The UK property market is undergoing significant changes, presenting potential risks for house buyers and conveyancing law firms.
Recent statistics from DevAssist in 2023 revealed that 38% of completed reports were classified as high risk, highlighting potential vulnerabilities in property transactions. These risks include concealed households and dynamic planning policy shifts.
Public concern is widespread, with 95% of the British public expressing worries about development risks associated with property purchases. The uncertainty in the development landscape has created a need for solutions that offer more comprehensive assessments than traditional property checks.
A hidden factor impacting the housing market is the existence of 1.6 million concealed households in the UK. Additionally, as of January 2023, 38% of local authorities lack a five-year housing land supply source, according to the Strategic Housing Land Availability Assessment (SHLAA). DevAssist’s investigations into SHLAAs have revealed potentially high-risk development sites.
The expansion of cities, particularly on the outskirts, poses planning challenges. While central cities may avoid typical new-build risks, they face property modification risks, adding complexity to property transactions. Proposed changes to the planning system, such as those suggested by Labour leader Keir Starmer, raise concerns about potential imbalances between developers and communities, risking environmental consequences.
The national housing shortage exacerbates risks, with 38% of local authorities lacking a five-year housing land supply. Birmingham, in particular, faces a critically short supply, leaving the city vulnerable to potential risks as it welcomes all planning applications.
Conveyancers play a crucial role, and their legal obligations are underscored by the Bird & Bird v Orientfield Holdings case. The case highlights the consequences of solicitors neglecting their duty to report material risks during a property transaction, potentially leading to professional negligence claims.
DevAssist’s reports aim to provide a comprehensive understanding of potential risks. By investigating SHLAAs, DevAssist exposes vast amounts of land available for development, offering crucial insights that may be overlooked by many legal professionals.
