Technology

Buying a home to get cheaper under system’s ‘biggest shake-up’ in history

By David Hughes Pa Political Editor,William Morgan

Copyright manchestereveningnews

Buying a home to get cheaper under system's 'biggest shake-up' in history

The Government has claimed that the most significant overhaul of the homebuying system in history could reduce costs for buyers and expedite the moving process. Potential changes may require property sellers and estate agents to provide more detailed information when a home is listed for sale, thereby reducing the need for buyers to conduct additional searches and surveys. There’s also talk of introducing binding contracts at an earlier stage to minimise the risk of a chain collapsing. The proposals could also offer 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 elevate standards. Housing Secretary Steve Reed said the proposals, which are currently under consultation, would help make “a simple dream a simple reality”. The Government plans to present a full road map in the new year after consulting on its proposals. Mr Reed stated: “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 shave around a month off the time it takes to buy a new home and save first-time buyers an average of £710. However, those selling a home could face increased costs of around £310 due to the inclusion of upfront assessments and surveys. Those in the midst of a property chain could potentially net a saving of £400, as the increased costs from selling are offset by lower buying expenses. The Government has argued that wider use of online processes, including digital ID, could help streamline transactions, citing the Finnish digital real estate system which can complete the process in roughly two weeks. The consultation also references other jurisdictions, such as the Scottish system where there is more upfront information and earlier binding contracts. Property websites and lenders have welcomed the proposed overhaul. Rightmove’s chief executive, Johan Svanstrom, commented: “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.” Zoopla’s boss, Paul Whitehead, stated: “The homebuying process in the UK remains far too long, too complex, too uncertain, and has seen far less digital innovation than many other sectors. “. David Morris, Santander’s head of homes, commented: “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.” Paul Holmes, Conservative shadow housing minister, remarked: “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.”