Property lawyers face slowdown in work amid changing real estate market
updated on 24 January 2024
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Property lawyers are handling 25% fewer cases on average, after monthly property transactions fell 21% year on year, according to data from Search Acumen.
The average property law firm handled 62 cases in Q3 of 2023 – a 25% decrease year on year and a 41% decrease on the Q1 2022 peak, which saw firms take on an average of 94 cases each quarter in the “post-pandemic frenzy”. The slowdown in work reflects a fall in monthly transactions, with September 2023 recording the fewest property market transactions in nearly three years.
As the market shifts and work slows, “a number of firms are making moves to consolidate”, according to Andy Sommerville, director at Search Acumen.
That said, 62 cases per quarter is reportedly in line with pre-pandemic figures, indicating a potential return to “traditional activity levels”.
The total number of active firms has also suffered from the market slowdown, falling below 3,900 for the first time outside of a pandemic in August 2023, according to Search Acumen’s analysis.
This “reflects a market rife with acquisitions and big winners”. The market share for the top 500 law firms is on track to reach 60% for 2023 (up from 51% in 2011), with such firms handling three in five transactions. The top 100 law firms also now have a market share of around 77% (up from 65% in 2011).
As ever, technology could play a crucial role as an increasing number of law firms continue to adopt it to improve service quality and responsiveness to clients, among other benefits.
Sommerville said: “With rapid advancement in what technology can deliver for businesses’ bottom lines, the use of tools like AI to drive efficiencies is no longer a nice-to-have, but crucial in the race against obsolescence. Staying relevant to clients has to be critical to conveyancers at a time of market crunch.”
