Reforms aimed at reducing number of sales falling through
The government has announced reforms to save first-time buyers time and money when purchasing a home.
Under proposed changes to the homebuying system, sellers and estate agents will be required to provide buyers with additional information about properties upfront, including its condition, leasehold costs and the chains of people waiting to move.
The government hopes its changes will give greater confidence and result in fewer last-minute collapses, claiming the move could save first time buyers an average £710.
The Ministry for Housing, Communities and Local Government (MHCLG) also suggested that binding contracts could be introduced, to stop people walking away from agreements after months in negotiation.
“Buying a home should be a dream, not a nightmare,” said housing secretary Steve Reed.
“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 proposals would also give buyers greater information about estate agents and conveyancers, including their track record and expertise. New mandatory qualifications and a Code of Practice are also being introduced to drive up standards.
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MHCLG launched a consultation on the reforms today and said it would publish “a full roadmap to fix the broken system” in the new year.
Justin Young, chief executive at RICS, said his organisation had “long supported reform of the home buying and selling process”, which he said was “too often stressful, costly, and uncertain for buyers and sellers”.
“The Government’s commitment to an industry-wide consultation is a vital step forward, and RICS will bring its expertise to the table,” he said.
The full list of proposed mandatory upfront information includes:
- Tenure
- Council tax band
- 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
- Clear floor plans
“By embedding transparency, professionalism, and innovation into the process, we can help build a housing market that works better for everyone.”
Rightmove chief executive Johan Svanstrom added: “We welcome the announcement today aiming to drive forward that much needed change and modernisation.
“The development of technology means transformation is possible, with the right collaboration and considerate planning.
“The home-moving process involves many fragmented parts, and there’s simply too much uncertainty and costs along the way. Speed, connected data and stakeholder simplicity should be key goals.
“We believe it’s important to listen to agents as the experts for what practical changes will be most effective, and we look forward to working with the government on this effort to improve the buying and selling process.”
The news came as the official party opposition, the Conservative Party, holds its annual conference in Manchester, where shadow chancellor Mel Stride is set to announce plans to give young people a £5,000 tax rebate towards their first home when they get their first full-time job.
The plans will be funded by cuts to public spending in areas like welfare, the civil service and the foreign aid budget.
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