Lloyd Davies, Managing Director of Your Conveyancing Services explains why extending the Stamp Duty Tax Holiday would benefit those working in the property industry and those in the process of buying property.
BBC News reports:
Solicitors ask local authorities to carry out the searches on issues including planning and traffic.
Telor Dyer, a residential conveyancer in Carmarthenshire, said waiting times in some parts of Wales had doubled to 30 working days.
Pembrokeshire council said it had a backlog after the lockdown in March.
The Conveyancing Association warned the backlog facing local authorities was “becoming a significant issue”.
‘Strong recovery’ in UK housing market
House prices at all-time high, says Nationwide
Local authority searches show details about a property such as whether it is a listed building or in a conservation area. These details can have an effect on future planning works to the property.
Not a ‘unique issue’
Pembrokeshire council, one of the local authorities facing difficulties, said it would not be processing any new searches “other than those deemed urgent” due to its backlog.
Issues, the council said, included the inability to access County Hall, where searches have to be checked against maps stored there, followed by the unprecedented demand in property sales since the lifting of restrictions.
But a council spokesperson said this was “not an issue unique to Pembrokeshire – many other local authorities are working to a 40-day turn around”.
The spokesperson said their usual turnaround for searches was seven to 10 days, but due to the pressures on the service, they have implemented an average 20-day turnaround to work through the backlog.
“The matter is being kept under constant review.”
Residential conveyancer Mr Dyer, based in St Clears, said he had seen significant delays and that they were down to a property boom and staff shortages.
“Usually, we anticipate, searches would take 10 to 15 working days, but now it’s taking 30 working days.”
“There’s nothing we can do speed things up. We have had sellers pull out and there’s nothing we can do about it.”
Rebecca Goldsworthy, director and head of residential property in south-east Wales for JCP Solicitors, said local searches were an important part of the buying process.
“There’s nothing we can do about that other than advise our clients there is a bit of a wait. We are concerned another lockdown period will cause further delay,”
“A delay with searches will hold up the chains.”
Stamp Duty Tax Holiday
Meanwhile, the Conveyancing Association has called on the government to extend the Stamp Duty Tax Holiday (SDTH) which currently ends in March 2021 in light of these delays.
In Wales, the SDTH has meant the starting threshold for land transaction tax has increased from £180,000 to £250,000 for the residential main rates until 31 March 2021.
Lloyd Davies, operations director of the Conveyancing Association, said their member firms, who undertake about 30% of all property transactions in England and Wales, were in a similar position and were 130% to 150% over capacity at the moment.
“We are calling upon the government to relieve the pressure by extending the Stamp Duty Land Tax holiday until 2022 as a minimum – otherwise there will be a very large number of disappointed people and aborted transactions that will not meet this current deadline.”
The Welsh Government said the temporary changes to land transaction tax were specific time-limited measures intended to support the housing market and broader economy in Wales during the remainder of this financial year but were kept under regular review.
Today’s Conveyancer approached one of the largest specialist legal conveyancing companies in the UK to ask about their experiences of the Stamp Duty Land Tax (SDLT) holiday and their view on the approach the government should take.
Lloyd Davies, founder and Managing Director of residential conveyancing specialists Your Conveyancing Services who believes the current SDLT holiday was not necessary and it would be a ‘sensible approach’ for the Government to extend the SDLT holiday. He said:
“The majority of the conveyancers I have spoken to, which represents a cross-section of large and small, high street and online conveyancers, are all reporting record numbers of instructions since the start of July. The general consensus is that conveyancers are 130 – 150% overcapacity, which will lead to significant service and delivery issues later this year, leading into Christmas and definitely leading into the SDLT deadline of 31st March 2021.
“Most Conveyancers are actively recruiting – from the same pool of professionals – with little movement at the moment, as Conveyancers are contemplating jumping ship at these uncertain times – unconvinced that the grass will be greener elsewhere. The deciding factor will be the amount of work and capacity – number of transactions – and the support they will receive at any new legal practice, as much as financial packages.
“The government will need to extend the SDLT holiday and I would propose for at least a further 12 months. The UK economy is dependent on a healthy property market, with residential property prices increasing. When property prices decrease, we go into recession, which the government will want to avoid at all costs this spring. With demand oversupply, as with our current situation, house prices will continue to increase gradually into the new year if the SDLT holiday is extended. To end the SDLT holiday in March will lead to a huge number of clients not being able to take advantage of the holiday – with conveyancers, search providers, local authorities and mortgage lenders not being able to meet the increased artificial completion demand and deadline.
“The virus is not going anywhere for some time and the government need to look longer term, both in terms of protecting businesses and individuals with furlough and similar schemes. Brexit is looming and the UK government will not want the economy to falter. At the moment there appears to be an exodus out of the cities and into the country and coastal areas, with individuals realising the benefit of the IT revolution that has come about as a result of Covid19 and their ability to work from home for the most part.
“I do not believe that we needed an SDLT holiday when it was announced, with backed-up transactions and instructions we did not need to experience further volume and disruption. The sensible approach for the government will be to prolong the SDLT holiday – indefinitely if possible – to allow property prices to increase gradually and to avoid the boom and bust situation that appears imminent in the spring as things stand.”
The Mindstep Foundation is proud to have supported key research which has revealed that the first six weeks of the Covid-19 pandemic and lockdown had a major impact on the UK population’s mental health and wellbeing.
Led by the University of Glasgow, the study, which is published in the British Journal of Psychiatry, found young people, women, individuals from more socially disadvantaged backgrounds and those with pre-existing mental health problems reported the worst mental health outcomes in the initial phase of the national lockdown.
The study, which is the first publication from a large scale longitudinal research programme funded by the Mindstep Foundation, Samaritans and SAMH, is the most detailed examination to date of the mental health and wellbeing of the UK adult population during the first six weeks of the COVID-19 pandemic.
The research, led by the University’s Professor Rory O’Connor, Chair in Health Psychology at the University’s Institute of Health and Wellbeing, found that suicidal thoughts increased over the first six weeks of the UK’s lockdown (one in ten or 9.8% by the end of this period), however other factors related to suicide risk such as symptoms of anxiety, levels of defeat and entrapment decreased across the same period. Depressive symptoms and loneliness remained relatively stable but adversely affected.
Within this study, researchers surveyed a national sample of 3077 adults in the UK, assessing a range of mental health factors, including: pre-existing mental health problems; suicide attempts and self-harm; suicidal thoughts; depression; anxiety; feelings of defeat; feelings of entrapment; mental wellbeing; and loneliness.
The research looked at three ‘waves’ of lockdown between March 31 and May 11. Participants have also been followed up throughout the pandemic, and further results will be published in the coming months.
Further analysis into sub-groups showed worse mental health outcomes during the pandemic for females, young people (aged 18-29), those from more socially disadvantaged backgrounds and those with pre-existing mental health problems. Males reported lower levels of depressive symptoms than females.
Younger adults (18-29 years) were more likely to report suicidal thoughts (14% reported suicidal thoughts by wave 3) and higher levels of depressive symptoms than those aged 30-59 years and over 60; with those aged 30-59 years reporting higher rates than those over 60.
Across all three waves, approximately one in four respondents (26.1%) experienced at least moderate levels of depressive symptoms.
Those from lower socio-economic backgrounds were more likely to experience suicidal thoughts compared to those in higher socio-economic groups, as well as those with pre-existing mental health conditions compared to those without.
21% of the sample was above the cut-off for at least moderate levels of symptoms of anxiety at the start of lockdown; however, these symptoms decreased across the first six weeks.
Prof Rory O’Connor, who led the research, said: “While public health measures, such as lockdown, have been necessary to protect the general population, we know the effects of COVID-19 on the population’s mental health and wellbeing are likely to be profound and long-lasting. The findings from our study, showing in particular the increasing rates of suicidal thoughts, especially among young adults, is concerning, and show that we must be vigilant to this at-risk group.
“As we move through this pandemic, investigating the trajectory of mental health and wellbeing is crucial to giving us a better understanding of the challenges people face during this difficult time. By having such analysis and information, we can formulate targeted mental health measures and interventions for those most in need as this pandemic continues, as well as being prepared for future.”
We are pleased and proud to support this very important research. Mindstep is focussed on funding research into the causes of suicide and raising awareness of mental health warning signs, so research such as this, during these unprecedented and challenging times, is more important than ever.
You can find the link to the full study here.
Lloyd Davies MD of Your Conveyancing Services, The Conveyancing Academy and Director of The Conveyancing Association joined CA Members to discuss approaches to conveyancer training, recruitment, and staff welfare. The Webinar is part of the series of Zoom Meetings created by the Association to provide their Members with the most up to date conveyancing and practice support.
The Conveyancing Association Members include the top residential conveyancing companies in the UK, with Members benefiting by being at the forefront of decision making and having access to exclusive networking events.
Paul Smee (Non-Executive Chair of The Conveyancing Association) introduced the first session of the CA Webinar ‘’Training and Recruitment’’ with Lloyd Davies. Members were presented with The Conveyancing Academy’s new Level 3 Practicing Conveyancer Legal Diploma course and Your Conveyancing Service’s Training Academy Pathway.
‘’Within The Academy we have trained complete novices into competent conveyancing professionals within 6 to 12 months using the Practicing Conveyancer Legal Diploma apprenticeship modules.’’
‘’The Pathway developed within The Academy leads to evolve our Trainees into skilled Conveyancers providing a highly effective service and exceed client expectations.’’
‘’Training can help you develop your staff and grow your business. Now with great new government funding initiatives available, individuals could receive up to 110% Government Funding in England and Wales to train their team until the 31st January 2021.’’
Following this, Members broke away into online breakout rooms to discuss their own training and recruitment initiatives.
Victoria Presa, Director at Simply Conveyancing:
‘’How competent are individuals in completing freehold and leasehold contracts after the 6month training period within The Conveyancing Academy?’’
Lloyd Davies explained:
‘’Trainees must complete a certain number of competencies before progressing to Live Teams. After practice and the completion of 10 freehold and 10 leasehold contracts only then they are signed off as competent. We have also created a great framework to allow us to reward the staff for their successful completion of their competencies.’’
Claire Goodridge, HR Manager at Simply Conveyancing:
‘’Are people interested in becoming apprentices regardless a low starting salary?’’
Lloyd Davies gave his insight on the matter:
‘’Trainees within a month can achieve a £2k pay rise. A clear trajectory is provided with wages reaching £23k after the 5 month period and further rising to £25k after completing their leasehold competencies. A bonus scheme is added to top up their wages based on their KPIs.’’
Claire explained the training approach followed by her company:
‘’Trainees enter as Legal Support, progress to an Assistant to the company’s Lawyers through on the job training. The process takes significantly longer than the 5 months The Conveyancing Academy Course.’’
Lloyd advised:
‘’The course gives great structure on how to audit competencies and is versatile enough to support with training a large or small number of Trainees. Within the Academy already from month 2 the Trainees get their own files and cases giving them greater responsibility and exposure.’’
Part 2 of the CA Webinar focused on the important topic of Staff Welfare. Lloyd introduced guest speaker David Atwick, Your Conveyancing Services’s onsite counsellor.
David talked through his experience counselling many individuals within the conveyancing industry and the most common issues raised.
David:
‘’There is a noticeable correlation between mental health and perceived workload. This can trigger a negative mentality and thought process. A negative pack mentality amongst team members can collectively affect morale.’’
‘‘When dealing with the staff on an individual basis, in at least 40% of the cases, the increased workload was not the main factor in creating a negative mentality. Instead, factors from outside work were mostly influencing a negative thought process. Personal issues such as financial difficulties and situations from home were the root of the problem with the additional workload just exaggerating those problems.’’
The interactive session found Members discussing ongoing initiatives applied in their firms and how they are managing Staff Welfare.
Lloyd focused on the importance of monitoring capacity:
‘’Ensuring we don’t reach maximum capacity in caseloads should not be a staff benefit but a necessity.’’
Edward Goldsmith, Founding Partner and Special Advisor to the Association:
‘‘Could counselling sessions be used as a tool, allowing teams to manage more productively a higher number of cases?’’
Lloyd explained:
‘’David helped staff control their anxieties, allowing them to better manage the transition between periods leading to reaching capacity. Breaking down and compartmentalising the process helped to calm everyone down and build the team morale.’’
The next CA Webinar from the CA Zoom Meetings series will take place on Tuesday 3rd November.
For more information on the available government funding click here.
To find out more on the available government-funded Academy training courses and training options offered, contact the team on 01633261295.
Moving house in Wales or England is still allowed under the government guidelines – which state that you can move house if it is necessary and safe for you to do so. Industry guidance on how to move home safely can be found here. Thank you for your patience during this unprecedented time. Download the Safe Home Moving Guide here.
Additional information on the Welsh lockdown can be found here:
https://gov.wales/coronavirus-circuit-break-frequently-asked-questions#section-53265
Additional information on the Covid restrictions in place in your area can be found here:
https://www.gov.uk/find-coronavirus-local-restrictions
We aim to provide business as usual for all clients with our team either working from home or in the office. Our offices remain closed to the general public at this time.
Transaction Timelines
Please note that conveyancing timelines have increased across the industry due to the previous lockdown provisions and the resulting backlog of transactions, as well as the significant increase in the volume of transactions. Many property stakeholders, such as Search providers and Mortgage Lenders, as well as Conveyancers, are struggling with the number of transactions they are having to deal with at this time. As a result, this may increase your transaction timelines, however, we will do our utmost to process your transaction as quickly as possible. Please be patient if we need to manage third party situations which are out of our immediate control.
Christmas Movers
Many of our clients will be looking to move house before Christmas this year. Our dedicated team will do our utmost to help you move to your transaction deadlines. We will be projecting which transactions will complete in time for Christmas at the start of November. Our priority will be to move families and clients into their new homes ready for the festive season.
Stamp Duty Holiday
You will be aware that the Stamp Duty holiday comes to an end on the 31st March 2021. While we will endeavour to complete all required transactions before the deadline, we cannot provide any guarantees as to completion timelines. We are currently working with key industry stakeholders to put pressure on the Government to extend the Stamp Duty deadline.
Thank you for your support and patience during these difficult times.
Kind Regards,
Lloyd Davies, Managing Director
Your Conveyancing Services
The Mindstep Foundation is delighted to announce that we are now registered with Amazon Smile, which means you can support us with every online purchase.
Amazon Smile (smile.amazon.co.uk) is identical to the Amazon you know – it looks the same, same products, same price – the only difference is that Amazon will donate 0.5% of every purchase to the Mindstep Foundation.
It’s simple and free to set up ⤵️
1️⃣ Visit smile.amazon.com (or follow this link)
2️⃣ Select Mindstep Foundation as your chosen charity
3️⃣ Shop via Amazon Smile!
There is no extra cost to you as the customer. However, your 0.5% could make a huge difference over the course of the year!
If you have any questions or need any assistance with set up, please do not hesitate to get in touch.
