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KEY INFORMATION
The government has announced a major shake-up of the home-buying process in England and Wales, which could reduce the average time it takes to buy a home by around four weeks and save first-time buyers an average of £650
Proposals include:
Here’s an overview of the current rules compared to what would change under the home buying and selling reforms:
| Area | Current rules | Proposed reforms |
| Sales packs | Buyers often receive key information gradually during conveyancing, after an offer has been accepted | Sellers would be required to provide a sales pack containing key property information before a property is listed |
| Binding agreements | Buyers and sellers can usually withdraw without penalty at any point before exchange of contracts | Earlier binding agreements would commit both parties sooner, with potential financial penalties for withdrawing without a ‘legitimate reason’ |
| Digital property logbooks | Property information is typically held in separate documents and shared manually, often by email or post | Digital logbooks would store key property information in one place, making it easier to access and share throughout the transaction in ‘real time’ |
| Estate agent standards | Estate agents must comply with consumer protection laws, but there is no legal requirement to have a qualification | A new Code of Practice would set minimum standards, alongside proposals for mandatory qualifications |
| ‘Material information’ in listings | Information provided upfront can vary significantly between listings and agents | More key information would be disclosed upfront to help buyers make informed decisions before viewing or offering |
| Digital ID, e-signatures and AI | ID checks, signatures and paperwork are often duplicated across different stages of the transaction | Greater use of digital ID verification, electronic signatures and AI-assisted conveyancing would help reduce duplication and speed up the process. |
Property sales packs will be required before listing the property. Under current rules, certain information is required when you list a property, but this will be much more comprehensive under these home buying and selling reforms and will include some elements a buyer would normally organise and pay for such as property searches.
The government plans to move towards a ‘standardised’ sales pack which will be prepared earlier in the process, before a property gets listed on the market.
Exactly what would be included has yet to be confirmed but the goverment says in its consultation that it anticipates them including:
Source: Gov.uk Annex B: Sales pack information.
Just be aware that exact requirements may still be refined through the consultation process.
KEY INFORMATION
At present, buyers and sellers can pull out of a transaction at any point before exchange of contracts, with no comeback.
However, under these proposed reforms, ‘earlier binding agreements’ (also known as ‘binding conditional contracts’) would be the norm. These would set out clear terms both sides agree to meet, and commit both parties earlier in the process – while still allowing people to pull out for a ‘legitimate reason’.
The aim is to reduce incidences of buyers putting in unrealistic offers that later collapse, or people pulling out months into negotiations.
Binding contracts may reduce the risk of buyers withdrawing their offer at a late stage in the process, and may put a lid on opportunistic behaviour, such as gazumping and gazundering.
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Under the proposed measures, pulling out after entering a binding conditional contract – without a valid reason – could mean you risk facing financial penalties. But we need further details of how this might work. These are expected to be set out in future legislation.
Just be aware that, as yet, this detail has not been nailed down.
Digital property logbooks will be introduced, under the reforms, marking a move away from the current paper-based system.
These are secure online records attached to a property. They are owned and controlled by the homeowner, and designed to make property information easier to store, update and share – securely.
A new Code of Practice for estate agents will be introduced later this year, detailing clearer professional standards, along with proposals for mandatory qualifications from 2027/2028.
Currently, there is no requirement for estate agents to obtain a professional qualification before entering the profession.
While estate agents are already legally required to provide accurate information under consumer protection laws, the Digital Markets, Competition and Consumers Act 2024 significantly strengthens their obligations, ensuring that all ‘material information’ is provided upfront in property listings.
Under these reforms, estate agents will also need to provide clearer ‘material information’ upfront in property listings (more below). ESTHER I’M NOT SURE WHAT’S CHANGING IN TERMS OF MATERIAL INFORMATION?
In its consultation, the government focused on information that could ‘reasonably influence’ a decision to view, offer on – or buy – a property. Currently, buyers might not get some of these details until weeks – or months – into the process. The aim, under the new proposals, is to get all this to buyers at the outset.
As a seller, the process could look quite different, under these home buying and selling reforms. For example, you may need to:
On the upside, the changes should mean sellers attract more committed buyers – meaning fewer wasted viewings and failed transactions. The measures are aimed at offering much-needed certainty, though whether they actually deliver this will depend on how the final rules are implemented.
Benefits to buyers under these home buying and selling reforms include:
However, while there are some upsides, buyers may find they are required to engage more actively at an earlier stage, and that they have to review more documents before offering. In some cases, this could mean needing to seek legal and survey advice soon in the process, before committing.
The changes could make the journey to home ownership for first time buyers cheaper, quicker and potentially less stressful – which could be especially beneficial for those taking the first step.
First time buyers should find they have a clearer picture of the property they want to purchase before paying for surveys, legal fees and other upfront costs.
According to government estimates, the reforms could save first-timers an average of £650, and reduce the time it takes to complete a purchase by around four weeks.
Measures could also help prevent costly mistakes and failed transactions. Though, once again, the overall impact will depend on how the reforms are implemented in practice.
A full roadmap is due to be delivered over the course of this Parliament. Here’s what we know at this stage:
Just note that much of the detail remains subject to consultation.
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No. According to the Government the ‘majority of measures’ proposed in these home buying and selling reforms are expected to apply in England and Wales, and Northern Ireland. They do not apply to Scotland which already has a different home-buying system.
The final decision on all this will be decided through legislation.
As things stand, it’s too early to put a firm price on the measures, as many details are still subject to consultation and legislation. That said, several questions regarding costs remain central to how the system will work in practice:
However, what’s important to note at this stage, all costs are just estimates. The actual costs – and impact – will depend on how the final system is designed and implemented.
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The government says the measures could reduce average buying times by around four weeks.
But whether this is achievable will depend on how the changes are phased in, and how widely they are adopted across the industry.
A range of factors are at play here, including rollout of the legislation, take-up by estate agents and conveyancers, local authority capacity, lender acceptance of new digital systems – and how sales packs are compiled and maintained.
Crucially, even if processes improve, there could still be bottlenecks, such as mortgage approvals and conveyancer workloads. Only time will tell if these reforms actually end up speeding things up.
While these home buying and selling reforms are designed to improve speed and transparency, it may not all be plain-sailing, as there are several potential risks:
These risks and challenges will depend a lot on how the final system is designed, funded and implemented.
Paula Higgins, CEO of HomeOwners Alliance, said: “We fully support the government’s ambition to fix the home buying and selling process. We’ve been campaigning for years on this because the cost of failed transactions, the stress and uncertainty, stops people from moving. If the government can get this right, it could make a real difference for homeowners and help the wider economy.
“Getting more information upfront is a no-brainer. But these packs need to be consumer-friendly, affordable, reliable, reusable and recognised by lenders. What we don’t want is more friction in the system.
“Estate agent regulation is also critical. If estate agents are going to be offering these packs, there needs to be transparent pricing. The goal must be to make moving home easier, faster and less stressful, not to create new costs and barriers for people who want to move.”
No, not at the moment. The government has announced its intention to make them compulsory, but that requires legislation that has not yet been passed.
The government plans legislation later in this Parliament. Mandatory sales packs are likely to come into play before the next general election.
A sales pack is a kind of ‘updated’ version of the Home Information Pack (HIP). Both are designed to provide upfront property information, but sales packs are expected to be digital and capable of sharing information more efficiently between buyers, sellers and property professionals.
No, not necessarily. Sellers will be expected to provide a ‘property condition report’ before listing. However, as yet, the government has not confirmed whether this must be compiled by a qualified surveyor – or whether other options will be permitted.
Almost certainly, yes. Even if sellers provide a ‘property condition report,’ those looking to buy are still likely to want to organise their own survey so as to get independent advice and reassurance before proceeding with the purchase.
Potentially, yes, though this will depend on the terms of the proposed ‘binding conditional contract.’
Under this change, buyers could potentially face financial penalties for pulling out without a valid reason. That said, you will still be able to withdraw your offer for ‘legitimate reasons’ (likely to be for things such as survey or mortgage issues).
The rules are certainly designed to try and reduce gazumping – thanks to the introduction of earlier binding agreements. However, until the rules are finalised, it’s hard to say just how effective the new rules will be.
The reforms are aimed at trying to reduce gazundering by making agreements binding earlier in the process. But until legislation is passed, we don’t, at this stage, know for sure.
The government plans to consult on mandatory qualifications for estate agents from 2027, so we could see changes from that date. Legislation will need to be passed before those rules can take effect.
Potentially yes. As costs and other key information will be required upfront under the new rules, this should reduce delays caused by issues such as missing documents. That said, leasehold transactions may still take longer than freehold sales, given they are more complex.
Yes. The new rules are intended to apply across the housing market as a whole – including new-build homes.
No. Scotland already has a different home-buying system in place. The proposed reforms apply to England, Wales and Northern Ireland – though some may influence changes in Scotland in the future.
Yes. The intention is that the reforms will apply in Wales as well as England, as both currently share the same legal framework for property transactions.
As a buyer, you should ask questions about the condition of the property you are looking to purchase, any known defects, leasehold costs, service charges, the status of the chain, recent alterations, planning issues – and how fast the seller wants to move. Under the reforms, much of this information should be available upfront in a sales pack.
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