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The reform aims to make transactions faster and reduce failed transactions, saving time and money on both the buyer and seller sides. Higher professional standards are also a key objective, with the introduction of a code of practice for estate agents promoting higher trust and confidence in the system. Finally, providing more upfront information on property listings aims to improve transparency for potential buyers.
Currently, sellers are not obliged to provide detailed information to buyers prior to offer. However, the government wishes to impose a requirement on sellers to provide standardised information at the point of listing, including property tenure, council tax band and EPC rating. The government is considering mandatory obligations for sellers to carry out searches and a property condition assessment before a property is marketed for sale, which would represent a huge shift in due diligence responsibilities. This reform aims to reduce the number of failed transactions and has the potential to increase the speed of transactions by up to four weeks.
Binding conditional contracts could also be introduced, creating a financial penalty for the party who withdraws from the transaction. This approach already significantly reduces the likelihood of failed transactions in Scotland and the United States, and there are hopes that binding conditional contracts would also reduce “gazumping” and result in fewer sellers walking away.
The idea of introducing a Code of Practice for residential property agents is also being discussed as a recent survey has shown only 37% of people expressed trust in the profession (November 2024 Ipsos MORI Veracity Index). Proposals to introduce a code of practice and legislate for mandatory qualifications could lead to better service for consumers and drive up estate agency standards.
The government is also considering implementing digital tools to streamline conveyancing processes and reduce repetition for Anti-Money Laundering checks. Digital logbooks could be amongst the changes to store current and historic property information, aiming to progress transactions faster through readily available information.
Leasehold transactions are notably more long-winded and complicated, with such delays often being attributable to extortionately expensive, unreasonable or non-responsive landlords or managing agents. The Leasehold and Freehold Reform Act 2024 aims to address these issues by setting out standards for timescales in delivering information and caps on fees. It is also considering redress schemes for delays and excessive charges.
Overall, the proposals aim to create a less stressful system, more streamlined and fit for the future. It is apparent that the proposals are likely to be of overall benefit to buyers and sellers alike, but careful consideration must be made to ensure they do not adversely affect other aspects of a conveyancing and outweigh the costs of introduction of the new measures.
How to respond to the consultation on home buying and selling
The consultation is open until 29 December 2025 and the government is seeking input from professionals, consumers and the general public. Subject to the outcome of the consultation, a finalised roadmap to reform will be published thereafter.
If you need help to understand how these changes could affect you, contact our expert Residential Conveyancing team by email, or call +44(0)3333 231580.
