Council for Licensed Conveyancers Conveyancing 2030 www.clc-uk.org A DISCUSSION PAPER CLC Conveyancing whitepaper www.clc-uk.org

Welcome About this Discussion Paper I am pleased to introduce our Discussion Paper on the future of conveyancing. While it is not the role of this paper to necessarily It is an exciting time to be involved in the property sector as technology rapidly replaces the old ways of operating. We are probably just a few short provide answers to all of the issues raised, we years away from a fully digital conveyancing system that promises a faster do use it to highlight areas that we believe raise transaction and a better experience for all those involved. questions that will need answering by regulators, Digitalisation will open up a range of opportunities for improving the home those in conveyancing and wider stakeholders buying and selling nexperience for consumers. But it will not come without who will affect and influence how conveyancing risk, and this paper explores how the conveyancing market is already changing and could be radically reshaped in the years to come. This change points to will develop. questions for the CLC as the specialist regulator and for conveyancers as they seek to develop their businesses. In the latter part of this paper, you will find While there are many areas of the law where there is little public pressure for questions and issues we have identified as Janet Paraskeva - Chair, reform, that is not the case for property and efforts to speed up the process Council for Licensed Conveyancers coming out of our research. We know we have are already underway. This report examines the longer-term trends and posits a future where the conveyancing market could look very different from today. not identified them all, but we will use these and others over the coming year to help us We do not expect paper and typewriters to suddenly make a resurgence, develop our thinking. nor to see a return to personal completions. Instead we expect smart homes to enable properties to maintain an up-to-date electronic logbook that automatically collates much of the information that conveyancers are currently We encourage you, the readers of this discussion tasked with gathering. In other words, we could bring into existence a ‘digital twin’ for each property. paper, to join us in developing the thinking and contribute to shaping what conveyancing may Our aim is to help licensed conveyancers and others think about the impact of look like in 2030. these changes on their businesses. Of course we do not seek to offer a future- proof strategy –but to encourage those we regulate to give early thought to what is coming their way.

The changes detailed in this Discussion Paper also present significant challenges for the CLC as a regulator. How might we need to adapt our regulatory model to an era of artificial intelligence, for example? We don’t pretend to have the answers, but this report is further evidence that we are actively thinking about the issues and what our response should be. We urge others to do the same and would love to hear your thoughts too. ? 2030

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Future 1 There have been attempts in the past Future 3 Improving the UK’s standing in the Future 5 to use technology to improve the World Bank’s Ease of Doing Business What we Conveyancing will It’s all about the data The shape of the home-buying process, such as the index has previously been of concern be a fully electronic conveyancing Land Registry’s Chain Matrix system Issues identified by the to Government. A low ranking on discuss process by 2030 market will change back in 2007. However, none have CLC for discussion: the ease of property transfer drags After assessing how Issues identified by the yet come to fruition, perhaps because down our overall rating. Would Issues identified by the matters have developed CLC for discussion: they were ahead of their time. What The centrality of data to the future changes such as BASPI and the CLC for discussion: over the last decade are the barriers to success and why raises big issues that are already live other work of the Home Buying and As conveyancing becomes ever more may the next decade be different? in other sectors. If the data becomes Selling Group have a material impact Conveyancing businesses are exposed and examining current automated, what are the implications the single source of truth, then what on how easy it is to move and so to many factors out of their control, trends this paper looks for how the consumer is protected? The Government have previously needs to change to ensure all parties increase our performance against including the overall condition of the Will digital conveyancing demand ruled out mandating changes, can trust the data? Who will validate competitor nations? economy, the state of the housing at a range of potential a new regulatory approach or will but is this incremental market led the information and who becomes market, and changes in attitudes future developments. principals of legal businesses remain approach the right way? Should responsible if that data is incorrect or and demographics. CLC practices accountable for the output of the e-conveyancing be mandated? It something goes wrong? recovered from the credit crunch The analysis raises technology they either develop would undoubtedly have a huge Future 4 better than others but how do we themselves or buy-in? To enable data to flow across the ensure that firms are able to prepare questions and issues impact on the market, with the long The conveyancer’s tail of ‘part-time’ conveyancers less system and to allow interoperability, role is going to themselves for future disruption? for us to consider as a While it is possible to envision a likely to have the ability to cope there needs to be agreed standards change regulator and we hope time when technology could replace with this. But if progress is too slow, for the data itself. Should the Will new business models need Issues identified by the that you will also feel the conveyancer, will clients ever when should government move from standards be developed by consensus to emerge and will the existing be prepared to have a purchase as encouragement to compulsion? or is there a role for Government CLC for discussion: predominate model of the practice you wish to engage with significant as a property transaction or others? survive? How may legal businesses these and the wider proceed without the involvement of What are the new skills conveyancers need to structure to ensure they can a qualified lawyer to advise them and Future 2 As providers begin to develop may need to succeed in this new compete and will this entail different matters it discusses. world? Will curriculum for trainees ensure their interests are protected? Money and financial different standards and seek to forms of entity and different need to change and can ongoing information will impose their approach, is there a funding models? training support those who are Technology also has the theoretical move around risk that they effectively become already working in conveyancing? potential to enable ‘unbundled’ quickly and securely non-statutory regulators mandating Disruption in many sectors has conveyancing, with the consumer change without any oversight and Will it be the role of regulators to set been driven by consumers availing taking on more of the process for Issues identified by the imposing additional burdens on competences in this area? themselves of the new technology themselves. This, though, raises a CLC for discussion: businesses? There are already many and so driving change. But given number of issues that will need to be similar pressures on conveyancers How do we ensure users of systems that home purchases are a rare tackled for it to become a reality. How As new risks emerge, is the regulatory from other players who set rules for understand why they have to do occurrence for most, consumer will the conveyancer’s responsibility system ready to ensure that those engagement in the process. something rather than just what they influence may be less powerful and to other parties (such as lenders) risks are managed effectively through have to do? less effective in driving change. So be protected? Will consumers regulation by legal and financial Can insurance play a role in providing where will the power and influence understand and be willing to take on specialist regulators? a backstop if things go wrong Do regulators have a role in to drive change reside? additional risk? Who becomes liable if for consumers or is the potential facilitating the use of new technology things go wrong? Will the insurance As new solutions emerge, there are detriment such that we need different within regulated businesses? market develop products that will multiple regulators with a potential safeguards? enable conveyancers and consumers interest in property transactions, to share risks? Just because it may including legal, financial and be possible for this to happen, will it information. Should legal regulators actually be a positive for consumers? take the lead in developing common How will it affect the profitability of standards for providers or is this a The legal market for conveyancing practices? These are financial regulation matter? conveyancing remains challenging questions that we do not highly fragmented, attempt to address in this paper. although it is – very slowly – consolidating.

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Future 6 Does the potential for regulators to have access to the technology being Regulators will used in firms allow for more rapid need to be flexible real-time intelligence and compliance to keep up monitoring? What should the Legal services are Issues identified by the relationship be between regulators CLC for discussion: and the technology developers increasingly being judged and does this mean that regulators against a range of other Will new technology require changes need to become more involved in digital service providers in the way we regulate to ensure the development of technology public protection? Is an outcomes- specifications? that are much more focused structure where responsibility advanced, and this will ultimately resides in the principals of As Professor Mayson argues, does become increasingly regulated businesses still the best way the current regulatory structure to deliver protection? provide an incomplete and limited problematic for law firms. framework for legal services As the AI ‘black box’ begins to guide regulation that will struggle in the legal decisions, will legal regulators near-term and beyond to meet the need to widen their remit to cover demands and expectations placed the technology firms developing on it? If so, how does the regulatory the systems used by conveyancing system need to adapt to ensure it is practices? ready for future changes?

The CLC will be returning to the issues identified in this discussion paper over the coming year. We would also be keen to hear your views.

“We always overestimate the change that will occur With these same expectations in the next two years and underestimate the change beginning to impact the property industry, the question is the degree that will occur in the next ten,” to which this will flow through to said Bill Gates. He may not have been speaking about conveyancing, but he conveyancing. could well have been. There are constant headlines about In a world of rapid technological We live in an age of technological robot lawyers taking over, new forms change, automation and instant change which is continually reshaping of home ownership, and radical purchasing, it is entirely possible to consumer expectations. Customers reform at every stage of the home- envision the conveyancing process of no longer differentiate between buying process. Is any of that change 2030 based on a range of Amazon- industries: where they may have going to hit in the next two years? style one-click websites with the once compared the experience at By the time we reach 2030, will legal professional replaced by an AI two supermarkets, now they will conveyancing and those who deliver chatbot and the human involvement measure the supermarket against it have gone through a revolution? a receding memory. While this can Uber or Amazon. At the same time, Which of those possible changes be pictured, it is perhaps harder to customers increasingly have the will not have happened and which imagine that parties to such major guided technological literacy to others might have surprised us? Please feel free to email us at [email protected] or complete the transactions will be happy to dispense interact with more advanced systems That is what this Discussion Paper online form at https://www.surveymonkey.co.uk/r/Conveyancing2030 with advice from a trusted legal and so undertake more complex aims to investigate. professional in such a relatively tasks themselves. We look forward to your engagement. short timescale.

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We now have a range of disruptors On the technological side, most A few years ago, we looked back at the experience of The last in the market such as, to name just people were still using PCs based the CLC community through the credit crunch, when three, Purplebricks, Nested – an agent on Windows 98 and this was the 10 years that enables sellers to move chain year Apple launched the iPad, while from 2007 to 2008 transaction numbers fell by two- If we had written a free by advancing the seller money on Facebook passed Google to become thirds. We saw a similar fall in the turnover of CLC the sale before it has been agreed – the world’s most visited website. firms. But CLC firms recovered, in terms of turnover, report like this in 2010, and Settled, a fixed-fee online agent The app-store model pioneered by would we expect to be that aims to make a property ‘buyer Apple took off in a big way in 2010, sooner and faster than the overall property market. ready’ earlier in the process than now. signalling a paradigm shift in how So it seems that, coming out of that crisis, CLC- where we are today? programs were purchased. Could regulated firms secured a bigger market share for Much of the OFT’s concern in relation we have anticipated then that our Probably not – 2010 was a to conveyancers was the role of text and data use on phones would themselves. And we are again seeing steady growth challenging time to be a conveyancer. referral fees in securing instructions far outstrip our voice calls by the in their market share despite the challenges of the We were still in the eye of the from estate agents’ customers – 20% end of the decade? And IT advisory global and domestic economies and the political financial storm that had begun two of buyers and 29% of sellers used a firm Gartner was recommending years earlier. Residential conveyancing lawyer referred by the seller’s estate that organisations think about their uncertainties that abound. transactions, which had peaked at agent, its research found – while it approach to cloud based computing 1.6m a year in 2006, were at 900,000 also predicted that “in the longer- services. in 2010 (having been even lower in term much more of the conveyancing Where are we Search Acumen’s Q2 2019 The conveyancing market 2009), so the industry was gloomy, process will be conducted online.” Conveyancing Market Tracker found The legal market for conveyancing even if many lawyers were cheering in 2020? that quarterly conveyancing volumes remains highly fragmented, although the new Coalition Government’s The Government’s response to the dropped below 230,000 cases for it is – very slowly – consolidating. immediate ‘suspension’ of home study said it had no plans to reform Though transactions the first time in two years (228,994), information packs – a suspension that the home-buying and selling process have picked up a little 10% lower than Q1 and 20% lower Earlier in 2019, Search Acumen has never been lifted. But as we will at that time, but it was keen to see BUY than the same period three years research found that the number explain, the identified need for more the take up of e-conveyancing and in recent years, to earlier – before the EU referendum – of active conveyancing law firms comprehensive up-front information the innovative use of technology. around 1.1m a year, when the number of transactions dropped below the 4,000 mark for on the property for sale has not gone was 286,485. the first time (3,961) – having been away and industry is now looking at Based on an average cost of the market seems around 4,800 in 2011 – while the new ways of providing it. conveyancing to a buyer of £750, and to have settled at a Aside from Brexit, there are longer hold the largest practices have on the to a seller of £550, the OFT estimated plateau, with no sign term demographic reasons for this market was strengthening. The data Also in 2010, what was then the that the conveyancing market value in – the average age of the population for Q2 2019 showed that the top 200 Office of Fair Trading (OFT) published 2007 was around £2.08bn, falling to of a return to is increasing and older people tend conveyancing firms controlled more a market study of home-buying £1.17bn in 2008 following the global pre-recession levels. to move less often, while about half of the market (39.7%) than ever and selling services. This found a economic crisis. It expected it to fall of the population increase in recent before, compared to 31.9% eight market dominated by traditional again for 2009, to about £1.05bn. years is as a result of net immigration years earlier. estate agents with weak competition Even if it were double that today – CLC research indicates and, at least in the short-term, between them on price, and and Law Society research indicates it immigrants are less likely to become Consolidation is happening among recommended updating legislation to has not moved much – it would still that the ABSs it regulates homeowners. big and small firms alike: last year encourage new business models and represent well under 10% of the legal – which tend to be Palamon Capital Partners acquired allow new entrants into the market. profession’s income; some 50 years larger practices – have And then there are shorter- My Home Move – owner of CLC- ago, around half of its turnover came term financial issues, with many regulated Premier Property Lawyers from conveyancing. embraced technology homeowners choosing instead to and Advantage Property Lawyers – to and innovation with extend rather than move, driven no create what is the by far the largest significantly more doubt by the high levels of stamp conveyancing business in the country duty, the disappearance of 100% enthusiasm than in combination with its existing mortgages, and stricter mortgage investment, the Simplify Group, non-ABSs. eligibility criteria. which owns other CLC-regulated property firms DC Law and JS Law.

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Then in August, private equity As this paper explores, new Whether the process was longer than expectations (%)1 company Inflexion acquired two technology as well as access to more Process of the biggest volume providers: and more reliable data may have a 23 Buyers Stockport-based O’Neill Patient – more profound effect on consumer pinch-points Much longer 25 Sellers consistently one of the five biggest behaviour, but the starting point According to a survey conveyancing firms when judged of enabling consumers to have an 36 by Land Registry applications – and informed choice in their decision as A little longer by Which? in 2015, 32 Stoke firm Grindeys, which is in the to which lawyer they appoint should people find buying top 20. already have begun to drive some About as long 39 changes against the background of a or selling a house as expected 38 This activity comes against the wider evolution of consumer attitudes more stressful than background of the Competition and towards service providers of all kinds. 1 arranging care for an A little shorter Markets Authority’s (CMA) report 4 on legal services in late 2016 that Regulators are now starting to elderly relative, having 1 identified conveyancing as an area of explore what quality indicators may a child, changing jobs Much shorter law where consumers were receiving look like in relation to legal services, 1 inappropriate advice and poor quality thus raising the potential for further or getting married. of service in certain circumstances – it contributions to consumer choices. has long been the case that around With it generally estimated to take Why buyers and sellers found the process complicated a quarter of complaints made to around 14 weeks to get from offer Buyers % Sellers % the Legal Ombudsman are from to completion, the lengthy period creates even more stress and conveyancing clients. Issues with solicitors/conveyancers 24 31 worry as fears about failures in the Took too long 20 19 Subsequently the frontline legal process increase stress. regulators introduced new transparency Issues with seller/buyer 19 23 requirements, mandating cost and Research by the Department for Lack of communication 9 15 Business, Energy and Industrial service information that regulated legal Issues with estate agent 7 15 Strategy in 2017 found that, service businesses needed to provide We’re fiddling around at with the aim of ensuring customers for 38% of buyers and 41% were better able to make an informed the edges at the moment of sellers, the time taken from choice of provider. While it is too soon – there’s no appetite offer to exchange of contracts Inevitably, when transactions take this length of time, there is more capacity took longer than they expected. to know how consumer behaviour may to review the actual for things to go wrong, and the government estimates that between a change, early indications are positive: Those experiencing delays quarter and a third of purchases fall through, at an average cost to a party the CLC’s 2019 Annual Regulatory process itself. There’s tended to hold the other party’s of around £700. Return found that 27% of the firms we some good stuff going on conveyancer responsible, with regulate said customers have started around leasehold, more nearly half (47%) of buyers to shop around more in the last year blaming the seller’s lawyer, and when choosing a legal services provider. upfront information and 58% of sellers blaming the reservation agreements, buyer’s lawyer. but ultimately we want a transformation of the conveyancing process. Eddie Goldsmith

1. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/ file/653581/buying-selling_homes-research.pdf

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The role of technology Providers whose main market He finds it “extraordinary” that you By last October, HM Land Registry But that research found new delivery There has, unsurprisingly, been a big segment was residential conveyancing can stand in someone’s kitchen, shake celebrated registration of the 1,000th models were “embryonic”. It said: “The focus on the use of technology, with were among those most likely to hands and agree to buy a property digital mortgage deed. It said adoption of technology (most notably the MHCLG saying in 2018 that; undertake any or all of the activities. without even knowing how the seller some customers have been able to mobile) is key here and is forcing This is probably because of the tighter would answer “some really basic complete the remortgage process service providers across all sectors to “conveyancers should margins and strong consumer focus questions which might completely in three days, 18 days less than the invest in the digital experience.” be encouraged to move shared by those firms. deter you from buying the property. average for a paper transaction. towards using a digital You haven’t even seen the public HM Land Registry said it planned It quoted the business development It is also positive for conveyancers information which is readily available to expand the service to all home director at a large conveyancing firm platform that allows them that alongside a thriving proptech to help make your buying decision.” owners in the future. on how this might impact law firms: to communicate more and legaltech market, HM Land “Consumers are no longer comparing easily and have a chain Registry is taking a lead. Its stated This is why HM Land Registry In April 2019, HM Land Registry their digital experience with what goal is to become the world’s leading has developed its digital local also successfully tested a prototype BUY view, and [we] will be others are doing in their service sector land registry for speed, simplicity and land charges service. Under the blockchain involving the digital (for example, HSBC v Barclays), but working with industry to an open approach to data. Key to this Infrastructure Act 2015, responsibility transfer of property ownership are ranking one service provider make this happen.” is digitising services that will make for the 316 local authority registers is as a means of speeding up the against the best regardless of sectors the process of buying and selling being transferred to the Land Registry conveyancing process. However, it (for example, HSBC v Amazon). Signs of changes It also pledged to work with the property easier. in a phased approach, beginning in was simply a “proof of concept” to summer 2018. ensure the registry was up to speed In an initiative led by the Ministry industry and other public sector “Legal services are increasingly being To enable this, in 2017 it launched with the potential of distributed of Housing, Communities and Local bodies to encourage the development judged against a range of other Digital Street, a research and Says Mike Harlow: ledger technology. While blockchain Government (MHCLG), reservation of digital signatures, improve the ID digital service providers that are much development project exploring how is used for land registration in at least agreements are set to be tested to verification process and promote the “We are doing what we can do as more advanced, and this will become land registration might work in 2030. one other jurisdiction, it is not clear combat this problem. Both seller adoption of e-conveyancing. a public sector organisation and increasingly problematic for law firms.” that the technology is necessary for and buyer sign one after an offer Land Registry to make data properly Mike Harlow, acting chief executive these purposes. is accepted, with possible financial There are something like 400 digital and properly available in all of A number of lawtech providers of HM Land Registry at the time of consequences if one later pulls out proptech companies in the UK, of the ways that people might want to are developing mobile solutions speaking, explains: Conveyancing is particularly responsive of the transaction, depending on which nearly 60% are focused on consume it and repackage it and sell specifically for business-to-consumer “The important thing for us is to to lawtech and automation, because the reason. residential, according to Unissu, it or present it.” law firms, but this is still not a which tracks proptech solutions from make sure that what we do it is extremely cost competitive and mainstream experience for customers tomorrow helps the industry develop. conveyancers are anxious to meet The MHCLG believes the agreement around the world. Its other recent priorities have been as law firms remain reluctant to invest If we do tomorrow what we have increasing client expectations around will encourage sellers to sort out how smart contracts can enable in technology, the report found, done for the past 157 years, we will the customer experience. early on (ideally before marketing As in most sectors, there are sharp interactions with the land register; the even when consumer behaviour and be a drag anchor on the economy the property) problems that might differences in technology take-up benefits, and possible applications, expectation is more advanced than because we will still be asking The Law Society’s Lawtech Adoption otherwise come up later in the between different businesses. CLC of distributed ledger technology what is currently being offered by conveyancers to submit what looks Research, published last year, said: transaction, as they could lose research indicates that the alternative (blockchain) for land registration and most law firms. like paper applications in an “Automation and digital solutions money if the buyer pulls out as a business structures (ABSs) it regulates conveyancing; and how identity can electronic form. are slowly filtering through, result of them. – which tend to be larger practices be checked once and shared securely “However, the research suggests – have embraced technology and across the buying and selling process. particularly where law firms are that self-service law with minimal “So, we are keen to understand beginning to deliver more services Reservation agreements might innovation with significantly more interaction with lawyers is not that what the future looks like. What can online. Conveyancing volumes in prove more attractive when another enthusiasm than non-ABSs. There have already been significant far away. One B2C law firm executive we do to enable that to happen? the larger, more commoditised and proposition is in place – the provision milestones. In April 2018, the said: ‘We would like to become a Because we are a monopoly, we have industrialised providers allow for of more reliable information about This is consistent with wider findings first digital mortgage deed was self-service law provider enabling to understand what our role is in process automation that can drive properties for sale during the by the Legal Services Board, published signed and entered into the land individuals to do conveyancing via an enabling the market place to be the down the cost to serve. Examples marketing stage. This will mean in late 2018. Of the six “innovation register, with applicants using the app on their phone, with notifications, best that it can be.” here include Land Registry integration buyers can make an offer with greater activities” it measured – ranging from Government’s Verify system to prove payment through Android or Apple tools, production of welcome packs, confidence that the due diligence will low-level to radical innovation – larger their identities. Pay. There would be no need to call up and some mobile app services not throw up unexpected obstacles. providers were far more likely to or log on to portals. Providing direct undertake them than small providers. sharing information such as project access via a phone will get things “Indeed, as the number of employees milestones or automated notifications enacted much faster.’” doubles, the probability of innovation with the client.” increases by nearly a quarter,” it said.

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The Home Buying and Selling Group “So you could look at a property Upfront is a stakeholder body set up to assist on a property portal with a ‘Lender The Forces MHCLG in developing and testing approved’ banner across it that will information improvements to the home buying make it clear that this is a title that is of change and selling process as identified acceptable to the major high street While Home by the department through its call lenders,” she forecast. Similarly, The UK in 2030 – Information Packs are for evidence. HM Land Registry is working with the wider context a thing of the past, the Nationwide Building Society, which The upfront information sub-group has wants to access Local Land Charge idea behind them – created Buying and Selling Property data instantly to inform its decisions Brexit makes it hard to that buyers should have Information (BASPI) – which has been in principle on mortgage and predict where the UK described as intended to deliver “one remortgage applications. economy will be in 10 access to a lot more source of truth” about a property. information about the She adds: years’ time, although property at the start of As Beth Rudolf, director of delivery Because we would like to see it a report last year from the process – is once at the Conveyancing Association available in digital format, it could be Standard Chartered and one of those involved in the signed digitally and supported by predicted that the UK Consumer behaviour Smart homes again the focus of development of BASPI, puts it “What biometric identity verification for the will have fallen out of Certainly, consumer behaviour will Connected homes are already much work. we really want is information that is seller to establish that they own that have changed significantly by then becoming the norm for many, completed at the beginning of the identity and that it is the identity of the world’s 10 biggest as Generation Z (anyone born since whether through virtual assistants like transaction before the property goes the registered proprietor? How far economies by 2030, 1996) matures. Global management Alexa, smart meters or doorbells with on the market so that the buyer can would this go in terms of eradicating as Asian countries’ consultancy AT Kearney’s Global cameras that allow you to see who is make an informed choice.” seller impersonation fraud and Future Consumer Study predicts that, outside your house from wherever in reducing claims, which in turn would GDP rises. while older generations will have the world you may be. This trend will This will be completed at the point reduce conveyancers’ insurance affluence, younger ones will have only accelerate. of marketing and pre-populated with premiums that have currently reached The most recent UK population figure influence, driven by personal values – “authoritative” data that is available an eye-watering high this year is 66.4m in 2018, according to the rather than the value inherent in A 2017 report by smart home electronically. Around a third of the thanks to several big claims? That Office for National Statistics, and it is the product or service they are technology company Andrew Lucas required data is currently available is all possible and would create a projected to pass 70m by mid-2029. consuming – and hyper-connectivity, International foresaw that, by 2030, that way and the seller will be able significant improvement across the This represents a slowing down of “where markets can be moved such technology will have become a simply to confirm whether it is entire process for all stakeholders.” growth as people live longer and have through the amplified power of an standard feature in houses: correct or if anything has changed. fewer children. individual voice.” “Technology-focused new builds will The form will also be intelligent, for The key to the next stage of progress, “The ways in which people live create homes that are both extremely example recognising that certain however, will be a data standard It will in future be trust, influence are also changing with cohabiting environmentally friendly and more searches are appropriate for the that enables all of the parties’ and personalisation – rather than families the fastest-growing family resistant to environmental threats property’s postcode. different systems to talk to each affluence, advertising and scale – that type and more young adults living such as floods and fires.” other. Agreeing data standards and drive the market, the study says. It will be accessible to the buyer with their parents,” a scheme of the data with agreed Artificial intelligence will play a prior to the offer as well as lenders, it added. fields and metatags is also part of the Euromonitor’s Households in 2030 major role in the house of 2030, and sent to all parties with the group’s work. report says single-person households According to a PwC forecast in 2018, with predictive algorithms, inference memorandum of sale. This will include will see faster growth than any this slow-down in population growth engines and deep-learning networks the valuer, reducing or eliminating Lawtech firms are already looking other household type globally, a means that, if the Government could helping smart home technology the need for post-valuation enquiries at digitising BASPI and investigating trend driven by younger singles achieve its pre-election target of to contextualise its surroundings. that currently do so much to lengthen how it could be integrated into exchanging relationships for careers building 300,000 new homes a year “Facial and voice recognition could transaction times. their systems. and education, as well as the growing in England, this should exceed the immediately recognise various widowed and divorced elderly group. members of the household and Ms Rudolf also suggests that increase in housing demand from It will also be a more urbanised provide informed responses to open- lenders should have access to all the projected population growth and world, with more people living in ended questions, as well as alter information out there on a property should therefore start to make up the flats. “Countries such as China, Brazil settings and trigger systems to create to identify whether that property is backlog from past under-supply. and the UK will see surging growth in an ideal living environment without suitable for their own lending policies. apartments through to 2030,” it says. the need for any human interaction.”

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A 2016 report by the NHBC In 2016, Shelter produced a report Shelter said: Foundation, The Connected Home, entitled The future of house and “Taking this set of What does this all mean looked ahead to developments home: Scenarios for 2030. It like self-diagnosing and reporting details a housing crisis that has scenarios as a whole, it for conveyancing? mechanical and electrical systems, developed from declining volumes of is clear that although such as boilers, heat pumps and building, increasing prices, reducing our housing problems In a study of the Australian conveyancing mechanical ventilation units that will affordability, and a dramatic shift are deeply rooted, diagnose their own faults, schedule in tenure. market, the consultancy firm Deloitte identified routine maintenance actions and they are not inevitable. two “critical uncertainties” through which request appropriate action from a It went on to lay out four scenarios Things can get better, different futures could be imagined. central service company. This takes (not predictions) detailing possible but that depends on the us towards the idea of properties futures for housing and the home, having and automatically updating depending on different institutional choices that we decide The degree to which The visibility of conveyancing as their own logbooks, which we and political decisions, and different to make as a society.” conveyancing is digitally enabled a distinct or embedded service: consider further below. values about the purpose of the versus digitally led: how fast actors the extent to which customers home. In summary, these were: take up continued digitisation, move and the industry move toward This all has to be seen against Access to internet-enabled tools at towards automation and integrate purchasing conveyancing as a • Growing Local: Housing is the backdrop of ever-rising house a property and the data they hold, new technologies into the industry separate, standalone service, or devolved to cities and regions. prices, although according to will need to be considered as part of such that conveyancing becomes a to which it becomes horizontally Homes are more connected to KPMG’s Outlook for UK housing the transaction in future too. Work digitally enabled service delivered integrated into other elements of Housing trends shared spaces, but provision is prices report in September last will need to be done to ensure that by people, or a digitally led service the property transaction process – The UK experienced the largest fall geographically uneven. year, the market has been “stuck necessary data is preserved while requiring less human input. This will such as real estate sales or banking in home ownership of any country in the slow lane since 2016”, with the privacy of both seller and buyer • Bricks and Mortar: A large scale be dependent on investment cost, and mortgage broking. This will be in the EU since the financial crisis. annual house price growth slowing is protected. national housebuilding programme customer demand, Government dependent on customer preferences, According to data compiled by to 0.9% in June 2019, from a rate is the backbone of an economic regulation or the industry working industry business models, cost and Bloomberg Economics in 2018, the of 8.2% three years earlier. regeneration plan. Housing is together to establish new standards. competition. proportion of people owning their regarded as a right, but for cost own home collapsed from 73% in At the time of writing, the impact [The future of the Australian reasons most new houses are 2007 to 63% in 2016. And as many of Brexit is the great unknown conveyancing industry 2025 and compact, flexible and modular. younger people see themselves as and makes predicting house prices 2030, Deloitte 2018] priced out of the housing market, it • Rent Radicals: The generational in 2030 difficult – although if may be that Britain’s love-affair with impacts of expensive rented longer-term trends re-establish being a property-owning democracy housing, and its high public costs, themselves, then prices could has waned. leads to intervention in the housing increase by more than 50% Reliable, trusted data will market. There is a fairer market, by then. be the cornerstone of the Or it may come in different ways. One but attitudes to housing and home idea that has been floated is collective tend to the functional. digital property market home purchasing schemes. and will be integral to the • Ragged Edges: Home ownership is promoted in the face of falling A Which? report Consumers in 2030 – e-conveyancing process. numbers of homes bought through albeit published in the pre-Brexit days a mortgage. The home remains a of 2013 – suggested that the increase nest egg – but is, increasingly, also in life expectancy over the coming a ‘cocoon’ – a place of retreat years would decrease the value of and security. many people’s estates, as savings are used to top up pensions, or are eaten up paying for care. Which? suggested that a scheme that allows online ‘teams’ of home-buyers to take out low-interest loans and support one another to make repayments, would be an attractive solution.

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Future 1 A 2018 KPMG analysis into the The UK is heading in the same Issues identified by the benefits of e-conveyancing in direction as PEXA – especially as CLC for discussion: Conveyancing will Australia found that the electronic the Land Registry intends to have PEXA be a fully electronic platform not only reduces the all land in England and Wales As conveyancing becomes ever more process by 2030 potential risks associated with registered by 2030 – but neither as automated, what are the implications human error during a conveyancing quickly nor in such a focused way. for how the consumer is protected? This seems less a hypothetical and transaction, but also delivers time and In its 2018 response to the call for Will digital conveyancing demand more of a racing certainty. cost savings. evidence, MHCLG predicted that a new regulatory approach or will progress towards e-conveyancing principals of legal businesses remain It is instructive to look at Australia. It PEXA has already handled more than would be made “via a large number accountable for the output of the has led the world on e-conveyancing, two million transactions. The Deloitte of small increments rather than a technology they either develop creating PEXA (Property Exchange report predicted that, by 2022, the single panacea.” themselves or buy-in? Australia). The system provides an majority of transactions would be online secure ‘workspace’ which conducted electronically. It continued: “We do not think While it is possible to envision a allows each participant in the that mandating a move to time when technology could replace transaction to talk to each other. All Eddie Goldsmith, a founder, former e-conveyancing through legislation the conveyancer, will clients ever the documents are created within the chairman and now executive would be helpful at this point, be prepared to have a purchase as workspace, signed and lodged online member of the UK’s Conveyancing although we acknowledge that this significant as a property transaction This means conveyancers use PEXA to Association, explains that, at the time has been successful in countries proceed without the involvement of liaise with their client’s bank, conduct PEXA was introduced, conveyancers such as Australia. However, we do a qualified lawyer to advise them and title searches, lodge documents and in Australia were still undertaking want progress to continue to be ensure their interests are protected? transfer funds – paying any duties, personal completions. Now, it is made, so we will be setting up a taxes and other disbursements along way ahead of England and Wales, technology working group to help Technology also has the theoretical There have been attempts in the past the way – and ultimately register the and conveyancers are still involved drive through changes. potential to enable ‘unbundled’ to use technology to improve the transaction with the appropriate state – evidence that end-to-end digital conveyancing, with the consumer home-buying process, such as the land registry. conveyancing is not their death knell. “Amongst the first items this group taking on more of the process for Land Registry’s Chain Matrix system will look at is digital signatures themselves. This raises a number of back in 2007. However, none has yet PEXA is the result of a concerted “We’re fiddling around at the edges and ID verification. We are also issues that will need to be tackled come to fruition, perhaps because political effort that began in 2008 at the moment – there’s no appetite investigating routes to market for for it to become a reality. How will they were ahead of their time. What that saw various states gradually to review the actual process itself,” innovative digital solutions.” the conveyancer’s responsibility are the barriers to success and why adopt an e-conveyancing law. The he argues. “There’s some good stuff to other parties (such as lenders) may the next decade be different? first full online transaction was carried going on around leasehold, more Whether e-conveyancing is mandated be protected? Will consumers out in New South Wales in 2014 and upfront information and reservation or not, the trend for conveyancing to understand and be willing to take The Government have previously that state continues to lead the way, agreements, but ultimately we become increasingly concentrated in on additional risk and who becomes ruled out mandating changes, with all property transactions in the want a transformation of the specialist firms is likely to continue. liable if things go wrong? Will the but is this incremental market-led state moving online last July. conveyancing process.” Whether it is owing to the rise in insurance market develop products approach the right way? Should professional indemnity insurance that will enable conveyancers and e-conveyancing be mandated? It Paul Denny, a conveyancer who For him, that future is similar to premiums, the need to invest in consumers to share risks? would undoubtedly have a huge took part in that first transaction, Australia, where a home buyer will go technology or specialist requirements impact on the market, with the long said: “When we don’t do a PEXA to an estate agent, find a property, to combat fraud, we can expect the Just because it may be possible for tail of ‘part-time’ conveyancers less settlement now, it’s a real hassle. put down a holding deposit and trend will be away from generalist this to happen, will it actually be likely to have the ability to cope Looking back to the old method, agree a completion date for 60 or legal businesses undertaking a a positive for consumers and how with this. But if progress is too slow, in retrospect, it’s so archaic. Now 90 days hence, leaving the office modest number of conveyancing will it affect the profitability of when should Government move from that people are on board, it’d be knowing they are going to buy it. transactions each year. conveyancing practices? These are encouragement to compulsion? extremely difficult to go back to the “The current levels of uncertainty are challenging questions that we do not way it used to be done.” not acceptable,” he argues. attempt to address in this paper.

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Under the commission’s proposals, Looking longer term, Professor Professor Nick Hopkins the Act would still allow for Hopkins is intrigued by the simultaneous completion and implications of increasing data about registration once the technology properties. “There are currently Under the model of electronic conveyancing allowed, however. a limited number of repositories envisaged by the Land Registration Act 2002, for information about land, of all aspects of a transaction, from the provision It also said that some of the benefits which the land register is the most of electronic conveyancing might significant. If other living databases of information to the registration of dispositions, only be achievable once it became around land arose, that could raise would occur electronically. This would close compulsory: “For example, the general questions about the sort of benefits that can be obtained through information we want to have on the the registration gap: an interest would be chain management might fall away register. What about those pieces of registered at the same moment that it was if any part of the chain is being information that would be useful to created, with completion and registration conducted through a paper-based capture but do not have the same conveyance. Moreover, once electronic status as what is on the register, occurring simultaneously. The registrar would conveyancing has been adopted by such as the land’s environmental have oversight of transactions on an electronic the vast majority of users, it may footprint, school catchment area or network – though ‘chain management’ – become inefficient and expensive to bin emptying days?” operate a parallel paper system.” although they would still be conducted by a The commission’s final report conveyancer as the ‘chain manager’. But Professor Hopkins says he was recommended other technical struck during the review by how the reforms to iron out the kinks in the The Act does not implement this The review found that it was not system “works when it facilitates law and help prevent fraud. The vision directly. Rather, it contains practicable to move directly from rather than prescribes”. At the same Government’s preliminary response in time, he acknowledges that the move January 2019 was that many of the rule-making powers, intended to a paper-based system to electronic The system works when allow the provision for electronic conveyancing based on simultaneous towards electronic conveyancing recommendations were “likely to be conveyancing to be based on completion and registration because needs someone driving it, but the acceptable in principle”, but its final it facilitates rather than technological developments. These the technology does not exist “in a review was confined to considering response has still to be published. prescribes. include the power to ‘switch off’ form that is sufficiently cost-effective, what the Act itself should provide for. paper-based conveyancing, but only widespread and integrated with other once simultaneous completion and aspects of the conveyancing process”. A review of the home-buying registration is possible. and selling process – the Law Rather, says Professor Nick Hopkins, Commission’s most recent The Act was drafted in the the Law Commissioner in charge consultation on its work programme expectation that electronic of the project, for electronic did see “a number of people” call conveyancing would develop conveyancing to become a reality, for this. He says: “We would be relatively quickly, but it has not the legal framework needs to be very happy to look at it. Under the happened that fast. amended to allow development to protocol with the government, occur flexibly and incrementally. “Our we can only look at an area if In July 2018, the Law Commission consultation found a lot of support Government agrees that the Law completed an update of the Act. for what Act was trying to achieve Commission should conduct a review The project was not designed to – particularly closing the registration and the relevant minister indicates fundamentally reformulate the gap – but that it was necessary to that there is a serious prospect of legislation, but to improve specific take steps rather than a giant leap.” reform. If they did so, I think there aspects of its operation within the would be a lot of support within the existing legal framework. Law Commission.”

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Future 2 Alongside these property-specific Future 3 Artificial intelligence could also Blockchain and distributed developments is open banking, a change the work of lawyers, Money and financial It’s all about ledger technologies secure way to give financial services analysing the data and producing information will the data providers access to individuals’ exception reports to flag up the areas move around Blockchain could be a key to this financial information. This could on which lawyers need to focus. quickly and securely future. Once there is a common significantly assist lenders in speeding Kris Clark, chief innovation officer standard – one blockchain for land Reliable, trusted data will be the up the mortgage process. and head of AI strategy at Landmark – the possibilities open up. The Land Fraudsters have successfully targeted cornerstone of the digital property Information Group, says: “Our goal Registry is almost certainly where this the property market, attracted by market and will be integral to the The Open Banking API is a secure way is to ensure that the next generation change would originate. the large sums of money that are on e-conveyancing process. In 2017, to give providers access to individuals’ of data products and services the move. This has encouraged new the Government established the financial information, enabling have less friction, fewer manual But it is not alone. Last year, start-up solutions and third-party managed Geospatial Commission, which aims customers to aggregate and integrate interventions, and surface the company Instant Property Network account (TPMA) providers are at the to maximise the value of information their products and services from right level of information upfront – which is also involved in the forefront. The rules of both the CLC relevant to location – geospatial data. different financial institutions. It has to support legal professionals in Digital Street project – ran its own and the SRA allow for the possibilities It is working with six core partners, been used by Thirdfort to undertake streamlining conveyancing. worldwide trial involving international they offer. including HM Land Registry, Ordnance source of funds checks. The system law firms and banks, and found the Survey and the Coal Authority. aims to improve the speed and rigour “There should be less waiting for time taken to transact properties TPMAs use a single central client of identity checks by removing the information, less reliance on reading could be cut from over three months account to handle transactions When combined with the BASPI need for firms to inspect physical and interpretation, and more time to less than three weeks. on behalf of buyers, sellers and discussed earlier, it all leads into the passports and documents. for fee-earners to focus on delivering mortgage lenders – they take idea of property logbooks, which is excellent customer experience The trial, which was facilitated by place simultaneously, rather than a hot topic in the Home Buying and Better tools should streamline the to clients.” enterprise blockchain software firm sequentially as now. This has the Selling Group. Rather than going process and provide greater certainty R3, ran transactions using test data potential both to improve the client through an arduous process of to all parties involved. As the Thirdfort Law firms sit on a wealth of data through a new distributed ledger to experience and, crucially, reduce the aggregating all the data needed to product shows, new applications can and know-how, and with the right simulate residential property sales risk of fraud. transfer a property and then leaving aim to use data to seamlessly protect tools to analyse and interrogate this over a five-day period. It was unusual it in a dead file, it would be far better vendors, prevent fraud and enable data, they could move away from the because the platform being tested In 2018, one of these providers, to keep the information accessible so property lawyers to fulfil their anti- administrative side of the work to did not store data but integrated Shieldpay, completed the UK’s first that it can be downloaded when the money laundering obligations. the pure advisory – which is why they participants’ own technology. fully digital mortgage settlement with property is next put on the market qualified in the first place. Barclays and MyHomeMove, and the and updated as necessary. Issues identified by the IPN said the trial “showcased how support of the CLC as the latter’s CLC for discussion: Interrogating and analysing data will duplications and costly reconciliation regulator. Shieldpay provided a digital As data flows more freely, with serve to maximise the value of the processes could be removed from escrow facility to take charge of the live data streams and blockchain, As new risks emerge, is the regulatory advice offered to clients, changing the buy/sell process, with the first purchase money, pay the seller; in the logbook can become dynamic, system ready to ensure that those the conversations taking place with transaction taking less than an hour time it will be able to pay both the updating automatically, and even be risks are managed effectively through clients. Instead of simply pointing out to complete.” stamp duty and HM Land Registry connected directly to the property regulation by legal and financial a risk, the lawyer could put it into fees for the property. Other TPMA or through the Internet of Things. In specialist regulators? context, for example saying that the Tara Waters, a partner at City of escrow providers are also developing other words, a real-world property risk is one shared by two-thirds of the London law firm Ashurst, which was products for the conveyancing could have an accurate digital twin. As new solutions emerge, there are properties in the area and has proved one of those involved in the trial, says: marketing – Thirdfort is the other multiple regulators with a potential not to be a problem. notable start-up in this market. Indeed, Andrew Lloyd, managing “The IPN trial has demonstrated interest in property transactions, director of Search Acumen, suggests the efficiency of enabling multiple including legal, financial and This is a future where lawyers need In Australia, PEXA has launched an that live data and blockchain could parties to work on a single property information. Should legal regulators to start acting as data scientists by app which provides a guaranteed render the entire search process transaction using a shared technology take the lead in developing common recognising and capturing the value secure communication channel for redundant: “It could be that, within platform. The addition of distributed standards for providers or is this a that they have in theirs and their bank account details to be shared a decade, property searches as we ledger technology to residential financial regulation matter? clients’ data. Married with contract between practitioners and their clients. know them cease to exist. Instead, conveyancing enhances transparency, analytics, natural language processing incorporating several streams of live trust and certainty in a process that and machine learning, law firms could data will allow lawyers to call on the for many can seem opaque, inefficient generate powerful, useable data. most up-to-date data sets needed in and outside of their control. the due diligence process all by simply searching an address or title number.”

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But there are plenty of enthusiasts Issues identified by the Future 4 As much of the administrative side But Mike Harlow stresses that this too. Search Acumen took part in of the role becomes automated, is “an inherently conservative sector CLC for discussion: The conveyancer’s the trial and Andrew Lloyd says: the focus will be on advisory work of the economy”. He talks about role is going to “DLT essentially allows many parties where the quality of service – as partners he knows in commercial The centrality of data to the future change to remotely access the same digital raises big issues that are already live rated by external quality indicators property law firms that file emails, do documents. A distributed ledger is in other sectors. If the data becomes along with comparison or feedback not have a case management system Beth Rudolf of the Conveyancing able to ‘cut out the middleman’ who the single source of truth, then what websites – will be decisive in where and don’t even know what electronic Association agrees that the would traditionally have been the needs to change to ensure all parties instructions go. signatures are. “They are a long way future is “all about the data.” But conduit that sends the document from can trust the data? Who will validate off and they have the money to while machine learning, artificial one party to another when each stage the information and who becomes Mike Harlow stresses the importance invest. They just don’t see the need.” intelligence and blockchain should of a property transaction is completed. responsible if that data is incorrect or of consumer protection. “We have remove much of the grunt work something goes wrong? to recognise that, however much Issues identified by the from the process, “fundamentally the “With DLT, the network can function you might want to put on a white CLC for discussion: consumer will still need to receive without a central administrator. It To enable data to flow across the sheet of paper a really simple system, advice as to what the data means allows accounts and documents to system and to allow interoperability, ultimately people have conflicts of What are the new skills conveyancers to them.” only be visible to those that need to there needs to be agreed standards for interest in the process and they need may need to succeed in this new see specific records, rather than every the data itself. Should the standards to be separately represented. So that world? Will the curriculum for She continues: “We will see a item held within the ledger. be developed by consensus or is there gives you a design problem, which trainees need to change and can digitally supported transaction a role for Government or others? is if you’re trying to design out the ongoing training support those who that is controlled by the consumer. “Take for example a mortgage number of contact points, you cannot are already working in conveyancing? Perhaps they will have an app on provider, estate agent and As providers begin to develop reduce the number of parties down Will it be the role of regulators to set their smartphone, and once all the conveyancer involved in a transaction. different standards and seek to beyond a certain number. Somebody competences in this area? data is collated automatically, the DLT would make it possible for impose their approach, is there a somewhere has to protect the consumer will then be able to speak mortgage provider and conveyancer risk that they effectively become consumer on either side.” How do we ensure users of systems to a conveyancer in whatever way “We believe that the success of the to have shared ownership of two non-statutory regulators mandating understand why they have to do they wish. I say ‘speak’ – it might IPN trial represents an important first documents that the estate agent isn’t change without any oversight and Mark Montgomery says: “ something rather than just what they be chatbots, it might be phone calls step towards the digitisation of the privy to, while the conveyancer and imposing additional burdens on The conveyancing market is just so have to do? or video calls or face to face – but wider real estate sector. To have so estate agent can view and edit three businesses? There are already many fragmented. You’ve got six lenders the conveyancer can then explain to many stakeholders participating is a others the mortgage provider can’t. similar pressures on conveyancers accounting for 70% of all lending Do regulators have a role in them the impact of that information testament to the transformative value All of them would also be able to have from other players who set rules for and then only about 60 others – facilitating the use of new technology on their intended use and enjoyment that distributed ledger technology their own data points only they can engagement in the process. whereas there are over 4,000 active within regulated businesses? of the property and the suitability of can bring to the sector.” see. This way, the conveyancer has conveyancing firms most years. that property for their needs.” overview of the process without being Can insurance play a role in providing Amongst those, there are probably There are, of course, a significant dependent on the other parties.” a backstop if things go wrong only 200 or so that are specialist Mark Montgomery, chief strategy number of hurdles to overcome Where blockchain may help, Mike for consumers or is the potential conveyancers with the scale and officer at Simplify, owner of with a system of this nature, such as Harlow of the Land Registry suggests, detriment such that we need ambition to invest in technology and conveyancing giant Premier Property dealing with local law requirements. is delivering “the single source of different safeguards? commit to changing the way that Lawyers and three other top-ten Plus there is huge hype around truth for all parties rather than they work. Collectively those 200 conveyancing firms (APL, DC Law & blockchain and distributed ledger everyone shuffling the information Improving the UK’s standing in the firms only account for about JS Law), agrees that the counselling technology (DLT) that inevitably around each other and somebody World Bank’s Ease of Doing Business 40% - the top six account for less aspect of a lawyer’s role will become makes some people sceptical. missing something.” index2 has previously been of concern than 10% of the market. more important as e-conveyancing There should be less to Government. A low ranking on the takes over. “The more you take online With the development of chain views ease of property transfer drags down “So we’ve got this massive tail that waiting for information, the less comfortable some consumers as well, there is an increasing focus on our overall rating. Would changes such the industry needs to somehow will be,” he points out. “Even for less reliance on reading collaboration in the home buying and as BASPI and the other work of the engage in whatever process and digital natives, it’s human nature to and interpretation, and selling process, but there are concerns Home Buying and Selling Group have collaboration we can come up with, want some personal professional that smaller law firms will not adopt a material impact on how easy it is to because without that we can all more time for fee-earners reassurance.” the technology required to drive this – move and so increase our performance be doing the best we can with all to focus on delivering through inertia, unwillingness (because against competitor nations? the technology but if we’re part of excellent customer they do not do enough work to justify chains, we have to go at the pace of the investment) or being unable to the slowest.” experience to clients. afford it. 2 https://www.doingbusiness.org/en/data/ exploreeconomies/united-kingdom#DB_rp

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Future 5 A bigger picture question is whether “The interesting question is how,” “The greatest threat to all So technology is, of course, a threat conveyancing will survive as a service says Mark Montgomery, “because conveyancers is a third-party disruptor as well as an opportunity. As Alan The shape of the delivered by separate providers or if you are a large estate agency and coming in and saying we can offer Ainsworth from the Open Banking conveyancing become part of what an estate you want to buy a big conveyancing something better than that – digital Implementation Entity puts it, if the market will change agent offers. Consumer expert Mark firm, that firm’s already got some conveyancing is where they will see collection of data is automated, McLaren, who sits on both the Legal value which would be destroyed the opportunity,” he asserts. “you’ll find that the business model To go back to Bill Gates, if you look Services Consumer Panel and the by you getting rid of all of their changes as the current model is back at the legal market in October board of the Property Ombudsman, natural other business. If the He predicts that, in 10 years’ time, disrupted by tech firms that come 2011 – when the CLC licensed the says his experience is that “consumers other alternative is to buy a small there will be no more than 1,000 in and automate the whole process, first ABS – things have changed a lot basically don’t understand the conveyancing firm, they then have active conveyancing firms as a result meaning the only reason you would since then. conveyancing process.” And, as to learn how to build that into a big of huge consolidation. “If I was a need a lawyer is for more expert, previous CLC research has found, firm. At the moment, it’s actually young, resourced conveyancing firm added-value or complex aspects of Law firms have floated, accepted they don’t really care. What the easier for those different parts of the now, I’d be looking to merge or the transaction.” private equity, combined with other consumer wants is for the transaction market to collaborate effectively.” acquire,” he says. This will be against professionals – all of the Big Four to happen speedily and with the background of clients having Issues identified by the accountants have legal services minimum fuss. Indeed, he speculates that the greater control of the process, in turn CLC for discussion: ABSs – been created by membership technology may actually move some reducing the conveyancer’s role. organisations and much more Mark Montgomery says the reason lawyers in the opposite direction: Conveyancing businesses are besides. There are now more than why large estate agencies have yet to “With the right support, I could He envisages several potential futures exposed to many factors out of 1,000 ABSs. It may not have been enter conveyancing in a major way see an army of experienced sole for conveyancing firms, from the their control, including the overall the ‘big bang’ of Tesco Law, yet “is because it’s quite difficult, and contractor conveyancers working consolidator and aggregator, to condition of the economy, the state slowly but surely, the legal market is because the market is very cyclical – from home, dipping in and doing that the niche firm specialising in “non- of the housing market, and changes transforming. By 2030, supported by it’s proven easier, in the past to flex expert conveyancing work through standard” matters and dedicated in attitudes and demographics. As technology opening up new ways of estate agency staff in branches than it some third-party platform, not lender firms. we discussed earlier, CLC practices providing services, this is likely to is to flex conveyancing professionals.” needing to be part of a law firm and recovered from the credit crunch have accelerated. commute for an hour to get there. Mr Goldsmith stresses that there will better than others, but how do we Eddie Goldsmith of the Conveyancing still plenty of non-standard work ensure that firms are able to prepare Will it be the big brands though? Association, agrees with this and “The challenge will be around and clients who want a face-to-face themselves for future disruption? There is some doubt now. David suggests it might also be that lenders whether individual conveyancers service, but that will cost consumers Jabbari, the head of conveyancing feel more comfortable with an arm’s- want to take on the personal risk more money. Will new business models need firm Muve, tried to bring ABSs into length panel lawyer who can be sued. of running their own business or to emerge and will the existing the retail mainstream for several do the same thing as a home- Longer term, though, he can see the predominate model of the practice years. But he says his thinking has Another consideration for the based employee of an existing firm, rise of what he calls the ‘iConveyancer’ survive? How may legal businesses changed, because the entry of big corporate estate agents is whether supported by technology for – software programmes that allow the need to structure to ensure they brands into legal services – about the figures stack up better with the remote working.” client to control the process with little can compete and will this entail which he was once “evangelical” – current system where they receive or no involvement of a lawyer. This different forms of entity and different has not materialised and would not referral fees from independent And as new ways of practising arise, will require sophisticated AI that is not funding models? now happen. conveyancers or with having control such as the SRA’s freelance solicitors, available at the moment, as well as of the whole process. this becomes ever more feasible. have digital end-to-end conveyancing, Disruption in many sectors has I could see an army He says legal services do not provide but it is a viable prospect. been driven by consumers availing enough financial benefit to those of experienced sole But as the conveyancer’s role Eddie Goldsmith warns that “if we themselves of the new technology companies with strong brands and contractor conveyancers becomes more focused on the don’t think our world is changing, and so driving change. But given high lifetime customer value to risk advisory, consolidation will occur – then we’re deluded”. He continues: that home purchases are a rare working from home, a slow conveyancing transaction and the figures on active firms in the “If you’re an optimist here, it gives occurrence for most, consumer damaging their long-term relationship dipping in and doing that market indicates that it already is – you the opportunity to be that person influence may be less powerful and with a customer. expert conveyancing work and estate agencies will find it easier that you actually qualified to be – less effective in driving change. So, to provide legal services using ABSs. which is giving advice. We didn’t where will the power and influence through some third-party qualify to push paper around and if to drive change reside? platform, not needing to you look at a standard transaction, be part of a law firm. 80% of it is admin.

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Future 6 Stephen Ward stresses that the CLC Issues identified by the will continue to see the principals in Regulators will CLC for discussion: firms as accountable and responsible. need to be flexible “Where we see problems arising to keep up today with the current technology Will new technology require changes is that problems arise when the in the way we regulate to ensure One of the major challenges I don’t think that we principals in a firm think that by, public protection? Is an outcomes- facing regulators such as the CLC for example, outsourcing their would ever get into focused structure where responsibility is understanding the underlying accounting, they no longer need ultimately resides in the principals of systems that will be developed over regulating the tool but to understand what goes on in regulated businesses still the best way the next decade, often by third-party what we would be doing the accounting ‘black box’. That’s to deliver protection? providers. misconceived because the managers is setting and policing of the law firm are the people who As the AI ‘black box’ begins to guide Stephen Ward, the CLC’s director of those standards, perhaps we will strike off if anything goes legal decisions, will legal regulators strategy and external affairs, says the doing some kind of check wrong – not the parties providing need to widen their remit to cover regulator’s role will likely be to set the accounting system.” from time to time.” the technology firms developing the standards against which licensed the systems used by conveyancing conveyancers can judge such systems. Concurrent with the development practices? “I don’t think that we would ever get of this Discussion Paper, Professor into regulating the tool but what we Stephen Mayson of UCL Centre for Does the potential for regulators to would be doing is setting and policing Ethics and Law has been carrying have access to the technology being those standards, perhaps doing some out the Independent Review of used in firms allow for more rapid kind of check from time to time.” Legal Services Regulation. While that real-time intelligence and compliance review’s remit is far wider than the monitoring? What should the He points to the CLC’s work on third- regulation of property lawyers, his relationship be between regulators party managed accounts. interim report identified a mismatch and the technology developers between consumer expectations of and does this mean that regulators One risk to consider is the impact regulation and protection, and the need to become more involved in of disaggregation and whether, in current structure as established by the the development of technology making everything as efficient as it 2007 Legal Services Act. specifications? can be, you lose the whole point of what you are supposed to be doing. The interim report saw all legal As Professor Mayson argues, does Does the person pressing the button services being regulated, but the current regulatory structure to send a document to the Land providers subject to different provide an incomplete and limited Registry understand the implications? requirements depending on the work framework for legal services they do. It suggested that, among regulation that will struggle in the This is the risk with disaggregating other benefits, it would enable the near term and beyond to meet the process. The danger of making regulation of lawtech. The report demands and expectations placed everything as efficient as it possibly added: “The ability to treat lawtech on it? If so, how does the regulatory can be is that “you lose the whole as offered by a ‘provider of legal system need to adapt to ensure it is point of what you’re supposed to be services’ could bring all forms of ready for future changes? doing”, Mr Harlow cautions. legal technology into the regulatory framework, whether or not it is provided by an individual or entity already subject to regulation.”

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In summary – Moving home in 2030 “People are always looking for the single magic bullet that will totally change everything. There is no single magic bullet.” Temple Grandin

The role of the conveyancer is The number of active conveyancing undoubtedly going to change as law firms will continue to fall as much of the administrative side of consolidators continue to grow, the role becomes automated. The estate agents offer a combined focus will be on advisory work where service, and the investment needed the quality of service – as rated by for the technology prices some small external comparison or feedback firms out. websites – will be decisive in where instructions go. As the role changes, conveyancers will need to invest in training and Technology will radically improve skills acquisition for themselves transparency for consumers about and their staff. Soft skills such as what they are buying and the communication skills, listening skills, progress of their transaction. Because and empathy will become ever of the Internet of Things, properties more important as the ability to will maintain up-to-date logbooks build relationships becomes even with little human intervention. more central.

It might not be clear yet exactly when We finish where we began, with the real impact of the next wave of Bill Gates’ quote: tech will hit, but look at the speed “We always overestimate with which smart phones went from an oddity to being ubiquitous. the change that will occur The greatest threat to all Not only that, but the voice-calling in the next two years element is less and less important and underestimate the as people adopt messaging apps conveyancers is a third-party and use the phone as a platform for change that will occur in navigation, shopping, social media the next ten.” disruptor coming in and saying and so much more. The challenge for all of us is to be ready to benefit from He then went on to say: we can offer something better those innovations when they come. ? “Don’t let yourself be 2030 than that – digital conveyancing Conveyancers will bank both time lulled into inaction.” and cost savings, to be reinvested in improving the quality of service, is where they will see the upgrading technology and ensuring cyber security. opportunity.

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