The Government has announced a major homebuying shake-up that will slash delays and cut costs by up to £650 for first-time buyers, Labour has vowed. The reforms aim to reduce and digitalise paperwork, stop sales collapsing, and fast-track the homebuying process by four weeks.
Sales packs and binding agreements
Sellers and estate agents will be required to provide key information in 'sales packs' at the point of listing, including a home’s condition, leasehold costs, and chain status. This will allow buyers to make informed decisions and professionals to begin work sooner. Binding agreements will be introduced earlier to prevent parties from walking away months into negotiations without a legitimate reason, which Labour says will help young people better plan their next steps.
Code of Practice for estate agents
A new Code of Practice aims to raise standards for estate agents, alongside proposals for mandatory qualifications in the sector. Prime Minister Keir Starmer said Labour was 'turning the page' on a system that makes homebuying 'a battle, leaving people in limbo and putting that opportunity out of reach'. He added: 'Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve.'
Economic impact
With the average home purchase taking around 120 days, one in three sales falling through costing sellers approximately £400 million per year, and failed transactions costing the economy up to £1.5 billion annually, Labour says these reforms will fix a broken system. Housing Secretary Steve Reed commented: '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.'
Digital transformation
At the heart of the reforms is a shift to digital, replacing paper-based systems with digital property logbooks that allow trusted information to be shared securely between professionals and accessed by buyers and sellers in real-time, cutting out delays. The government will back digital identity checks, electronic signatures, and AI-assisted conveyancing to strip out duplication, reduce fraud risk, and accelerate transactions.
Chancellor Rachel Reeves said: '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.'
Industry reaction
Phil Spencer, property expert and Move iQ Founder, said the reforms have the potential to make homebuying a 'far better experience'. He added: 'Anything that helps buyers and sellers move with greater confidence and fewer obstacles is to be applauded.' Rightmove CEO Johan Svanstrom described it as an 'encouraging step' towards a faster and more efficient property market. Its UK-wide data showed completion takes 170 days on average, and more than one in five transactions initially fall through. 'We strongly believe that further digitisation and improvements to the home-moving process can help to speed it up and reduce friction. It will require cross-industry collaboration and innovation to achieve the aims set out today.'
