The Treasury has put a £116m annual figure on its proposed reforms to property transactions, part of a wider drive to cut business red tape. The announcement comes ahead of Chancellor John Healey’s Budget on 28 October, with the housing market struggling against weak transaction volumes and affordability pressures.
Ministers claim the wider package will save UK businesses almost £800m annually through reduced administration and tariff costs. However, the government has not explained how it calculated the £116m saving for the property sector or when businesses can expect to benefit.
Upfront information and faster transactions
The government has already outlined proposals to tackle delays and duplication in the homebuying process. These include making more property information available when homes first come onto the market, rather than waiting until buyers have agreed a sale.
Ministers have also proposed greater use of digital property records and binding conditional contracts at an earlier stage. The aim is to reduce delays, improve transparency and cut the risk of transactions collapsing before completion.
Housing minister Matthew Pennycook told MPs in June that the government would publish a roadmap setting out its proposed changes later this year. However, the industry is still waiting for clarity on how the measures will work in practice.
Agents spend a third of their day chasing transactions
Simon Brown, chief executive of Landmark Information Group, welcomed the proposed savings but warned that implementation would determine their value. Landmark’s research suggests property professionals spend around a third of their working day chasing updates and dealing with transaction delays.
Brown said: “The Government’s ambition to save businesses across the property transaction chain £116 million a year, particularly through plans to streamline the homebuying and selling process, is welcome.”
However, he stressed that the reforms must produce measurable improvements. “The real test of its homebuying and selling reform roadmap, however, will be whether it delivers meaningful change on the ground, with reliable property information available earlier, better-connected processes and fewer delays and duplicated efforts.
“Success should ultimately be measured by the time and costs saved for businesses, and the greater certainty delivered to home movers.”
Budget to reveal further details
The property proposals form part of the government’s wider commitment to reduce regulatory administration costs by 25% before the end of Parliament. Ministers estimate that meeting this target could save UK businesses with employees 280 million working hours annually.
The latest package includes more than £600m in projected annual savings from reduced regulatory administration. Healey said: “British firms are fed up with form-filling and pointless paperwork that eats into valuable time and money when they simply want to get on with running their businesses.”
For estate agents, the key question is whether the proposed changes will cut the time spent progressing sales or simply introduce new requirements at the start of a transaction. The government has yet to publish the detailed timetable, costs or delivery arrangements behind its £116m estimate.
