Over half (51%) of homebuyers currently aiming to complete before 1st April have experienced delays with their purchase, with solicitor delays and a lack of material information ranking as the key causes, research from Moverly reveals.
A lack of pro-activity from solicitors ranked as the most common reason behind these delays, whilst the second biggest factor was their seller’s failure to provide material information.
The latter is a key aspect that can impact the former, as one of the most time consuming parts of the conveyancing process, in particular, is the collection of material information. This information is required for a number of key reasons before a sale can complete, such as details of restrictive covenants and HM Land Registry documents.
The dreaded chain also made the top three most common reasons for current delays across the property market.
GROWING CONCERN
As a result of these delays, eight out of 10 (82%) of homebuyers surveyed by Moverly are now concerned that they will fail to complete before 1st April this year and, in doing so, will be hit with an increased stamp duty cost.
Whilst three quarters (74%) plan to continue with their purchase and stomach this increased cost, 12% stated they would need to reduce the price they offered on their chosen property, whilst 9% would need to reassess their position in the market with respect to their mortgage.
And 5% went as far as to say that should they miss the deadline, they would need to pull out of their purchase altogether.
GRIND TO A HALT
Gemma Young, Moverly Chief Executive, says: “Nothing grinds the market to a halt quite like a stamp duty deadline, as heightened buyer activity puts a serious strain on the process of purchasing, particularly with respect to the conveyancing process.
“So it’s no surprise that half of those who have had an offer accepted since the Autumn Budget are now experiencing delays with the progression of their purchase and this number is only likely to climb over the coming months.”
SOLICITORS STRUGGLING
And she adds: “Whilst a lack of pro-activity from solicitors is cited as the key reason for these delays, the reality is that they are simply struggling with the increased level of demand for their services.
“Interestingly, a lack of material information on the side of sellers is also a key factor and, if addressed, would go a long way in reducing the strain on solicitors during the conveyancing process.
“For homebuyers hoping to find a property in the next three months, a seller with comprehensive material information is key, as this will put them in a considerably stronger position when it comes to progressing a purchase through to completion.”
