CLC reviews fees for licensing year

The Council for Licensed Conveyancers (CLC) has initiated a consultation on its proposed fee changes for the next licensing year, commencing 1 November. As part of its annual review, the CLC evaluates practice fees, individual licence fees, and administration charges to ensure that the revenue collected meets the forecast expenditure requirements for the coming financial year. The consultation will remain open until 8 August, after which the CLC will review feedback and submit its financial strategy to the Legal Services Board for approval.

Recent trends show that through its managed compliance approach, which involves collaborating with firms to uphold high standards and protect clients, the CLC has managed to decrease the average practice fee rate significantly, down from 1.25% of turnover during 2015-16 to an anticipated 0.58% if the new proposals for 2025-26 are approved. The proposed changes include a 3% rise in practice fees and licensing administration fees to align with inflation while keeping individual licence fees unchanged for the tenth consecutive year, representing a substantial long-term reduction in real terms for individual lawyers.

Moreover, to account for inflation and increased demands on the Compensation Fund—which safeguards clients who have incurred losses—proposals suggest a 6% increase in contributions to this fund. These fees are assessed on a sliding scale based on the turnover of practices; however, the CLC does not plan to adjust the turnover bands this year.

The CLC's regulated community is experiencing notable growth, with practices showing an average turnover increase from £1.2 million in 2021 to £2 million in 2025. Sheila Kumar, Chief Executive of the CLC, states “The CLC has worked hard over several years to absorb rising costs and reduce the financial burden on practices, while maintaining high standards of consumer protection.” She adds, “We believe the fee proposals set out in this consultation are fair and proportionate and in line with our commitment to supporting a thriving conveyancing and probate industry which is responsive to the needs of its clients.”

Additionally, the arrangements regarding rising costs imposed by the Office for Legal Complaints (OLC), which funds the Legal Ombudsman service and is outside the CLC’s control, remain unchanged. Currently, the OLC levy allocates 50% as a service availability charge and the other 50% based on usage, determined by the number of cases investigated by the Legal Ombudsman for each practice.

The CLC encourages the regulated community to participate by submitting their responses through various channels, noting that any feedback will be published unless a request for confidentiality is made. To access the full consultation document, participants can click on the provided link.