UK conveyancing sector faces pressure to overhaul referral fee transparency amid market growth and rising costs

As the UK conveyancing market recovers and expands, industry leaders advocate for redefining referral partnerships through greater transparency and strategic collaboration to address operational pressures, rising costs, and regulatory scrutiny.

The conversation about referral fees in the UK conveyancing market has gained new urgency amid significant industry challenges and change. Following two years of contraction, the market saw a 4.5% growth in 2024 and is projected to expand by a further 5.7% in 2025. Despite this positive trend, the sector faces serious operational pressures, with a 15% decline in conveyancer numbers since 2021 and job vacancies doubling since then. These factors create strains on service delivery and have intensified scrutiny over referral arrangements, particularly in light of the Council for Licensed Conveyancers’ thematic review triggered by concerns over consumer choice and disclosure revealed in investigative reporting.

For estate agents, the issue of referral fees extends beyond legalities; it directly impacts their reputation and client relationships. Poor conveyancing experiences—characterised by delays, lack of communication, or opaque processes—reflect negatively on agents themselves. In an era where online reviews and digital transparency shape consumer decision-making, the quality of conveyancing service linked to agent referrals becomes a critical element of business success. Rather than rejecting referral partnerships, industry leaders argue that agencies should redefine these relationships through shared value, greater transparency, and a genuine commitment to client outcomes.

The best referral partnerships go beyond mere transactional exchanges and become strategic alliances. Agents benefit most when legal partners communicate proactively, invest in technology for real-time case tracking, and take full ownership of service quality instead of merely processing files. These attributes can accelerate transactions, reduce fall-through rates, and build stronger client trust—differentiating agents in a competitive marketplace. Transparency plays a key role here; treating disclosure of referral fees not as a regulatory obligation but as a competitive advantage can bolster client confidence. An open dialogue about why preferred legal partners are chosen for their service quality and how referral fees do not inflate client costs, can convert potential scepticism into trust.

While the regulatory landscape in conveyancing is evolving, with the Council for Licensed Conveyancers conducting a review of referral practices, forward-thinking agencies need not wait for mandated changes. Ethical conveyancers prioritising quality and transparency allow agents to set new industry standards and lead market improvement. Some firms have introduced innovative roles such as Principal Relationship Coordinators who monitor client experience and ensure continual service enhancements, creating stronger alignment between agents, conveyancers, and clients.

This focus on trust and transparency comes amidst other market developments affecting conveyancing services. Conveyancing costs have recently hit record highs, with average fees reaching £2,434 in the first quarter of 2025—an 11.9% increase year-on-year. This spike has been driven by heightened demand, partly due to a rush to complete transactions before Stamp Duty changes, and shows regional variation with the North East and Northern Ireland experiencing the steepest increases. Such rising costs add pressure on agents and their conveyancing partners to deliver value and efficient service.

The broader UK housing market dynamics also contextualise these pressures. Recent months have seen a marked slowdown in house price growth, with surveys indicating the sharpest price declines since early 2024 amid economic uncertainty, high inflation, and unclear interest rate trajectories. Although home prices are still forecast to rise by around 3.5% this year, slower transaction volumes and cautious buyer behaviour suggest the conveyancing sector must adapt and optimise service delivery in a more competitive and cost-conscious environment.

Ultimately, estate agency has always been grounded in reputation and long-term relationships rather than mere transactional success. By choosing conveyancing partners who embody their values and committing to transparency and accountability, agents can transform referral fees from a controversial flashpoint into a hallmark of professionalism. The moment calls for resetting industry norms—not retreating—and proving that when conveyancers and agents collaborate earnestly, clients benefit, trust is restored, and the market grows stronger.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative was published on 12 September 2025, making it current. The earliest known publication date of similar content is 28 January 2025, discussing the UK residential conveyancing market’s growth projections. ([propertyreporter.co.uk](https://www.propertyreporter.co.uk/conveyancing-costs-hit-record-high-amid-stamp-duty-rush.html?utm_source=openai)) The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The narrative is based on a press release, which typically warrants a high freshness score.

Quotes check

Score:
7

Notes:
The narrative includes direct quotes from Adam Bainbridge, Sales Manager at RG Law. A search reveals that these quotes have not appeared in earlier material, suggesting they are original. However, without access to the full context of the press release, it’s challenging to confirm the exclusivity of the quotes.

Source reliability

Score:
6

Notes:
The narrative originates from Today’s Conveyancer, a publication focused on the conveyancing industry. While it provides industry-specific insights, its reputation and editorial standards are not widely known, which introduces some uncertainty regarding its reliability.

Plausability check

Score:
8

Notes:
The claims about the UK conveyancing market’s growth and challenges are plausible and align with recent industry reports. For instance, Property Reporter reported that conveyancing costs reached a record £2,434 in Q1 2025, up 11.9% year on year. ([propertyreporter.co.uk](https://www.propertyreporter.co.uk/conveyancing-costs-hit-record-high-amid-stamp-duty-rush.html?utm_source=openai)) The narrative’s focus on referral fees and partnerships is consistent with ongoing industry discussions.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary:
The narrative is current and includes original quotes, but its reliance on a press release and the uncertain reliability of the source warrant further scrutiny. The plausibility of the claims is supported by recent industry reports, but the lack of coverage from other reputable outlets and the potential recycling of older material suggest a need for cautious evaluation.