By doing so, we aim to cut out – what we believe – is a huge amount of stress and uncertainty, and minimise the risk of transactions falling through.
Every single year, millions upon millions of pounds is lost due to aborted transactions, the vast majority of which could be saved if everyone involved had all the information they required about the property upfront, rather than only receiving it after the point they had committed time, money and energy to the buying and selling endeavour.
Upfront information – and its provision – is likely to mean a number of changes within the process for stakeholders. We are conscious there can be a reticence about introducing this, especially when key elements are still to be decided.
For example, questions still exist around whether consumers want upfront info, who might pay for it, the role of agent, adviser and conveyancer in terms of provision, checking and responsibility.
What consumers want
It’s why we conducted consumer research last year which we hope assuages some of the doubts stakeholders might have.
We conducted this research in conjunction with the Home Buying and Selling Group HBSG and The Times newspaper. To begin with, we asked a simple question – do you want upfront information? Almost 98 per cent of consumers do; and nearly three-quarters of them say the seller should provide (and pay for) the info.
The assumption is most people are also buying at the same time and the cost therefore evens itself out.
This is borne out by the Office for National Statistics data which indicates that, when you compare the number of properties going on the market in Scotland to England and Wales, the percentage did not change when the Scottish Home Report was introduced.
Paying for it
Cost of course is going to be a considerable factor and one the industry will need to get right. In that sense, our results are doubly interesting.
Our survey revealed that those currently going through the process at that point were far more likely to be willing to pay more for upfront info, and as you moved further time-wise from that point, you became less likely to want to pay, for example, over £500.
Then we have something of a ‘childbirth’ argument. The further away from that moment, the less likely you were to remember the pain; however, go straight back into it and that feeling would be there immediately and you would have no qualms in calling (or paying) for the pain ‘relief’.
So, I think we’re able to draw a number of conclusions here. It’s clear consumers do want upfront info and they want the certainty it can provide them as both sellers and potential purchasers, who will be able to rely on that information right from the outset, and they will have clarity on what it is they are putting an offer on.
They also seem to know who they think should pay for it, the amount they would be willing to pay, and the benefits it could bring them. This is particularly the case for any buyer or seller going through the process right now. In fact, you might well argue that it is these people who can give us the very best steer on what would have made their property moves easier.
The data appears to show that money spent on upfront information increases certainty and raises the chances of completing with a committed party in full possession of the facts. As a major workstream and campaign, we hope to continue making this case to the industry and those in government to help us deliver on our aims.
