Analysis from data consultancy Novus Strategy found the ratio of requests for information, or requisitions, issued by Land Registry ranged from 2.9 for every 100 applications to 237.
The industry average for all businesses filing register updates was found to be 11.7 per 100 applications.
A requisition is delivered when the Land Registry is unable to progress an update to the register due to incorrect, missing or incomplete information.
Novus Strategy said a housing registration could be delayed by as much as three weeks for every request issued by the Land Registry, adding that the “avoidable” requests cost the industry as much as £19.1m every year.
The firm analysed data for 10 residential conveyancers with the largest and lowest proportion of requests linked to register updates in the last 12 months.
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It found that of 5,742 firms submitting update applications, 135 firms – or 2.4% – received requests for information on the applications they sent. Some 6.8% – or 393 organisations – received no requisitions, but Novus Strategy said these included cases where no properties were exchanged, such as remortgages.
The firm said requisitions were not always the fault of conveyancers, as these were sometimes raised in error or because the information was not provided by a third party.
Novus Strategy said delays increased the risks of fall-throughs and impacted the efficiency, cash flow and profitability of all stakeholders in a transaction.
A need for technological solutions
Last month, Land Registry revealed its digital registration service ahead of its launch in October. This will introduce automatic checks that prevent filings from being made when they are invalid or incorrect.
Novus Strategy said this change came as the sector moved further towards the use of technology in the transaction process and measures to reduce Land Registry requests.
The firm developed the horizontal digital integration (HDI) framework to introduce transparency and information sharing across businesses involved in a transaction.
NatWest, HSBC UK, Barclays and Skipton Building Society are among the lenders enlisted to test the initiative.
Chris Williams, founder of Novus Strategy, the technology consultancy for the home buying and selling industry, said: “While the particular circumstances of these transactions and the exact mix of conveyancing business attended to by these firms are unknown, this clearly illustrates the scale of the opportunity that presents itself. The cost and duration of transactions can and should be slashed by the amount of innovation we see moving into the home buying industry at the moment. That’s very welcome after years of slow progress caused by an absence of interoperability.
“So while these figures are quite alarming, transformation is on the horizon now thanks to the adoption of HDI strategies, where these sorts of queries should largely evaporate if the sector can create seamless data handoffs in the property transaction process.”
Williams added: “A level of digital maturity has been reached across the home buying and selling ecosystem, and we’re seeing lots of innovations coming forward, not least Land Registry’s own digital registration service and its move to accept qualified electronic signatures.
“It means shared verifications, permissions, open networks and common data standards will consign manual rekeying of information and endless delays to history, with higher margins, scalable capacity and a better customer experience to boot.”
