Navigating the downturn: how conveyancing firms can thrive in a shifting market
By embracing technology, diversifying services and focusing on operational excellence, law firms can not only weather the storm in the conveyancing market, but emerge stronger and build a foundation for long-term success, highlights Access Legal
The UK conveyancing market is no stranger to volatility, but the latest data from our State of the UK Conveyancing Market 2025 suggests that firms may be heading into another challenging period. While FY25 showed a modest 5% increase in transaction volumes, this growth was largely driven by a one-off spike in March 2025 triggered by changes to stamp duty land tax (SDLT). Strip away that artificial boost, and the market’s performance was nearly flat; just a 1% rise compared to the previous year.
As we enter FY26, early indicators point to a downturn. The House Price Index dipped sharply in April, and with inflation creeping upward, interest rates are expected to follow. These macroeconomic pressures are likely to suppress demand for property transactions, making the coming months particularly tough for conveyancers.
However, a slowdown doesn’t have to mean stagnation. For firms willing to adapt, this period presents a unique opportunity to rethink strategy, streamline operations and build resilience.
Understanding the market signals
The SDLT-driven surge in March 2025 masked underlying weaknesses in the market. Without it, transaction volumes were largely stagnant. This suggests that consumer confidence remains fragile, and demand is highly sensitive to policy changes and economic conditions.
Regionally, the picture is mixed. Yorkshire and the Humber stood out with a 15% increase in volumes compared to FY24, and only a slight dip from FY23. However, most other regions, including Wales and the North East, underperformed, with some even seeing declines. This uneven recovery highlights the importance of localised strategies and data-driven decision-making.
The shrinking firm landscape
Another concerning trend is the continued decline in the number of active conveyancing firms. FY25 saw a 2% drop, following 4% declines in each of the previous two years. Yet, interestingly, the number of conveyancers active in multiple regions has increased. Firms with national reach but local focus are capturing a growing share of the market; 13.8% of firms now operate across all regions, accounting for nearly 58% of all transactions.
This consolidation is reshaping the competitive landscape. Larger firms are growing rapidly, with a 27% increase in those completing over 1,500 transactions annually. Meanwhile, smaller firms (those handling fewer than 100 transactions) are shrinking in both number and market share.
Efficiency and technology: the new battleground
Operational efficiency is becoming a key differentiator. The report shows that mid-sized firms (handling 100–500 transactions) are the most efficient, averaging 17.4 days to submit AP1s post-completion. Larger firms, despite their scale, lag behind at 24.8 days.
Technology is playing a pivotal role in this shift. AI tools are no longer just buzzwords — they’re actively transforming workflows. From automating title checks and client updates to flagging anomalies in ID verification, AI is helping firms scale without proportionally increasing headcount. The firms that embrace these tools are better positioned to handle capacity surges and reduce costs per matter.
How firms should respond
In a cooling market, survival depends on agility, innovation and client-centricity. Here are five strategic moves conveyancing firms should consider:
1. Diversify services
With property purchases slowing, firms should explore alternative revenue streams. Remortgaging is a prime opportunity, especially with millions of fixed-rate deals set to expire in 2025 and 2026. Later-life lending, equity release, and bundled private client services (like wills and LPAs) can also boost client lifetime value.
2. Target growth regions
Use market data to identify resilient areas like Yorkshire and the Humber. Tailor your business development efforts to these regions and build referral networks with local agents and brokers. Remote working makes geographic expansion more feasible than ever.
3. Double down on client experience
Clients expect speed, transparency and digital convenience. Poor communication remains the top complaint. Firms should set clear update schedules, offer 24/7 case tracking via secure apps, and use plain-English explanations to build trust.
4. Strengthen compliance
Regulatory scrutiny is intensifying. Refresh AML policies in line with LSAG 2025 guidance, train staff on new obligations and prioritise cybersecurity. Compliance failures are costly — not just financially, but reputationally.
5. Leverage AI and automation
AI can streamline repetitive tasks, improve accuracy, and free up fee-earner time for higher-value work. However, adoption must be strategic — firms must ensure human oversight, clear audit trails and proper integration with existing systems.
A blueprint for resilience
The conveyancing market may be heading into a downturn, but that doesn’t mean firms are powerless. By embracing technology, diversifying services, and focusing on operational excellence, firms can not only weather the storm but emerge stronger.
The key is to act now. Waiting for the market to rebound is a risky strategy. Instead, firms should use this time to innovate, refine their processes and build a foundation for long-term success. Because in conveyancing, as in any business, resilience isn’t just about surviving the tough times — it’s about using them to get ahead.
