By Monidipa Fouzder >>
Sales packs with upfront information, binding agreements and a code of practice for estate agents will be introduced to ‘shake up’ the homebuying process, the government has confirmed.
Unusually, today’s announcement of the policy quotes both prime minister Keir Starmer and chancellor of the exchequer Rachel Reeves.
Starmer said: ‘Getting the keys to a home you can call your own is one of the biggest events in anyone’s life. But right now, the system that should provide support instead turns it into a battle, leaving people in limbo and putting that opportunity out of reach.
‘We’re turning the page,’ the prime minister continued. ‘Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve.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.’
The government said house buys took around 120 days and failed transactions cost the economy up to £1.5bn every year.
Reeves said delays, hidden costs and collapsed deals were ‘bad for the economy’ and the reforms would get ‘more people on the housing ladder while keeping more money in their pockets’.
Sellers and estate agents will have to provide a ‘sales pack’ at the point of listing that sets out a home’s condition, leasehold costs and chain status.
The government says digital property logbooks and sales packs will cut delays. It wants to see ‘outdated’ paper-based systems gone and will back digital identity checks, electronic signatures and AI-assisted conveyancing.
Binding contracts will not be introduced until sales packs are in force to avoid buyers becoming unfairly bound to transactions without access to key information. The government said it also needed to work with the property sector to set ‘fair penalty levels, define clear exception clauses and establish dispute resolution processes’.
A code of practice for estate agents will be unveiled this year. The government will consult on estate agent qualifications and expanded digital tools next year. Legislation requiring sales packs, binding contracts and digital information-sharing systems will be in place ‘by the end of parliament’.
Law Society president Mark Evans said the plan ‘is rightly ambitious because to make long-lasting improvements the system needs to be reformed as a whole’.
He added: ‘The reforms proposed are a positive step towards creating a more efficient system with better informed consumers, and estate agents expected to meet good standards.
‘How the different proposals are implemented will be key to the success of the reforms. Solicitors play a key role in home buying and selling and are ideally placed to assess how the proposals will work in practice.’
(Courtesy: The Law Society Gazette)
