The Conveyancing Alliance has revealed a strong year-on-year increase in both purchase instructions and completions, however remortgage activity remains subdued.
Figures for Q1 2010 show a significant 23% increase in purchase instructions up from Q1 last year, with a notable 17% increase on the last quarter of 2009. Purchase completions for the first quarter of 2010 are 60% greater than the corresponding quarter in 2009.
By comparison remortgage activity has remained stagnant over the course of the year with instructions and completions remaining low but stable throughout the year. The firm has however seen a slight increase in remortgage instructions over the last couple of quarters, with completions almost identical for the same period.
With the market now having entered the traditional spring bounce, Conveyancing Alliance says it expects to see a continued improvement in both purchase and remortgage activity throughout quarter two and into the second half of 2010.
Harpal Singh, managing director of Conveyancing Alliance Ltd, says: “It is obviously pleasing to see a continued increase in both our purchase transactions and completions over the course of the last year with the first quarter of this year showing particularly strong instructions which should translate into stronger completion results in this current quarter.
“However, remortgage activity, both instructions and completions, have barely changed over the course of the last year and we still appear to be bumping along the bottom of the market, for example, our remortgage instruction numbers have been almost identical for the last three quarters.
“Having said this, our expectations for remortgaging in the rest of the year, particularly the second half, are generally positive given that we seem to be operating in an increasingly stable housing market, albeit in an economy that has yet to be taken off the life support machine.”
He says the vast proportion of the year-on-year 23% purchase instruction increase and the 60% completion boost has come from its estate agent partnerships, while broker business has continued at much the same levels.
He adds: “It is still our assertion that some mortgage advisers are showing an unwillingness, lack of interest or lack of understanding in transactional/purchase conveyancing and therefore continue to miss out on what could be a significant income stream.
“We would continue to urge those advisers who recognise the opportunity in conveyancing to contact us to discuss how they can get the most out of this area of business.”