pay to speed up the buying and selling process?
By Ben Ridgway, Co-Founder of iamproperty
Over the last decade, we have seen the length of time it takes to buy a property through Private Treaty peak at an average of 159 days* during Covid times, to sitting at an average of 132 days* over the last 12 months. That’s longer than most other places in the world including our Scottish neighbours, where completion takes as little as 6 weeks.
When we consider that back in 2007 transaction timescales were an average of 82 days*, it’s no wonder frustrations are worsening for UK buyers and sellers. Estate Agents are feeling the impact too, taking the brunt of it when clients are frustrated, as well as the knock-on effect of transactions not running as smoothly as they could be.
So where do we go from here?
An end to 50-day increases
The volume of property transactions in the UK has more than doubled in the last 10 years, from 714,000 in 2012 to over 1.3 million in 2022. But processes haven’t caught up and the adoption of impactful tech solutions is lagging behind. Couple that with a continued decline in the number of Conveyancers (10% in the last 10 years) and it’s no wonder the process is still slow and fragmented.
We can’t carry on adding 50 days to completion timescales every decade.
As part of our latest edition of Tech of a Life, we partnered with MMC Research to survey vendors and agents to understand the impact of conveyancing on their transactions, exploring how they perceive the process, the pitfalls and potential solutions. We dug deeper into the biggest frustrations with selling a property, and it’s no surprise that conveyancing came out on top.
The top frustration for consumers when selling a property is the conveyancing process taking too long, closely followed by time-wasting and wishing Solicitors were more proactive**.
Conveyancing in today’s market
Whilst we know there are lots of chinks in the transaction armour, consumers’ expectations are still high, so the pressure is on for the sector to drive improvements in 2023. Simply put, the process is taking too long, and the same problems have been around for too long – change is urgently needed.
The data: Vendors
- Vendors are most likely to find their own conveyancing Solicitor (31%) although Estate Agent recommendations are important (22%).
- Top reasons for choosing a particular Conveyancer included: - Offering additional services - Faster timeline - Specialism in the type of property / sale
- 88% said that they’d be prepared to pay more for a more digital, smoother conveyancing process.
- Getting their property sale ready before it goes onto the market was appealing to vendors, as the benefit of transaction speed outweighed additional costs.
Impact on agents
Agents feel these frustrations too, and just like vendors, the long conveyancing timescale is the biggest issue.
The data: Agents
- 57% of Estate Agents recommend local Solicitors to clients. 30% work with a Conveyancing Panel Manager, and 23% work with a national conveyancing company.
- Agents have the same frustrations as vendors when selling properties. 80% said the conveyancing process was taking too long and this was their top frustration. 70% were also frustrated with buyers dropping out.
- 75% of agents said that any new technology that would speed up sales and aid the conveyancing process would be appealing.
A realistic solution
We’re all feeling the impact of drawn-out timescales and outdated processes. We’ve delved into this further in the latest edition of Tech of a Life. It’s been proven that tech can speed things up and it’s already working well for agents who have adopted it. There is still work to do when it comes to the adoption of tech, among agents and supporting parties like conveyancers, which would help the sector take much-needed steps forward to delivering an improved experience that consumers have been calling out for. But we could go further and make more improvements to the process – things could still be faster, and vendors are willing to pay for it, because in today’s world, for the majority, speed and convenience outweigh costs.
Read the latest Tech of a Life here: https://iamproperty.com/articles/tech-of-a-life-edition-three/
*Home buying and selling data from Landmark Group Insight
**iamproperty January 2023 research carried out with MMC Research
ESTAS Key Date Update
DON’T MISS The ESTAS Shortlist Events!
Every Friday in May we’ll be revealing which agents, conveyancers, brokers and suppliers have made it onto the prestigious ESTAS shortlist for 2023.
Making it onto the shortlist is the first step to winning a famous ESTAS trophy. It’s the culmination of 12 months of hard work by property teams striving to deliver exceptional service to their clients.
So get your team together and get ready to celebrate!
The shortlists will be broadcast on YouTube here:
Here is the order of play…
Friday 5th May
Agent shortlists for East Midlands, East of England, London, North East, Northern Ireland, Scotland and Wales
Friday 12th May
Agent shortlists for North West and South East
Friday 19th May
Agent shortlists for South West, Southern, West Midlands, Yorkshire
Friday 26th May
Shortlists for Conveyancers, Mortgage Brokers, Agent Groups, The People Awards and Supplier Awards.
Sponsor Spotlight
Restocking your fully-managed portfolio
- your guide to converting landlords into fully-managed clients
By Neil Cobbold
It seems like we can’t go a day without a new headline lamenting the lack of stock in the private rented sector (PRS). Every agent is fighting over the latest buy-to-let properties to come to market. But the good news is that there are plenty out there for you to earn commission on – and you already know some of the people who own them. Now is the best time to leverage your existing relationships to restock your fully-managed portfolio and earn that commission.
82%
It’s good to have a target in mind and that target is the 82% of landlords who, according to the latest English Private Landlord Survey, do not use an agent to manage their property. We expect a similar percentage in Scotland, Wales and Northern Ireland too.
While a few landlords commit to the venture full time, a large number fit in this vital work around other commitments. But with the PRS across the UK changing so rapidly, the job of renting out residential properties is only getting more time-intensive. There has never been a better time to ask your let-only landlords whether they are prepared for what is to come.
Industry know-how
Letting agents have dealt with this before. Eviction bans were common during the pandemic but PayProp data showed that, by the end, arrears were back to normal as agents diligently chased late payers and agreed affordable payment plans with tenants behind on their rent. Those landlords worried about the removal of Section 21 in England can learn from their Scottish counterparts who have been operating without ‘no fault’ evictions since 2017. With agency assistance and PropTech tools that enable agents to automate, track and reconcile their client accounts to the penny daily, indisputable arrears evidence can quickly be gathered if an eviction is needed under Section 8.
The low yields conundrum is something you as experts in your local rental markets are best equipped to deal with. The latest data from Rightmove shows a different picture in different parts of the country, so no matter what your landlords are reading in the press, the situation where you are based may be different.
As a local lettings expert, you know what rents are in your area, and what types of property command the biggest premiums. You’re in the best position to advise landlords on renovations to take their property to the next level or options to convert their property into something that is achieving higher yields such as an HMO or student let. If your landlords don’t have the right contacts to carry the work out, you can once again prove your value by introducing them to your network of contractors.
Your path to growth in 2023
This year presents you with a unique opportunity to sell your fully-managed service to clients. With rental reform on the horizon in England, an enquiry into the PRS starting in Wales and eviction bans and rent controls in Scotland, the ongoing advice and support of a property professional has never been more needed.
Landlord worries over yields and arrears allow you to demonstrate the technology and expertise you can bring to bear to protect their rental income. As an agent, you also have access to PropTech platforms that give you a complete overview of rental payments, plus the tools to automate any arrears chasing so you can always give your clients a complete account of their rent money.
Don’t expect landlords to come to this conclusion themselves, this is where your sales acumen will be key. Do not underplay your expertise, services or the investment in technology you have made to protect your landlords. The combination of your experience and the incredible efficiencies PropTech can bring to your business allows you to show your let-only clients that you are fully equipped to help them make the most of their buy-to-let investments.
Bella's Recipe of the month
Homemade Spaghetti Carbonara
A classic carbonara – you really can’t go wrong! This recipe is so simple, so quick and SO easy. Adding an extra egg yolk at the end takes the creaminess to the next level, and a few drops of truffle oil really adds a luxurious touch to your Friday night dinner.
Find the recipe hereShare this Newsletter
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