The Law Society is considering ‘all possible options’ in response to what some practitioners are describing as an unprecedented backlash by high street firms over HSBC’s decision to replace its open conveyancing panel with a panel comprising just 43 firms.

Jonathan Smithers, chair of the Society’s conveyancing and land law committee, said he understands the frustration felt by firms, but warns that a ‘knee-jerk, headline-grabbing’ res­ponse could do more harm than good.

‘The profession needs to accept that the Society cannot tell lenders whom they can instruct,’ he stressed.

Since HSBC announced the launch of its new panel, some solicitors have called for firms to withdraw their business from the bank. Rob Hailstone, founder of the Bold Group, which represents some 130 firms, said the announcement prompted an ‘unprecedented backlash’ from solicitors seeking to vent their frustration and anger.

Hailstone said he had heard of one firm that has taken the matter up with its MP and another taking out local advertising pointing out the difficulties that buyers could face in using their solicitor of choice if they have an HSBC mortgage.

He added that firms fully accept that lenders are in a position of strength, but the action taken by HSBC was ­perhaps ‘a step too far for many’.

However, chair of the Conveyancing Association Eddie Goldsmith said lenders had the right to determine the size of their panels. ‘I can understand why high street firms are shouting and screaming about the move, but they have to live in the real world – it’s a fact of life and an inevitability,’ he said.

Lloyds Banking Group, Santander, The Co-operative, Nationwide and Northern Rock all told the Gazette they have no current plans to cut the size of their conveyancing panels.