Industry schemes could force small conveyancers out
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Goldsmith Williams has warned there could be an exodus of smaller conveyancing firms because of hostility in the sector towards them.
The conveyancing firm says separate moves by the Law Society and Solicitors Regulation Authority demonstrate that a hostile environ-ment is developing for smaller firms in the market.
The Law Society recently laun-ched the Conveyancing Quality Scheme which Goldsmith Williams says will be expensive for small firms to adhere to.
Measures are also being proposed by the SRA to make it easier for conveyancing providers to get pro-fessional indemnity insurance.
Some firms of solicitors have found it difficult to get suitable PI cover because of the large number of claims against them from lenders.
To make it easier, the SRA proposes removing the requirement for the insurance to cover financial institutions, such as lenders.
This means solicitor firms would have to take out costly separate insurance to cover claims against lenders or risk having no cover.
Eddie Goldsmith, partner at Goldsmith Williams, says firms only dabbling in conveyancing might not think it is worth the cost.
He says: “There is a significant disparity between specialised play-ers and the occasional dabblers in the conveyancing sector.
“A variety of pressures are con-spiring to create a perfect storm and we are likely to see a reduction in the number of legal services pro-viders as many will begin to see conveyancing as an unviable busi-ness, leaving only specialist pro-viders in the market.”
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