Matthew Henderson
Associate Director, Residential Research
With the Government announcing the start of a 12 week consultation process into home buying and selling reform, our Residential Research Lead Matthew Henderson outlines what we know so far.
The Government states that it takes an average of 120 days from an offer being accepted on a property to completion, and an average increase in transaction time of 60% since 2007. Moreover, it claims £400M is wasted per year in costs, with 1 in 3 transactions failing.
As such, The Ministry of Housing, Communities & Local Government announced on 6th October that it was engaging in a 12-week consultation period into home buying and selling reform, to deliver:
- Faster more reliable transactions (digital tools, reduced repetition, streamlined process)
- Reduced fall throughs and risk, including those caused by chains
- High professional standards (higher accountability)
- Better informed consumers (improved transparency)
- Trust in the system
Proposed changes
Requiring upfront property information
The Government is interested in introducing a mandatory requirement for sellers to work with conveyancers and solicitors for the purpose of searches and property condition assessments prior to listing, and is consulting with industry professionals during this 12-week period to understand how and when this could be introduced.
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Proposed Mandatory Information |
Potential Mandatory Information |
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Tenure |
Title information |
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Council tax band |
Seller ID verification |
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EPC rating |
Leasehold terms |
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Property type |
Building safety data |
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Searches (local authority, drainage etc.) |
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Property information (TA6 form i.e. boundaries & insurance) |
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Property condition assessment |
The Government also has suggested sharing information on planning consent, service charges, chain status, and clear floor plans.
Professionalising property agents
The sector as it stands is lightly regulated compared to other property professionals and international customs. The Government proposes the introduction of a Code of Practice to outline minimum standards for all residential property agents and, subject to consultation outcomes, proposes for the legislation of mandatory qualifications to ensure compliance.
Digitalisation
The Government claims that the creation of digital property packs to store both current and historic information on a property will give homeowners control over their data and reduce transaction risk, and propose they become a standard feature of property transactions in the UK. Professionals will be able to progress transactions faster, while widespread use would standardise upfront property information. It also wants to harness the power of AI and digital verification services.
Binding conditional contracts
In England and Wales, buyers and sellers can withdraw from the transaction process at any time between accepting an offer and exchange resulting in significant costs to all involved. The Government seeks to explore in the long term the use of binding agreements for England, bringing the system more in line with those of the US and Scotland.
Increased consumer education & transparency
The Government is exploring options for publishing transparent information on estate agents and conveyancers such as professional specialisms, performance, and process to support consumers in their choosing of appropriate services. It also will explore the creation of a charter for professionals and consumers, as well as an accreditation system.
Streamlining transactions
The Government proposes streamlining conveyancing to ensure professionals and consumers alike do not face duplication and unnecessary delays to the transaction process. They will look at anti-money laundering checks initially, to minimise repeated checks during a transaction.
Leasehold sales information
At present leaseholders are faced with delays and high costs when selling their properties, with much of the power held with freeholders and managing agents. The Government wants to enact legislation laid out in the Leasehold and Freehold Reform Act 2024 to speed up the provision of information for leaseholders, and protect sellers from unreasonable fees when requesting necessary information.
The Government’s expected outcomes
- Transactions to accelerate by up to four weeks
- Fall throughs reduced from 1 in 3 to 1 in 7
- Greater certainty from buyers and sellers, more market confidence
- Savings & costs:
- For first time buyers savings of around £710 per transaction
- For home movers savings of around £400
- Sellers’ fixed costs raised to around £710
- Conveyancing costs decreased
- Survey costs increased for sellers
We will be monitoring market reaction and progress made during the consultation period, and will keep this page updated of any further changes or amendments, including the geographical scope of proposed reform.
Read more on the short, medium, and long term impacts of the proposed reforms here.