According to Smoove’s home movers report, the rise in activity has meant “greater demand and capacity constraints” for soliciting firms, leading average legal fees growing by 11 per cent year-on-year to £1,413.
Solicitor costs vary nationally, with costs in Northern Ireland coming to £1,568 and the lowest cost being in Wales at £1,263.
The average amount of time between instruction and completion was over five months at 153 days. This is up from 144 days the previous year and up from 124 days in 2019.
Nearly a fifth of respondents, 19 per cent, said they would choose a different conveyancing firm, and over a quarter, 26 per cent, said they were unsatisfied with the experience.
The cost of service was the biggest source of frustration at 42 per cent, quality at 38 per cent and length of time to complete at 36 per cent.
Some 22 per cent of respondents said mortgage applications and agreements in principle took longest to complete, 18 per cent pointed to ID checks and local authority property searches at 18 per cent.
The report found that additional expenses had increased, with homebuyer surveys costing £525 on average, up from £465 on the previous year.
It also noted that over a third, 34 per cent, of property transactions have fallen through.
Majority finds homemoving process stressful
Smoove’s report said that nine in 10 found the process of moving home stressful, with 40 per cent pointing to the sheer length of time, 34 per cent to the lack of certainty and a third pointed to waiting for exchange and completion.
One in four said they found dealing with their solicitor to be stressful.
Due to the negative experience, more than half, 55 per cent, would be unlikely to move again within the next five years.
Around 61 per cent said they would recommend their solicitor firm to friends and family, which Smoove said was “crucial for generating business”.
It added that most homeowners relied on a friend or family recommendation for finding their chosen firm at a third, followed by estate agent referral at 31 per cent and mortgage broker recommendation at 23 per cent.
Average house price up 12.4 per cent
The average price of UK properties has risen to £281,000, an annual increase of 12.4 per cent.
The report said rising interest rates could “put pressure” on monthly mortgage repayments when it comes to product transfer or remortgaging.
It noted that whilst there was evidence house prices may start to fall, limited simply would “keep a lid on any major price falls” as the UK is not building enough houses to keep pace with demand.
There is also evidence that surveyors are starting to down value properties in some cases, essentially restricting the loan amount that can be used to purchase the property, particularly in higher loan to value cases.
In any case, a fall in activity is likely to merely bring the market down to pre-pandemic levels, which was already buoyant.
Homemoving can be ‘agonising, horribly stressful experience’
Smoove’s CEO Jesper With-Fogstrup (pictured), said: “Home moving can often be an agonising, horribly stressful experience. The fact that few would argue with this speaks to a failed system.
“One in three transactions should not be falling through. This figure represents tens of thousands of broken dreams and huge sums of money essentially poured down the drain. Creating more certainty around property transactions is essential.”
He continued that legislative reform was needed to give protection to buyers and sellers once offers have been accepted. With-Fogstrup said that there were things the industry could do to “reduce stress levels and the proportion of transactions falling through”.
With-Fogstrup added: “As we’ve seen, the sheer length of time is a major driver of stress and uncertainty. The entire process requires significant digitisation and automation, expediting paperwork and alleviating pain points.
“People should be able to engage with the transaction process entirely online or via an app, providing digital IDs, signatures and form filling and see its progression in real time. This could really help modernise the industry and transform the home moving experience.”
