Why Legal Services in the UK are Cheaper than in Most Places in the World..

Many clients in the UK Feel that they are paying toomuch for legal advice.

In this article, we are looking at the reasons why, in reality, the UK is very cost effective on legal fees.

Let’s start with a comparative.

If you take your car to a main dealer for work, the cost is currently (as at August 2024) at £92.11 per hour.

If you look at the cost of a UK Solicitor, the average legal fee for conveyancing is around £1,000 for the entire job. But what do you get for this?

From a time survey, the average time it takes to complete your legal work is 14.5 hours of work on a regular transaction. This makes it £68.96 per hour for a Solicitor to do the work for you.  There are other costs on top of this (e.g. searches, tax and land registry fees) but the price per hour is really low.

What about hairdressing? surprisingly, any half decent salon is over £60.00 per hour.

Don’t get us wrong, a skilled mechanic and a skilled worker of hair magic are both very much worth their time. We would argue though that a profession such as law with the regulation we face may be pound for pound be a great investment.

So why is it cost effective?

1. Regulatory Framework and Market Competition

One of the reasons for the price of legal services in the UK is the enforced need to be clear on competition and pricing. Our own website has our literal price list displayed for everything we do.

We also have the legal services commission. Their role is to ensure fair and accessible legal services. A more cynical person may say it was in some part to make up for removing legal aid but we wouldn’t say that!

The introduction of the Legal Services Act 2007, for instance, was a significant step toward opening up the legal market. This Act allowed for the creation of Alternative Business Structures (ABS), enabling non-lawyers to own and invest in law firms.

The increased competition from ABSs and other legal service providers had the result in lowering prices across the board.

That said, an ABS, is normally run mostly by Solicitors and they always have to comply with tough regulation.

2. Technological Advancements and Legal Tech

The UK has been at the forefront of integrating technology into legal services, often referred to as “Legal Tech.” Manchester University is a world centre for technology and ai.

New technology has also automated many processes. By speeding up the admin, the Solicitors can work on the complex legal work. Concentrated legal advice!

We work with many legal tech companies. The Agent Site (www.theagentsite.co.uk) for example makes moving home easier, keeps you up to date and helps you fill in documents.