James Vernor-Miles comments on leasehold reform in The Law Society Gazette
James’ comments were posted in The Law Society Gazette, 24 May 2024, and can be seen here.
James Vernor-Miles, Partner in our Residential Property department, discusses the increasing challenges faced by conveyancing solicitors in today’s property market.
Despite the satisfaction of helping clients secure homes, the profession is under pressure, with 35% of transactions falling through in 2023 and solicitors often left to manage risks that arise from gaps in the wider process. The introduction of the Building Safety Act (BSA) has made transactions involving flats particularly complex, especially in England, where fire safety concerns and unclear responsibilities have caused delays and confusion. Digitisation, while promising, has also brought its own set of teething problems.
The post-pandemic property market has seen a decline in transactions due to rising interest rates and inflation, with firms handling 25% fewer cases than the previous year. The number of active property law firms has dropped significantly, and many conveyancers are leaving the profession due to burnout, stress, and fear of negligence claims. These pressures are compounded by the complexities introduced by the BSA, increased scrutiny of the home buying process, and ongoing leasehold reform. Conveyancers are navigating a landscape that is not only more demanding but also more legally and procedurally uncertain.
James highlights how the BSA, though well-intentioned, initially created significant disruption. For example, sales of Victorian maisonettes stalled due to confusion over fire safety compliance. Lenders’ requirements under the BSA added further complications, with many solicitors initially refusing to act on affected transactions. However, James notes that the situation is improving as stakeholders including lenders, managing agents, and local councils gain a better understanding of the legislation’s intent. While challenges remain, there is cautious optimism that the profession is adapting to these changes and that the market will stabilise as clarity improves.
Read the full article on The Law Society Gazette website [external link].