The Intermediary Mortgage Lenders Association (IMLA) has welcomed the Government’s consultation on reforming the home buying and selling process, describing it as a long-overdue opportunity to modernise one of the most outdated aspects of the housing market.
IMLA executive director Kate Davies said lenders support any initiative that makes transactions faster, clearer and less stressful for consumers while reducing wasted costs across the economy.
She said: “Buying or selling a home is the most significant financial transaction most people will ever make, yet the system that underpins it has barely evolved in decades.
“Far too many sales collapse unnecessarily, creating frustration for consumers and inefficiency for the industry.
“Every failed transaction is wasted time, money and emotional energy for borrowers, sellers and the many professionals involved.
“Lenders welcome any reform that helps reduce these failures, introduces greater clarity and harnesses technology to deliver a smoother experience. The current process is ripe for change.”
IMLA identified four key priorities for reform, beginning with reducing the number of failed property transactions, which currently affect around one in three sales.
Davies said: “Every sale that collapses after mortgage approval represents an avoidable loss for buyers, for sellers and for lenders who have already completed affordability assessments and underwriting. Reducing those failures will deliver real savings and greater confidence.”
She also highlighted the need to increase clarity and reduce stress through better upfront information.
“Providing upfront information and standardising documentation will make the system fairer, more transparent and less nerve-wracking for everyone involved,” she said.
On technology, Davies said lenders have made strong progress in digitising processes but noted that the benefits can only be fully realised when the entire property chain modernises.
“Digital logbooks, verified data and interoperable systems are key, but there is still work to do to make these tools consistent and secure across the market. Industry and Government must collaborate to create uniform standards that all parties can trust.”
Davies further backed the proposal to raise professional standards by introducing mandatory qualifications for estate agents and a new Code of Practice for property professionals.
“Mortgage lenders and advisers operate in one of the most highly regulated sectors of the economy, and advisers must achieve rigorous qualifications before advising consumers.
“It is extraordinary that such standards have not yet been applied to estate agents, given the importance of their role in the property chain.
“Professionalising the estate agency sector will help rebuild public trust and create a smoother, more accountable home buying process.”
She added that modernising the process could also help revitalise activity across the housing market.
“The current system is so clunky and unpredictable that it can be genuinely demoralising for many would-be buyers. Some simply give up altogether, and that can’t be good for the housing market or the wider economy.
“We need more movement at every level of the ladder, enabling people to enter the market, move up as their families grow and downsize when the time is right. A modern, reliable process would help unlock that natural mobility.”
Davies concluded: “The Government’s consultation is a chance to bring the property transaction process into the 21st century. Lenders stand ready to play their part in delivering a system that is faster, clearer, more consistent and more professional, for the benefit of consumers and the wider economy.”
