Buying a home could soon be quicker, easier and potentially cheaper following the government’s announcement that a sales pack is set to become mandatory when selling a home.
collating Documents you need to sell a house Once an offer has been accepted it has previously been completed, but the proposed changes would put the onus on the seller to prepare the information before putting their home up for sale.
Estimated savings of up to £650* for buyers and a 3-4 week reduction in purchase times, the reforms will also be accompanied by plans to introduce a previously binding financial agreement between both parties, along with a new code of practice for estate agents.
Why are the changes being made?
The average offer-to-completion process currently takes around 120 days, and with 1 in 3 house sales falling through, a government statement estimates that this costs sellers around £400 million and the UK economy around £1.5 billion a year.
Johan Svanström, CEO Rightmove Put more numbers on this, responding to the schemes, saying, “Our UK-wide data shows that it takes an average of 170 days to complete a transaction and that one in five transactions happen early. Last year, the collapse alone meant that almost £900 million of potential Stamp duty Receipts and estate agency commissions were lost in England, and clients lost both valuable time, certainty and money when transaction processes needed to be repeated. Implementation and phasing of these initiatives will be key to ensure consistency and adoption.”
In essence, by providing a clear sales pack with information on elements such as the property’s condition, chain of purchase and leasehold costs, buyers will have a clearer picture before they make an offer. Pre-mitigating issues will prevent further delays when such information is made public.
Steve Reeves, the current housing secretary, says of the plans: “Buying or selling a home should be one of life’s best moments and not a nightmare of delays, hidden costs and failed deals. These changes will make the system faster, fairer and safer – giving families and first-time buyers the certainty they need and saving money.”
It is hoped that the new changes will mirror the success seen in other countries, including Scotland, where sales packs are already standard practice. They also exist in the Netherlands, where a live tracking system for buyers and sellers allows them to check the status of their transactions. This has resulted in an average completion time of 20 days, while Norway’s efforts to streamline and digitalise the system are estimated to save up to £1.4 billion over 10 years.
Digital upgrade at the heart of the process
The key to the success of these changes is the move towards creating a process Buying and selling a home More digital. A government statement explains how and why this update is being made. “The digital property logbook and sales pack will allow trusted information to be securely shared between professionals and accessed in real-time by buyers and sellers, cutting out the back-and-forth that causes so many delays.
“The government will also support digital identity checks, electronic signatures and AI-assisted conveyancing to eliminate duplication, reduce the risk of fraud and accelerate transactions from start to finish. Together, these changes will create a modern, end-to-end system where people can more easily track and move their steps.”
While the proposals are generally welcomed by industry leaders, the move to digital is something that will require careful handling so as not to alienate some.
“Moving to a more digital process should improve overall efficiency, but it’s important that alternatives remain available for customers who aren’t comfortable with fully digital systems,” says Daniel Kenworthy, lead partner in IT Innovation. Ison Harrison Solicitors.
“There needs to be consistency in how platforms are adopted across firms and organizations to avoid fragmentation,” he warns. And, while there should be long-term cost savings, these new measures will likely entail additional costs.
“In the short term, there may be some additional costs associated with implementing new systems and processes,” advises Daniel. “Over time, however, greater efficiencies and reduced duplication can help stabilize costs and provide better overall value for customers.”
A binding contract will be the last element to be executed
Currently, until you officially exchange the property, you do not enter into any kind of binding or financial contract. An exchange usually comes with an agreement for a financial payment or deposit (often a percentage of the overall property value) and if you withdraw from the sale after the exchange, you lose this money.
This often results in buyers withdrawing before the exchange, which seems reasonable, but can actually be disastrous if, as is often the case, it has taken months to get to that stage. In some cases, you can swap and complete on the same day, which is somewhat risky in itself if one side pulls out at the eleventh hour.
The government says bringing in binding agreements sooner is meant to reduce this risk.
“Binding conditional agreements will make the transaction legally binding much earlier, for example once an offer has been accepted. They are designed to secure each party’s commitment to progress and complete the transaction by setting clear terms that both parties agree to meet. If a party breaches these terms by withdrawing without valid reason or failing to fulfill their obligations, they face financial penalties.”
Daniel Kenworthy says many will welcome it, but not all will see it as a positive, and it could come down to how much information is made available to them in the sales pack.
“Some clients may welcome earlier certainty, but may be wary of commitment before all other factors are clear. So uptake is likely to vary, particularly depending on how well the process balances flexibility with certainty.
“Many transactions are also caused by factors outside the legal process—such as changes in personal circumstances or mortgage availability,” he adds, meaning this particular change may prove more difficult to navigate.
However, the government has reinforced that no agreement will be entered into until the sales pack is fully operational so that no party is disadvantaged. All other elements of change, such as codes of practice, will come first.
How will the proposed code of practice work?
As well as the changes for homeowners, a new code of practice is being drawn up which the government hopes will help raise standards and ensure better service for sellers and buyers.
This will also be the first change made as part of this major overhaul of the home buying process and is set to be finalized later this year. It will outline minimum standards for property agents, guidance on how to improve the quality of information in property listings and proposals for mandatory qualifications for the sector.
When will the remaining changes and sales packs be introduced?
Current plans are for a phased approach to reform. A code of practice is currently planned for 2026, while consultation on estate agent qualifications and expanded digital tools will not take place until 2027.
It is then intended, by the end of the current Parliament, to enact comprehensive legislation requiring sales packs, binding contracts and digital systems that support the efficient sharing of reliable digital property information.
However, it remains to be seen whether these plans change as the current government is in dire straits.
In summary, Daniel Kenworthy shares his views on the proposals. “The recommendations are broadly positive, particularly around improving transparency and earlier access to information. One area that would strengthen the process is clear alignment between lenders, local authorities and conveyancers, as delays often occur where those parties operate to different timescales or standards.
“In theory, a shorter and more consistent timeline is welcome. However, achieving this depends heavily on how quickly the underlying infrastructure can adapt,” he says. “Without that, the timeline can remain variable in practice.”
Johan Svanström also states, “Implementation and phasing of these initiatives will be key to ensure continuity and adoption. That is the important role estate agents play in the market and need to help to avoid any unwanted consequences.”
“Increased mobility, transparency and certainty are keys to overall economic growth. We strongly believe that further digitization and improvements in the home-moving process can help speed it up and reduce friction. Achieving the goals set today will require cross-industry collaboration and innovation.”
*According to a government statement, “The figure of £650 is derived by comparing post-reform transactions (mainly transport and search costs) to pre-transaction buyer costs, plus integrating additional costs for buyers arising as a result of the new reforms (e.g. reducing the estimated number of logbooks) reduced in transactions.”
