Homebuyers and sellers are waiting longer for property sales to complete due to the UK’s “Dickensian legal process,” research suggests.
Most property sales used to take around 12 weeks to get through the legal conveyancing process but extra paperwork and regulatory requirements mean it is now taking longer for a transaction to reach the exchange stage.
Research by estate agent trade body Propertymark highlighted that 78% of sales progressed from offer to exchange within 12 weeks in March 2016 but this dropped to 29% in March 2024.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
More deals are now taking 13 to 16 weeks and 17-plus compared with just three months previously.
Latest Videos FromMoneyWeek
Propertymark’s research said the sales process has become “administratively intensive” due to successive legislative changes.
The risk with longer transaction times is that buyers could become nervous and pull-out of a purchase or their mortgage offer may even expire.
Why are property sales so slow?
It takes around 115 days for a property sale to reach the point of exchange, according to data company Landmark Information Group. That is a 25% increase over four years.
A property sale isn’t legally binding in England and Wales until it reaches exchange and the delays and uncertainty can cause buyer pull-outs and even gazumping if a better offer comes in, leading to an extended timeline.
Delays are blamed on a range of factors including waiting for local authority searches from the council to find information about the land and property being sold.
Conveyancers often take the brunt of the blame for failing to use technology and relying on traditional paperwork when putting together legal documents for a property sale or purchase.
Propertymark’s research also suggests solicitors are under-resourced, with 59% of estate agents suggesting that solicitor constraints were the key reason for extended exchange times.
But Beth Rudolf, director of delivery at the Conveyancing Association, highlights that the work required from solicitors has grown considerably in recent years.
Extra work includes leasehold and building safety issues, while property titles have become more complex and the number of buyers and sellers in a transaction can be longer.
There are also requirements now such as fraud checks and making sure buyers are paying the right type of stamp duty.
Additionally, mortgage lenders used to store property deed packs until 2002 when it was decided that this information would be sent to homeowners instead, meaning the data needed to complete a transaction often gets lost.
“Scope creep has grown hugely in recent years and it presents conveyancers with a huge amount of work to go through,” says Rudolf.
“This has been made even more difficult by that dematerialisation of deed packs in 2002, and it needs solutions such as digital packs and digital logbooks to be able to bring all that information back together to cut down on the times that conveyancers have to spend trying to find this.
“In years gone by, that information was kept together and could be readily used by conveyancers in future transactions. Without the digital version of this, we can’t deliver the improvements we need.”
Estate agents also have a role to play in delays.
Property listings are supposed to include material information that would impact a buyer’s decision before they proceed with a purchase.
This includes information such as leasehold charges or if there are any restrictions on a property.
The idea is that by providing more information upfront, agents and sellers can help avoid delays during the conveyancing process.
Propertymark members have a Property Information Questionnaire for sellers to complete before a listing goes live and there are also industry forms that make sure the relevant information is shared upfront.
But the trade body's report highlights that some agents still fail to disclose material information, which can delay a transaction.
How to speed-up your property sale or purchase
More upfront information when a property is listed for sale is one solution to speeding-up transactions.
Rudolf says this would provide extra transparency and reduce delays and fall-throughs.
It may mean instructing a conveyancer earlier in the process to highlight any issues with a property such as flood risks, subsidence or restrictions on rights of way or parking.
“Information should be given upfront so the buyer can digest it and so they can understand what it means to them,” adds Rudolf.
“In the same way if you’re a seller and you get them instructing a conveyancer upfront before they find a buyer, and you ask them to fill out the forms that are necessary, they’re much more willing to do this at the start, because they want to get the process started.
"After they’ve found a buyer we know they are much slower in providing that information due to loss aversion.”
Your choice of estate agent and conveyancer can also be key to a successful sale as you want to make sure they are proactive and can communicate with each other.
The HomeOwners Alliance warns against instructing on the lowest price.
“Make sure you shop around, get quotes and read reviews carefully,” says Paula Higgins, chief executive of the HomeOwners Alliance.
“If you are selling it’s also best to instruct early and get your paperwork in order. Be honest and up front about any issues.”
Buyers can also be prepared by making sure they have a mortgage decision in principle to ensure they can afford a property.
Property expert Kate Faulkner says delays aren’t down to an individual group, but are due to the level of information now required.
“The more that the buyer and seller can do before a property goes to market or before they make an offer, the easier your transaction will be,” she says.
Faulkner also warns about “going cheap” with an agent and conveyancer.
“It’s like saying I need a really cheap person to amputate my leg,” she says.
“There is a lot more due diligence now and it is worth paying for.”
