he Government has announced plans to digitise the homebuying and selling process to cut delays and reduce the number of transactions that fall through. The changes aim to bring the process into the digital age by making key property information more accessible and introducing digital identity verification.
One in three property transactions currently collapses, costing consumers around £400m a year. The Government says that improving data sharing and digital services could bring completion times closer to those in Norway, where transactions take around a month.
Housing and planning minister Matthew Pennycook said: “We are streamlining the cumbersome home buying process so that it is fit for the twenty-first century, helping homebuyers save money, gain time and reduce stress while also cutting the number of house sales that fall through.
“Our modernisation of the system sits alongside further reforms to improve the lives of leasehold homeowners across the country, allowing them to more easily and cheaply take control of the buildings they live in and clamp down on unreasonable or extortionate charges.
“These reforms build on the Government’s Plan for Change to deliver higher living standards and 1.5 million safe and decent homes in this Parliament, and our ongoing efforts to protect leaseholders suffering from unfair and unreasonable practices as we work to end the feudal leasehold system for good.”
Changes to leasehold laws will take effect from 3 March, including new Right to Manage rules that will make it easier for leaseholders to take control of their buildings. Leaseholders will no longer have to cover their freeholder’s legal fees when making a claim, potentially saving them up to £3,000.
The reforms will be supported by a 12-week project led by HM Land Registry to create rules for property data sharing between key parties, alongside a 10-month pilot programme with local councils to improve digital access to property records.
Babek Ismayil, founder of homebuying platform OneDome, said: “Moving home can be incredibly stressful, especially when faced with a transaction process that is both lengthy and complicated.
“For years, this process has seen little evolution, leaving homebuyers frustrated with an outdated system.
“While it’s welcome news that the Government has finally acknowledged the need to modernise the UK’s broken homebuying process, this is only the first step on a long journey toward meaningful reform.
“Almost one in three agreed property transactions fails, costing consumers an average of nearly £3,000.
“This staggering figure highlights not only the inefficiencies of the current system but also the urgent need for a comprehensive overhaul.”
