It is proposed that buying times will be cut by around four weeks and save first-time buyers an average of £650.
Estate agents and sellers will now have to provide key home buying information upfront in ‘sales packs’ at the point of listing.
This will set out leasehold costs, chain status, and the home’s condition, so buyers can make informed decisions.
It will also see earlier binding agreements to stop parties leaving months into negotiations without legitimate reasons.
Failed transactions are costing the economy £1.5bn per year, which these reforms aim to tackle.
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A fairer process
With information now being provided at point of listing, it is hoped that buyers and professionals will mutually benefit. Buyers are better equipped to make decisions and property professionals can get to work sooner.
It serves to make a fairer and more transparent process for all involved.
With the average home purchase taking 120 days, one in three sales falling through and the cost to sellers averaging £400m per year, the system is recognised as being broken.
Keir Starmer said: “Right now, the system that should provide support instead turns it into a battle, leaving people in limbo”.
Rachel Reeves, Chancellor of the Exchequer, said: “Delays, hidden costs, and deals collapsing at the last minute are not only bad for homebuyers, it’s bad for the economy too.
“Our reforms will cut those delays, cut costs and make the process quicker and more reliable – getting more people on the housing ladder while keeping more money in their pockets.”
Shift toward digitisation
The reforms will also encourage a shift away from paper-based systems.
Digital property logbooks and sales packs will allow trusted information to be shared securely between professionals and accessed by buyers and sellers in real time.
The government will also back digital identity checks, electronic signatures and artificial intelligence (AI)-assisted conveyancing.
Johan Svanstrom, CEO of Rightmove said: “We strongly believe that further digitisation and improvements to the home moving process can help to speed it up and reduce friction.”
New reforms for estate agents
Later this year, a new Code of Practice will set out minimum standards for property agents and guidance to improve the quality of information in property listings.
From 2027, there will be a planned consultation on estate agent qualifications.
Nathan Emerson, CEO of Propertymark, said: “A clear focus on professional standards, digitised and trusted information, as well as the appropriate use of binding contracts, will help to modernise and speed up home moves.”
Improvements for first-time buyers
Stuart Haire, chief executive of Skipton Group, said: “For first-time buyers in particular, cutting weeks off the process and saving money will make a real difference to getting onto the housing ladder.”
Paul Broadhead, head of mortgage and housing policy at the Building Societies Association (BSA), said: “These changes will be particularly important for first-time buyers, helping them navigate the complex process with greater certainty and confidence.”
