Why conveyancing solicitors are even more important in a downturn

Times are tough and people may be looking to cut corners in order to make ends meet. However, if they are thinking of saving money on conveyancing solicitors, Essex homebuyers should think again.

For conveyancing solicitors, Essex has always been seen as one of the busier markets in the country. In a world in which house prices have been hitting record levels every month, Essex – with its high levels of property ownership – was always fertile territory. However, there are signs that the boom may be coming to an end. With a cost of living crisis on the horizon, people may be changing the way they buy, cutting those costs they see as being superfluous, such as conveyancing fees.

Tough times ahead for conveyancing solicitors?

For months, experts have been predicting a downturn in the property market, and for months, prices have defied them. However, data from the Halifax in July, should the first month on month drop in house prices since June 2021.

It was, in truth, not a dramatic slump. The average house price in July was down just 0.1% on the month before. Even with this decrease, the annual growth of house prices is still a very healthy 11%. However, it was a marked change in direction for a market which has been on a seemingly unstoppable upward trajectory.

Some are taking this as a sign that the much anticipated cooling off could be on its way.

“While we shouldn’t read too much into any single month, especially as the fall is only fractional, a slowdown in annual house price growth has been expected for some time,” said Russell Galley, the managing director of Halifax.

Experts have been predicting the market to level off for some time as borrowing costs rise and household incomes come under pressure. However, it is only now that the full scale of the challenges are becoming apparent.

The Bank of England is warning of a year-long recession and inflation rates hitting 13%. Interest rates have already been cranked up and will likely rise in the future pushing up the cost of borrowing. As banks become more careful about who they lend to, securing a mortgage could soon become a whole lot more difficult, even for those on good incomes.

As the Conservatives continue to try and select their new leader, there have been calls for Parliament to be recalled and for an emergency budget to deal with the crisis.

Amidst all this, people are likely to still want to buy property. However, financial pressure will tempt them to cut corners. In looking to save money on costs, such as conveyancing solicitors, home buyers may look to handle the work themselves.

This, of course, can create all sorts of other problems and excess costs. Conveyancing solicitors in Essex and elsewhere will still be vital to ensuring the smooth running of operations. However, they will need to do more to demonstrate their value and to consider the financial challenges people are facing.

Conveyancing may come with fees, but they can reduce the risks and save a whole lot of costs down the line. More importantly, at a time when money is tight, the demands on our time are growing. Rather than spending hours of every day digging through the minutiae of the finances involving your purchase, you can have skilled, trained and dedicated conveyancing solicitors in Essex do all the hard work for you.