The government has announced a series of reforms to the home buying and selling process, in a bid to speed up the journey to homeownership and reduce the costs involved for buyers.
The MHCLG initially set out plans to modernise the home-buying process in February, and has now announced what it calls “the biggest shakeup to the home-buying system in this country’s history”.
The government estimates its proposals would save first-time buyers £710 on average by shortening the time taken in the process.
As part of the plans, estate agents and sellers would be required to provide key information about a property from the outset, covering the chain connected to the sale, leasehold costs and the condition of the home.
The MHCLG will also look to cut the risk of fall-throughs in half by implementing binding contracts, which it suggests will also reduce the risk of wasted money, time and stress.
The MHCLG said that the proposals will “help end nasty surprises which result in last-minute collapses and give greater confidence to first-time buyers making one of life’s most important decisions.”
The government is also proposing to make information around estate agents and conveyancers more readily available to buyers, to make it easier for them to see their track records and expertise, while also suggesting the introduction of new mandatory qualifications and a Code of Practice to drive up standards.
The MHCLG said: “These proposals will speed up the sluggish housing market by halving the number of failed sales, costing the economy £1.5billion a year, and the government estimates reforms could accelerate transactions by around four weeks. A full roadmap to fix the broken system will be set out in the new year.”
Earlier in the year, the government set out plans to digitise the home buying and selling process, and has now proposed deploying the use of digital tools, which would include the introduction of digital property logbooks, digital ID verification and standardised data sharing with the aim of enhancing transparency and security for buyers and sellers.
Housing secretary, Steve Reed, commented: “Buying a home should be a dream, not a nightmare.”
“Our reforms will 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.”
The ‘Home buying and selling reform’ and ‘Material information in property listings’ consultations close on 29 December.
