The government has announced significant reforms to the housebuying system to lower costs, speed up transactions, and reduce failed sales.
Reform Goals and Context reform housebuying
The UK government announced the most significant reform to the homebuying process in decades, aiming to reduce costs, shorten transaction times, and halve the number of failed sales, which currently cost the economy about £1.5 billion annually. The overhaul seeks to support housing supply, affordability, and delivery of 1.5 million new homes over the next parliament.[1]
Mandatory Upfront Property Information
Sellers and estate agents will be legally required to provide detailed property information upfront, including:
- Condition of the property.
- Leasehold costs.
- Details of the property chain.
This aims to reduce late-stage transaction failures by increasing transparency and buyer confidence, inspired by Scotland’s more efficient system.[2][3][1]
Introduction of Binding Contracts
Buyers and sellers may enter into legally binding contracts earlier, preventing last-minute withdrawals (“gazumping”). Breaking contracts could result in fines, deterring failed transactions and reducing delays.[4][3][1]
Enhanced Professional Standards and Digital Tools
- A mandatory Code of Practice for estate agents and conveyancers.
- Publication of performance data to help consumers choose trusted professionals.
- Increased use of digital tools, including property logbooks and ID verification to streamline processes.[1][4][2]
Expected Benefits and Financial Impact
- First-time buyers could save an average of £710 due to fewer repeated surveys and faster completions.
- The typical transaction time may drop by around four weeks, reducing stress and uncertainty.
- While sellers at the end of a chain might face additional upfront costs (~£310), others could experience net savings thanks to reduced failures and increased market competition.[3][1]
Ongoing Challenges
Housing affordability remains a significant barrier, especially for first-time buyers, despite the proposed savings. Experts warn that requiring extensive upfront information could delay listings, potentially impacting supply in an already constrained market.[4][3]
Broader Housing Strategy and Political Context
- The reforms are part of a wider government housing strategy including building 1.5 million new homes.
- The Conservative party proposes additional incentives like a £5,000 tax rebate for young first-time buyers when they start full-time jobs.[3][1]
Consultation and Next Steps
A 12-week public consultation runs until late December 2025, with detailed plans expected in early 2026. Stakeholders including conveyancers and estate agents will be engaged to refine the reforms.[5][2][1]
