The government has announced that it is consulting on new proposals to transform the homebuying and selling process in England and Wales.
As part of the proposed reforms, estate agents and sellers must publish information from searches and surveys before a property listing is published.
The idea is to allow buyers to see the physical condition, characteristics, and flood risk of the property online. The government hopes it will enable buyers to make informed decisions sooner and sellers will benefit from faster transactions, designed to result in fewer costly fall-throughs.
The full list of proposed mandatory upfront information includes: tenure, council tax band, EPC rating, property type, legal and transactional information such as title information and seller ID verification, leasehold terms, building safety data, standard searches, property condition assessments tailored to property age and type, service charges, planning consents, flood risk data, chain status, and clear floor plans.
Buyers and sellers will have the option to sign binding contracts that would end the practice of parties pulling out of agreements months into the process.
The transaction process will also see the deployment of digital tools – including digital property logbooks, digital ID verification, and standardised data sharing – enhancing transparency and security for buyers and sellers.
The government will also introduce mandatory qualifications and ‘Code of Practice’ for estate, letting and managing agents, driving high standards in the sector and increase trust in the industry.
The government will publish information on the services of estate agents and property lawyers, so consumers are well informed on how and where to get help.
The average time from instruction to completion is currently over five months, and the government estimates these reforms could speed up transactions by around four weeks.
The Home Buying and Selling Reform consultation launched can be found here.
The Material Information Consultation can also be found here. Material information in property listings. This further consultation will support estate agents with their legal responsibilities, including requirements under the Digital Markets, Competition and Consumers Act. This will aim to help provide explicit guidance for estate agents on what information they should include in property listings.
The government estimates that first-time buyers will save £710 on average when buying a home, along with vital time and energy, thanks to the biggest shakeup to the homebuying system.
Housing secretary, Steve 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.
“Through our Plan for Change we are putting more money back into working people’s pockets and making a simple dream a simple reality.”
Let’s just hope the well intentioned Mr Reed doesn’t seek advice from Yvette Cooper, who made a complete pigs ear with Home Information Packs!
If he is to be taken seriously he must consult property professionals or his venture into this murky area is doomed to failure, just like Coopers.
The housing market can ill afford another government driven fiasco in its present fragile state.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
If 20% of this can be achieved that would be a great step forward. All the tools are in place for this to happen, we just need the government to follow through with conviction. Datarooms were made for this.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The announcement from MHCLG explicitly references the Digital Markets, Competition and Consumers Act (DMCC Act) as the legislative backbone, and that line alone changes everything.
The DMCC Act has been live since April this year and strengthens previous consumer protection law. In doing so, it’s introduced serious new penalties for misleading or incomplete information, and has fundamentally changed when material information needs to be disclosed in marketing materials. I’ve been working with legal experts and regulators since April, and I’m still surprised at how many agents don’t know about this.
Those who get ahead and understand what the DMCC Act is about and what it means for their business will not only protect themselves, they’ll gain a real competitive edge.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Finally, the penny has dropped and this Government now realises that the main bread winner for UK tax receipts is property !!!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Good idea, but they need to get on with it. Last time many people spent £1000’s, qualified to produce HIPS and a survey, and the Conservatives (Grant Shapps) then scrapped it. Also, what is the point of this being an option – be decisive. “Buyers and sellers will have the option to sign binding contracts that would end the practice of parties pulling out of agreements months into the process.”
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Agree with it all except the searches which can get out of date. But a survey doesn’t date. Make vendors launch with draft contract, survey and the transaction forms. None of this gets out of date.
Will it deter some sellers? Yes. Are they the flakey ones who waste our time? Yes.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Some of us are old enough to remember that we’ve been here before! Certainly changes are essential, the endless delays at the moment are unreasonable, but what is the answer? The questions remain the same as last time. Will a buyer be prepared to rely upon a condition report commissioned by the seller, which is only as good as the day its prepared? Can he be compelled to and what recourse is there when something goes wrong? Who will provide these condition reports? There were insufficient ‘surveyors’ last time, and a new type of property inspector and inspection was devised? Will this have to be repeated? Many of us who qualified under the HI scheme have let it lapse – what next? I can’t believe there are hundreds more ‘surveyors’ kicking about. We come back to the longevity of searches and interpretation of legal points.
I’m sure much more can be done and stored ‘online’ today, but that’s the easy bit!
Standing by….
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register