New fraud checks to wreak havoc on property market, lawyers warn

Richard Emery, of consultants 4Keys, said that the delays could cause problems on completion day for those buying homes, if their payment was flagged as suspicious.

While many home purchases made with a mortgage will only require a payment from a lender for completion, those who have made cash-heavy offers will also need to move money before they get the keys.  

Mr Emery said that it could prove particularly problematic for those reliant on long chains, as one delay could see the whole process collapse.

Beth Rudolf, of the Conveyancing Association, said that conveyancers should make sure that there was enough time to transfer funds ahead of a completion date.

Ms Rudolf said: “From a consumer perspective, if they know that the money has to be with their conveyancer in four days’ time, send it immediately. The interest on four days is not going to be huge anyway.

“But if it does fall into the suspicious pot, it gives the bank time to go through that process,” she said.  

Nathan Emerson, chief executive of Propertymark, said: “It’s vital the overall issue is kept under strict scrutiny from a legislative viewpoint and that protections are robust enough to detect and prevent fraudulent behaviour at every step of the house buying and selling process.”

Banks already routinely ask those calling to make large transfers to their solicitors to check the details of the account they are sending money to by calling the number listed on the firm’s website.

HM Treasury was approached for comment.