There are widespread concerns amongst conveyancing firms over the imminent changes to the sector.
However, the Conveyancing Association (CA) says that its recent survey of its membership indicates that there are also opportunities available.
The survey identified the biggest concern for the majority of CA members as the lenders’ continued policy of reducing their panels in order to manage the risk of mortgage fraud.
The CA added that member firms recognise that lenders are entitled to restrict their panels to manage risk and that it is up to the industry to work with them to demonstrate they can readily meet lenders’ requirements. The organisation said that members welcome the challenge and see the changes that will follow as an opportunity to root out those firms who are either incompetent or fraudulent.
Also, members acknowledged that the introduction of Alternative Business Structures (ABS) in October will have an impact on the industry but this will present opportunities as well as increased competition.
22% of members cited the impact of changes to PI insurance as their biggest worry and they recognise that this may lead to lenders demanding greater transparency about firms’ insurance arrangements as lenders become more active in supervising and monitoring activity so that it sufficiently covers their risk.
Member firms also said the impact of the significant reduction of transactional volumes and competitive fees will result in far fewer firms specialising in conveyancing in the future.
Eddie Goldsmith, chairman of CA, said: “These results are highly indicative of the sentiment that has been rippling through the conveyancing industry for some time now. The Legal Services Act which will allow ABSs to practice in the market heralds the biggest change in legal services in decades. This alongside the other pressures raised by our members creates a perfect storm that will force conveyancers to make changes to their business. The danger is that if conveyancers don’t re-assess their business models
