House buyers ‘still optimistic about property market’

Dye & Durham is expecting to see a ‘significant upswing’ in sales transactions as interest rates begin to hold – and eventually decline – that should help legal firms bounce back from the ‘slower-than-normal’ year in the property market.

The positive forecast comes despite it also finding that UK consumers are feeling financially worse off than they were a year ago, especially those aged 35-54.

WORSE PLACE

The Dye & Durham UK Pulse Report for Q3 2023 – a survey of 2,151 UK adults conducted by YouGov – revealed almost half of respondents (47%) confirm their finances are in a worse place than they were 12 months ago, with only 16% of people suggesting their finances have improved.

But some consumers’ plans to purchase or sell properties over the next year remain in place.

The UK Pulse Report found 2% of respondents sold their primary residence and purchased a new one in the past 12 months and 3% plan to do the same in the next 12 months.

Overall, six out of 10 (58%) said they would consider moving to find a lower cost of living and almost a quarter (23%) said they would look at a more affordable town or city in their current county.

It’s clear that many people in the UK continue to be affected by the tough economic conditions.”

Martha Vallance, Dye & Durham Chief Operating Officer, says: “It’s clear that many people in the UK continue to be affected by the tough economic conditions.

“This has had a knock-on effect for many industries as transaction activity has declined, including the legal industry that we operate in.

“However, as rates begin to hold – and eventually decline – we expect to see a significant upswing in areas like real estate transactions, business originations and others that should help legal firms bounce back from a slower-than-normal year.”

Property market

Elsewhere the Report found that seven out of 10 (71%) consumers have not yet tried Artificial Intelligence (AI) for personal use (71%) with eight out of 10 (81%) not using AI professionally.

When asked what would help increase their comfort with generative AI being used by lawyers and conveyancers, almost a third (27%) said they would be more comfortable if it was used to improve their performance without replacing a real person, while just over a quarter (26%) said if it would guarantee a better outcome or better accuracy.

David Nash, Dye & Durham Chief Product Officer, adds: “The UK’s legal industry is already exploring the enormous potential for AI to provide cost efficiency and accuracy benefits – from estate agency through to finance and conveyancing – but consumer education is essential.

“It’s important to demonstrate how AI is already being deployed and the benefits it offers legal professionals in terms of efficiency and accuracy, which ultimately pass through to the client.”