Labour warned not to repeat past mistakes with homebuying reforms
Property experts have welcomed government efforts to simplify the homebuying process, but warned that any change must be done in alignment with industry to avoid a repeat of previous attempts to cut red tape.
The proposed changes include digitisation, the introduction of binding contracts at an earlier stage, and requiring property sellers and estate agents to provide more information when a home is listed for sale.
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 will set out a full road map in the new year after consulting on its proposals.
The UK’s “flawed” housing system costs the economy at least £1.5bn every year due to the number of transaction that fall through, according to Santander.
Just under one in four consumers has , with the process having a profound emotional impact on buyers – with more than half reporting constantly or frequently feeling stressed throughout the transaction.
Government ‘must include industry’
Ben Thompson, deputy CEO of the Mortgage Advice Bureau, said that the reforms have the potential to significantly improve outcomes for home movers, but warned that any change must be done with industry.
“Unlike previous efforts, we’re hopeful that whatever is implemented is done so with full industry buy-in and support, and is implemented accordingly – especially as data and technology makes this eminently more possible today compared to over a decade ago,” Thompson said.
“We’re particularly supportive of moves toward standardised data and digitalisation, which can help bring the conveyancing and mortgage processes closer together,” he added.
Conservative shadow housing minister Paul Holmes said that while he welcomed “steps to digitise and speed up the process”, the proposals risk “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.”
Brett Ray, co-founder of DIY surveyance app Survey Shack, said that news of the consultation was a “welcome step”.
“What matters now is clear, usable standards so condition data is captured once, shared securely, and trusted by all parties. That means simple guidance for sellers and agents, digital tools that structure photos and facts, and a sensible route to professional follow up where needed,” he said.
Reforms could save first-time buyers £710
The government has estimated that reforms will shorten by around four weeks, while first-time buyers could save an average of £710.
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.
“There is significant potential to further digitise the process and modernise how information is shared, ensuring that critical details are delivered at the right moments to support better decision-making,” Nathan Emerson, CEO of Propertymark, said.
He warned that to ensure any reform is effective, it’s “essential to gain a full understanding of the existing challenges from the perspectives of everyone involved”.
Nationwide’s group director of mortgages Henry Jordan said he “look[ed] forward to working closely with Government and the wider industry to modernise the homebuying process, so that buyers are given certainty earlier and to help reduce any unnecessary costs.”