Competition in Conveyancing: An Analysis of Solicitors' Charges 1983-85

Attention is focused on the changing structure of conveyancing fees over the period 1983-1985 in the UK. The investigation is based on a statistical analysis of conveyancing charges and differs from previous studies in that it relies on transaction cost information: The data on conveyancing charges are supplied by the clients and not by the solicitors themselves. The results indicate that the threat of entry into conveyancing has significantly altered the pricing structure for conveyancing services. Although the degree of price discrimination has been reduced through greater competition within the profession, a considerable element of discrimination still remains. This, along with the steep rise in house prices over the 2-year period, cushioned solicitors from the worst effects of competition. The increase in house prices has compensated for the reduction in that part of the fee that is related to house prices. The price discrimination scheme used in conveyancing is clearly inflation-proof, since house prices have more than kept up with inflation.