Labour announces major overhaul of homebuying system to cut costs and delays

The Labour government has announced the biggest shake-up to the homebuying system in decades.

Under the proposals, which aim to cut costs and stress for homebuyers, sellers and estate agents will be required to provide buyers with vital information about a property upfront, including the condition of the home, leasehold costs, and any chains of people waiting to move.

The government says this could speed up the long, drawn-out and costly process of buying a home by up to four weeks.

Our reforms will fix the broken system

The government say the proposed plans will save first-time buyers  £710 on average when buying a home.

Housing Secretary, Steve Reed, said: “Buying a home should be a dream, not a nightmare.

“Our reforms will fix the broken system so hardworking people can focus on the next chapter of their lives.

“Through our Plan for Change, we are putting more money back into working people’s pockets and making a simple dream a simple reality.”

Under the proposed plans, binding contracts could be introduced to stop people walking away from agreements after buyers painstakingly spend months in negotiations. According to government figures, failed transactions cost the economy £1.5 billion a year.

Other plans include introducing mandatory qualifications and ‘Code of Practice’ for estate, letting and managing agents.

Sellers and estate agents must publish information from searches and surveys before a property listing is published.

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.

Industry reaction to proposals

Nathan Emerson, CEO at Propertymark, said: “Propertymark welcomes the UK Government’s renewed commitment to reforming the home buying and selling process, with a clear focus on digitisation, transparency, and stronger consumer protection – all underpinned by mandatory professional qualifications for property agents.

“Embedding recognised standards is essential to raising professionalism, giving consumers greater confidence, and ensuring consistently higher levels of service.

“Equally, it is vital that reforms are evidence-based and informed by those who understand the realities of the sector on the ground. Agents work with buyers and sellers every day, and their experience will be crucial to ensure changes are practical, proportionate, and effective.”

RICS CEO Justin Young, said: “RICS have long supported reform of the home buying and selling process, which is too often stressful, costly, and brings uncertainty to buyers and sellers.

“The government’s commitment to an industry consultation is a vital step forward, and RICS will brings its expertise to the table. By embedding transparency, professionalism, and innovation into the buying and selling process, we can help build a housing market that works better for everyone.”

Paul Whitehead CEO at Zoopla said: “The homebuying process in the UK remains far too long, too complex, too uncertain and has seen far less digital innovation than many other sectors.

“Consumers are clear in their desire for greater transparency and confidence when making life’s biggest purchase and improving the visibility of trusted information earlier in the buying process is a key part of speeding up the journey.

“The property industry recognises the benefits that greater certainty and digital transformation could bring. Introducing legally binding contracts alongside better use of digital solutions has the potential to unlock significant demand and reduce failed transactions.”