With the advent of e-conveyancing and the increasing use of online technology by the Land Registry, demonstrated by the launch of its Chain Matrix pilot, the conveyancing process is set to undergo rapid development in the next few months.
This, according to Dominic Toller, director of marketing and new business at LMS, will leave those firms who are unable to invest in automated systems struggling to maintain their foothold in the market.
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He said: “The way that the market is going, over a period of time, it is going to be harder for those who cannot invest in technology to sustain themselves in the marketplace. I think there is an inevitability that much of the work in the mortgage market will gravitate towards the larger automated firms. I’m not encouraging it, but it will probably happen regardless.”
Toller compared the situation to the lending market, where technology such as automated valuation models has helped to speed up the remortgaging process and was now on the cusp of a similar effect on the purchase sector.
Philip Ryley, head of financial services and markets at Michelmores, believed conveyancing was becoming increasingly commoditised, which favoured large firms.
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“Volume conveyancers are getting a lot of panel introductions from lenders and large brokers who want the transaction quicker and cheaper. Conveyancing has become increasingly commoditised so it is no longer about offering a bespoke service, just how fast and cheap you can do it. There have been plenty of predictions of the demise of the small firm, but this is not going to happen as they will always get referrals from local brokers and client walk-ins.
