Real estate conveyancing activity in the U.K. during the second quarter of 2017 reached 210,964 transactions, down by 14% from 245,738 in the first quarter, according to an industry report.
The country’s low supply of available homes and restricted home-moving activity drove the significant decline, which was the lowest since the middle of 2013. Despite the fewer transactions, conveyancing firms have once again recorded average monthly business volumes similar to the level in 2014.
The report showed that the average monthly caseload per conveyancing firm fell to 51 from 59 during the second quarter, which means it's down by 13%. The decline represented the lowest number of cases since the second quarter of 2014. The number of active firms dropped less significantly, down 1% to 4,143 from 4,198.
If you want to compare conveyancing quotes in the UK, online tools are available to help reach a decision — whether you plan to buy or sell your property. The decline in conveyancing cases could also indicate that more companies would be willing to flaunt a lower conveyancing fee, as competition for new clients would be tougher.
Brexit partly caused the drop in conveyancing activity for the second quarter, as the government is yet to implement clear regulatory decisions that concern the real estate sector. However, this was not the first time that conveyancing work registered few transactions. Initiatives, like the Help to Buy project, helped first-time buyers for their home purchases.
For businesses, the biggest gainers would be those that are able to scout for opportunities during the second half of 2017, in case a rebound in activity takes place.
The decline in conveyancing cases in the UK can be seen in two perspectives. For clients, this means that fees are likely to become cheaper, while conveyancing firms are expected to struggle in keeping their business afloat.