Digitalisation of conveyancing: How this may not help the process
The ministry of Housing, communities and Local Government has unveiled plans to modernise the conveyancing process to reduce delays and cut down on ‘fall-throughs’.
However, conveyancing in 2025 remains a complex field, with property lawyers facing such as anti-money laundering checks, intricate stamp duty requirements, non-conformity with lender conditions and compliance with the building safety act 2022, among others.
Pre-existing backlogs could undermine Digitalisation:
The HM land registry already faces significant delays with some transactions taking over a year to finalise. Complex applications such as leasehold extensions, share ownership properties have faced delays up to two years. Whilst Digitalisation might improve the speed of transaction it does not target the prolonged delays. Some buyers have faced mortgage rate hikes due to these delays with interest payments rising by £1,350 per month.
Inconsistent digital adoption across the sector:
For this initiative to be successful all parties involved in conveyancing; estate agents, lenders, local authorities and surveyors will need to be using compatible digital systems. Even though most local councils use paper-based records, Lenders requiring physical documentation and smaller firms may lack funding to be able to implement digital tools.
Compliance and data breaches:
Transitioning to digital platforms raises concerns about data security and privacy. Conveyancing uses sensitive personal and finical information, making it a potential target for data breaches. Ensuring robust cybersecurity is essential to protect firms against data breaches and errors.
Potential for increased costs:
While digitisation is often promoted as a cost saving measure, implementing and maintain a secure and efficient system can be costly. Law firms and conveyancers will have to invest in a new software, cybersecurity protections and even more training. These costs could pass onto clients making the process more expensive rather than affordable.
While the government digitisation plan aims to modernise the market, several existing challenges within conveyancing could hinder its success. Without addressing these underlying issues, the move to a digital system may create more problems than it solves.
