Most conveyancing firms would consider becoming ABSs

A majority of conveyancing firms, 57 per cent, would consider becoming ABSs, a survey by property search specialists SearchFlow has indicated.

The survey of 108 firms across the country also revealed a high level of scepticism about the Legal Services Act, with only one in ten believing that the changes would improve clients' ability to access high quality conveyancers.

Firms in central London were the least likely to be thinking about conversion to an ABS, with 80 per cent ruling it out. Those in the North West were more open-minded, but only 43 per cent said they would consider ABS status.

London firms were more prepared to spend money on marketing, with 23 per cent ready to increase expenditure in this area compared to 15 per cent nationally.

In line with previous surveys, twice as many conveyancing firms thought the biggest threat to their businesses came from decisions on lenders' panels rather than increased competition from ABSs, 28 per cent compared to 14 per cent.

In response to a changing market place, 12 per cent of firms in the survey were planning to change their practice areas.

'In terms of the licensing of new forms of legal practice to deliver legal services, the impact of the Legal Services Act has been slow in the year since launch,' Richard Hinton, business development director at SearchFlow, said.

'More changes are expected to be felt in the coming 12 months, and more than half of all firms have not ruled out becoming an ABS.

'It was interesting to note that just 20 per cent of central London firms would consider becoming an ABS. Some of them possibly feel there is less incentive for them to do so as they already have alliances and volumes of business that make them feel more protected in comparison to other parts of the country, but this could always change.

'The more immediate issues for solicitors are panel management and the weak property market, although it looks like ABSs will start to have more an impact over time.'