From one end of the Scale to the other – and settling somewhere in between!

Do you remember the Fee Scale for Conveyancing?

The fee scale was a structured system of charges that set out fixed fees for residential property transactions, providing a clear and predictable cost framework for clients. This system was established to ensure fairness and consistency, preventing undercutting and the potential for compromised service quality.

When and why was it abolished

The fee scale was abolished in 1973 following a significant shift in legal professional practices and competition policy.  The primary catalyst for deregulation was the Monopolies and Mergers Commission report, which criticised the fixed fee structure as anti-competitive and detrimental to consumer interests.

This change was part of a broader movement to introduce market competition into legal services, allowing solicitors to set their own fees and compete more freely. The abolition marked a pivotal moment in conveyancing practice, transitioning from a rigid, standardised pricing model to a more flexible, market-driven approach that enabled solicitors to differentiate their services and pricing strategies based on individual expertise, efficiency, and client needs.

However, the deregulation has brought about a host of unintended consequences and challenges.

Current Challenges

Conveyancers in England and Wales operate in a highly competitive market. While competition has theoretically reduced costs, it has also introduced a number of key challenges:

• The race to offer the lowest prices has sometimes led to a reduction in service quality. Property transactions are complex and require meticulous attention to detail. When conveyancers are forced to cut fees to attract clients, there is a risk that corners may be cut, leading to mistakes and potential legal issues for clients.
• Without a standardized fee scale, clients often face confusion and unpredictability regarding costs. Even with the introduction of the SRA’s Transparency Rules, not all firms set out their pricing in the same way, which can be frustrating and may lead to disputes or dissatisfaction.
• Competitive pricing can disproportionately impact smaller law firms that cannot afford to reduce their fees to unsustainable levels.
• Modern conveyancing requires substantial investment in technology, cyber security and compliance system.  These technology requirements represent significant overhead costs that weren’t present during the Fee Scale era.  Reduced profitability may result in lack of investment in these areas.

How do we overcome the challenges without reinstating the Fee Scale

Obviously as a profession, we are never all going to agree to reinstate the fee scale.  However, it is possible to be successful in increasing your fees and to convert more enquiries.

• Work out what you need to charge instead of what you think the market allows you to charge
• Work out how you are going to differentiate yourself when you speak to clients – consider a dedicated sales team/person
• Deliver on the service you have promised
• Don’t be scared - allow time for change to work. People buy people.

…Step into 2025 - Be brave, deliver and be your own fee scale!