Government homebuying shake-up could cut mortgage delays and reduce sales falling through

Government homebuying shake-up: Will it cut mortgage delays?

The government has announced a major shake-up of the homebuying and selling process designed to reduce delays, cut costs and stop property sales collapsing late in the transaction.

The proposed reforms could make the process quicker and more transparent for first-time buyers, home movers, sellers, estate agents, mortgage brokers, lenders and conveyancers. The government says the average home purchase currently takes around 120 days, while one in three sales falls through, costing sellers hundreds of millions of pounds each year.

Under the new plans, sellers and estate agents will need to provide more key information upfront when a property is listed. These new “sales packs” are expected to include details about the property’s condition, leasehold charges and the onward chain, helping buyers understand more about the home before spending money on legal work, surveys and mortgage applications.

The reforms are also expected to include earlier binding agreements, digital property logbooks, electronic signatures, digital identity checks and AI-assisted conveyancing. The aim is to reduce duplicated paperwork, speed up communication between professionals and give buyers and sellers more certainty before exchange and completion.

• Families and first-time buyers set to save time, money, and stress under major changes to the homebuying process – supporting the next generation and those locked out by a slow and unfair system
• New sales packs to ensure buyers have the information they need upfront, earlier binding agreements, and digital tools will halve the number of sales that fall through saving millions
• Reforms will cut buying times by around four weeks, save first-time buyers an average of £650, and get the housing market moving more quickly

Why is the government changing the homebuying process?

Buying a property in England and Wales can be slow, uncertain and expensive. Mortgage offers, conveyancing, searches, surveys, leasehold enquiries, management packs and chain delays can all slow down a transaction.

For many buyers, one of the biggest frustrations is spending money on solicitors, mortgage valuations and surveys, only for the seller or another buyer in the chain to pull out. Sellers also face the same issue when a buyer withdraws after months of negotiation.

What information could be included in the new sales packs?

The proposed upfront sales packs could include more of the information buyers usually discover later in the process. This may include:

Phil Spencer, Property Expert & Move iQ Founder said: 

"For as long as I’ve worked in property, one of the biggest frustrations I’ve heard from buyers and sellers is that the process simply doesn’t work as well as it should. It can be slow, stressful and uncertain, with too many transactions falling through after months of time, effort and expense. 

"I welcome these proposals - they address many of the issues consumers have been grappling with for years, from a lack of upfront information to unnecessary delays and last-minute surprises. Giving people a clearer picture from the outset and creating greater certainty throughout the transaction process can only be a positive step. 

"These have the potential to make moving home a far better experience for everyone involved. Having spent decades at the heart of the housing market, I’ve seen first-hand the emotional and financial toll that a failed transaction can take. Anything that helps buyers and sellers move with greater confidence and fewer obstacles is to be applauded. 

"I look forward to seeing these changes brought forward and the difference they could make to the way we buy and sell homes."

Could the reforms help first-time buyers?

First-time buyers often have limited savings and can be hit particularly hard when a purchase falls through. They may have already paid for mortgage valuations, broker fees, legal searches or survey reports before finding out the seller has withdrawn, the chain has collapsed or the property has legal or valuation issues.

More upfront information could help first-time buyers decide whether a property is worth pursuing before committing money. It may also reduce the chance of unexpected leasehold costs, building safety issues or property defects emerging late in the transaction.

The government expects first-time buyers to save an average of £650 as a result of the changes. If the reforms work as intended, they could also help buyers move into their homes faster.

How could this affect mortgage applications?

The changes could make mortgage applications smoother if brokers and lenders receive better property information earlier. Mortgage lenders already assess more than the borrower’s income and deposit. They also look at the property itself, including its construction type, condition, tenure, lease length, ground rent, service charges and any legal restrictions.

Better upfront information could help identify issues such as:

• Short leases or rising ground rents

• High service charges affecting affordability

• Building safety or cladding concerns

• Unregulated loft conversions or extensions

• Properties with annexes, land, stables or outbuildings

• Flying freeholds, restrictive covenants or title defects

• Non-standard construction

• Japanese knotweed, damp, subsidence or major repair issues

For borrowers, this could mean fewer surprises after the mortgage valuation or solicitor’s checks.

Will buying a home become faster?

The government says the reforms could cut around four weeks from the homebuying process. This would be a significant improvement for buyers and sellers, especially in chains where multiple transactions are dependent on each other.

Digital identity checks, electronic signatures and AI-assisted conveyancing could also reduce duplication and speed up communication between estate agents, mortgage brokers, solicitors, surveyors and lenders.

However, the reforms are being introduced in stages. A new Code of Practice for property agents is expected later this year, consultations on estate agent qualifications and digital tools are expected from 2027, and wider legislation for sales packs, binding contracts and digital systems is expected by the end of this Parliament.

What should buyers do now?

Buyers should still prepare carefully before making an offer. This means getting a mortgage agreement in principle, checking how much they can borrow, understanding their deposit requirements and speaking to a mortgage broker before viewing properties.

Once an offer is accepted, buyers should instruct solicitors quickly, provide documents to their broker and lender promptly, and consider whether a survey is needed. Even if the reforms speed up the process in future, well-prepared buyers will still have an advantage.

Source: Homebuying shake-up to slash delays, cut costs and stop sales falling through - GOV.UK

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The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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