Government Unveils Proposals to Reform the Home Buying Process

The Government have released their proposed reforms to the Conveyancing process with the aim to ease the house-buying system, particularly for First Time Buyers. The reforms are centred around cutting costs, reducing delays, and preventing abortive sales, but will it be successful?

Collapsing Chains

As part of the newly proposed plans, the Government aims to simplify property transactions by making it mandatory to provide more information at the beginning of a transaction.

This is to tackle the issue of delays, last-minute ‘gazumping’ (where successful buyers are outbid at the last minute) and broken chains.

The Government want to create a more transparent process so that more information is available from the outset when buying a property, much like Scotland’s current system. At present, sellers are only required to complete a Property Information Form and Fittings and Contents Form. The new proposal would see buyers have to include information regarding the condition of the home, any leasehold costs, and details of the property chain, as well as plans to get sellers to obtain the house survey in the first instance.

Sellers should be careful and diligent when completing any forms or providing information as the failure to disclose any information that a buyer may rely on could be construed as misrepresentation or fraudulent sale. Instructing a solicitor or conveyancer from the outset can minimise any potential risk imposed on a seller. At Holmes & Hills we provide a Pre-Market Service whereby we offer to review documents and protocol forms provided by the seller whilst the property is still being marketed and will report on you should there be any potential issues or further information that may be needed for a potential buyer. If you would like further information, please contact our Quotes Team on 01206 593933.

Contracts and Fines

Abortive transactions currently cost the UK economy an estimated £1.5 billion a year. Therefore, another proposal is to make contracts binding at a much earlier stage of the transaction than current.

The Government are looking to impose fines on those that break the contract, but details on how this would work are yet to be finalised.

New and Mandatory Code of Practice

Estate agents and Conveyancers may be held to a new code of practice to streamline services, along with the introduction of making performance data available. This is so that buyers can see the professionals’ records and be able to make an informed decision on who they wish to instruct based on the information available. Again, this echoes the element of transparency which the Government wishes to impose.

Solicitors in England and Wales are currently held to account by the Solicitors Authority Regulation (SRA) and the Law Society which already has its own standards and regulations in which are followed for the benefit of the clients they serve and in the public interest.

Timescales and Costs

The Government believe the above reforms could potentially reduce the conveyancing timescales by four weeks and could save first-time buyers an average of £710, albeit sellers at the end of the chain may face increased costs.

Expert Residential Property Advice from Holmes & Hills

Choosing the right property solicitor can make all the difference to how smooth your buying or selling journey will be. The Residential Property Team at Holmes & Hills pride themselves on their proactive and efficient approach to property transactions and we are here to offer you expert advice and support throughout the entire process.