Spencer: Upfront information is a positive step
The government is pressing ahead with reforms to the home-buying process, which it says will cut transaction times by around four weeks and save first-time buyers an average of £650.
Sellers and estate agents will have to provide key information – including the property’s condition, leasehold costs and chain status – upfront in ‘sales packs’ at the point of listing.
Other proposals put out for consultation [1] last October are going ahead too, such as binding conditional contracts and digital property logbooks.
The full details of the government’s “roadmap” should be published later today but the Ministry of Housing, Communities and Local Government (MHCLG) said in a statement that the changes would be implemented over the course of this Parliament.
A new code of practice for estate agents will be introduced later this year, setting out minimum standards and guidance to improve the quality of information in property listings. Next year will see a consultation on estate agent qualifications as well as expanded digital tools.
Conditional contracts will not come into effect under after sales packs are “embedded” and the MHCLG said it would work with the industry to set fair penalty levels, define clear exception clauses and establish dispute resolution processes.
The phased introduction would also give the sector time to prepare.
There will be legislation to require sales packs, binding contracts and systems that support the sharing of trusted digital property information.
The MHCLG said: “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.
“Together, these changes will create a modern, end-to-end system where people can track and progress their move more easily.”
Housing secretary Steve Reed added: “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 – giving families and first-time buyers the certainty they need all while saving them time and money.”
The MHCLG provided supportive quotes from a wide range of stakeholders, including TV property guru Phil Spencer, who said “giving people a clearer picture from the outset and creating greater certainty throughout the transaction process can only be a positive step”.
Johan Svanstrom, chief executive of Rightmove, said its data showed transactions took an average of 170 days and that over one in five transactions falls through, representing some £900m in lost stamp duty receipts and estate agency commission.
Law Society president Mark Evans described the reforms as “a positive step” but said their implementation was key.
Sheila Kumar, chief executive of the Council for Licensed Conveyancers, said it “strongly supports” the changes.
“It is now vital that all parts of the home buying and selling market – from estate agents and lenders to conveyancers, surveyors, managing agents and removal companies – work together to implement these reforms swiftly and effectively in the public interest.
“Most importantly, digitalised upfront information that can be shared with trust – especially when combined with reservation agreements – will greatly improve confidence in transactions and allow buyer and seller to agree a date for completion much earlier in the process than at present.”
Kate Faulkner, chair of the cross-industry Home Buying and Selling Council, said much of the groundwork for the new system “has already been done”.
She went on: “What matters now is that the roadmap is not just another set of ambitions, but a practical plan that works for industry and consumers alike.
“Developed through consultation and delivered in phases, it gives everyone involved the opportunity to implement change in a way that is realistic, affordable and sustainable.”
The £650 figure was derived by comparing first-time buyer costs per transaction pre-reform to post reform, along with the per transaction saving estimated to arise from fewer transaction fall-throughs.