Conveyancing fees have declined in real terms over the past year. This development exacerbates the pressure on law firms already facing reduced activity in the property market and intense price competition. The average cost for handling a property transaction for a mover, buying and selling a property, reached £2,438 including VAT in the second quarter of 2026.
This represents an increase of merely 0.1% year-on-year. In the same period, consumer price inflation (CPI) was 2.6%. The nominal increase in fees therefore could not compensate for general price increases, leading to a real decline in income for service providers.
Challenges for Law Firms
The current market situation, characterised by a lower number of transactions, requires law firms to precisely adapt their business models. Competition for mandates forces many providers to reconsider their pricing structures and, in some cases, accept lower margins to remain competitive. This trend could have long-term implications for service quality and capacity within the sector, as the profitability of many firms comes under pressure.
Industry experts are observing this development carefully. A sustained real decline in fees could lead to market consolidation, where smaller firms may struggle to survive. Larger firms, however, could benefit from economies of scale and more efficient processes.
Market Conditions Influence Prices
The development of conveyancing fees reflects the general conditions of the property market. When demand for transactions is high, service providers can generally command higher prices. In phases of market calm or even decline, however, price pressure intensifies as fewer potential clients need to be attracted. This is a typical characteristic of cyclical markets, which include the property market. The report, which first published these figures on PropertyWire, underscores the necessity for service providers to meticulously review and, if necessary, adjust their cost structures.
