Major shake-up of home buying aims to make process cheaper, quicker and easier

The UK government is proposing a significant overhaul of the home-buying process, aiming to cut transaction times by approximately one month and save first-time buyers an average of £710, despite increasing upfront costs for sellers by around £310. Key reforms, currently under consultation, include requiring sellers to provide more upfront information, introducing earlier binding contracts to mitigate gazumping and chain collapses, and enhancing transparency for property professionals. While welcomed by industry stakeholders for modernizing an outdated system, the proposals face scrutiny regarding potential similarities to past unsuccessful initiatives and are slated for a full roadmap announcement in the new year.

Analysis

Major shake-up of home buying aims to make process cheaper, quicker and easier Buyers may no longer need to pay for so many searches, sellers may be asked to contribute some costs, and measures could be put in place to stop gazumping and chains collapsing. Monday 6 October 2025 07:07, UK A shake-up to the house-buying system which could cut a month off the time it takes - and slash around £700 from the moving bill - is on the table. Changes could include requiring property sellers and estate agents to provide more information when a home is listed for sale, reducing the need for buyers to carry out searches and surveys. Binding contracts could also be introduced at an earlier stage, reducing the risk of a chain collapsing and gazumping - when someone makes a higher offer for a house than someone whose offer has already been accepted by the seller. The proposals could also deliver clearer information to consumers about estate agents and conveyancers, including their track record and expertise, along with new mandatory qualifications and a code of practice to drive up standards. Housing Secretary Steve Reed said the proposals, which are the subject of a consultation, would help make "a simple dream, a simple reality". The government says it will set out a full roadmap in the new year after consulting on its proposals. Mr Reed said: "Buying a home should be a dream, not a nightmare. "Our reforms will fix the broken system so hardworking people can focus on the next chapter of their lives." Officials believe the proposed package of reforms could cut around a month off the time it takes to buy a new home and save first-time buyers an average of £710. People selling a home could face increased costs of around £310 due to the inclusion of upfront assessments and surveys. Those in the middle of a chain would potentially gain a net saving of £400 as a result of the increased costs from selling being outweighed by lower buying expenses. Wider use of online processes, including digital ID, could help make transactions smoother, the government argued, pointing to the Finnish digital real estate system which can see the process completed in around two weeks. The consultation also draws on other jurisdictions, including the Scottish system where there is more upfront information and earlier binding contracts. Read more: How to spot a nightmare neighbour before you buy a house Phil Spencer reveals his top tips for buying your dream home Meanwhile, the Conservatives have pledged to give young people a £5,000 national insurance rebate to help with the cost of their first home when they get their first full-time job as part of their plans to "reward work", The Times reports. The proposals for a "first-job bonus" - which would divert national insurance contributions into a long-term savings account - are said to be announced by shadow chancellor Sir Mel Stride on Monday. The bonus could benefit 600,000 people a year and amount to £10,000 for a working couple, with the Tories saying the £2.8bn cost would be funded by cutting government spending, according to the newspaper. Be the first to get Breaking News Install the Sky News app for free 'Process the same as for our grandparents' The government's planned shake-up was welcomed by property websites and lenders. Rightmove chief executive Johan Svanstrom said: "The home-moving process involves many fragmented parts, and there's simply too much uncertainty and costs along the way. "Speed, connected data and stakeholder simplicity should be key goals. "We believe it's important to listen to agents as the experts for what practical changes will be most effective, and we look forward to working with the government on this effort to improve the buying and selling process." Santander's head of homes David Morris said: "At a time when technology has changed many processes in our lives, it is incredible that the process of buying a home - an activity that is a cornerstone of our economy - remains much the same for today's buyers as it did for their grandparents." 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." The UK government is proposing a significant overhaul of the home-buying process, aiming to reduce transaction times by a month and lower costs for buyers. The plan, currently under consultation, centers on mandating sellers and agents to provide more information upfront, thereby reducing a buyer's search burden, and introducing earlier binding contracts to mitigate the risks of gazumping and collapsed chains. Projections indicate this could save first-time buyers an average of £710, while increasing upfront costs for sellers by approximately £310. The reforms, which also include a push for digitalization inspired by systems in Finland and Scotland, have been met with moderately positive sentiment. Industry stakeholders, including Santander (SAN) and Rightmove, welcome the move as a needed modernization of an archaic system. However, there is notable political risk; a Conservative shadow minister has raised concerns by comparing the proposals to the failed Home Information Packs of a previous government, indicating potential implementation headwinds. This regulatory initiative is contrasted with a competing Conservative proposal for a £5,000 national insurance rebate for first-time buyers, highlighting housing affordability as a key political battleground.

Key Decisions for Investors

• Investors should evaluate companies along the property transaction value chain, noting potential tailwinds for PropTech firms specializing in digital conveyancing and data, while being mindful of potential margin pressure on estate agents due to new regulations and cost-shifting to sellers.
• For mortgage lenders such as Santander, the proposed reforms represent a modest operational positive by potentially reducing transaction times and fall-through rates, though the direct bottom-line impact is expected to be limited.
• Given the proposals are under consultation and face political opposition citing past policy failures, investors should treat this as a medium-term catalyst and monitor the government's official roadmap in the new year before significantly adjusting positions based on regulatory change.