Data from Search Acumen’s Conveyancing Market Tracker showed that this was a fall from the 4,463 firms during the same period in 2012.
Over the same period, conveyancing firms are conducting 79 per cent more business than they were 10 years ago. This has coincided with a 77 per cent rise in house prices and annual property transactions almost doubling from 714,000 to 1.3 million.
During Q4 2022, the top 200 conveyancing firms were responsible for handling two fifths of all transactions, compared to 36 per cent in 2012.
Annually, Search Acumen’s data showed that the total volume of property transactions were broadly flat on 2021 with just a one per cent increase in activity. This stood at 308,236 in Q4 2022, slightly up from 306,237 a year prior.
On a quarterly basis, the total number of transactions was down from 325,422.
The average number of transactions handled per firm also fell by four per cent quarter on quarter from 80 to 77. This was also similar to the average 76 transactions per firm in Q4 2021.
The top 500 firms held a 58 per cent market share in Q4 2022, while the top 200 had 39 per cent of the market.
The top 50 firms took on 20 per cent of all transactions in Q4, compared to 19 per cent in 2021. Search Acument said current levels of market activity meant a one per cent difference accounted for around 3,000 transactions.
Firms which fall outside of the top 1,000 saw a decline in activity. They completed 24 per cent of transactions compared to 26 per cent a year prior.
Search Acumen said current market conditions meant pressure on conveyancers would ease, but added that the average 132 days it took to transact could continue to be an issue for firms.
It puts its data together by analysing business activity among firms registered with HM Land Registry.
Risk of burnout
Andy Sommerville, director of Search Acumen, said: “It’s been an unprecedented decade of pressure on the conveyancing sector, which culminated in the extreme levels of market activity during the pandemic and post-pandemic period.
“With transaction volumes rising while firm numbers have consistently fallen, this has obviously created new commercial opportunities, but equally put huge strain on lawyers to meet the needs of the market through some of the most challenging years we’ve ever seen.”
Sommerville said the work conveyancers had done to keep the property sector could not be underestimated, as lawyers went “above and beyond, putting themselves at risk of burnout to meet the needs of their clients”.
He added: “Beyond conveyancing, the result of these efforts will have been a contribution to the UK economy that similarly cannot be overlooked or overstated.”
Sommerville said technological advancement had also made firms more resilient and able to thrive, even in challenging times.
He said: “Without these technologies, the market’s performance, especially during the pandemic, might have been markedly different. Similarly, the ability of the sector to grow and deal with future challenges in the decade to come will depend on further technological innovation that supports the expertise and commitment of legal professionals, drives operational efficiencies, and reduces costs for firms and their clients.”
