The latest data from Landmark reveals that listing volumes are averaging 6% higher than in Q2 2019 which we use as the benchmark year, indicating that supply is the strongest it has been in years.
However, transactions are struggling to progress to completions, reflecting ongoing affordability issues driven by high interest rates and the uncertainty of a General Election. Sold Subject to Contract (SSTC) levels are down 32% compared to Q2 2019. Similarly, completion rates, despite showing moderate growth in May, remain around 40% below where we’d expect in normal market conditions.
Despite these challenges, the data suggests that the market is poised for a potential upturn in the latter half of 2024, provided economic stability improves and systemic inefficiencies are addressed by the new Government, alongside the wider industry.
Notable headlines in England, Wales and Scotland from Q2 2024 include:
- In England and Wales, listing volumes were up 6% in Q2 ‘24 vs Q2 ‘19. In Scotland, there was a slight decline in listing levels versus Q2 ‘19 with volumes down 4%.
- In England and Wales, SSTC volumes in Q2 ‘24 continued at Q1 levels – 32% lower when compared to Q2 ‘19 volumes. In Scotland, SSTM continued to slow, down 16% in Q2 ‘24 vs Q2 ‘19.
- In England and Wales, completion levels in Q2 ‘24 remained the same as Q1 ‘24 – 41% down vs Q2 ‘19 volumes. In Scotland, completion volumes were down 5% in Q2 ‘24 vs Q2 ‘19.
Download the report to discover the latest trends impacting the residential sector in Q2 2024.
We are delighted to launch our new innovative AML check designed to enhance the way property professionals manage compliance and transactional due diligence.
OneSearch AML harnesses market-leading technology and offers conveyancers an up to date Know Your Client checker in the fight against fraud in the sector, all whilst ensuring adherence to recently updated industry standards and guidelines.
Ongoing monitoring
New digital advancements have meant that previous methods of identity verification within the legal setting such as manually checking documents, face-to-face meetings, and waiting for postal deliveries for documents have become outdated. Now, with biometric scanning, NFC technology, secure encryption, and cloud-based storage, ID checks are a far more safe, accurate, and effortless part of the conveyancing process.
Furthermore, OneSearch AML offers ongoing monitoring checks, which provides post-sale examinations of any changes, developments, or updates to customers profiles over a 12-month period.
Robin Wells, Head of Sales Operations at OneSearch added:
“The launch of OneSearch AML underlines our ongoing commitment to empowering conveyancers in navigating their day-to-day workflow, and in this case, support for any complexities that run alongside AML due diligence.
“For us, we know and understand the complexities of KYC regulations of our clients – assessing risks, identifying suspicious activities, and especially ongoing monitoring are all imperative to our customers and to the industry as a whole. OneSearch AML solution delivers quick, secure, and accurate cover across all these areas.”
Challenges in Anti-Money Laundering Compliance
The launch aligns with insights from the SRA’s Anti-Money Laundering annual report, revealed in October 2023, which highlighted certain areas needing attention within law firms. Among the observations, it was noted that a portion of reviewed firms, specifically 66 out of 224, require additional support to fully comply with anti-money laundering regulations. Unfortunately, the legal sector often faces challenges regarding money laundering, contributing to a broader concern around the flow of approximately £100 billion in illicit funds through UK businesses and financial institutions each year.
Elizabeth Jarvis, Managing Director at OneSearch said:
“The message from the SRA annual report was clear. All legal firms need to ensure they are committing time and resources to counteract modern money laundering attempts, and we offer our strongest support with OneSearch AML.
“The service has been created to be the single, comprehensive solution for our customers, easing any worry or burden they may have over how best to comply with all relevant standards and guidelines.”
Are you feeling the weight of Anti-Money Laundering compliance? You’re not alone.
New industry standards and guidelines are adding complexity, and the cost of non-compliance can be significant.
Our new infographic reveals the hidden costs of manual KYC checks, missed deadlines, and non-compliance penalties. You’ll also discover how OneSearch can help you significantly reduce these costs and improve your bottom line.
As we enter May, conveyancers across the country are looking ahead to a predicted busier few months. 2024 is still expected to be a year of positive developments in the UK property market, with interest rates and affordability pressures remaining favourable.
Conveyancers are now making changes to their systems, policies, and procedures in preparation for a much busier 2024, especially in the area of Anti-Money Laundering (AML) checks. So, as a conveyancing practice preparing for the coming year, what do you need to know about AML compliance in 2024?
Laser-like focus by regulators on conveyancer AML compliance
With the publication of SRA’s Anti-Money Laundering annual report 2022-23 in Autumn 2023, it is now 100% clear that regulators are demanding nothing but absolute compliance by law firms and conveyancers with their AML guidelines. During 2023, both the SRA and the CLC uncovered widespread AML code breaches and non-compliance AML by UK law firms. According to the CLC, of the 52 conveyancing practices they inspected:
- 19 had inadequate AML documented policies or procedures
- 18 had inadequate AML client due diligence procedures, and
- 15 had inadequate AML firm-wide risk assessments.
Similarly, the SRA’s own assessments revealed that only around one-third of firms were not fully compliant with their AML obligations.
As the CEO of the SRA, Paul Philip, stated in October 2023:
“Over the coming year [2024], we will increase our work in this area, including undertaking proactive sanctions inspections and desk-based reviews to check how well firms are managing their risk and whether they are complying with licences issued by the Office of Financial Sanctions Implementation. Where we find sanctions breaches, we won’t hesitate to take enforcement action”.
Three-level risk assessments
In 2024, the regulators want to see that all conveyancers are now carrying out detailed risk assessments at the three levels of the:
- Client
- Matter, and
- Organisation
It is not enough for conveyancers to use a ‘check-box’ approach to the three types of risk assessments. The regulators are looking for a detailed, consistent, and integrated approach when it comes to conveyancing risk assessment. Effective policies and training will be vital in ensuring that risk assessments are conducted properly and at the level required to meet the compliance requirements. Risk assessment templates should also be tailored to the organisation, geography, and the type of service being provided.
Conveyancers must go beyond the AML basics in 2024
Regulators have made it clear that they expect law firms and conveyancers to go beyond simply AML check measures; this includes carrying out (where necessary):
- Source of funds checks
- Source of wealth checks
- PEP and sanction checks
- Enhanced checks
Again, clear and up-to-date policies, coupled with effective training, will be key to making sure that every member of your conveyancing team is carrying out these enhanced checks when they need to and in a consistent and thorough manner.
The SRA and the CLC are also keen to see the wider adoption of proactive, ongoing monitoring measures, which is a key requirement of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Monitoring involves continually monitoring the risk profile of existing clients to automatically detect problems and take action if they arise. Indeed, the SRA has said ongoing monitoring is “one of the most effective controls firms can put in place to protect against money laundering”.
Introducing OneSearch AML
OneSearch AML is a new-generation automated digital ID verification solution for commercial and residential conveyancers that overcomes all AML compliance challenges identified by the CLC and SRA. It can be easily integrated into your existing conveyancing system, making its adoption and use extremely straightforward for your team members.
OneSearch AML automatically takes care of all the AML checks and processes necessary for compliance in 2024, including:
- Verifying the identity and addresses of your clients using a simple automated workflow through a mobile app or online portal.
- Combining ID verification and real-time facial recognition technology to spot masks, impersonations, or fakes with easy-to-use anti-spoofing liveness tests.
- Using biometric scanning, NFC technology, secure encryption, and cloud-based storage to ensure that ID checks are safe, accurate, and effortless.
- Carrying out a range of national database checks, including enhanced checks, seamlessly and automatically, ensuring that you know everything you need to know about your clients and,
- Ongoing monitoring of AML and KYC data, ensuring that any changes, developments, or updates to customer profiles are carried out automatically over a 12-month period.
Final words
If you haven’t started taking action already, now is the time to do so.
2024 is expected to be a busy and successful year for the conveyancing sector in the UK. By putting in place everything necessary to underpin your AML compliance in the coming weeks and months, including workflow and monitoring systems coupled with effective training, you can relax in the knowledge that when instruction numbers pick up, you will remain AML compliant.
As a ready-made and proven solution for AML compliance in 2024 and beyond, OneSearch AML makes the transition to full compliance as simple and straightforward as possible.