A shake-up to the house-buying system which could cut a month off the time it takes – and slash around £700 from the moving bill – is on the table.
Changes could include requiring property sellers and estate agents to provide more information when a home is listed for sale, reducing the need for buyers to carry out searches and surveys.
Binding contracts could also be introduced at an earlier stage, reducing the risk of a chain collapsing.
The proposals could also deliver clearer information to consumers about estate agents and conveyancers, including their track record and expertise, along with new mandatory qualifications and a code of practice to drive up standards.
Housing Secretary Steve Reed said the proposals, which are the subject of a consultation, would help make “a simple dream, a simple reality”.
The government says it will set out a full roadmap in the new year after consulting on its proposals.
Housing Secretary Steve Reed. Pic: PA
Mr Reed said: “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.”
Officials believe the proposed package of reforms could cut around a month off the time it takes to buy a new home and save first-time buyers an average of £710.
People selling a home could face increased costs of around £310 due to the inclusion of upfront assessments and surveys.
Those in the middle of a chain would potentially gain a net saving of £400 as a result of the increased costs from selling being outweighed by lower buying expenses.
Wider use of online processes, including digital ID, could help make transactions smoother, the government argued, pointing to the Finnish digital real estate system which can see the process completed in around two weeks.
The consultation also draws on other jurisdictions, including the Scottish system where there is more upfront information and earlier binding contracts.
‘Process the same as for our grandparents’
The planned shake-up was welcomed by property websites and lenders.
Rightmove chief executive Johan Svanstrom said: “The home-moving process involves many fragmented parts, and there’s simply too much uncertainty and costs along the way.
Looking for the perfect home on Rightmove. Filepic: PA
“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.”
Santander’s head of homes David Morris 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.”
Conservative shadow housing minister Paul Holmes said that while Labour welcomed steps to digitise and speed up the process, the party risked “reinventing the last Labour government’s failed Home Information Packs – which reduced the number of homes put on sale, and duplicated costs across buyers and sellers”.
