Homebuying Rules to Make Purchases Faster, Cheaper and More Certain

New rule proposals to make buying and selling a home faster, cheaper, and surer have been issued today.   

The changes are aimed at cutting homebuying times by around four weeks, save first-time buyers an average of £650, and end last minute discoveries of defects.

Sellers and estate agents will have to provide key information upfront in ‘sales packs’ at the point of listing. This will set out a home’s condition, leasehold costs, and chain status.

Earlier binding agreements to stop parties walking away months into negotiations without a legitimate reason are also being introduced.

A new Code of Practice planned for later this year is aimed at raising standards for estate agents, alongside proposals for mandatory qualifications to support efficient transactions and rebuild trust in the sector.

The average home purchase takes around 120 days, and one in three sales fall through, costing sellers around £400 million per year. Failed transactions cost the economy up to £1.5 billion every year.

The rule changes are proposed to be put in place over the next three years, to complete by the end of this Parliament.

Bad for the Economy

The Chancellor of the Exchequer, Rachel Reeves, said: “Delays, hidden costs, and deals collapsing at the last minute are not only bad for homebuyers, it’s bad for the economy too.

“Our reforms will cut those delays, cut costs and make the process quicker and more reliable – getting more people on the housing ladder while keeping more money in their pockets.”

At the heart of the reforms is a major shift to digital – digital property logbooks and sales packs will allow information to be shared securely.

The government will also back digital identity checks, electronic signatures and AI-assisted conveyancing. Together, these changes aim to create a modern, end-to-end system where people can track and progress their move more easily.

Clearer Picture

Phil Spencer, Property Expert TV Personality, said: “These proposals address many of the issues consumers have been grappling with for years, from a lack of upfront information to unnecessary delays and last-minute surprises. Giving people a clearer picture from the outset and creating greater certainty throughout the transaction process can only be a positive step.”

Countries like the Netherlands, Norway, and Finland have already shown that reforms like these deliver real benefits for buyers, sellers and the industry alike.

The Netherlands uses a live tracking system for buyers and sellers to check their transaction status helping to achieve a final completion time of 20 days on average, whilst Norway’s efforts to streamline and digitalise the system has estimated savings of up to £1.4bn over 10 years.

Legislation to require sales packs, binding contracts, and digital systems will be introduced by the end of Parliament.

Consistent Standards

Justin Young, CEO at RICS, said: “RICS welcomes the government’s focus on improving how homes are bought and sold, particularly steps to give people clearer information earlier and reduce transactions breaking down part way through. Getting the right information upfront, including a reliable condition report from properly qualified and regulated surveyors, will be essential.

“We look forward to working closely with government and industry partners to put consistent standards in place and make sure that the professionals delivering these services have the right skills and levels of accountability.

“We also need to make sure the sector has the capacity and skills to deliver these changes, including supporting smaller firms to play their part.”

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