Search Acumen’s latest Conveyancing Market Tracker found activity in the sector had risen to 114,425 transactions in April compared with 90,476 in March, while year on year transactions had jumped by almost a quarter.
However, the rush was not confined to April. Search Acumen said the sector had experienced a rollercoaster ride from month to month during Q2. Despite an inevitable slowdown following the April spike, both May and June saw year-on-year rises of 14% with firms completing 81,583 and 90,477 transactions respectively. In all, Q2 beat Q1’s activity by 4%
The firm said the sector had been spurred by both the 3% Stamp Duty hike for second homes and buy-to-let purchase coming into force in the beginning of April, and the looming Brexit vote on 23 June.
Chairman Mark Riddick said: “Few sectors have been left untouched by the tumultuous events of the past few months, and the impact of the EU referendum on the political and economic landscape. Our analysis shows the conveyancing industry has been tried and tested in recent months, and the pressure shows no sign of easing as our country begins to work out what comes next.”
April also saw the largest number firms involved in completions at Land Registry in any month since September 2014. The total of 4,374 firms was 4% higher than a year earlier, suggesting the Stamp Duty rush brought more occasional players back to the market, Search Acumen said.
The firm’s tracker uses Land Registry data to examine competitive pressures in the conveyancing market.
It showed the top five firms led the way in terms of growth compared to the rest of the market, with completed transactions per firm in the three months rising 17% over the quarter and 41% over the year to reach an average of 3,523 cases.
Outside the top five, the most significant quarterly growth was seen among firms ranked lower than 500, which saw transactions rise by about 5% in the quarter.
However, Riddick said: “While the Bank of England rate cut will do its bit to reignite the appeal of home buying, house builders must increase output in order to hit the government’s one million homes target. With stability will come confidence, and as our political and economic future becomes more certain, so the next few months look more positive as provisions are put in place for a more stable Q3.”
Separately, government figures published on 25 August showed housebuilding had increased modestly in the June quarter.
However, industry players downplayed the growth, saying the government was set to miss its housing targets by as much as a quarter if it doesn’t reform the housing market.
