Sir Keir’s parting gift: modernising the UK property market

Here’s some good news. The government has announced a strategy to speed up the homebuying process. In addition, the strategy will make it more difficult to pull out of a sale. This additional clause has the potential to save homebuyers in England and Wales millions.

Let’s face it, an overhaul of the property market is long overdue. But it’s Sir Kier Starmer’s hope that the legislation will provide support, where there’s now a battlefield. Here’s a broad outline of what we can expect:

The aim of modernising the housing market

The government hopes that the new rules can stabilise the market and bolster participant confidence. The two main aims, then, are:

1. Digitising the chain to:
   • Reduce the current homebuying process by four weeks
   • Save first-time buyers up to £650
2. Stabilise the chain, to mitigate factors that:
   • Cost buyers and sellers thousands of pounds
   • Cause the chain to collapse entirely

Here’s how the individual components will bring the vision to reality:

Key reform: mandatory sales packs

Estate agents and sellers must issue detailed “sales packs” as soon as a property comes to market. These packs will serve to provide key upfront information, including:

• The physical condition of the property;
• Associated leasehold expenses;
• The status of the property chain.

The sales packs will give buyers earlier access to essential details about a home. Overall, they will create a fairer, more open environment for all stakeholders.

Digital transformation and professional standards

The strategy will see a digital infrastructure replace the traditional paper trail. Digital property logbooks and sales packs will provide real-time visibility into the buying process. They’ll also enable secure data sharing between professionals, buyers, and sellers.

Combined, this infrastructure will eliminate the toing and froing that often stalls sales. Further technological support will include:

• Digital identity verification and electronic signatures;
• AI-enhanced conveyancing to minimise duplication and fraud.

There’ll also be a new code of conduct and mandatory qualification requirements for estate agents. Combined, these new benchmarks will elevate industry standards to ensure better support for efficient sales.

Protecting the sale

To further secure transactions, earlier binding agreements will be put in place. These agreements will prevent parties from withdrawing without valid cause.

Buying a home takes, on average, 120 days. Government figures show that one in three sales falls through. Zoopla data year to date puts collapses closer to one in five, but it’s still a significant number.

These collapses cost sellers around £400 million per year. In total, failed homebuying transactions cost the economy ~£1.5 billion annually. By tying people in earlier, the government hopes to mitigate many of these costs. It should also give first-time buyers more confidence in the market and its process than at present.

Leadership perspective: the roll-out

Sir Keir Starmer emphasised the significance of these changes when the government announced them last week. Ironically, the last piece of legislation he implemented was one of the most well-received. Everyone from the HomeOwners Alliance to Phil Spencer chipped in, giving it their backing.

The expectation is that the new rules will roll out in England, Wales and Northern Ireland. Scotland has an extant network, so is unlikely to incorporate the new legislation.

The consultations around the sales packs and estate agent qualifications will begin next year. The broader rollout of the strategy will take place over the remainder of this parliament.

The outline above is about as specific as it gets for now. But we’re sure there’ll be much more to follow over the next three years. Watch this space.

Author: John Yerou

John Yerou is the owner and founder of the award-winning Mortgage Quest Ltd and its subsidiary brands.

In 2004, John began his career in financial services as an independent mortgage advisor and broker. He's since been instrumental in negotiating bespoke mortgage underwriting criteria for professional contractors with many high street lenders.

As such, John's one of the most respected and recognisable names in securing mortgages for the UK's flexible workforce, incorporating independent professionals and the self-employed.

His recognition as the go-to mortgage expert has grown exponentially, reflected in citations and his own publications in both national and contractor-oriented press.

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