The government's proposed reforms to the homebuying and selling process, designed to tackle persistent delays and reduce the number of property transactions that fall through, have been largely welcomed across the property industry. However, a significant warning has emerged from one sector leader, cautioning that the changes could inadvertently hand excessive influence to estate agents over critical stages of the transaction.
Rob Houghton, founder and chief executive of the home-moving comparison website reallymoving, has voiced concerns that without robust safeguards, the proposed changes could lead to estate agents dominating the provision of upfront services such as conveyancing and surveys. While acknowledging the positive intent behind greater transparency and earlier information sharing, Houghton argues that the reforms could foster a landscape where 'preferred provider' arrangements, inflated pricing, and opaque referral fee structures become commonplace.
Houghton explicitly called for the proposed Code of Practice for estate agents to include clear protections. He stressed the importance of ensuring buyers are fully informed of all available options when selecting a conveyancer or surveyor. Without such transparency, he believes the reforms could shift the balance of power within the homebuying process rather than simply making it more efficient for consumers.
Another key area of concern highlighted is the potential impact on the surveying sector. Currently, only an estimated 20% of homebuyers commission a detailed survey, with many opting to rely solely on their lender's valuation report. Under the proposed reforms, sellers would be mandated to provide a survey as part of the sales pack. However, Houghton questioned whether buyers would always trust a seller-commissioned report, suggesting many may still choose to instruct their own surveyor or seek a more comprehensive inspection.
This potential 'doubling up' of surveys could lead to a substantial increase in demand for surveying services, according to Houghton. He warned that this would create significant capacity challenges for the sector, requiring vast additional time and resources for the industry to meet if the reforms are implemented on a large scale. This could add further complexities and potential delays to a process the government aims to streamline.