Buyers could save hundreds in new house buying shakeup

Plans for a major reform of the house-buying system, which aim to cut costs, reduce delays and halve failed sales, have been unveiled by the government.

Under the new proposals, sellers and estate agents will be legally required to provide key information about a property up front, and the option of binding contracts could stop either party walking away late in the process.

The government estimates the overhaul could save first-time buyers an average of £710 and shave four weeks off the time it takes to complete a typical property deal.

But sellers at the end of a chain may face increased initial costs of £310 and, while broadly welcoming the move, housing experts say more detail is needed.

Previous attempts at mandating sellers to offer key information - through home information packs - were scrapped owing to complaints that it discouraged or delayed sellers in putting homes on the market.

The broader issue of housing affordability remains a block for many potential property purchasers, especially first-time buyers.

And many home buyers would not benefit from the estimated savings, as the calculations include the average cost of failed transactions that some might not experience.

The proposals suggest a "long-term" option of binding contracts is intended to halve the number of failed transactions, which currently cost the UK economy an estimated £1.5bn a year.

Anyone who breaks the contract could face fines, but no firm details are yet provided on how this would work, and what would be considered as justified reasons to leave the contract.

Surveys suggest about a third of buyers had experienced gazumping in the last 10 years.

The reforms also aim to boost professional standards across the housing sector.

A new mandatory Code of Practice for estate agents and conveyancers is being proposed, along with the introduction of side-by-side performance data to help buyers choose trusted professionals based on expertise and track record.

The government said further details the changes would be published in the new year, forming part of its broader housing strategy, which includes a pledge to build 1.5 million new homes.

Conservative shadow housing minister Paul Holmes said: "Whilst we welcome steps to digitise and speed up the process, this risks reinventing the last Labour government's failed Home Information Packs - which reduced the number of homes put on sale, and duplicated costs across buyers and sellers."

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