The survey, conducted amongst 250 senior level decision-makers from across the legal sector, offers a behind-the-scenes look at how the current economic situation is affecting the conveyancing market, whilst also exploring market sentiment regarding HIPs. It reveals tough market conditions, increased cooperation between conveyancers and estate agents, and the need for fuller information.
However, the survey also showed that HIPs still represent a way of generating additional revenue, with the majority of legal professionals questioned – more than 60% – now providing HIPs directly to their clients. At the same time, almost a quarter of respondents reported that they are currently receiving the majority of their referrals from estate agents. As a result, less than 25% of respondents viewed estate agents as competitors for conveyancing work, and in fact viewed them as important. This runs contrary to the received wisdom that agents and solicitors were pitched in a high street conveyancing battle.
"Clearly, faced with these tough economic times, cooperation between key industry partners remains the best way to successfully weather this storm," said David Kempster, marketing manager, MDA SearchFlow. "It is also interesting to note, however, that conveyancers have begun to take ownership of HIPs a lot more now, with more than 60% currently providing HIPs directly to clients.”
The survey also revealed that nearly half of all respondents believe that the Conservative Party, if elected, would abolish HIPs altogether. Nonetheless, the idea of an "Exchange-ready HIP" still appeals to the majority of those questioned, who would consider this kind of enhanced HIP – containing items like an official search and several key diligence searches – as having more value than HIPs in their current form.
Respondents were also asked what additional information would be of benefit to a seller when preparing a HIP. The consensus was that there would be very little, if anything, that sellers would like to see added, especially if it would increase the price. When working on behalf of the buyer, however, there were a number of additions suggested to improve a HIP, including Mandatory Chancel Repair Searches, Flood reports, Environmental reports and other popular conveyancing reports.
