The government has announced plans to make the house buying system cheaper and faster in what it has called the “biggest shake-up to the homebuying system in this country’s history”.
Proposals unveiled by Labour this morning promise to speed up the process of buying a house by around four weeks, which currently takes more than five months on average.
Under the plans, sellers and estate agents will be required to provide buyers with vital information about a property upfront, including the condition of the home, leasehold costs, and chains of people waiting to move.
The government said this will help “end nasty surprises which result in last-minute collapses” and give greater confidence to first-time buyers.
Binding contracts could also be introduced to stop people walking away from agreements after months of negotiations.
Officials believe the proposed package of reforms could save first-time buyers an average of £710, but people selling a home could face increased costs of around £310.
Housing secretary Steve Reed said the reforms, which are the subject of a consultation, would help make “a simple dream a simple reality”.
Location, Location, Location presenter Kirstie Allsopp said the proposals have sparked “some hope” but said there were some “worrying elements” and urged the government to focus on “both elements” of the buying and selling process.
“I think what everyone has to do is make sure everyone is spoken to,” she told BBC Radio 4. “The mortgage companies, the insurers, the lawyers, the surveyors, the estate agents.
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“If we just say we need more information, and we’re going to force estate agents and sellers to provide more information and leave it at that, it’s not going to work.”
She said mortgage companies are often reluctant to accept information provided by the seller, and although the binding contract system works effectively in a lot of countries, it can pose some issues, such as making it difficult to see what the price of a property is.
Ms Allsopp also added it was concerning that the consultation was only 12 weeks and closes in December, a busy time of year for most.
The communities minister said the current process for sellers and buyers is “a nightmare”, promising Labour’s reforms would represent “a major shakeup of the system”.
Miatta Fahnbulleh said the plan would halve the number of failed transactions and speed up the process by an average of four weeks. And, quizzed on how quickly the changes could be implemented, Ms Fahnbulleh said the government is “going to run at this”.
She told BBC Breakfast: “This is something that we need to move at pace. We’re going to consult on our proposals, and then will be moving to put in place legislation so that all people who are going through the process of buying and selling their homes can benefit from these big reforms.”
Further proposals seek to offer consumers clearer information on estate agents and conveyancers, detailing their track record and expertise. New mandatory qualifications and a code of practice would also drive up standards.
Wider use of online processes, including digital ID, could help make transactions smoother, the government argued, pointing to the Finnish digital real estate system, which can see the process completed in around two weeks.
The planned shake-up was welcomed by property websites and lenders.
Rightmove chief executive Johan Svanstrom said: “The home-moving process involves many fragmented parts, and there’s simply too much uncertainty and costs along the way.
“Speed, connected data and stakeholder simplicity should be key goals. We believe it’s important to listen to agents as the experts for what practical changes will be most effective, and we look forward to working with the Government on this effort to improve the buying and selling process.”
