Homebuying shake-up to ‘slash delays and cut costs by £650’ | Personal Finance | Finance
Government has announced a house buying shake up (Image: Getty)
A major homebuying shake-up is set to slash delays and cut costs by up to £650 for first time home buyers, Labour vowed. The reform seeks to reduce and digitalise paperwork, stop sales collapsing, and fasttrack the homebuying process by four weeks.
Sellers and estate agents will have to provide key information in ‘sales packs’ at the point of listing, including a home’s condition, leasehold costs, and chain status, so buyers can make informed decisions, and professionals can get to work sooner. Binding agreements will be introduced earlier to stop parties walking away months into negotiations without a legitimate reason, which Labour said will help young people better plan for their next steps.
Keir Starmer said it will bring an outdated process into the modern age (Image: Getty)
In addition, a new Code of Practice aims to raise standards for estate agents, as well as proposals for mandatory qualifications in the sector.
Prime Minister Keir Starmer said Labour was “turning the page” on a system that makes homebuying “a battle, leaving people in limbo and putting that opportunity out of reach”.
He said: “Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve.
“This is about building a stronger, fairer Britain, one that works for the next generation and makes the dream of home ownership a reality for many more hard-working people.”
With the average home purchase taking around 120 days, one in three sales falling through costing sellers around £400million per year, and failed transactions costing the economy up to £1.5billion every year, Labour said these reforms will fix a broken system.
Housing Secretary Steve Reed said: “These changes will make the system faster, fairer, and more secure – giving families and first-time buyers the certainty they need all while saving them time and money.”
Chancellor Rachel Reeves said: “We have the right economic plan – getting the housing market moving, building thousands more good-quality homes in every region, and transforming rights for renters.”
Rachel Reeves said Labour has the ‘right economic plan’ (Image: Getty)
At the heart of the reforms is a shift to digital, replacing the paper-based systems with digital property logbooks that will allow trusted information to be shared securely between professionals and accessed by buyers and sellers in real time, to cut out delays.
The government will back digital identity checks, electronic signatures and AI-assisted conveyancing to strip out duplication, reduce fraud risk and accelerate transactions.
Phil Spencer, property expert and Move iQ Founder said it has the potential to make homebuying a “far better experience”.
He said: “Anything that helps buyers and sellers move with greater confidence and fewer obstacles is to be applauded.”
Rightmove CEO Johan Svanstrom described it as an “encouraging step” towards a faster and more efficient property market. Its UK-wide data showed completion takes 170 days on average, and more than one in five transactions initially fall through.
“We strongly believe that further digitisation and improvements to the home-moving process can help to speed it up and reduce friction. It will require cross-industry collaboration and innovation to achieve the aims set out today.”
