The government has unveiled major reforms for homebuying which aim to cut delays, reduce and digitalise paperwork, and stop sales collapsing.
The average home purchase currently takes around 120 days, one in three sales fall through costing sellers around £400 million per year, and failed transactions cost the economy up to £1.5 billion every year.
The new changes aim to cut homebuying times by around four weeks, save first-time buyers an average of £650, and stop sales falling through.
At the heart of the reforms is a major shift to digital – replacing outdated paper-based systems with faster, more reliable tools.
Sellers and estate agents will have to provide key information upfront in sales packs at the point of listing. This will set out a home’s condition, leasehold costs, and chain status - creating a fairer, more transparent process for everyone involved.
Digital property logbooks and sales packs will allow trusted information to be shared securely between professionals and accessed by buyers and sellers in real-time.
The government will also back digital identity checks, electronic signatures and AI-assisted conveyancing to strip out duplication, reduce fraud risk and accelerate transactions from start to finish.
Changes will also see new earlier binding agreements to stop parties walking away months into negotiations without a legitimate reason.
In addition, a new Code of Practice will raise standards for estate agents, alongside proposals for mandatory qualifications for the sector.
Countries like the Netherlands, Norway, and Finland have already adopted similar reforms. The Netherlands uses a live tracking system for buyers and sellers to check their transaction status helping to achieve a final completion time of 20 days on average, whilst Norway’s efforts to streamline and digitalise the system has estimated savings of up to £1.4bn over 10 years.
Prime Minister Keir Starmer said: “Getting the keys to a home you can call your own is one of the biggest events in anyone’s life. But right now, the system that should provide support instead turns it into a battle, leaving people in limbo and putting that opportunity out of reach.
“We’re turning the page. Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve.
“This is about building a stronger, fairer Britain, one that works for the next generation and makes the dream of home ownership a reality for many more hard-working people.”
Housing Secretary, Steve Reed, commented: “Buying or selling a home should be one of life’s great moments and not a drawn-out nightmare of delays, hidden costs, and failed deals.
“These changes will make the system faster, fairer, and more secure - giving families and first-time buyers the certainty they need all while saving them time and money."
Chancellor Rachel Reeves added: “Delays, hidden costs, and deals collapsing at the last minute are not only bad for homebuyers, it’s bad for the economy too.
"Our reforms will cut those delays, cut costs and make the process quicker and more reliable – getting more people on the housing ladder while keeping more money in their pockets.
"We have the right economic plan - getting the housing market moving, building thousands more good-quality homes in every region, and transforming rights for renters."
