The Conveyancing Association is asking for the furlough scheme to go beyond October and for government intervention in the housing market in order to prevent job losses.

It points to Law Society research that shows 71 per cent of small firms reporting that they may have to close their businesses within six months.

The association adds that conveyancing work has been cut by 60 per cent since Covid-19 took hold in the UK.

In terms of intervention, the Conveyancing Association warns against taking action as soon as possible and instead argues for “structured and long-term measures” to help the UK housing market, such as cutting stamp duty land tax to zero for properties under £500,000 and government-backed guarantees to lenders to allow for high-LTV products.

Conveyancing Association chair Paul Smee says: “Without a further extension, many firms may have to make significant redundancies while others would simply no longer be economically viable. This will create logjams in the purchase and sale of houses. For a government which will want to see a strong housing market driving a full economic recovery, this would have only negative consequences, and it’s therefore important this sector continues to receive support beyond the end of June.

“We anticipate that in the immediate aftermath of lockdown, there will be some pent-up demand; if that activity is to be sustained for the longer-term the government should also be looking at ways to deliver higher LTV lending and potentially amendments to stamp duty in order to provide the necessary stimulus for consumers to enter the market.

“As for the sector, we will continue to focus on cutting down the time it takes to complete transactions. We want firms to survive and help the recovery of the UK housing market which will strengthen the economy as a whole.”