Unravelling the delays in contract exchanges when moving home

The length of time to exchange contracts
The exchange of contracts stands as a pivotal moment in the property transaction process,
solidifying the sale and purchase as legally binding commitments. Delays in this phase pose
issues by amplifying stress for all parties involved, decelerating the overall property market
and potentially elevating the incidence of transactions falling through.

In March 2016, 78% of property transactions moved from offer acceptance to contract
exchange within a twelve-week timeframe, a stark contrast to the 29% observed in March
2024, marking a noticeable decline. Estate agents have pinpointed several key obstacles
and delays which they believe to be at the heart of this slowdown. Primarily, the agents have
critiqued the sales process as being antiquated (“Dickensian”) and overly burdened with
administrative tasks. Additionally, this administrative load has only intensified with the
implementation of new legislative requirements over time.

The existing framework for transferring property was initially conceived for handling
significantly less information. Today, the volume of information has surged, arriving at
solicitors’ desks in stages, necessitating considerable time to cross-reference and align with
the client's best interests, lender demands, and the conveyancer’s professional judgement.

What are the hurdles?
Agents observed that despite the availability of advanced technologies designed to enhance
efficiency, their implementation and integration remain inconsistent at best. The system is
notably outdated, with a split in practices among solicitors – some are embracing digital
processes, whilst others are not, calling for an urgent need for standardisation and
digitalisation. Estate agents pinpointed specific bottlenecks in the information flow from
buyers, sellers, surveyors, and lenders, noting that obtaining searches can take up to three
to four months in some regions.

The pace of transactions is steadily declining, with a noticeable lack of motivation among
conveyancers to expedite proceedings. Whilst some manage to complete transactions
rapidly, others lag significantly, indicating a glaring inconsistency in their approach. This
issue is exacerbated as estate agents now require sellers to fill out TA6 and TA10 forms
early on due to new material information mandates, adding another layer to the process.

Additionally, a reported scarcity of solicitors has led to firms being overwhelmed and
understaffed. A significant 59% of Propertymark agents cite the shortage of
solicitor/conveyancer resources as the primary culprit behind the prolonged duration of
exchanges, underscoring a critical area in need of immediate attention and improvement.

What should happen next
The increasing length of time it takes to complete property transactions impacts buyers,
sellers, and supporting service providers in equal measure. Addressing this issue, which is
urgently needed, involves a complex challenge that has been present for over a decade.
Solving it will require changes in people, processes, and technologies across various
sectors, each with their own unique perspectives, abilities, and willingness to adapt.
Nevertheless, this report represents the first important recognition of the issue's existence.

How can you help to speed up the process
While it's clear that systemic changes are needed to significantly reduce the time it takes to
exchange contracts when moving home, there are steps you can take to help speed up the
process. Firstly, ensure that you're fully prepared before you even list your property or start
looking for a new home. Gather all necessary documents, such as proof of identity, proof of
address, and any other paperwork that might be required, early on. Being proactive can help
avoid delays later.

Communication is key. Keep in regular contact with your solicitor and estate agent, and don't
hesitate to chase up any outstanding information or documents. Make sure you respond
promptly to any queries or requests for information from your solicitor to keep the process
moving. Finally, consider opting for a solicitor who utilises modern, digital tools for property
transactions. Solicitors who embrace technology can often process information more quickly
and efficiently, reducing the likelihood of delays. By taking these steps, you can play your
part in making the process of exchanging contracts as smooth and swift as possible.
Remember, every little helps in moving us closer to a more efficient property market.

If you have any questions about the property process, please do not hesitate to give our Inspire team a call on 01293 582335.