Well there I was last November moaning about the level of work coming in and predicting a bad year ahead. Unfortunately I was proved right and we are now in the worst period for conveyancing since 1993. My new file openings are down 32% compared to the same period last year and my turnover is down 23% but I forsee this percentage increasing in the next few months due to the number of file starts in the last three months being significantly down on the previous year. As a result I am two staff down having made one person redundant and the other dying tragically at the age of 55.
One local multi branch firm heavy into conveyancing has made 30 people redundant and another medium sized firm in one location has issued letters of redundancy to all the staff and has asked for volunteers to be made redundant. Apparently the senior partner who issued the letters pissed off on holiday the day before the letters were delivered. Local Agents have closed offices and others have laid off staff.
The difference this time compared to the 90's is the speed of the downturn. It all started for me in March after we had opened more files in January and February this year compared to last. I can see no prospect of any short or medium term improvement in the outlook for conveyancing so it's just as well that the downturn coincides with my plan to slim down the business prior to my move West. The plan to retire completely has been revised and I will now take the firm to my West Country retreat where I will continue to service my clients many of whom I have acted for over a period of 30 years.
Perhaps my readers (3 at the last count) would like to share their experiences?
Wednesday, July 09, 2008
Tuesday, November 27, 2007
Christmas Cheer
So HIPs for everyone just before Christmas. I have yet to be asked to compile or order a HIP and it appears that most of my local agents are arranging them directly with HIP providers. The work seems to still be rolling in but at a noticeably slower pace. I read that last month was the lowest total of mortgage lending since records began (early 90's I think). I have a nasty feeling that 2008 is going to be really difficult and the numbers of transactions will be significantly down on recent years.
On the cost of HIPs I have a local provider who will compile a compliant HIP (freehold) for £275 including VAT. This is the sum I currently ask for on account of disbursements from a Purchaser and I hear that most Sellers are paying the cost of the HIP upfront rather than deferring the cost. So, apart from the leasehold complications which have now been put back to the middle of next year, it appears that HIPs have not proved to be the problem that many suggested (at least from the cost/compiling point of view).
December looms and the usual panics to "be in by Christmas" will soon be starting.
My staff are pressing me to close on Christmas Eve as we usually close at 1pm on that day and they dont think it is worth coming in on a Monday for just half a day. What they forget is that they get five weeks paid holiday a year and we shut between Christmas and the New Year.
To my three readers I wish you a happy Christmas and a prosperous New Year (no chance).
On the cost of HIPs I have a local provider who will compile a compliant HIP (freehold) for £275 including VAT. This is the sum I currently ask for on account of disbursements from a Purchaser and I hear that most Sellers are paying the cost of the HIP upfront rather than deferring the cost. So, apart from the leasehold complications which have now been put back to the middle of next year, it appears that HIPs have not proved to be the problem that many suggested (at least from the cost/compiling point of view).
December looms and the usual panics to "be in by Christmas" will soon be starting.
My staff are pressing me to close on Christmas Eve as we usually close at 1pm on that day and they dont think it is worth coming in on a Monday for just half a day. What they forget is that they get five weeks paid holiday a year and we shut between Christmas and the New Year.
To my three readers I wish you a happy Christmas and a prosperous New Year (no chance).
Friday, September 21, 2007
HIPs Questions
Nikhil has posed a number of questions about HIPs in a comment on my last post. I claim no special knowledge/expertise in this area and comment only with the benefit of 40 years experience.
I don't understand the term "non compliant personal searches". I recall the start of personal searches decades ago which arose due to the time taken by some local authorities to supply search results. The standard of replies obtained was very patchy and there was no insurance cover for the search companies in case of negligence. As the cost of official searches spiraled it became possible to create a business model for a personal search company to undertake the searches at very little cost in terms of fees paid to the local authority and to charge an appreciably lower fee for the search result and make a profit. Some local authorities tried to put obstacles in the way of these companys by restricting the number of personal searches they could do in a day or restricting to one or two days a week the appointments for personal searches. The search companies managed to, by and large, stop these sorts of practices and there are now many personal search companys in what is now a fairly sophisticated industry. The personal search companys have successfully lobbied the government to allow personal searches in HIPs and they are also attempting to persuade all mortage lenders to accept them. That said, I do not see personal search companys disappearing over time unless the local authorities get their acts together and deal with all search requests electronically in a matter of days and reduce the cost of official searches to put the squeeze on personal search companys.
The cost of HIPs is in the band £300 to £350 for most properties. The price pressure is entirely competition based and as most Sellers have absolutely no interest in doing any more than supplying a compliant HIP I think their sole concern will be price. I expect we will shortly see a much higher demand as we are now 11 days past the September 10 deadline and Agents will not be able much longer to back date the instructions to market the property.
I haven't a clue when the Government will apply HIPs to all properties and assume this will be when they consider there are enough Energy Inspectors. As to the future I would like to see the whole thing go away but it appears there are moves to expand HIPs into some sort of conveyancing package that may reduce the role of solicitors in the process.
I'm off to Dorset next week for another hunt for a retirement property. I need to be "gone" before HIPs and e-conveyancing take off.
I don't understand the term "non compliant personal searches". I recall the start of personal searches decades ago which arose due to the time taken by some local authorities to supply search results. The standard of replies obtained was very patchy and there was no insurance cover for the search companies in case of negligence. As the cost of official searches spiraled it became possible to create a business model for a personal search company to undertake the searches at very little cost in terms of fees paid to the local authority and to charge an appreciably lower fee for the search result and make a profit. Some local authorities tried to put obstacles in the way of these companys by restricting the number of personal searches they could do in a day or restricting to one or two days a week the appointments for personal searches. The search companies managed to, by and large, stop these sorts of practices and there are now many personal search companys in what is now a fairly sophisticated industry. The personal search companys have successfully lobbied the government to allow personal searches in HIPs and they are also attempting to persuade all mortage lenders to accept them. That said, I do not see personal search companys disappearing over time unless the local authorities get their acts together and deal with all search requests electronically in a matter of days and reduce the cost of official searches to put the squeeze on personal search companys.
The cost of HIPs is in the band £300 to £350 for most properties. The price pressure is entirely competition based and as most Sellers have absolutely no interest in doing any more than supplying a compliant HIP I think their sole concern will be price. I expect we will shortly see a much higher demand as we are now 11 days past the September 10 deadline and Agents will not be able much longer to back date the instructions to market the property.
I haven't a clue when the Government will apply HIPs to all properties and assume this will be when they consider there are enough Energy Inspectors. As to the future I would like to see the whole thing go away but it appears there are moves to expand HIPs into some sort of conveyancing package that may reduce the role of solicitors in the process.
I'm off to Dorset next week for another hunt for a retirement property. I need to be "gone" before HIPs and e-conveyancing take off.
Tuesday, August 28, 2007
I have been prompted by a comment to waken from my state of near retirement to comment (once again) about the HIP's debacle. All conveyancers know that this whole business is a waste of time and money. It would have been easy to make provision for an Energy Rating Certificate for properties being sold and then perhaps link this to registration at the Land Registry in much the same way as SDLT forms i.e you cant register the transfer/mortgage without producing the ERC to the Land Registry.
We have had all the comment in the papers about Lenders not accepting personal searches which we knew all along. I have just received an email from a personal search company with a list of lenders who will accept personal searches. I have in the past researched this issue and have found some lenders who in their CML Handbook part 2 replies say in answer to the question "do you accept personal searches" , "yes but at your risk". One wonders why any lender would expect me to take a risk rather than opt for an official search.
It appears most Sellers will commission personal searches for their packs as it will be the cheaper option and we will then have to explain to our clients (the Buyers) the difference between personal and official searches and sometimes have to insist on new official searches as the lender will not accept personal searches.
One thing has become clearer and that is that most of my local estate agents want nothing to do with preparing or sourcing HIPS. They appear content to refer their clients to a local solicitor to get the HIP but I suspect that may not remain the case once they have to have the HIP before they can market the property as opposed to the transitionary arrangements at present in effect.
So the big question is "how many HIPS have I done up to the 28th August 2007". The answer, you may not be surprised to hear, is NONE. I did get an email from HIPAG a week or two ago who appeared very excited about doing a HIP or two but at that time they still hadn't done an unregistered HIP or a leasehold HIP. I suspect all will change with the inclusion of 3 bed properties next month.
I am geared up to package HIPs if a client wants me to do that but I suspect I will just order one through Richards Gray or similar (how weary is that!).
Dont know about you but new work is very slow at the moment.
We have had all the comment in the papers about Lenders not accepting personal searches which we knew all along. I have just received an email from a personal search company with a list of lenders who will accept personal searches. I have in the past researched this issue and have found some lenders who in their CML Handbook part 2 replies say in answer to the question "do you accept personal searches" , "yes but at your risk". One wonders why any lender would expect me to take a risk rather than opt for an official search.
It appears most Sellers will commission personal searches for their packs as it will be the cheaper option and we will then have to explain to our clients (the Buyers) the difference between personal and official searches and sometimes have to insist on new official searches as the lender will not accept personal searches.
One thing has become clearer and that is that most of my local estate agents want nothing to do with preparing or sourcing HIPS. They appear content to refer their clients to a local solicitor to get the HIP but I suspect that may not remain the case once they have to have the HIP before they can market the property as opposed to the transitionary arrangements at present in effect.
So the big question is "how many HIPS have I done up to the 28th August 2007". The answer, you may not be surprised to hear, is NONE. I did get an email from HIPAG a week or two ago who appeared very excited about doing a HIP or two but at that time they still hadn't done an unregistered HIP or a leasehold HIP. I suspect all will change with the inclusion of 3 bed properties next month.
I am geared up to package HIPs if a client wants me to do that but I suspect I will just order one through Richards Gray or similar (how weary is that!).
Dont know about you but new work is very slow at the moment.
Thursday, February 15, 2007
HIPS (again)
So what the hell is going on with HIPS. We are assured they will be compulsory (sort of) in June 2007 but still so much appears to be in the air. The Government are still consulting and therefore further changes are likely. Who is going to provide the Energy Rating Certificates?
How am I ( a small High Street practice) supposed to prepare for all this and chat to all my Estate Agent "friends" to sell my solution with all this crap still up in the air.
Oh! by the way, don't talk to me about ABS (I thought this helped you crash your car in a straight line), Tesco Law etc.
On a completely unrelated topic I read in the Gazette this week that the consumer complaints arm of the Law Society will be actively seeking complaints from clients by targetting them. It's bad enough managing clients often unrealistic expectations without someone else stirring them up to complain.
That retirement home in West Dorset is the answer
How am I ( a small High Street practice) supposed to prepare for all this and chat to all my Estate Agent "friends" to sell my solution with all this crap still up in the air.
Oh! by the way, don't talk to me about ABS (I thought this helped you crash your car in a straight line), Tesco Law etc.
On a completely unrelated topic I read in the Gazette this week that the consumer complaints arm of the Law Society will be actively seeking complaints from clients by targetting them. It's bad enough managing clients often unrealistic expectations without someone else stirring them up to complain.
That retirement home in West Dorset is the answer
Tuesday, December 19, 2006
Christmas Conveyancing
So here we are again. Four more working days to Christmas and still trying to do simultaneous exchanges and completions so the beloved clients can "be in by Christmas". This annual scenario with its attendant stress levels is the reason most people think I'm a miserable bastard every Christmas. This annual extravaganza drains me to such an extent that I function much like a zombie during the holiday and I find I am barely refreshed when we return to the fray in the new year.
So, what will next year bring and what (if any) resolutions will I make so far as my practice is concerned. Well, I doubt I will think of any major changes to the way we turn out the work but then, of course, we have the prospect of HIPS to look forward to in the summer and the ever approaching adoption of e-conveyancing by the Land Registry. On balance I will probably concentrate on finding my ideal retirement home in Dorset and try to convince my senior assistants that they would be well served by joining me in partnership and then allowing me to retire. I can't wait.
Happy Holidays.
So, what will next year bring and what (if any) resolutions will I make so far as my practice is concerned. Well, I doubt I will think of any major changes to the way we turn out the work but then, of course, we have the prospect of HIPS to look forward to in the summer and the ever approaching adoption of e-conveyancing by the Land Registry. On balance I will probably concentrate on finding my ideal retirement home in Dorset and try to convince my senior assistants that they would be well served by joining me in partnership and then allowing me to retire. I can't wait.
Happy Holidays.
Thursday, September 14, 2006
Chancery Woes
The reason for my recent lack of postings is due to preparation for a three day Chancery trial on the Isle of Wight. I acted for clients when they bought a property in Cowes which included a Boat Park subject to use by the other 10 properties on the development and mooring on a Sea Wall adjoining a Boat Yard. A dispute arose with the Boat Yard owner over the ownership of the Sea Wall which was in my clients' title but which he claimed and he sought Rectification of the Registers of the two titles.
I rarely these days deal with litiguous matters but got sucked into this one having started dealing with it by corresponding with the Land Registry but they got cold feet and directed that the matter be referred to the High Court for a decision and by then I was in too deep to back out.
The Trial finished yesterday and we lost but I am now seeking an indemnity for my clients' losses from the Land Registry under Schedule 8 of the Land Registration Act, 2002 which is a first for me in 38 years of practice.
So today its back to conveyancing. Roll on the weekend
I rarely these days deal with litiguous matters but got sucked into this one having started dealing with it by corresponding with the Land Registry but they got cold feet and directed that the matter be referred to the High Court for a decision and by then I was in too deep to back out.
The Trial finished yesterday and we lost but I am now seeking an indemnity for my clients' losses from the Land Registry under Schedule 8 of the Land Registration Act, 2002 which is a first for me in 38 years of practice.
So today its back to conveyancing. Roll on the weekend
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