Conveyancing News! Is It All Going To Change?

The Government has announced proposals, which they claim could reduce both the cost of moving for buyers and the time in which it takes to move.

Overview

The proposals, currently subject to a *consultation, include:

• A requirement for sellers/estate agents to provide more information when the home is listed for sale, for example, condition of the property, leasehold information, information regarding chains, reducing the need for buyers to carry out surveys and searches on a potential purchase.
• Binding contracts to be introduced at an earlier stage – reducing the financial and emotional impact of someone walking away from the transaction late in the day and the dreaded gazumping. Similar to systems in other jurisdictions (including Scotland) where binding contracts come into force earlier in the transaction, it is expected the defaulting party will face fines, although further details are awaited about how this would work and what “justifiable” reasons for leaving the contract would be.
• Providing clearer information to consumers about estate agents and conveyancers, including their track record and expertise, introducing a mandatory code of practice to improve standards.

Why would this potentially be good news for buyers?

• Costs savings, the Government estimates this could save first-time buyers an average of £710, further assisting peoples ability to get themselves on the property ladder.
• Time savings – the Government estimates this could reduce the length of the transaction by 4 weeks.
• Reduce the risk of collapsing chains and the cost of abortive transactions.

How about sellers?

• Early indications are that this may increase the costs for sellers slightly at around £310. They would also have to ensure that they provide all the necessary information regarding the property prior to agreeing a sale.
• Time savings are always good news!

Haven’t we been here before?

Sort of, you may remember home information packs which mandated sellers to provide key information when putting their house on the market. They were subsequently withdrawn due to the view that they discouraged or delayed sellers putting homes on the market.

Housing affordability of course remains a consistent challenge for many first-time buyers – more detail is needed, but will this go far enough?

The focus on transparency, improving professional standards and an attempt to reduce the heartbreak of chains collapsing at the last minute are seemingly good news for buyers and sellers alike. The Government have stated that they hope this will help ‘end nasty surprises’.

With years of experience between us, we have seen and adapted to changes made within conveyancing many times before. Whatever the changes may be, with 6 expert teams across 6 offices, we will continue to be #AllTheHelpYouNeed.

*The home buying and selling reform consultation is open now and will close on 21 December. Further details of the changes are expected to be published in the new year, forming part of the Government’s broader housing strategy, which includes a pledge to build 1.5 million new homes.