Not many could have predicted what this year would bring, and even fewer could have foreseen the rollercoaster ride the housing sector would experience in the space of six months.

Agents, brokers and conveyancers alike first endured the famine lockdown created. Fast forward to July and the easing of lockdown measures acted like a dam releasing and flooding all aspects of the market with pent-up demand amongst buyers and sellers alike suddenly overwhelming estate agents, conveyancers, brokers and mortgage providers.

Yet, with the pandemic still creating so much uncertainty, what might lie ahead?

Demand: Three key factors

There is little doubt amongst those in the sector that the sheer volumes we are currently seeing are unsustainable and can be attributed to a few key factors. One is pent-up demand from lockdown, another is the stamp duty holiday, and the third is people looking to change their lifestyle through want or necessity post lockdown.

Stamp duty holiday: A blessing and curse

Whilst the stamp duty holiday has given a much-needed boost to the sector, it has been both a blessing and a curse.

Just over 35% of the firms that the CLC regulates told us they are working at somewhere between 100% and 125% of the workload from this same period last year.

Yet, it’s not just conveyancers feeling the pressure. This huge demand has placed an incredible strain on businesses of all types across the consumer property market – in order to preserve their own businesses, they furloughed many staff.

Suddenly, the demand is back tenfold, but not in all cases the staff to service it. In July even Barclays was forced to announce it was placing a daily cap on the number of mortgage applications they would be accepting.

With this level of demand likely to drop off as the market settles, some businesses are finding it hard to know how best to manage staff numbers.

So how can firms look to successfully weather such volatile conditions, and is this pattern likely to continue?

What tech can offer

Some firms have found it easier to adapt and be flexible through these wild swings in workflow, and they have been the firms which, pre-pandemic, invested in tech.

Successful use of tech, isn’t about selecting it for its own sake it’s about seeing what is available out there to help manage administrative burdens, undertake digitally what used to be face to face and provide workflow management to staff and customers alike.

Many customers have faced being put on hold on the phone for significant periods of time as staff struggled to cope with call volumes.

This left many with a very unsatisfactory experience. The firms who were able to provide a smoother experience for their clients were ones who had already embraced automation. There are a number of ways in which automation can help improve your business.

There are simple measures such as ensuring there are clear routes on your website, which direct customers to key areas such as online quote tools as well as information and online application forms for mortgage holidays and renewals.

Online identity verification tools, became a necessity overnight rather than a ‘nice to have’ accelerating the adoption of technology through the industry.

TSB has extended its automated identification and verification process for all mortgage applications until October, but more permanent adoption of these tools will undoubtedly be seen across the sector as employers look to protect both staff and customers alike for the foreseeable future.

Legal technology enhancements

Meanwhile, in the legal sector regulators such as the CLC supported practices to increase their take-up of electronic ID verification tools.

Instant mortgage offers, such as those being provided by Shawbrook, have now trimmed down mortgage processing times to 48 hours.

While these combined with an e-signature facility allows buy-to-let customers to sign and return their offers immediately.  Long established conveyancing firm Enact are leading the way with the Land Registry’s digital mortgage service.

Premier Property Lawyers offer an online case-management service that allows clients to manage their case 24/7, via a smartphone, tablet or PC.  Both of these examples significantly cut down on the administrative burden.

More and more conveyancing practices are seeking to digitise what they can of the process. They are looking to give clients an experience that is closer to what is expected from other online transactions in terms of ease of use and levels of engagement.

This involves giving greater clarity about the options available to ‘purchase’, and a clear overview about the whole process, along with exactly where clients are in that process.

Artificial intelligence, is at the centre of developments tech right now, and for good reason. Businesses who are successfully implementing AI are reaping the rewards as it allows flexibility through both feast and famine.

AI chat bots are a great example of this. They are able to work non-stop 24/7 allowing customers access to information when they need it, rather than the traditional 9 to 5 as well as taking the strain off overstretched call handlers and frontline staff.

They can be utilised by both large firms who need a significant online presence for a large customer base, but also by smaller firms, who may not have the resources to employ someone solely to handle online queries.

Investment in these types of technology allow firms to upscale during times of high volumes, and to scale back during quieter periods, without affecting staffing levels. This simultaneously frees up staff to process the more complex work which requires human input.

Why prepping now is key

We recently surveyed CLC-regulated firms and 70% of those we spoke to said they believed they hadn’t yet felt the full force of Covid-19. However, 50% of them expected to do so within the next six to twelve months.

Why that timeframe? Well in six months’ time the chancellor’s stamp duty holiday will have come to an end and we are also likely to have a clearer picture of the economic impact that the pandemic has created.

Also as we know from previous SDLT holidays after the feast we may now be supping at, there is likely to be a significant downturn in house moves, presaging a number of lean months. Prepping and investing now, will allow businesses more flexibility to weather what that may come.

Stephen Ward is director of strategy and external relations at the Council for Licensed Conveyancers