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?
4 comments:
This is true across the country for conveyancers, from my somewhat limited and anecdotal evidence! Could it be the end for the discount conveyancers?
eaxctly same with me and its getting worse by the day!
Hi Weary
Thanks for your post. I'm now going off to shoot myself in the head!
Its not all doom and gloom however. Lots of HIP Providers are going bust so there will be no strong lobby to keep HIPs going soon.
Clients are wiseing up that if they get their solicitor to do the HIP they can go with every agent in town. So we're doing more HIPs than I ever expected.
Also it is the solicitors and agents that paid and received referral fees that seem to be the hardest hit as the solicitors have no other source of work and the agents have nothing to sell.
I feel sorry for agents that dont do lettings and solicitors who dont do crime!
I'm doing lots of work for families transferring properties between family members. No HIPs required or expensive agents fees for them.
Stamp duty changes are timid and useless. Only a fool would buy when the market is crashing (see www.ukhousebubble.blogspot.com)
We all knew the bust was coming-we've just got to make the best of it (like last time!)
Hang on in there!
Love you
Pissed
x
Figures from HMLR show that the number of "clients" (ie the number of people making applications to HMLR) has dropped by 13% June 07 on June 08 and continues to fall.
How far is it going to fall ?
Is this the shake out that will mean that conveyancing is no longer a cottage industry ?
This is hugely postive for those of us in it for the long term.
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