Prediction of 19% rise in housing transactions in 2013

Much of today’s focus has been on Budget headlines and little comment has been made of the detail supplied by the Office for Budget Responsibility (OBR), particularly about its view of what is likely to happen to  the property market over the next 36 months.

According to the OBR the future looks bright and forecasts a dramatic increase in stamp duty receipts by 2016, when it expects the Treasury to receive £11.1 billion a year, nearly double the current level of around £6 billion. 

This suggests the OBR is expecting housing market to spring back to life in 2013, with a 19% rise in transaction levels and a further 14% increase in the number of sales in 2014.

This is based on the OBR’s expectation of an easing in credit conditions in 2013

The downside is the OBR has downgraded its housing price forecast expecting prices to rise by only 0.5% next year. This is in line with independent forecasts published this year.  

Looking ahead the picture is even better as prices are predicted to pick up more strongly in 2014, along with further strong rises in transaction numbers.

Let’s hope the OBR is right with its predictions.  The success of this budget clearly rests on the generation of extra Stamp Duty suggesting the Government has put  a lot of faith in the OBR's assessment. 

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

New low cost case and risk management portal for conveyancers

Norwich based Property IT Company, Move and Log, has recently launched an online portal aimed at suppliers of conveyancing services, and which is designed to assist busy practitioners in managing multiple transactions and the risks associated with conveyancing

David Pett, lawyer and designer, of the system explains the background to the idea:

‘We have in the past spent a small fortune on purchasing case management systems many of which promised the world but in the event fell miserably short of our expectation. 

Designing our own system was relatively straightforward and with an in-house IT team we have produced a highly practicable and low cost on line portal for managing the common risks associated with conveyancing transactions.

It doesn’t make the tea or coffee, nor does it do the work for you. It is however a system that delivers in full on everything it says it can do on the ‘tin lid’.   It has revolutionized the way in which conveyancing is processed in our office and the way in which partners can monitor the level of work and the performance of those working in the department’.

The portal that can be accessed by clients and agents 24/7 has according to Mr. Pett helped to cut down on calls coming into the office and has also helped to significantly improve the line of communication to both client and agent.

In designing the system the focus was fixed on risk management and what could be done to reduce the risks surrounding the conveyancing process.   This objective, explains Mr. Pett:

‘is achieved with features built in to address concerns over money laundering, mortgage fraud, complaints, undertakings and the recording of key dates.   By adding these processes my firm was able to secure a 5% discount when it came to renewing this year our professional indemnity insurance’.

Looking ahead, Mr. Pett adds:

‘We are now looking to share this technology with other practices that might be looking to introduce case and risk management systems and to offer the portal with no set up costs or ongoing support charges.    At the same time we are busy integrating the system with third party suppliers such as search and indemnity insurance providers in the hope that in time with commission payments funding the maintenance and future development of the system we will be able to offer the portal as a free service’.

For further information David Pett can be contacted at david.pett@moveandlong.co.uk

Conveyancing Quality Scheme - another Law Society 'White Elephant'?

The Law Society is now actively promoting  its new residential conveyancing quality scheme.

The Conveyancing Quality Scheme, which is supported by the Council of Mortgage Lenders, will provide a recognised quality standard for residential conveyancing practices.

No details of the benefits of the scheme are known, though the Law Society is planning to publish these at the beginning in April to coincide with the Easter house-hunting surge.

It is reported that Law Society president Linda Lee is claiming that over the past three years, the society had led consumer PR campaigns encouraging the public to use a solicitor rather than other legal providers – all of which had been successful.

This campaign it seems was rather low key as reports from some solicitors claim that the Law Society has not done enough to promote the profession and that a large section of the public has now resigned itself to be led by cost rather than quality.  

Linda Lee is reported to have said: “We now plan to do the same with CQS, a scheme which will be of genuine benefit to anyone buying a home.

“The aim is to generate publicity for legal practices which have secured the CQS mark of excellence and enable them to market their CQS status to the public effectively.

Until the benefits to the consumer are known a large number of solicitors are asking whether this scheme is likely to become another ‘white elephant’ similar to the Law Society’s Personal Injury and Clinical Negligence panels.   Those schemes that have been up and running for a number of years have had little impact on the consumer’s choice of solicitor.

The Law Society is hoping that this scheme will help solicitors compete with outside suppliers when they begin to come into the market after the full implementation of the Legal Services Act in October of this year.   The general view however is this move is represents  ‘too little, too late’  and is likely to have little impact.

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk