Almost half of failed property transactions over the past year are the fault of conveyancing delays, while buyers pay more to use an estate agent’s legal service.
That is the bold claim of a young upstart in the conveyancing industry, LV= Legal Services.
The insurer, known more for car or home insurance, has entered the world of conveyancing and claims home buyers pay an extra £400 for an estate agent recommended conveyancer because they are unaware they can shop around.
According to the research, which does not mention referral fees paid to agents, 27% of property purchases have fallen through in the past five years and 48% were due to conveyancers holding up the process
This equates to more than 106,000 sales not going ahead last year as a direct result of poor conveyancing services, according to LV.
The insurer commissioned PCP Research to poll 1,000 adults who have purchased or sold a property in the UK over the past five years.
Those who used the conveyancer recommended by their estate agent paid £1,595 on average, whereas those who sought conveyancing services elsewhere paid £1,167 – a difference of £428.
Martin Milliner, claims director of LV= General Insurance, said: “It’s clear that in many instances the conveyancing industry isn’t working for consumers, and those who simply take their estate agent’s recommendation are most likely to pay the price.
“That’s why we have entered the market, offering transparent, high-quality conveyancing at a price that is right for the consumer, supplied and endorsed by the LV= brand they trust.”