Government unveils plans to speed up house buying and selling

The government claims millions of people are set to benefit from improvements to the way homes are bought and sold.

It has this morning issued a statement saying it will “modernise the way the process works to bring down current delays of almost five months.”

It says it’s “opening up key property information, ensuring this data can be shared between trusted professionals more easily, and driving forward plans for digital identity services to slash transaction times.”

It adds that by making information available at people’s fingertips, it will be far less likely for surprises to be encountered later on in the process. This will make it easier for people to get onto the housing ladder, reduce the requirement to share ID in-person in the long-term, and decrease the number of transactions collapsing.  

The government says fall throughs – which impact one in three transactions – cost people around £400m  a year, on top of the four million working days lost by conveyancers and estate agents alone which is equivalent to £1 billion.

The government claims that information such as building control and highways information is predominantly paper-based or recorded in non-machine-readable formats. On top of this, where data is available electronically, there are no established protocols for accessing, sharing and verifying that data which leads to more delays.  

But under a fully digitalised home buying and selling process, the information key parties need – from mortgage companies to surveyors – will be within reach immediately, with the necessary identity checks carried out once.

Clear information early on will mean there are no surprises late on in the transaction which might cause it to fall through, so instead the transaction is completed smoothly without unnecessary time, energy or money spent.  

“By bringing the process into the digital age, and learning from success stories such as Norway where transactions complete in around one month, the government is putting more money into the pockets of hardworking people and delivering on our Plan for Change to grow the economy” continues the statement.

The government says it is working hand-in-hand with the property market, supported by HM Land Registry (HMLR), and is announcing a 12-week project to identify the design and implementation of agreed rules on data for the sector, so that it can easily be shared between conveyancers, lenders and other parties involved in a transaction.

HMLR will also build on its work in digitising property information and lead 10-month pilots with a number of councils to identify the best approach to opening up more of their data and making it digital, whilst the government pushes ahead with plans for digital identity verification services including in the property sector.

The government also says that in the next week secondary legislation for the Right to Manage measures in the Leasehold and Freehold Reform Act 2024 come to Parliament.

It says:

“These changes, which will come into force on 3rd March, will empower more leaseholders to take control of their buildings more easily, giving them power over how their service charges are spent, and removing the requirement for leaseholders to cover the legal fees of their freeholder when making a Right to Manage claim – potentially saving them up to £3,000 for the most costly claims, and reducing the incentive for landlords to obstruct the process.”

Housing and Planning Minister Matthew Pennycook says: “We are streamlining the cumbersome home buying process so that it is fit for the twenty-first century, helping homebuyers save money, gain time and reduce stress while also cutting the number of house sales that fall through.  

“Our modernisation of the system sits alongside further reforms to improve the lives of leasehold homeowners across the country, allowing them to more easily and cheaply take control of the buildings they live in and clamp down on unreasonable or extortionate charges.

“These reforms build on the government’s Plan for Change to deliver higher living standards and 1.5 million safe and decent homes in this Parliament, and our ongoing efforts to protect leaseholders suffering from unfair and unreasonable practices as we work to end the feudal leasehold system for good.”