The government has announced a comprehensive overhaul of the home buying and selling process in England and Wales, aiming to tackle the stress, delays, and financial costs often associated with property transactions. The reforms are projected to cut average buying times by approximately four weeks and save first-time buyers an estimated £650, by introducing greater transparency and accountability into the system.
A key pillar of the new strategy is the requirement for sellers and estate agents to provide more upfront information. This will involve creating 'sales packs' when a property is listed, detailing its condition, any leasehold costs, and the property chain status. This initiative is designed to empower buyers with essential information earlier in the process, reducing the likelihood of unwelcome discoveries and costly delays that often emerge late in a transaction. The government hopes this will significantly shorten the current average completion time of around 120 days, drawing parallels with the Scottish system which already mandates upfront valuations and surveys, leading to fewer failed sales.
Another significant change is the planned introduction of binding contracts. These agreements are intended to deter parties from withdrawing from a sale without legitimate reason, a common cause of frustration and financial loss in the current system. While the specific penalties for breaking these binding agreements have not yet been detailed, the government suggests this could halve the rate of failed transactions, bringing it down from roughly one in three to one in seven. Provisions for legitimate reasons for withdrawal will be included to protect consumers.
Furthermore, the reforms address the standards within the estate agency sector. A new code of practice will be implemented to set higher benchmarks for professionals, alongside proposals for mandatory qualifications. This measure is aimed at ensuring agents are better equipped to facilitate efficient transactions and to rebuild public trust in the industry. The government also plans a major shift towards digitisation, including digital property logbooks, electronic signatures, and AI-assisted conveyancing, to further streamline the process and reduce administrative back-and-forth.
The introduction of these changes will be phased. A new code of practice for property agents and guidance for improving property listing information are expected later this year. Consultation on estate agent qualifications and expanded digital tools is planned from 2027, with legislation to mandate sales packs, binding contracts, and supportive digital systems anticipated by the end of the current Parliament.