The Government has revealed plans to significantly overhaul both the home moving process and the property sales industry with proposals which, although familiar to most estate agents, represent a seismic shift in how the housing market will operate in the future.
Ministerial claims for the ‘shake up’ include that it will save first time buyers £710 on average, cut the time it takes to purchase a property by four weeks and reduce fall-throughs by 50%.
The Government also plans to bring in minimum qualifications for agents, a mandatory industry Code of Practice and also ‘clear, side-by-side information on estate agents and conveyancers’ to help buyers choose who to instruct.
The plans have been revealed by recently-appointed Housing Secretary Steve Reed (main image) who says they will halve the number of failed transactions, prevent last minute fall throughs and drive up standards.
But while the measures may sound new to the public, most are familiar fare within the property industry. One of these is making ‘upfront information’ mandatory including the condition of the home, leasehold costs, and chains of people waiting to move – which national trading standards recently U-turned on ahead of these and other proposarls.
Reed claims this will help end the ‘nasty surprises’ which result in last-minute collapses and give greater confidence to first-time buyers making one of life’s most important decisions.
Information to be provided online and up-front will include a property’s physical condition, characteristics and flood risk but also tenure, council tax band, EPC rating, property type, legal and transactional information. Examples include 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).
Optional binding contracts are also be introduced to stop buyers and sellers walking away from agreements after months of negotiation and cost.
Digital tools
And Reed’s ministry is also to deploy the use of digital tools – including digital property logbooks, digital ID verification, and standardised data sharing – to enhance ‘transparency and security’ for buyers and sellers.
“We welcome the MHCLG consultation on home buying and selling reform and the proposals to put digital property logbooks at the heart of every property transaction,” says Nigel Walley, Chair of the Residential Logbook Association.
“A world of open and interoperable data logbooks will deliver clarity and security to homebuyers and will support Government proposals for complementary tools like ‘upfront information packs’.
“Newbuilds make an obvious starting point to roll out logbooks and we’ve seen this already happening across Europe.
“The UK already has a sophisticated market of different providers and a self-regulatory process that is providing reassurance to other industry players who are working with RLBA registered logbook companies. We look forward to working with MHCLG to make these proposals a reality.”
Failed transactions
The Ministry of Housing, Communities and Local Government says all these measures will help halve the number of failed transactions, so “precious time and money don’t go to waste, as well as avoid heartbreak and stress for hard-working people looking for the perfect home”.
“Buying a home should be a dream, not a nightmare,” says Reed. “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.”
A full roadmap to ‘fix the broken system’ will be set out in the new year but in the meantime two consultations have been launched firstly on home buying and selling reform but also material information. Both open at 9am on 6th October.
Industry comment
Nathan Emerson, CEO at Propertymark
“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,” he says.
“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.”
Justin Young, CEO of RICS
“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,” he says.
“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
“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.
“At Zoopla, we are committed to working closely with industry and government, and to investing our resources, to help build a modern property ecosystem that is faster, more transparent, and trusted by all.”
Rightmove CEO Johan Svanstrom
“Our latest average data shows people are spending seven long and often painful months to move home,” he says.
“We welcome the announcement today aiming to drive forward that much needed change and modernisation. The development of technology means transformation is possible, with the right collaboration and considerate planning.
“The home-moving process involves many fragmented parts, and there’s simply too much uncertainty and costs along the way.
“Speed, connected data and stakeholder simplicity should be key goals. We believe it’s important to listen to agents as the experts for what practical changes will be most effective, and we look forward to working with the government on this effort to improve the buying and selling process.”
Law Society vice-president Mark Evans
“The Law Society is committed to improving the home buying and selling experience for consumers, conveyancers and others involved in the conveyancing process,” he says.
“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.
“Improving the conveyancing process for buyers and sellers and making it fit for the 21st Century involves making the appropriate changes to the whole system, not just one aspect of it. We are keen to work with our members, government and all those involved in the conveyancing market to make sure the right reforms are enacted.
“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.”
Roxanne Barker, CEO Fix My Legals
“The home moving process has become utterly joyless. What should be an exciting milestone is instead a clunky, soulless, bureaucratic slog.
“Encouraging or requiring vendors to have legal packs ready at the point of listing would be transformative. It would protect buyers, speed up sales, and finally start dragging the process into the modern era.
“At Fix My Legals, we focus on the part we can influence – bringing empathy, teamwork and communication into a process that is otherwise cold, confusing and painfully slow. But let’s be honest, until there is a joined-up, digital-first system across the whole home moving journey, nothing will really change.
“Our plea to Steve Reed is – don’t tinker at the edges; don’t let this become another pile of consultations and white papers that go nowhere. Be bold and for heaven’s sake, drag the home-moving process into the modern world. Behind every transaction is a person or a family with hopes, stresses and dreams. They deserve better than what we’re giving them today.”
Henry Jordan, Nationwide’s Group Director of Mortgages
“Buying a home is often complex and stressful, which is why the homebuying process needs to be simplified and streamlined for the benefit of consumers, brokers and lenders,” he says.
“But to tackle this issue effectively, we must collaborate. That is why we look forward to working closely with government and the wider industry to modernise the homebuying process, so that buyers are given certainty earlier and to help reduce any unnecessary costs.
“The measures being consulted on, along with digitalisation and technology, are a major part of how we will get there.”