Head Office: +44 (0)1782 205000
Altrincham: +44 (0)161 929 8494
17/03/2025
The government has unveiled a comprehensive plan for conveyancing reforms to revolutionise the conveyancing process. The aim is to modernise property transactions, streamlining home buying and selling to make it more efficient and less stressful for all parties involved.
Problems with the current conveyancing system
The current conveyancing system in England and Wales has been criticised for being fraught with delays. Buyers and sellers often face prolonged transaction times, leading to frustration and, in some cases, transactions falling through. These challenges have underscored the need for a comprehensive overhaul to enhance efficiency and trust in the property market.
Key conveyancing reforms and solutions
To tackle these issues, the government has proposed several key reforms:
- Digitalisation of the conveyancing process: Embracing technology to reduce paperwork and expedite transactions. This includes the adoption of electronic signatures and the development of a centralised digital platform for all conveyancing activities.
- Leasehold and freehold reforms: The Leasehold and Freehold Reform Act 2024 introduces significant changes, such as abolishing the two-year ownership requirement for lease extensions or freehold purchases, effective from January 2025.
- Reservation agreements: Implementing agreements that commit both buyers and sellers at an earlier stage to reduce the risk of transactions collapsing.
- Improved transparency: Providing clear guidelines and information to consumers about the conveyancing process to set realistic expectations and reduce misunderstandings.
- Material Information: Estate agents being obliged to provide more detailed information to potential buyers so they can make a more informed decision much earlier in the process.
Implementation timeline for conveyancing reforms
The government’s plan outlines a phased approach:
- January 2025: Abolition of the two-year rule, allowing leaseholders to extend leases or purchase freeholds immediately upon acquiring the property. Now effective.
- March 2025: Introduction of secondary legislation to empower more leaseholders to take control of their buildings through right-to-manage provisions.
- Second half of 2025: Publication of draft legislation on a Leasehold and Commonhold Reform Bill, aiming for broader reforms in property ownership structures.
The Law Society’s view
The Law Society of England and Wales has welcomed these reforms, particularly the move towards digitalisation and efforts to reduce transaction delays. They emphasise the importance of involving solicitors in the reform process to ensure practical and effective implementation.
Conclusion
Many of the issues currently experienced by people who move house are caused by inconsistencies in the way conveyancing is carried out. Some conveyancing and property teams, like Beswicks, already use electronic signatures, minimise paperwork and work in an efficient, transparent manner. But, unless all conveyancers operate in the same way, the process will breakdown too easily, causing clients to experience unnecessary stress and frustration.
The theme of today’s National Conveyancing Week events is ‘mental health and wellbeing in conveyancing’. There is no doubt in my mind that improving and standardising the way all conveyancers work will ease the pressure and stress faced by both clients and solicitors.
The government’s plans to reform the conveyancing process address critical pain points in property transactions. By focusing on digitalisation, legislative changes and enhanced transparency, these reforms aim to create a more efficient and user-friendly system, benefiting consumers and professionals alike.
