The UK government plans to introduce legally binding sales agreements earlier in the house-buying process, aiming to end gazumping and increase transparency by 2029. Reforms will require sellers to share property information upfront, potentially saving buyers an average of £650.
These reforms aim to create a more transparent, efficient, and secure property market, reducing financial and emotional stress for buyers and sellers and potentially boosting economic activity by streamlining transactions.
The UK government has announced significant reforms to the property sale system in England and Wales, aiming to introduce legally binding agreements earlier in the process. This move is intended to combat 'gazumping,' a practice where sellers accept a higher offer after an initial agreement has been made, and to reduce the frequency of sales falling through.
Under the proposed changes, sellers and estate agents will be required to provide comprehensive 'sales packs' containing crucial information about the property's condition and its place within a sales chain. The government estimates these reforms will save buyers an average of £650. Prime Minister Sir Keir Starmer stated that the current system leaves people in limbo and that the reforms will modernize the process, saving time and money while providing greater certainty.
The Chancellor echoed these sentiments, emphasizing that delays and last-minute deal collapses are detrimental not only to homebuyers but also to the broader UK economy. Data from property portal Rightmove indicates that, on average, it takes 170 days to complete a property sale in the UK, with more than one in five sales initially falling through.
Industry experts, including the Chief Property Ombudsman and Nationwide's group director of mortgages, have welcomed the proposed changes, provided they are implemented carefully with clear guidance. These reforms are designed to bring England and Wales more in line with Scotland's system, where formally accepted offers are already legally binding.