The Ministry of Housing, Communities and Local Government (MHCLG) said the average time from instruction to completion is over five months and it estimated that the reforms could speed up transactions by around four weeks.
The reforms would also save “hundreds of thousands of first-time buyers £710 on average when buying a home”, along with “vital time and energy”.
The number of failed property transactions will also be halved as a result of reforms, so “precious time and money don’t go to waste” and “heartbreak and stress for hard-working people looking for the perfect home” will be avoided.
The MHCLG said a “full roadmap to fix the broken system” will be set out in the new year as it consults on new proposals and works with the industry.
The new-build energy advantage
Sponsored by Halifax Intermediaries
Wide-ranging home buying and selling reform proposals will benefit buyers and sellers
One of the proposals is that sellers and estate agents should publish information from searches and surveys prior to a property listing being published.
This will allow buyers to see the “physical condition, characteristics, and flood risk” online prior to buying and allow them to make “informed decisions”, which will allow for faster transactions and fewer expensive fall-throughs.
The full list of proposed information includes the tenure, council tax band, Energy Performance Certificate (EPC) rating, property type, legal and transactional information – such as 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.
Another proposal is buyers and sellers having the option to “sign binding contracts” that would prevent people from pulling out of agreements months into the process.
The government added that it would look to deploy digital tools, like digital property logbooks, digital ID verification and standardised data sharing, which would enhance “transparency and security for buyers and sellers”.
Mandatory qualifications and a Code of Practice for estate, letting and managing agents are also on the cards.
Information on the services of estate agents and property lawyers will be published so consumers can be informed on where they can seek help if needed.
‘Buying a home should be a dream, not a nightmare’
Steve Reed, Housing Secretary, said buying a home “should be a dream, not a nightmare” and noted that proposed reforms would “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,” he said.
David Morris, head of homes at Santander UK, 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.
“Our recent report, Fixing the Broken Chain, highlighted how our antiquated system is holding back economic and individual growth, causing property transactions to collapse, and deterring buyers and sellers from entering the market at all.
“This consultation reinforces our view that, as an industry, we have the opportunity to fix the system and now is the time to seize it. We’re ready to work together with government and all those involved in the home buying process to move this discussion into action and create a system fit for today’s buyers and sellers.”
Henry Jordan, Nationwide’s group director of mortgages, said: “Buying a home is often complex and stressful, which is why the home buying 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 home buying 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.”
