The government has announced what it claims is the biggest shake-up to the homebuying system in history, promising to slash costs for buyers and cut transaction times.
Proposed reforms include requiring property sellers and estate agents to provide more information when a home is listed. This aims to reduce extensive buyer searches and surveys. Binding contracts could also be introduced earlier, reducing chain collapse risk.
Further proposals seek to offer consumers clearer information on estate agents and conveyancers, detailing track record and expertise. New mandatory qualifications and a code of practice would also drive up standards.
Housing secretary Steve Reed said the reforms, which are the subject of a consultation, would help make “a simple dream a simple reality”.
The government will set out a full roadmap in the new year after consulting on its proposals.
Mr 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.”
Officials believe the proposed package of reforms could cut around a month off the time it takes to buy a new home and save first-time buyers an average of £710.
People selling a home could face increased costs of around £310 due to the inclusion of upfront assessments and surveys.
Those in the middle of a chain would potentially gain a net saving of £400 as a result of the increased costs from selling being outweighed by lower buying expenses.
Wider use of online processes, including digital ID, could help make transactions smoother, the Government argued, pointing to the Finnish digital real estate system which can see the process completed in around two weeks.
The consultation also draws on other jurisdictions, including the Scottish system where there is more upfront information and earlier binding contracts.
The planned shake-up was welcomed by property websites and lenders.
Rightmove chief executive Johan Svanstrom said: “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.”
Zoopla boss Paul Whitehead 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. ”
Santander’s head of homes David Morris said: “At a time when technology has changed many processes in our lives, it is incredible that the process of buying a home – an activity that is a cornerstone of our economy – remains much the same for today’s buyers as it did for their grandparents.”
Nationwide’s group director of mortgages Henry Jordan said: “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. 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.”
