The UK has one of the longest durations globally for completing sales
Those looking to sell their properties now are unlikely to make a quick getaway. In fact, if they put their houses on the market today, with a quick offer from a buyer and a fair wind on their side, they’re still likely waiting until November for moving day.
On average, properties in the UK go under offer within 38 days, according to Zoopla. In total, the average home takes 185 days to sell from when it's first marketed, it suggests - that’s a whopping 25 weeks or so, just under six months.
Scotland fares better than the rest of the UK, it seems, as Gregor McMeechan (pictured left) managing director of Edinburgh-based Malleny Mortgage Solutions, points out. “A Scottish house sale and purchase typically goes through in six to eight weeks,” McMeechan told Mortgage Introducer. “I think that there are a few things that make the Scottish system better. In England, most conveyancers seem to work for estate agents. In Scotland, the estate agents are traditionally owned by the solicitor.”
The Scottish conveyancing system also includes binding missives relatively early in transactions, creating a buyer-friendly model. “Buyers gain security once missives are agreed, with limited seller power to withdraw or renegotiate,” said McMeechan. “All sellers must provide a home report for their property, which means that all buyers are using the same info source, and all buyers submitting an offer must do so via their solicitor who will determine the individual’s position. For example, do they have a mortgage approved in principle, are they a cash buyer, have a bridge arranged so there is no chain, or are offering subject to sale?
“One of the most important things is that there is almost no gazumping. It is against Law Society of Scotland rules. Gazumping causes havoc on a chain, causing it to break down. Another useful thing to know is that we now do more bridging than ever and one of the commonest uses of a bridge is a non-simultaneous sale or purchase. This means chains don’t need to break down.”
Other nations with relatively quick home-selling processes include the United States at an average of 53 days, the UAE, 70 days, New Zealand, 72 days, Canada, 90 days, and Australia, 95 days, according to property business Moverly. Countries with timelines approaching the UK’s include Italy, Spain, Portugal and Singapore, each averaging 152 days, Germany, 137 days, and France, 105 days, So, if a house sale can go through so smoothly and quickly north of the border, and in other parts of the world, why is it such a struggle in England?
Mike Hayes (pictured second from left), an adviser at Neal Hayes Mortgages, believes more automation of assessing documentation for lenders would certainly speed up the process, but – like other mortgage professionals – he places much of the blame with lawyers. “In the main, I think the issues tend to be on the legal side of things,” Hayes said. “Our firm’s application to offer time with most lenders is around eight working days, which is probably as short as it’s ever been. Certain solicitors seem to take too much work on and the service then suffers. Where properties are involved in longer chains it only takes one piece of poor conveyancing to grind the entire process to a halt. I think in the main, they can all do much better at keeping clients up to date and to employ case handlers to provide additional support. AI is currently the big buzz word in the industry, but I think once it is properly utilised in that field, we’ll all see a much quicker turnaround on cases.”
Amy Davenport (pictured second from right), who’s responsible for business support and operations at The Mortgage Mum Specialist Finance, also believes the long duration for property sales is due to time consuming legal work. “Each case has their own merits and complexities,” Davenport said. “This is not to say that I don’t appreciate the hard work of the legal sector as I think they, on the whole, work the best they can with a high volume of cases and work hard for their clients. However, I believe the whole process needs revamping.
“As sellers, we should be more upfront, which shows buyers we are motivated to sell. Why isn’t the process that you get searches ordered upon your decision to sell? Why isn’t the process that sellers get a homebuyer’s report upon their decision to sell? It would save so much time later and show that you are committed. If the process was that the seller or their legal team created a property pack that could highlight issues upfront, this would stop delays coming up later. Buyers would know exactly what they are putting an offer on and, as a seller, you’d know if there was anything you would need to take action on to give yourself the best chance of a quick sale. If nothing else, at least every party would know where they stand from the beginning.”
She added: “I also think that the fact you can pull out until exchange, pretty much without a single penalty, means that everyone feels nervous about the process. Nerves can lead to mistakes, and mistakes cost valuable days and weeks. Proactivity is key.”
Read more: Getting first-time buyers on to the property ladder earlier
Are brokers to blame for property sales delays?
London-based mortgage adviser, Nouran Moustafa (pictured right), suggests she is bucking the trend, by not getting caught up with referral fees – and she believes that, sadly, brokers are responsible for delays. “All my first-time buyers' cases take three weeks minimum or five weeks maximum, unless there is a chain,” Moustafa said. “My secret is I have got two solicitors who are extremely skilled. I pass my cases to them, and they don’t pay referral fees. The main reason behind the process being extremely slow in the UK, is that solicitors who pay high referral fees are over packed with cases, and they also pay these massive referral fees because they are desperate for work, due to their lack of skills. Skilled enough people who pay no referral fees and finish in three to five weeks exist, but it’s just no one wants to use them due to the model adapted of ‘make as much money as you can out of the clients’.”
Mortgage and protection consultant Michael Welton (pictured above inset), of WPP Financial Services, acknowledges the workload faced by conveyancers, driven up by what he perceives as out-of-date practices and procedures. “Having moved recently myself, I can say that the client journey is tedious,” said Welton. “Many conveyancers are still sending generic documents that cover all client types but then confuse and frustrate clients who are trying to work out what’s related to them and what they need to complete. There’s also the need to document everything the lender and mortgage professional have completed already and, in some cases, not accepting certified documents, which again causes delays. From a mortgage perspective, lenders have for the most part stayed on top of processing and underwriting service level agreements for standard cases.”
Meanwhile, broker Luke Hollingdale (pictured inset above), from Mojo Mortages points to the fact that many UK property sales are part of a chain, where multiple transactions rely on each other, causing delays. In competitive markets, buyers may take longer to secure financing or make decisions, and obtaining mortgage approvals can be delayed due to lender requirements and assessments, he noted. Hollingdale identifies potential solutions include implementing more efficient conveyancing processes, such as digital document handling and standardised procedures. Enhancing communication between parties, including solicitors, estate agents, and lenders, to reduce delays is key too, he believes, and providing clear information about the process and potential issues can help manage expectations. “To reduce the time it takes to close property deals in the UK, addressing these factors and implementing process improvements could be beneficial,” said Hollingdale. “At Mojo we are completely digital. We have everything on one system, clients con upload documents have a instant message system to myself the broker and their assigned case manager. If we had a way of all being able to communicate better and work as community rather than battling against each other it would make things a lot more streamlined. Sometimes it feels like lenders just don’t want to lend and I’m hitting my head against the brick wall.”
