HOMEBUYERS in west Dorset are being turned down for mortgages due to "scandalous" delays in the conveyancing process caused by a Dorset Council backlog in dealing with 'Local Search' requests.
The search is crucial for buyers as the majority of lenders will not agree a mortgage until the paperwork has been provided by the council.
But delays of up to 13 weeks mean homebuyers risk being 'gazumped' by cash buyers as city dwellers flock to Dorset.
Local estate agents say it is causing "unprecedented" issues, putting local buyers - particularly first time buyers - at a major disadvantage, while also affecting those further up the chain, with many buyers now set to miss the stamp duty deadline.
Martin Bowen-Ashwin of Bridport estate agent Stags believes the issue has been caused by a new system introduced by Dorset Council to amalgamate the county’s former district and borough councils in December - at a time when the volume of searches was already high due to the Stamp Duty Holiday.
"This has put added pressure and strain on the system and for first time buyers in particular," he said. "All related industries are now feeling the strain with transactions now taking much longer as a consequence."
Dorset Council has said the delay has been caused by the pandemic. But according to Mr Bowen-Ashwin, buyers in neighbouring counties have a significantly shorter wait, of around four weeks.
He added: "At Stags we try and manage the expectations of potential clients and buyers from the onset with the help and support of excellent local solicitors, where local knowledge can be vital in circumnavigating this issue."
Meanwhile Beaminster property solicitor Stephen John Larcombe has described the situation as "unforgivable."
"This is an absolute scandal," he said. "Home buyers - especially young first-time buyers - face the prospect of an already stressful process being made hugely more stressful because of the failings of Dorset Council.
"I was told recently by an estate agent that for one property she had 10 offers, so it is clear to me that the market is overheating, and becoming more and more unstable for buyers.
"It is unforgivable for Dorset Council to increase the risks of parties being gazumped because of a fundamental inability to deliver a key piece of the home buying infrastructure. What happened to the efficiencies we were all promised following the creation of a unitary authority?"
Matt Gregg, manger of Wilson Tominey estate agent in Weymouth, said there are delays of 45 to 50 working days in Weymouth and Portland, and up to 70 days in Chickerell and west Dorset - and described the situation as "an absolute nightmare."
"It's causing huge problem across the board," he said. "So many things are affecting marketplace at the moment with the stamp duty deadline coming to an end - for all of those buyers who were potentially able to save up to £15,000, the delay with local searches means those deadlines just can't be met and therefore that's causing a lot of financial problems for a lot of buyers, which then has a knock on effect further up the chain.
"While local searches are a requirement for a majority of mortgage companies, people purchasing with cash have the option to forgo this - and therefore cash purchasers appear a more attractive buyer to the vendor of the property - which is obviously pushing out the first time buyers, the local buyers, because they don't appear as desirable."
Mr Gregg explained that the issue is compounded by an influx of buyers from cities who are now able to work from home or are looking for holiday homes due to restrictions on overseas travel.
"In Weymouth in particular we're seeing buyers with city jobs who have realised they can now work from home in a nicer environment by the sea.
"People selling their family home and moving down from London have substantially higher budgets and are outbidding the first time buyers, which is driving the prices up.
"It's very tough indeed for a first time buyer - there's so much against them which is not fair - there's not a lot in the favour of those trying to get onto the housing market."
In response, councillor David Walsh, Dorset Council portfolio holder for planning, said: “We are seeing a huge increase in workload and we are still working within Covid restrictions. Most of our planning teams continue to work from home which has its own challenges. Everyone has been working incredibly hard in very trying circumstances, but we are using every opportunity to make our processes better.”
"Being prepared is key"
Matt Gregg of Wilson Tominey has the following advice for first-time buyers:
* Get into the best possible position prior to expressing an interest in a property.
* If possible obtain a mortgage 'in principle' before making an offer.
* Be honest and upfront with the agent about your ability to proceed.
* Ask the agent whether the vendor has any specific requirements including the owner's timescale - they may also be faced with a delay with searches and may not necessarily be looking for a quick sale.
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