Partner Alexa McQueen-Turner, in our Residential Property team, explains the conveyancing reforms recently announced by the Government.
The Government has announced a package of reforms aimed at making the home buying and selling process in England and Wales faster, more transparent and less likely to fall through. The headline promise is that transactions could be shortened by around four weeks, with first-time buyers saving an average of about £650, by reducing delays, duplication and late surprises.
At present, buying a property in England and Wales can sometimes take months. A sale is usually not legally binding until exchange of contracts as until that point, either party can usually withdraw, which can leave buyers and sellers facing legal, survey, mortgage and other costs. The Government says that around one in three sales currently fall through, creating significant cost and uncertainty across the housing market.
What has been announced?
The main proposal is that sellers and estate agents will have to provide key information at the point a property is listed. These “sales packs” are expected to include details such as the property’s condition, leasehold costs and chain position. The intention is that buyers can make better informed decisions before they commit money to surveys, searches and legal work.
The Government also wants to introduce earlier binding agreements. Under English law, the binding point in a residential sale is normally exchange of contracts. The proposed change is intended to give both sides more certainty earlier in the process and reduce the risk of a party walking away late in the transaction without good reason.
There will also be a greater focus on digitalisation. Digital property information, digital identity checks, electronic signatures and better data sharing between estate agents, conveyancers, lenders and other professionals are all intended to reduce repeated requests for the same information and speed up progress from offer to completion.
Finally, the Government has said it will introduce a new Code of Practice for estate agents, alongside proposals for mandatory qualifications. This is designed to raise standards, improve consistency and rebuild trust in the home moving process.
What does this mean for sellers?
Sellers should expect to do more preparation before putting a property on the market. Information that is often gathered after an offer has been accepted may need to be ready much earlier and for leasehold properties, this could mean obtaining accurate details of service charges, ground rent, management arrangements and any planned major works at the outset.
The upside is that a better prepared sale should be less likely to stall or collapse because of information emerging late. Sellers may also benefit from more serious buyers, clearer expectations and a shorter period of uncertainty between accepting an offer and reaching a binding commitment.
What does this mean for buyers?
Buyers should have access to more useful information before deciding whether to proceed. This should help them identify issues such as leasehold costs, property condition concerns or a long chain before they incur significant expense. It may also reduce the risk of discovering a problem late in the process after legal and survey fees have already been spent.
However, earlier binding agreements may also mean buyers may need to take advice promptly and be confident about finance, surveys and legal issues sooner than they do now. A faster process is helpful, but it may also leave less time to resolve concerns if buyers delay in instructing advisers or applying for a mortgage.
Summary
These reforms are not simply administrative. They could change the process and timings associated with residential conveyancing by moving more work to the start of the transaction and increasing the importance of early legal advice. Buyers and sellers should expect greater upfront disclosure, more digital processes and potentially be required to commit earlier in the process. For anyone planning a move, the message is clear - preparation will matter more than ever.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
