The UK government has announced plans for significant reforms to the housebuying system, aiming to reduce costs, decrease delays, and halve the number of failed sales. Housing Secretary Steve Reed emphasized that these changes are intended to improve the current system and alleviate financial pressure on consumers.
Under the proposed reforms, sellers and estate agents will be legally obligated to provide essential property information upfront. The government estimates that first-time buyers could save an average of £710 through these changes, which may also shorten the typical property transaction timeline by up to four weeks. The reforms are projected to benefit hundreds of thousands of families and first-time buyers. Those involved in property chains could see a net saving of £400 due to decreased buying costs outpacing selling expenses.
The consultation references other regions, particularly Scotland, which utilizes more comprehensive upfront disclosure and earlier binding contracts. Key information required could include the property’s condition and any leasehold costs. The government believes that this transparency will mitigate the chances of deals collapsing at later stages, thereby fostering greater confidence among buyers.
To further protect transactions, binding contracts might be introduced, aimed at reducing the incidence of failed transactions that currently cost the UK economy around £1.5 billion annually. Alongside these measures, a mandatory Code of Practice for estate agents and conveyancers is also proposed to raise professional standards within the housing sector.
A detailed roadmap for these reforms is expected to be released in the coming year as part of a broader housing strategy, which includes a goal to build 1.5 million new homes. Concurrently, the Conservative Party is scheduled to outline tax policy changes for first-time homebuyers at their upcoming conference, proposing a £5,000 tax rebate for young individuals entering their first full-time job.
Source: https://www.bbc.com/news/articles/cy0v7zwp0dlo?at_medium=RSS&at_campaign=rss