The biggest shake-up to the homebuying system in history could slash costs for buyers and cut the time it takes to move, the government has said.
Changes could include requiring property sellers and estate agents to provide more information when a home is listed for sale, reducing the need for buyers to carry out searches and surveys.
Binding contracts could also be introduced at an earlier stage, reducing the risk of a chain collapsing.
Housing secretary Steve Reed said the proposals, which are the subject of a consultation, would help make “a simple dream a simple reality”.
Mr Reed added: “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.”
It is thought the government is attempting to galvanise the housing market amid concerns over a slowdown, as new buyer enquiries have decreased.
Speculation of a tax raid on property in chancellor Rachel Reeves’s November Budget has also been mounting since mid-August, causing concerns for potential homeowners.
The government said it will set out a full road map in the new year after consulting on its proposals.
We take a closer look at what the reforms are hoping to achieve.
Speed up the process
The proposals unveiled on Monday intend to speed up the long, drawn-out and costly process of purchasing a home by an estimated four weeks.
The average time from instruction to completion is currently more than five months, with Labour hoping these reforms could speed up transactions.
Under the new plans, estate agents and sellers must publish information from surveys before a property listing is published, allowing buyers to see the physical condition, flood risk and suitability of a property online.
It is hoped this will enable buyers to make informed decisions quickly and initiate faster transactions.
Online processes such as digital ID could also be utilised to help transactions, with the government pointing to the Finnish digital real estate system, which can see the process completed in around two weeks.
Saving money
Hundreds of first-time buyers are set to save £710 on average when buying a home under the new reforms.
People selling a home could face increased costs of around £310 due to the inclusion of upfront assessments and surveys.
Those in the middle of a chain would potentially gain a net saving of £400 as a result of the increased costs from selling being outweighed by lower buying expenses.
Stop collapses
In a bid to stop the number of failed sales, which costs the economy £1.5bn a year, the reforms will see sellers and estate agents required to provide buyers with more information about a property upfront.
This includes the condition of the home, leasehold costs and chains of people waiting to move.
The plans would also provide buyers with clear information on estate agents and conveyancers, including their track record and expertise, alongside new mandatory qualifications and Code of Practice standards.
Binding contracts could also be introduced to stop people walking away after months of negotiations to prevent chains from collapsing, as well as gazumping – when a potential buyer makes a higher offer than the one that has already been accepted by the seller.
As well as reforming the current market, Labour is also hoping to slash planning red tape to speed up construction to build thousands of new homes.
The housing secretary’s latest pledge to “build, baby, build” is part of a plan to build 1.5 million homes and break down the remaining barriers to development that stand in the way of meeting this target.
