22 September 2021
Transfer market hollowed out after contingent charging ban takes effect
- Of the 393 transfers quoted in Q4 2020, only 15% were subsequently paid out. This is the
lowest quarterly take-up rate since 2015 and continues the steady downward trend in take-up
rates since the peak of 34% in 2017.
- Take-up rates fell for transfers of all sizes, but the upper mid-range of the market saw the
biggest drop. Only 12% of the 51 transfers quoted between £400,000 and £800,000 in Q4
2020 were paid out, compared with 32% in 2019 before the contingent charging ban and a
high of 51% in Q3 2017. This is covered in more detail in the next section.
- Meanwhile, quotation rates stabilised over Q1 and Q2 2021 at an annualised rate of 54
quotations per 1,000 members, close to pre-Covid rates, although the latest data on transfer
requests indicates a fall in activity in July.