Propertymark the UK’s leading professional body for Estate Agents has recently published an ‘in depth’ publication ‘The future of home buying and selling’ which sets out the myriad of challenges facing home movers, including the amount of time it takes to complete on a sale. https://www.propertymark.co.uk/

Propertymark’s monthly market report (the Housing insight report) has also identified how long it takes to progress from the acceptance of an offer (ie sold stc) to exchange of contracts which represents a critical juncture in the overall process, as this is the point when both the sale and the purchase become legally binding.

Delays in reaching the point of exchange can often make the process more stressful for buyers and sellers, but it also slows down the housing market as well as increasing the number of failed transactions.

How long does it take to exchange contracts?   

According to research by Propertymark, in March 2016, 78% of transactions progressed from offer acceptance to exchange of contracts within 12 weeks, whereas in March 2024, the figure was just 29% - which is a significant deterioration.

When Propertymark dig further into their analysis for different exchange periods, it is clear that there has been a growth in the number of exchanges taking 13-16 weeks and 17+ weeks, at the expense of those taking 5-8 weeks and 9-12 weeks. The number of exchanges taking 1-4 weeks  has been relatively stable throughout the last decade- the quicker the exchange the less intricacies and the smaller the chain.

Most Estate agents have seen an increase in the time from sale to exchange,  Propertymark canvassed opinions with the following observations:-

“it used to be three months, now typically it’s edging towards five or six, which is utterly ridiculous for everyone concerned”

“5 years ago it took eight weeks tops using pen and paper. Now with computers and online searches – it should be as fast as Europe, but it’s not”

At David Phillip Estate Agents we totally concur with the above comments. 

The reasons for the elongation

Estate Agents identified key challenges and delays, which they believed accounted for the bulk of the problem. Firstly agents reported that the sales process is outdated (Dikensian) and was administratively intensive. Furthermore, the administrative burden has been growing due to successive legislation change, with agents adding:-

“Solicitors are often under resourced, lenders are taking too long to send out mortgage offers and local authorities often have a backlog of work. Generally the whole system is much slower to the previous 30 years.”

Agents noted that despite the existence of technology, which could be leveraged to streamline the process, the adoption and integration of these technologies was patchy at best – and now even more paperwork is required.

“The system is awfully dated with solicitors having different methods – some do digital, some don’t. It needs to be streamlined and digitised” says one agent.

There are now much more challenges in the operating environment, where previously, if there was an issue, someone would likely take a ‘view on’, now a massive indemnity insurance industry has been created and secondly, nervous buyers may think there is a major problem when there is not.

Commentary

Propertymark also asked Conveyancers for their views on the elongation with results as follows:-

When the dematerialisation of deeds took place in 2002, when title deeds were digitised, it meant that conveyancers and lenders no longer had to physically store deed packages, which were returned to property owners.

Although this meant that owners were no longer charged for the storage of deeds, this created another problem. Whilst land and charge certificates were digitised, the rest of the deeds were not, including old searches, planning documents, building regulations, warranties and guarantees, indemnity insurance policies, and even more memos from the conveyancer who acted on the purchase outlining how and why they took a view on any issues with the title – as a result, conveyancers must now recreate the title for each transaction – this is very time consuming.

There is also now much more third-party data that is required – titles are now much more complex, which many lenders will not lend on eg properties with onerous lease terms or managed freeholds or estate rent charges.

Property Owners can help to speed things up too

Property owners are also sometimes not aware of what is required in the process – important ‘stuff’ is often put in a drawer and forgotten about until it was time to pack up – usually on the day of completion.

The Conveyancing Association suggest that guidance in the UK Finance Handbook means conveyancers can no longer ‘take a view’ on discrepancies in mortgage instructions or valuations and must update the lender every time. In addition more valuations have assumptions, which previously would have been answered by the deed package.

David Phillip has the following things in place to reduce completion times -

There are things that Estate Agents could do that would speed up the whole process, at David Phillip Estate Agents we have the following in place:-

We do not use call centres – all of our staff are up to speed with every sales progression (the element between selling a property and completing on it) – we discuss each property in our morning meeting.

Our CRM system (Customer Relationship Management) is Alto, part of Zoopla, so we have some of the best technology supporting the sale and the property sales progression.

Property File enables buyers to keep track on their progress – hi-lighting key milestones and targeted dates.

We advise all clients on actions they should start undertaking right at the beginning of the property sale – HM Land Registry title documents, elements around planning, guarantees, electrical and gas checks, damp guarantees/warranties, asbestos surveys (if relevant). If the property is in a conservation area, consent for the work will be required.

Instructing Solicitors

It is also key to instruct a solicitor as soon as possible, rather than once the property is sold – solicitors can then advise of instruction paperwork and property title well in advance. At David Phillip Estate Agents we work with some great local solicitors Winstons Solicitors https://www.winstonsolicitors.co.uk/ and Hallam’s Solicitors in Leeds https://hallamsolicitors.co.uk/ we also recommend Newsted and Walker in Otley, especially if Probate is involved in the sale https://www.newsteadwalker.co.uk/

Getting ID together can also be completed well in advance, lenders are required by law to check this.

So although the legal process from sale to completion is lengthy there are elements that can be undertaken early to speed things up and using a smaller independent agent (without a call centre) definitely has advantages.

David Phillip commented “the process, although more digital and less antiquated in many cases takes place in an operating environment that is much more challenging with more third-party involvement. At David Phillip Estate Agents we run a post-sale process that is as streamlined as it possibly can be. We have invested in the best technology to support and do not believe in using call centres”

It will be interesting to see if the new Labour Government change any of the processes for the better, but the house-selling process from a legal point of view definitely requires a review.

Are you considering selling your home?

If you are considering selling your home and would like a free market appraisal use an Estate Agent selling properties in North Leeds. Call David Phillip FRICS call 0113  4676400. https://davidphillip.co.uk/

86, Leeds Road, Bramhope, Leeds LS16 9AN w: davidphillip.co.uk Covering Leeds, North Leeds, Bramhope, Adel, Cookridge, Pool-in-Wharfedale  and Otley