Confidence in UK property market declines

Confidence in the UK property market has taken a hit, particularly among conveyancers and buyers, according to the latest findings from the Council for Licensed Conveyancers’ (CLC) third quarterly Confidence Tracker. The survey reveals that only 65% of conveyancers now feel optimistic about the stability of the current market, a notable decline from 72% just three months earlier. This downward trend mirrors that of buyers, whose confidence has dropped to 38% from 46%, although a significant proportion of respondents, 45%, reported feeling neutral about the market’s prospects.

One of the critical factors contributing to the current dip in confidence appears to be the stamp duty hike implemented in April. This change saw the tax exemption thresholds for homebuyers significantly reduced, reverting to levels reminiscent of previous years. The result has been a noticeable dampening of market sentiment following an initial surge in activity leading up to the policy shift.

Despite the recent downturn, it's worth noting that confidence levels have improved considerably since the start of the year. The first Confidence Tracker revealed that just 56% of conveyancers and a mere 29% of buyers felt positive about the market back in January. Experts remain hopeful that the ongoing slowdown in house prices, in tandem with anticipated interest rate cuts, could soon bolster confidence levels once more.

Amidst these fluctuations, there is an urgent call for conveyancing practices to seize opportunities that may enhance the home transaction process. Alarmingly, a majority of survey respondents expressed concerns about the lack of improvement in the speed and efficiency of conveyancing services. Those feeling unconfident or neutral now make up a staggering 85% of respondents, with 25% categorising themselves as “very unconfident.”

The average duration for property transactions continues to hover between three to four months, while nearly one in ten respondents indicate that they are experiencing even longer wait times. Stephen Ward, head of strategy and external relations at the CLC, stated “It has been a somewhat turbulent first half of the year for the property market, but it is encouraging to see that two-thirds of conveyancers are still confident, and we can hope that will increase over the coming months as the market continues to stabilise following the stamp duty changes.”

Ward further expressed concern over the significant number of respondents who remain sceptical about improvements within the conveyancing process. He emphasised the need for the industry to actively engage with the Home Buying and Selling Council and the Digital Property Market Steering Group. “There is a genuine commitment and drive to reform the property transfer process because we simply must reduce the number of transactions that fall through and improve speed and certainty for buyers and sellers, through improved data sharing, security and communication,” he added.

Emphasising client-centricity, Ward concluded by urging the industry "to focus on the needs and expectations of clients first and foremost, so we urge practices to engage with the opportunities available so that the benefits of emerging new digital processes can be fully realised in the consumer interest.” The findings present both challenges and avenues for development that could potentially restore confidence in the property market in the near future