Tesco law set to shake up conveyancing market

The likes of Tesco, the Co-op and the AA are poised to enter the legal services market and offer conveyancing services through estate agents and mortgage advisers.

The so-called Tesco law comes into effect in October and will allow a whole host of non-legal firms, including retailers, to enter the market.

A new report, from YouGov’s Sixth Sense division, outlines the scope for national retail brands to expand into legal services.

The report suggests that they may do very well – simply because they are household names that consumers have heard of.

Six out of ten people questioned by YouGov said they would consider taking legal advice from brands such as the Co-op, the AA and Barclays.

But whereas there is strong recognition of retail brands, consumers did not recognise any of the names of the largest legal firms in the UK, and when given a list, could not say whether they were solicitors or accountants.

There was only recognition when the firm’s name included a give-away word like ‘lawyers’ or ‘solicitors’.

The report says that, unlike retailers, solicitors build their business on reputation and not on brands.

Rob Hailstone, a former conveyancer and HIP provider and now founder of the Bold Group, an association of conveyancers with an interest in improving the way homes are bought and sold, said: “The question is if the interests of consumers will be best serviced by retailers and businesses like Tesco, or whether estate agents would prefer to work with high street solicitors.”

The Tesco law is intended to open up the market and introduce greater competition.

But it has already come under fire, with warnings that it could lead to ‘wild west’ will writing, with unqualified and unregulated people doing complex legal work.