Buying Property? Expect Unexpected Fees
New regulations introduced by the Solicitors Regulations Authority and Council for Licensed Conveyancers came into effect as of the 6th of December, making it mandatory for legal professionals to display the full extent of fees associated with their service.
The digital conveyancing platform, When You Move has recently commissioned some nationally representative research reveals the true extent of the deficit between homebuyers’ savings plans for a new property versus the actuality of unexpected fees.
A sample of 2,003 UK homebuyers were questioned and the data found that there is an average of £8,113 in unexpected fees, in addition to their deposit. The research found that a quarter of consumers believe their conveyancer was “not transparent” on fees and 13% of UK homebuyers felt “trapped” by their solicitor with “unexpected fees”.
The research also found that the Bank of Mum and Dad may not be a choice, but rather, the only way out of the fee trap UK homebuyers become victim to. On average, home buyers need to ask for around £16,712 in funds from the Bank of Mum and Dad. Around a fifth of the population are reliant on close family and friends in order to cover all the costs associated with a property transaction, ranging from surveyors and conveyancers to estate agents and logistics.
An astonishing 28% of home buyers would have pulled out of the property purchase if they were fully aware of the true extent of fees they would be expected to pay.
Simon Bath, CEO of When You Move, said: “These statistics are very alarming. In the current political turmoil, the industry as a whole should be working towards making the home purchasing and selling process a lot more accessible for all parties involved. Homebuyers should be aware of the full extent of costs associated with their transaction. This should not be a longwinded and outdated process through which a consumer has to wait until a service is engaged to know the cost of the service provided.
“Transparency and efficiency should be the fundamentals of the service estate agents, conveyancers and mortgage brokers offer. The new SRA and CLC regulations mark an exciting opportunity for property professionals to improve the service they provide to their consumers. The most popular time for people to search for conveyancing quotes is between 8pm and 10pm, but the majority of law firms do not have online quote widgets, so all they can ask their consumers to do is email them and reply by email or spreadsheet the following day. As a result of the new regulations, potential homebuyers can access a full breakdown of the costs of their conveyancer, surveyor and so on, within seconds and 24 hours of the day. This is a massive step forward for the industry, which is renowned for archaic processes and sluggish reactions.”
(Source: When You Move)
