New Approach Could Cut Property Transaction Times and Fall-Throughs
UKPulse Property Desk
Starting the legal process when a property is listed could help reduce transaction times and fall-throughs, according to LawtechUK. Analysis of 500 transactions using one lawtech model showed a fall-through rate below 5%.
- LawtechUK suggests starting legal work when a property is listed could cut transaction times.
- Analysis of 500 transactions using one lawtech model showed a fall-through rate below 5%.
- Freehold properties in the analysis reached exchange in around 30 days, and leasehold homes in around 45 days.
A new approach to property transactions, involving starting the legal process when a property is listed, could significantly reduce transaction times and fall-throughs. This is according to LawtechUK, a Ministry of Justice-backed initiative.
Technology already in use demonstrates the potential benefits of moving legal preparation earlier in the sales process. An analysis of 500 transactions using one lawtech model recorded a fall-through rate below 5%. Freehold properties reached exchange in approximately 30 days, while leasehold homes took around 45 days.
This approach aligns with proposals in the government’s Home Buying and Selling Reform Roadmap, which aims to provide more property information upfront and increase the use of digital technology. The roadmap also includes plans for standards governing the use of AI in conveyancing.
LawtechUK highlights that more than a quarter (27%) of homebuyers reported prolonged stress and uncertainty due to conveyancing. Additionally, 25% experienced at least one collapsed sale resulting in financial loss.
Why this matters: Shorter transaction times could mean less commission sitting in uncertain pipelines for estate agents, and fewer fall-throughs could reduce the time negotiators spend on sales that ultimately collapse.
What this means for you: If these approaches are adopted more widely, you could experience a faster, more transparent, and more predictable property buying or selling process, potentially reducing stress and financial loss from collapsed sales.