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
The most significant overhaul of the homebuying system in history could dramatically reduce costs for purchasers and slash the time needed to relocate, ministers have declared.
Alterations might encompass mandating property vendors and estate agents to supply additional details when a property goes on the market, minimising the necessity for purchasers to conduct searches and surveys.
Legally binding agreements could also be introduced at an earlier point, diminishing the likelihood of a chain breaking down. The recommendations could also provide clearer information to consumers regarding estate agents and conveyancers, including their performance history and qualifications, alongside fresh compulsory credentials and a professional code to elevate standards.
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Housing Secretary Steve Reed stated the recommendations, which form part of a consultation process, would assist in making “a simple dream a simple reality”. The Government will outline a comprehensive roadmap in the new year following consultation on its recommendations.
Mr Reed declared: “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.”
Civil servants believe the suggested package of changes could reduce approximately a month from the duration required to purchase a new property and save first-time purchasers an average of £710.
Individuals selling a property could encounter additional expenses of around £310 owing to the incorporation of preliminary evaluations and surveys. Those caught in the middle of a chain could potentially secure net savings of £400, with the heightened costs from selling being offset by reduced purchasing expenses.
Greater adoption of online processes, including digital ID verification, could help streamline transactions, the Government contended, highlighting Finland’s digital property system which can complete the entire process in approximately two weeks.
The consultation also examines other systems, including Scotland’s approach where there’s more preliminary information available and earlier binding agreements.
The proposed overhaul received backing from property platforms and mortgage providers. Rightmove chief executive Johan Svanstrom remarked: “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.”
Zoopla boss Paul Whitehead commented: “The homebuying process in the UK remains far too long, too complex, too uncertain, and has seen far less digital innovation than many other sectors. ” David Morris, Santander’s head of homes, expressed his surprise at the outdated home buying process, stating: “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.”
Henry Jordan, Nationwide’s group director of mortgages, highlighted the need for simplification and collaboration, saying: “Buying a home is often complex and stressful, which is why the homebuying process needs to be simplified and streamlined for the benefit of consumers, brokers and lenders. But to tackle this issue effectively, we must collaborate.”
He added: “That is why we look 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.”
However, Conservative shadow housing minister Paul Holmes voiced concerns over potential pitfalls, warning: “Whilst we welcome steps to digitise and speed up the process, this risks 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.”