Perfect storm will leave dabblers with no place to hide

Published: 11/03/2011

One of the UK’s largest conveyancing firms has warned of a “perfect storm” brewing in the sector that could lead to an exodus of operators from the industry.

Goldsmith Williams, which was this week named in the Land Registry’s list of the top 25 firms making transfer applications, says the survey and separate moves by the Law Society and Solicitors Regulation Authority (SRA) demonstrate that a hostile environment is developing for smaller firms which “dabble” in the market.

The Land Registry report showed that almost one third of firms dealing with the bureau made less than ten applications in 2010, in stark contrast to larger competitors, many of whom were handling thousands of transactions over the same period.

Earlier this week, the Council of Mortgage Lenders sought to resist moves by the SRA to remove automatic insurance cover for lenders, while the newly introduced Law Society Quality Scheme is likely to place even further burdens on smaller operators.

Eddie Goldsmith, partner at Goldsmith Williams, said: “There is now a clear and significant disparity between the specialised players and the occasional dabblers in the conveyancing sector.

“A variety of pressures are conspiring to create a perfect storm and we are likely to see a major reduction in the number of legal services providers as many begin to see conveyancing as an unviable business option, leaving only specialist providers in the market.

“The Land Registry estimates there are currently around 6,000 firms performing volume work but we might see this figure fall by as much as half as the dabblers up sticks and leave.

“We witnessed a similar trend in the broker market a few years ago, where their numbers were cut by almost two thirds in a short period of time. Those who came out the other side were much stronger, leaner and better equipped to serve clients and the same will be true of the conveyancing sector.”

Goldsmith Williams is one of the UK’s leading law firms, specialising in conveyancing, remortgage, wills and road traffic accidents.

Content correct at time of publication