Massive rise in fees can eat into investor returns

Massive rise in fees can eat into investor returns


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Annual research of 100 residential conveyancing firms across England and Wales shows that average legal fees have risen comfortably ahead of recent CPI levels.

A study by Property Solvers reveals double-digit growth in standard freehold transaction costs, alongside continued upward pressure on leasehold and remortgage fees.

In 2026, the average conveyancing fee for a freehold property sale stands at £1,317 (inclusive of VAT) – up from £1,191 in 2025, representing a 10.6% year-on-year increase.

For a freehold purchase, average fees have risen from £1,256 to £1,390 – a 10.7% increase.

The average leasehold sale fee in 2026 is £1,629, up from £1,506 – an 8.2% increase.

Leasehold purchase fees have risen from £1,587 to £1,743 – a 9.8% year-on-year increase.

For homeowners remortgaging, the average conveyancing fee in 2026 is £783, up from £742 last year – a 5.5% increase.

The research assumed transaction values at £300,000, a mortgage being redeemed upon sale or taken out on purchase and quotes based on disbursements not being included.

To put these fee movements in context, recent data from the Office for National Statistics shows that annual Consumer Prices Index (CPI) inflation in the UK has cooled to around 3.0% in the year to January 2026.

Ruban Selvanayagam, co-director of Property Solvers, comments: “Conveyancers are operating under heavier regulatory and anti-money-laundering (AML) obligations, rising professional indemnity insurance costs and stricter lender panel requirements.” 

“At the same time, with a notable number of sales not reaching completion – many firms report increased levels of abortive work, which must be absorbed into overall pricing.”

Selvanayagam also warns that although more conveyancers are incorporating AI-driven and digital platforms into workflows, caution should still be taken when selecting which firm to instruct:

“We strongly advise sellers and buyers not to choose a conveyancer on headline price alone. Suspiciously low quotes often exclude key elements or operate on high-volume, ‘low-touch’ models.

“A clear written breakdown and an understanding of what is and isn’t included continues to remain essential.”

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