When did conveyancing get so expensive?

[SophiaCohle]

And why?

I stepped off the property ladder in 2022. Selling my place cost me somewhere between £500-1000 (can't remember exactly). When I tried to buy again last year I was quoted £500-700 to buy but it didn't happen in the end. Now I'm being quoted £900-1200. All freehold cottages with no apparent complications. All the same firm, but when I look around everyone seems to be in the same ballpark. This is just the legal work. VAT and searches would be extra.

Did something happen?

For years it was like a race to the bottom - firms charged a low fee because they were competing against factory firms who charged very low rates. It just was not a sustainable way to work.

The rate is usually based on a sliding scale of the property price, and an approximation of the time to be spent on the file. Often there are times when time has to be written off on a file. There’s no huge profit in conveyancing.

Legal staff (whether qualified or not) are now expected to be forensic accountants (checking source of funds), scrutinise ID due to high risk of money laundering, be environmental experts… the list is endless. It’s no longer a case of ‘buyer beware’.

Due to the additional requirements of the professional bodies time spent on files has increased significantly, so the prices have also increased.

The beneficiaries of DM's estate are selling a small freehold house in the Midlands. None of the conveyancing quotes have been lower than £1600 plus VAT. We asked for a few.

Agreed fees have been too cheap for too long. Compare how much esate agents make compared to solicitors on a sale. If solicitors charges a % it would be even more.
The race to the bottom on fees days are thankfully over. Think about it that you are paying a professional for a role they are doing for you over many weeks.

Cross posted the same thing re fees race to the bottom @LetsRedecorate!

" And is making sure that the property is outlined accurately in red complex work? I mean, really now?"

OP please just stop, this comment reveals exactly how little understanding you have of what is involved and what the conveyancers job actually is, you've seen just the few bits that come via you as the client in total ignorance of the rest of the work the conveyancer is doing on their side.

As others have said, the fees have been too low previously and then factor in the ever increasing burden and risk on the firms for source of funds and anti-money laundering requirements that have really ramped up over the last couple of years firms can't justify doing it for such low fees. Other factors too including that in 2021/22 conveyancers could name their price for salaries and jumping around firms and that's pushed wage bills up.

I would sell using a budget conveyancer, but never buy, you get what you pay for.

@SophiaCohle I think it's cheap too - on my FILs recent sale his Estate agent commission was£6100 and his conveyancing fee was £1275 - puts it into perspective for me.