Reed: Reforms will fix broken system
The government has unveiled a blueprint to reform the home-buying and selling system, including mandatory upfront property information, that it said would save reduce the time between instruction and completion by a month.
A consultation to be published today also includes a suite of measures around digitalisation – such as logbooks, digital ID verification, and standardised data-sharing – as well as a move to reduce gazumping and gazundering by introducing binding conditional contracts.
The Ministry of Housing, Communities and Local Government (MHCLG) said it would also publish information on the services of estate agents and conveyancers, “so consumers are well informed on how and where to get help”.
Further, it aimed to “professionalise” estate agents through a new code of practice and a consultation on mandatory qualifications – appearing to stop short of the full regulation that has often been demanded.
A second consultation will deal with material information in property listings and in particular how estate agents should meet their legal obligations under the Digital Markets, Competition and Consumers Act 2024.
This follows National Trading Standards estate and letting agency team withdrawing its material information guidance [1] in May after the Act came into force, superseding the Consumer Protection from Unfair Trading Regulations 2008 under which it had been drafted.
The consultations mark the next stage from the MHCLG’s announcement in February [2] of plans to open up property data.
They also reflect longstanding calls for the government to step in and mandate upfront information, seen as the only way to make the market move as a whole.
The full list of proposed mandatory upfront information includes: tenure, council tax band, EPC rating, property type, legal and transactional information such as title information and seller ID verification, leasehold terms, building safety data, standard searches, property condition assessments tailored to property age and type, service charges, planning consents, flood risk data, chain status, and clear floor plans.
The MHCLG predicted that the changes would help halve the number of failed transactions and reduce the current five-month period between instruction to completion by a month. They would also save first-time buyers £710, on average.
Housing secretary Steve Reed said: “Our reforms will fix the broken system so hardworking people can focus on the next chapter of their lives.”
The MHCLG added: “Families could see clear, side-by-side information on estate agents and conveyancers – including their track record and expertise, alongside new mandatory qualifications and code of practice to drive up standards and rebuild trust in the industry.
“These proposals will speed up the sluggish housing market by halving the number of failed sales, costing the economy £1.5bn a year, and the government estimates reforms could accelerate transactions by around four weeks.
“A full roadmap to fix the broken system will be set out in the new year.”
Law Society vice-president Mark Evans commented: “We know that many feel that the conveyancing process is slow and complicated. It can also be confusing as to who should be doing what, and there is the risk of duplication of effort. Information is often not available as quickly or as easily as it should be. Making the right reforms would help address all of these issues…
“We support estate agents being regulated, more transparency in property chains and having conveyancers instructed as early as possible in the home buying and selling process.
“Better joined-up technology can help facilitate home buying and selling but such systems must be accessible to all types of firms. A thriving conveyancing market is a diverse market.”
Stephen Ward, director of strategy and external relations at the Council for Licensed Conveyancers, said: “We are working with others across the industry in the digital property market steering group to transform home buying and selling in the interests of individual home owners and the wider economy.
“There is broad consensus about the changes that need to be made to deliver that transformation and the government’s support with this announcement will help deliver much-needed progress and change, which we hope will have the support of every profession involved in the property market.
“Buyers deserve much better information than is usually provided when they are looking for a property. That upfront information will help them make the right choice and help their conveyancer progress their purchase more speedily.
“Property log books are a great tool that have been shown to greatly smooth and speed up the buying and selling process.”