Property/real estate

In a nutshell

Property lawyers, like their corporate colleagues, are essentially transactional lawyers; the only real difference is that real estate deals require an extra layer of specialist legal and procedural knowledge and there aren’t quite so many pesky regulatory authorities. The work centres on buildings and land of all types, and even the most oblique legal concepts have a bricks-and-mortar or human basis to them. It is common for lawyers to develop a specialism within this field, such as residential conveyancing, mortgage lending and property finance, social housing or the leisure and hotels sector. Most firms have a property department, and the larger the department the more likely the lawyers are to specialise. Note that ‘property’ and ‘real estate’ are entirely interchangeable terms.

Property

 

What lawyers do

  • Negotiate sales, purchases and leases of land and buildings and advise on the structure of deals.
  • Record the terms of an agreement in legal documents.
  • Gather and analyse factual information about properties from the owners, surveyors, local authorities and the Land Registry.
  • Prepare reports for buyers and anyone lending money.
  • Manage the transfer of money and the handover of properties to new owners or occupiers.
  • Take the appropriate steps to register new owners and protect the interests of lenders or investors.
  • Advise clients on their responsibilities in leasehold relationships and on how to take action if problems arise.
  • Help developers get all the necessary permissions to build, alter or change the permitted use of properties.
  • Manage property portfolio investments and advise real estate funds.

Realities of the job

  • Property lawyers have to multi-task. A single deal could involve many hundreds of properties, and your caseload could contain scores of files, all at different stages in the process. You’ll have to keep organised.
  • Good drafting skills require attention to detail and careful thought. Plus you need to keep up to date with industry trends and standards.
  • Some clients get antsy; you have to be able to explain legal problems in lay terms.
  • Despite some site visits, this is mainly a desk job with a lot of time spent on the phone to other solicitors, estate agents, civil servants and consultants.
  • Most instances of solicitor negligence occur in this area of practice. There is so much that can go wrong.
  • Property departments are known for offering trainees plenty of independent responsibility: often you'll be dealing with 20 or 30 small property files (sales, leases, licences to assign) at the same time.
  • Your days will be busy, but generally the hours are more sociable and predictable than in other transactional practices.

Current issues

  • Arguably the most cyclical legal area around, property practice has always followed and will always follow the market. In an economic downturn, especially a global one, there’s less demand for properties and new developments, values plummet and conventional bank lending becomes increasingly hard to find. Conversely, in good times the property sector and the fortunes of property lawyers boom.
  • The effect that Brexit will have on the property market is dependent on the effect it has on the economy as a whole. The housing market is mainly influenced by wages and interest rates, and a large number of economists expect Brexit to suppress wages. But the actual effects of Britain's exit from the EU will depend on how the negotiations go.
  • This being said, Brexit-related turbulence has led to a fall in house prices across the south of England for the first time in ten years. Mirroring the rate of London decline – which has seen house prices fall for 16 straight months, with official figures showing prices dropping 2.7%.
  • Conversely, renting still remains unattainable for most – specifically in the nation’s capital – due to soaring prices. In part attributed to investment from abroad, with overseas buyers snapping up luxury apartments and townhouses as investments guaranteed to make a profit. Many of these properties are kept empty after purchase, making this trend doubly contentious in the current housing climate. The Grenfell Tower fire brought this debate into the foreground.
  • As the inquiry into the Grenfell tragedy continues, scrutiny grows on ministers and leaseholders alike to revamp their safety measures. A recent fire in a block of flats in Barking, East London, has intensified concerns about housing ill-prepared to combat deadly flames. Similarly, the fallout has catalyzed a number of residents in a group of Manchester tower blocks to sue the government due to perceived inaction over unsafe living conditions.
  • Unaffordable housing and a national housing crisis are factors in the nation’s increasing homelessness figures. New data from the Museum for Homelessness alarmingly shows that on average, a homeless person dies every 19 hours on the streets. Equally, figures from the Department for Communities and Local Government show that the number of rough sleepers is exponentially rising across the UK.
  • Buy-to-let investors took a hit in 2018 due to a range of changes to the taxation of residential property by the government. This includes increased stamp duty on the purchase of additional properties, tougher affordability checks on borrowers and measures to phase out higher rate tax relief on mortgage interest. Buy-to-let purchase mortgages fell by over 5% at the beginning of 2018.
  • Social change is creating interest in alternative investment opportunities. The UK's ageing population, for example, makes retirement living and the healthcare sector a good bet. Student accommodation has also attracted investors due to large numbers of EU and international students coming to the UK but it remains to be seen how much of an impact the Brexit vote will have on this particular market. 
  • As of June 2019, the Tenant Fees Act has come into full force, scrapping most letting fees and capping tenancy deposits.