The Government has announced plans to overhaul the homebuying process in England and Wales, introducing measures aimed at making transactions faster, cheaper and more reliable for buyers and sellers.

Under the proposals, sellers and estate agents will be required to provide key property information upfront through new digital sales packs, including details on a home’s condition, leasehold costs and chain status. The reforms will also introduce earlier binding agreements to reduce the number of sales collapsing late in the process.

According to the Government, with the average home purchase taking around 120 days, one in three sales falling through costing sellers around £400m per year, and failed transactions costing the economy up to £1.5bn every year, these reforms will "fix a broken system".

Ministers said the changes could cut average transaction times by around four weeks and save first-time-buyers (FTBs) an average of £650, while reducing the financial and emotional cost of failed purchases.

The package includes digital property logbooks, electronic signatures, digital identity checks and AI-supported conveyancing to streamline transactions and reduce duplication and fraud risks. The government will also introduce a new Code of Practice for estate agents and consult on mandatory qualifications for the sector from 2027.

Prime Minister Keir Starmer said: "We’re turning the page. Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve."

Housing Secretary Steve Reed added: "These changes will make the system faster, fairer, and more secure – giving families and first-time buyers the certainty they need while saving them time and money."

The reforms will be introduced in phases throughout the rest of the Parliament, with legislation planned to support mandatory sales packs, binding contracts and wider digitalisation of the homebuying process.

The proposals were positively received by stakeholders across the board, who also noted that cooperation between Government and industry will now be crucial for future successful implementation of the rules.

Maria Harris, chair at the Open Property Data Association (OPDA), said the association supports the commitments, which will "improve the homebuying process for everyone".

She added: "Putting consumers at the heart, and in control, of their property data and experience reflects the growing public support for safe and secure digital solutions.  

"The depth and scope of the reforms sets clear direction and next steps for the industry, giving the certainty and confidence that firms need to embrace a digitised future. Delivering these much-needed changes will not only fix the current broken process, they will transform the property industry and enable us to realise significant consumer and economic benefits.  We look forward to continuing our collaboration with government and industry stakeholders on the design and implementation of the standards that will underpin a modern, data-driven and more sustainable home buying and selling market."

Johan Svanstrom, CEO, Rightmove, said: “Our UK-wide data shows that it takes a lengthy 170 days on average to complete a transaction and that over one in five transactions initially falls through. Last year, fall-throughs alone meant that approximately £900m in potential stamp duty receipts and estate agency commission in England was lost, and consumers lose both precious time, certainty and money when needing to repeat transaction processes. The implementation and phasing of these initiatives will be key to ensure consistency and adoption. It needs to be helpful to the vital role estate agents play in the marketplace, and to avoid any unintended consequences.”

Source: Money Age