The homebuying process continues to prove lengthy, with the process of purchasing a property from instruction through to completion taking almost a third (28%) longer in 2022 than it did in 2019 prior to the pandemic, new figures have revealed.
According to a report authored by Landmark Information Group, Why are property transactions taking so long?, the average time from instruction to completion on an acquisition in 2022 was 133 days.
In 2019, this figure stood at just 104 days, while the process took just 75 days on average in 2007, which has since increased by 77%.
Meanwhile, the timeline between instruction and exchange was 119-days in 2022, up 80% compared with the 66 days it took in 2007 and 29% higher than the time taken in 2019.
The research found that enquiries appear to be a driving force behind this trend. In 2007, the average time between enquiries being raised and replies to those enquiries being received was 26 days, which is significantly below the current rate of 56 days.
It is also taking longer for enquiries to be raised in the first place, hitting an average of 35 days in 2022 compared with 18 days in 2007.
Simon Brown, chief executive of Landmark Information Group, said: “As the property transaction process remains incredibly complex and fragmented, timelines aren’t decreasing.
“The negative impacts of such delays are felt keenly, not only by sellers and purchasers, but by stakeholders right across the industry. However, our experts are unanimous in their view that part of the solution to process inefficiencies could be a matter of timing.
“One example is if sellers routinely instructed a conveyancer earlier (as is the case in Scotland), to prepare a contract pack for prospective buyers at the first sign of interest, then conveyancers could work closely with vendors and agents to ensure accurate, verified material information is collected upfront.
“The upshot of which may be a reduction in delays caused by additional enquiries later in the process. The time has come to break down silos and unite as an industry to tackle perennial hurdles together.
“There is no doubt that technology has a place in supporting our collective ambition to shorten transaction milestones. However, it’s abundantly clear that systemic processes must be addressed first if we’re to move forward with pace, clarity and confidence.”
Ben Robinson, managing director of Landmark Estate Agency Services, added: “It can be disheartening to put an enormous amount of energy into marketing a property, only for one party to pull out after becoming disenchanted with the lengthy process.
“One way we’ve seen some estate agents address this problem is to educate sellers in the advantages of instructing a conveyancer when listing their property. The aim is to collate as much information as possible – including title searches, property searches, and EPC ratings – so potential purchasers have the answers to common enquiries upfront.
“Although this may require the vendor to invest money upfront, their property sale is likely to complete faster. For agents, this approach means they can quickly filter out vendors who are ‘testing the market’.”