Interesting Statistics about Moving Costs
The recent study by the Post Office Money and the Centre for Economics and Business Research provided interesting statistics regarding moving costs:
Cost of conveyancing
In real terms, solicitors are earning less now than they did ten years ago from conveyancing, with average fees increasing by 36.5 per cent – significantly less than standard inflation for the same period (40.63 per cent). This is in stark contrast to estate agents, who have clearly benefited from the increase in property prices as their earnings are linked to the sale price, and to a lesser extent, surveyors, whose fees have increased above the level of inflation.
Risk and reward
Not only are solicitors getting paid less for conveyancing than in 2004, but the potential risk is significantly higher, driven primarily by an increase in property prices:
Source: Office for National Statistics House Price Index
While there are regional property value differences, it is apparent that conveyancing fees have not kept in line with the potential exposure of a negligent transaction. In other words, solicitors who undertake conveyancing are taking on more risk, which is not reflected in the fee generated. This is in comparison to estate agents who appear to enjoy low risk and high rewards.