Government unveils far-reaching home buying and selling reforms

Home buyers could save four weeks and first-time buyers an average of £650 under government plans to overhaul England’s property sales system.

The reforms would introduce compulsory sales packs containing information about the condition of a property, leasehold charges and its position in a chain.

Sellers and estate agents would be required to provide the details when a property is listed, allowing buyers to assess potential costs and complications before making an offer.

Earlier binding agreements are also planned to reduce the number of buyers or sellers withdrawing several months into a transaction without a legitimate reason.

Modernising the process

The Prime Minister Keir Starmer said: “Getting the keys to a home you can call your own is one of the biggest events in anyone’s life.

“But right now, the system that should provide support instead turns it into a battle, leaving people in limbo and putting that opportunity out of reach.”

He added: “Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve.

“This is about building a stronger, fairer Britain, one that works for the next generation and makes the dream of home ownership a reality for many more hard-working people.”

Reduced collapsed sales

The government said the measures could halve the number of collapsed sales, although it has not set out when the changes will take effect.

The average home purchase currently takes about 120 days, while one in three transactions falls through, according to figures released alongside the announcement.

Failed sales cost sellers about £400 million a year and the wider economy as much as £1.5 billion annually, ministers said.

A new Code of Practice for estate agents will form part of the package which include mandatory professional qualifications for people working in the sector.

Increasing digitalisation

Digital tools allowing buyers and sellers to follow the progress of a transaction are expected to feature in the reforms.

The government pointed to the Netherlands, where a live tracking system is used and the average transaction completes in 20 days.

Norway has also moved to streamline and digitalise property transactions, with estimated savings of up to £1.4 billion over 10 years.

Ministers said the reforms would reduce paperwork, expose costs earlier and give property professionals more time to resolve problems before they derail a sale.