Government Proposes Home Buying Process Reforms

At last, there's some good news from the government for landlords who want to buy more homes.

Years of hiking taxes and reforming letting laws in favour of tenants have taken their toll on landlords who would like to extend their buy-to-let portfolios.

However, Housing Secretary Steve Reed has come up with a plan he hopes will save time and money for home buyers - including buy-to-let investors.

The aim is to change the home purchase process to reduce the number of sales that fall through, cut costs for buyers and remove red tape that leads to delays in finalising deals.

Announcing the new proposals to steal the thunder from the Conservative Party Conference in Manchester, Reed explained that sellers and estate agents will follow a legal requirement to provide a dossier of important information when a home goes on the market, coupled with signing binding contracts early in the transaction.

Stopping gazumping

The minister hopes the contract will stop gazumping - when a seller accepts a higher offer for a property from a third party before the deal with the first buyer completes.

Reed also hopes the reforms could cut four weeks off the time taken to complete a purchase.

The downside is sellers would have an upfront cost of around £300 for the home's 'logbook' that would contain data about the property, including the condition of the home, leasehold costs, and details of chains of people waiting to move.

The average time to complete a home sale in England and Wales is six months.

Reed said: "Buying a home should be a dream, not a nightmare. Our reforms will fix the broken system so hardworking people can focus on the next chapter of their lives."

Reforms welcomed

Although the proposal is set for consultation, full details will not become available until next year, and any new law may not take effect until 2027.

Paula Higgins, CEO of HomeOwners Alliance, said: "We are absolutely delighted to see the government taking decisive action to overhaul the homebuying process. Requiring material information to be provided upfront will make buying and selling homes faster, fairer and less stressful -- giving families and first-time buyers the confidence they need when making such a major financial commitment.

"This is something we at the HomeOwners Alliance have long campaigned for, as our own research shows how lack of upfront information leads to delays, failed sales and unnecessary costs.

"We also strongly welcome the commitment to raise standards through better regulation and qualifications for estate agents. These reforms will help rebuild trust in the industry and ensure consumers are properly protected."

More about the consultation - entitled Home Buying And Selling Reform - is available on the government website.

Another consultation called Material Information In Property Listings was launched side-by-side with Home Buying And Selling Reform. This consultation tightens estate agent regulation and covers the information that they should include in property listings.