30 September, 2019
New research published by the Council for Licensed Conveyancers (CLC) today reports strong levels of business confidence amongst its regulated community, with almost a half of practices (45%) expecting their work volumes to rise over the next 12 months.
A further 42% expected work volumes to remain the same, with just 13% expecting work to shrink over the next 12 months.
CLC regulated practices also reported price changes, with over one-third (37%) of firms increasing their prices in 2018/19; just 4% of conveyancing practices had reduced prices.
Following the introduction of new transparency rules by the CLC last December, just six months before the survey, as part of a profession-wide push to help consumers shop around when looking for a lawyer, just over a quarter (27%) of firms said that customers have started to shop around more in the last year when choosing a legal services provider.
The Annual Regulatory Return (ARR) for 2018/19 was completed in June and July by all 212 firms that were licensed by the CLC for the previous 12 months – of which 30% are alternative business structures (ABSs).
Brexit has become the most commonly cited business risk over the coming year, with 30% of firms highlighting it, compared to 19% last year. There is also greater fear of cybercrime (cited by 26%, up from 22% last year), but fewer firms identified fraud/money laundering as a risk (25%) compared to 2017/18 (34%).
This drop is likely to reflect the greater attention licensed conveyancers have been paying to fraud: just 12 firms said they had been the victim of fraud in the previous year and only three incurred a cost as a result, the most being £15,000. A further 20% of firms reported stopping an attempted instance of fraud (17% in 2017/18).
Some 23% of firms had made at least one general suspicious activity report (SAR) to the National Crime Agency over the previous 12 months, while 11% made a ‘defence against money laundering’ SAR – which is where a firm seeks consent to carrying out an activity that may otherwise result in committing a money laundering or terrorist financing offence.
Personal recommendation (37%) was the most common source of conveyancing work, followed by an estate agent referral (25%). A direct approach from the client (13%) was the next most likely.
The majority of firms reported that their conveyancing fee levels remained steady, although a third expect them to rise in the next year.
Other findings included:
CLC chief executive Sheila Kumar says: “Against the background of uncertainty created by Brexit there has been remarkable consistency in the performance and outlook of the practices we regulate. It is encouraging to see how many firms expect to keep growing in the coming year.
“The efforts to improve transparency for consumers are still in their early days, but the very high levels of compliance with our new rules – and the signs that consumer behaviour is starting to shift – is a testament to CLC-regulated firms’ commitment to the public interest and enabling consumers to make an informed choice of property lawyer. When the rules were first introduced practices were concerned that publishing prices would create a ‘race to the bottom’, but this has clearly not happened.
“We as a regulator and our regulated community have worked hard to identify and combat the risks of fraud, money laundering and cybercrime, and the signs are that this is paying off. But we are all too aware of how quickly criminals adapt, so focusing on these dangers remains one of the central priorities of our monitoring work.”
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