New homebuying shake-up announced

New homebuying shake-up announced

A package of reforms aiming to cut the drawn-out sales process, prevent house sales falling through and cut costs have been announced by the Government.  

New sales packs, the introduction of binding agreements early on in the sales process and the introduction of new digitised paperwork is at the heart of the proposals, which the Government says will make homebuying easier, saving time, money and stress. 

It says new processes will slash four weeks from the sales process, and estimates the average cash saved – for a first-time buyer – will be around £650.

What is the issue?

At present the average home purchase takes around four months, with one in three sales falling through costing sellers around £400 million per year. According to Government figures these failed transactions cost the economy up to £1.5 billion every year – with ministers saying the reforms will fix ‘a broken system’. 

What’s being proposed?

Sales packs 

Under the plans sellers and estate agents will need to provide key information upfront in ‘sales packs’ at the point of listing a property, which are expected to include:  

• The property and tenure type – freehold/leasehold house/flat etc, council tax band and EPC rating, as well as the chain status. 

• Deeds documents and terms, for example service changes etc as well as verified seller ID. 

• Building safety information and standard search results (for example local authority, drainage and water, environmental, locality-specific risks like mining or chalk. 

• General information, for example a property questionnaire. 

• A property condition assessment report tailored to the property age and type.  

• A floor plans and accessibility information. 

The Government believes this will help buyers make informed decisions, and property professionals can get to work sooner. They will also allow trusted information to be shared securely between professionals and accessed by buyers and sellers in real-time, cutting out the back-and-forth that causes delays. 

Binding agreements 

The new rules – which are expected to apply across England and Wales – will also require buyers to sign binding agreements early in the process to stop parties walking away months into negotiations without a legitimate reason, with fines levied on those that do.  

Ministers say they will work with the industry to set suitable penalties – along with exception clauses – over the next couple of years. 

This change will require new legislation, which the Government says will be introduced ‘when parliamentary time allows’ and will come into force after sales packs are introduced, and by the end of this Parliament.

Code of Practice and mandatory training 

In addition, a new Code of Practice will set out clear best practice standards for all property agents, alongside potential mandatory qualifications for both estate and letting agents. 

The Government will also back digital identity checks, electronic signatures and AI-assisted conveyancing to strip out duplication, reduce fraud risk and accelerate transactions from start to finish.

Potential impact

According to the Government similar reforms have been successful elsewhere in Europe, with the Netherlands’ live tracking system for buyers and sellers helping to achieve a final completion time of 20 days on average, and Norway’s efforts to streamline and digitalise its system leading to estimated savings of up to £1.4bn over 10 years.   

Announcing the plans Housing Secretary, Steve Reed said: “Buying or selling a home should be one of life’s great moments and not a drawn-out nightmare of delays, hidden costs, and failed deals.   

“These changes will make the system faster, fairer, and more secure.” 

Ben Beadle, NRLA chief executive said: “We welcome any moves to streamline the property-buying process and keep the market moving.  

“I am now keen to hear more detail about how these proposals will work in practice and look forward to working with the Government to this end.”

What happens next?

According to the announcement a full roadmap will be implemented across the rest of the Parliament. This includes:   

• Later this year: a non-statutory Code of Practice to set out minimum standards for property agents and guidance to improve the quality of information in property listings.    

• From 2027: consultation on mandatory estate and letting agent qualifications and expanded digital tools    

• By the end of Parliament: comprehensive legislation to require sales packs, binding contracts, and digital systems that support the efficient sharing of trusted digital property information.   

It says the phased approach will give the sector time to adapt while delivering improvements as quickly as possible.  For more information you can read the consultation response here.

Photo credit: Steven Reed ©House of Commons