Why 'home movers' need to tighten their trainers

The property market continues to catch headlines, whether prices are up or down, city dwellers moving to the country or back again, or how long it is said to take to get the keys to a new home. 

Following the dramatic 30% fall in the number of sales agreed in the aftermath of last year's mini-budget, mortgage rates soared, and there were concerns that double-figure inflation and the cost of living crisis would put a permanent dampener on the property market. But those fears look to be mistaken, with the latest figures from the property portal Rightmove showing that the number of sales agreed is on the rebound and just 11% down on 2019.

But while markets may be calmer, it's a 'new normal' with a much-extended timeframe from putting a property on the market to completing the paper process and moving home. The time taken to achieve a sale has risen by 50% to 65 days compared to a year ago, with the time to exchange up 5% to 139 days, according to property data specialists TwentyEA.  

The slowdown is due to several factors. The market has had to contend with a massive backlog during the pandemic while also experiencing a surge due to the stamp duty holiday that reduced the cost of moving from 2020 to 2022. According to Rightmove, 44% more homes sold subject to contract in June 2022 than in 2019.  

The vast volumes are putting a strain on conveyancing departments, where pressures are compounded by many firms likely to be involved in any individual property chain and those involved in the many connecting strands of sale and purchase. They include the Land Registry (the government department responsible for registering property transactions), local authority departments, and lenders. 

In most cases, when a property is sold, the buyer will have a 'local search' carried out to check there are no planning restrictions that could impact the future property value. Record numbers of search requests have put extra demands on the process. Some local authorities are taking as much as a month to handle these requests.  

Similarly, mortgage lenders are under pressure, with the time it takes to secure a formal offer typically taking up to six weeks.  

Wendi Coupland, Executive and Associate at Warner Goodman, says: "It may sound inconceivable, but for those hoping to celebrate Christmas 2023 in a new place, this spring is an excellent time to start getting paperwork in order before putting up the sale board. It's like preparing for a marathon in today's market, as it's not unusual for the sale process to take as long as six months."

"In these conditions, buyers need to ensure they have their mortgage offer agreed, and sellers need to be well prepared before they instruct an estate agent. "This approach can make the difference between a failed sale and getting over the finish line to completion."

For sellers, preparation includes checking the location of any relevant deeds and conveyancing documents from the original purchase and documentation to cover any modifications to a property that required planning permission or building regulations consent. For leasehold property, any works requiring approval by the freeholder will need to be documented too. This can save valuable time at the start and during the sale transaction. 

And any electrical or gas installation will need a certificate to show that the work has been adequately carried out in accordance with applicable regulations by a suitably qualified engineer. Similarly, new oil boilers or oil tank installations should have an OFTEC certificate, and new windows should have a FENSA or CERTASS certificate.  

While the Land Registry holds a lot of properties as an electronic entry, any property that has yet to be sold, mortgaged or transferred since before 1990 will need to be subject to a digital registration, which requires the original deeds.  

Wendi added: "Sellers who are race-ready before they go to market will help to ensure their solicitor can examine the title, line up all the paperwork, anticipate any problems and deal with them in advance. It's a tactic that avoids delay later and means they are ready to act immediately when a buyer is found."

"And for those chasing the perfect property, with a continuing shortage of new instructions coming onto the market, make sure you are the best bet, not just the highest offer. Sellers will choose the safe option to keep their move as smooth as possible. Buyers who instruct solicitors, get their finances in order, and mortgage offers confirmed will show sellers they are serious. Some even go into a rented property to be chain-free and flexible on completion dates."

Whether you are buying or selling a property, let us help prepare you and guide you smoothly through the process. For a conveyancing quote or for help and advice about buying or selling, please get in touch with our Residential Conveyancing team on:

• Fareham: 01329 288121
• Southampton: 023 8063 9311
• Portsmouth: 023 9275 3575
• Chandler's Ford: 023 8071 7467
• Waterlooville: 023 9277 6569

Or email our team at enquiries@warnergoodman.co.uk.