While a change in Prime Minister is understandably securing news headlines, there’s another issue that is set to impact the housing market – the Home Buying and Selling Reform Roadmap, which was published on 19 June by the government and is due to be phased in over the coming years.
So what does it mean for the market and what should buyers and sellers be aware of in future? Here we look at what the roadmap outlines.
What is the new Roadmap?
The aim of the Roadmap is to reduce the number of sales that fall through in the UK housing market and make the process of moving home less stressful for all parties.
It has been in the planning for several years, with the civil servants behind it working across more than one government and consulting with industry players to create a series of reforms that work to make the process of home buying and selling in the UK easier.
The government is calling the roadmap a once in a generation reform, so some major changes are set to be introduced, including a more structured, digital and accountable system that will require agents to gather, explain, share and manage information from the start.
So what will change?
The Roadmap outlines a wide range of developments and improvements for the housing market, each of which will be introduced through a structured roll out over the coming months and years. These include –
- Digital Sales Packs before listing/marketing – this is a phased in requirement that is already being implemented by some agents. It ensures that buyers have full information on the property upfront, before incurring significant costs. Information in these digital sales packs will include searches and a detailed report on the condition of the property. This is one of the core elements of the Roadmap.
- Digital logbooks and packs – another phased in requirement, this will include a specified minimum level of information to ensure buyers have accurate, up to date details on the property that they’re interested in.
- Code of Practice and qualifications – from this year the Roadmap requires minimum best-practice standards for agents to work to. There will then be a consultation about moving towards mandatory qualifications for all agents. At Cardigan Bay Properties all agents already work for their NAEA qualifications – we believe this is very important when dealing with most people’s largest asset.
- Binding conditional contracts – scheduled to be introduced at a later stage, once the digital sales packs are standard, this will introduce penalty fees and exceptions for the legitimate withdrawal from a sale.
- Anti-money laundering and AI use in conveyancing – this is designed to streamline the anti-money laundering checks, sharing the findings across the chain – rather than duplicating checks. In 2027 there will also be standards for AI use introduced, to aid in the conveyancing process.
- Digitised records – this has already started and will continue evolving over the coming years. Alongside the introduction of smart data, this will ensure trusted, shareable property data including a digital geospatial land register set to be in use by 2035.
Is anything happening now?
Right now Material Information is a live legal requirement for all agents, and the new roadmap makes it clear that agents must abide by it, with the Competition and Markets Authority having the right to fine agents who don’t meet the required standards.
The new Roadmap will outline new guidance on this area and will clarify the updated requirements later this year. It’s expected that this will outline a standardised way of collecting the information, alongside details on liability and more, to ensure buyers have the information they need to make an informed decision about any property they are interested in purchasing.
Why it matters
According to UK government figures around one in three home transactions falls through, which is costing around £400million a year to consumers. The cost to the wider economy is even higher – according to figures at least £1.5 billion.
The process of completing a sale now takes around 120 days (17 weeks) – which is about 60% longer than in 2007. While Cardigan Bay Properties sales completion time is less, at 12- 14 weeks, it is still important to work to reduce this to make the process smoother.
The main cause of delays and sales falling through is information that is late, missing or inconsistent. This means that potential issues with the sale only become apparent after time and money have been spent by both the buyer and seller.
The reforms aim to change this, ensuring that information is checked and confirmed at the start of the transaction, helping ease the sales process.
What’s happening at Cardigan Bay Properties?
Here at Cardigan Bay Properties we’ve always worked to the highest standards and are already introducing digital sales packs to help ease the sales process. We’re working closely with industry partners to ensure a swift, smooth roll out that meets – or exceeds – the required changes. Already our time frame for sales completion is between 84 – 98 days – significantly below the 120 days seen nationally, and we are committed to continually enhancing our service for buyers and sellers.
In addition, we already include all material information about a property in the property listing details – under ‘Important Essential Information’. This ensures buyers have all the facts they need to make a fully informed decision about a property, before deciding whether to view. This saves time and money for all parties, while ensuring greater transparency in the buying/selling process.
If you have a question about buying or selling a property please get in touch and we’ll be happy to help.