Home buying and selling set for major reforms as Government vows to make process 'easier and cheaper'

The Government says it is hoping to address "longstanding issues" that currently see one in three sales falling through, costing buyers and sellers a combined £400 million a year in wasted costs.

Meanwhile, the average time to complete a house sale is currently over five months, with the Government estimating that its planned reforms could speed up the process by around four weeks.

How the process of buying or selling a home could change

The Government's consultation will run until 29 December 2025. A full roadmap to the reforms will then be set out "in the new year". Under the proposals as they stand:

• Sellers and estate agents would have to publish more detailed information about a property when it's listed for sale. This would include details about its physical condition and characteristics, planning permission consents, flood risk data, and more – potentially reducing the need for buyers to pay for their own searches and surveys.
  
  As a result of the changes, the Government estimates that first-time buyers would save around £710 per transaction, while home movers could save £400. Sellers, on the other hand, would face increased costs of £310. However, the Government argues sellers would still benefit "as a result of successful transactions becoming more likely", with the average failed transaction currently costing sellers around £800.

• Buyers and sellers would be given the option to sign 'binding contracts' to stop parties pulling out at the last minute. Currently, buyers or sellers can withdraw from a property sale at any point between an offer being accepted and the exchange of contracts.
  
  Under the Government's proposals, optional contracts could be used to make the sale binding earlier, meaning if one party then chooses to withdraw they could face a financial penalty such as the loss of a deposit.

• Digital 'property packs' or logbooks would be rolled out. These would store current and historic information on a property, allowing solicitors and agents to "progress transactions faster and with greater confidence" in the information provided. This would also reduce the need for homeowners to hold on to reams of paper documents.
  
  The Government notes that digital packs or logbooks are already mandatory in some other countries – for example, they are required for all new build properties in France.

• A new mandatory 'Code of Practice' for estate agents would be introduced. The sector is currently "lightly regulated" – as a result, buyers and sellers "may not receive the service they deserve or know who to turn to when things go wrong," the Government says.
  
  In a July this year, MoneySavingExpert.com founder Martin Lewis featured in a BBC Panorama investigation into estate agents. As part of this, Martin called for better policing of the industry, specifically in relation to the practice of conditional selling. He said at the time:
  
  "The big problem that we have is consumers, even if they were to report it, they're scared that 'I might lose out on this one house that I really want, so maybe I shouldn't rock the boat'. Because the problem is there is no proper policing of this market going on."
  
  The proposed Code of Practice would set out the minimum standards expected of agents, including mandatory qualification requirements – though it's yet to be confirmed exactly how this Code would be enforced.

• It's not yet clear whether the changes would apply across the UK. The Government says it recognises that buying and selling systems "differ across the UK, with a distinct framework in Scotland". It says any future reforms – whether in England, Scotland, Wales or Northern Ireland – will "depend on consultation outcomes and any subsequent legislation".

Some experts have raised concerns about the proposals

Mark Cunningham, a partner at tax and business advisory firm Blick Rothenberg, said: "The Government's proposals are strikingly similar to 'Home Information Packs' (HIPs), introduced by the Labour Government in 2007 with the same aim of reducing delays and uncertainty.

"But HIPs incurred upfront costs for sellers, which – counterproductively – deterred listings and added delays, with only modest improvements in transaction times. HIPs were suspended in 2010 and later abolished."

Mr Cunningham added: "While the intent behind the new proposals of reducing transaction times and overall costs is welcome, if they increase upfront costs, it will deter sellers just like HIPs."

In its consultation, the Government says: "We recognise that previous initiatives, such as Home Information Packs, faced challenges around trust, reliance, and outdated information. Our approach would address these issues by drawing data from trusted sources, underpinned by clear standards, and updated as needed."