The government has unveiled a package of reforms designed to speed up the homebuying process, reduce costs and improve transparency across the housing market.

The measures include the introduction of mandatory upfront information through digital sales packs, earlier binding agreements between buyers and sellers, greater use of digital technology and new standards for estate agents.

The government said the changes could shorten the average home purchase process by around four weeks and save first-time buyers an average of £650.

Under the proposals, sellers and estate agents will be required to provide key information when a property is listed for sale. The sales packs will include details such as the property’s condition, leasehold costs and chain status, enabling buyers to make decisions earlier and allowing transactions to progress more quickly.

The reforms will also introduce earlier binding agreements designed to reduce the number of transactions that fall through during the conveyancing process.

According to government figures, the average home purchase currently takes around 120 days to complete, while one in three transactions fails to reach completion. Failed sales are estimated to cost sellers around £400 million each year and up to £1.5 billion across the wider economy.

Prime Minister Keir Starmer said: “Getting the keys to a home you can call your own is one of the biggest events in anyone’s life. But right now, the system that should provide support instead turns it into a battle, leaving people in limbo and putting that opportunity out of reach.

“We’re turning the page. Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve.

“This is about building a stronger, fairer Britain, one that works for the next generation and makes the dream of home ownership a reality for many more hard-working people.”

Housing secretary Steve Reed said: “Buying or selling a home should be one of life’s great moments and not a drawn-out nightmare of delays, hidden costs, and failed deals.

“These changes will make the system faster, fairer, and more secure – giving families and first-time buyers the certainty they need all while saving them time and money.”

Chancellor Rachel Reeves said: “Delays, hidden costs, and deals collapsing at the last minute are not only bad for homebuyers, it’s bad for the economy too.

“Our reforms will cut those delays, cut costs and make the process quicker and more reliable – getting more people on the housing ladder while keeping more money in their pockets.

“We have the right economic plan – getting the housing market moving, building thousands more good-quality homes in every region, and transforming rights for renters.”

DIGITAL TRANSFORMATION

Central to the reforms is a move away from paper-based processes towards a more digital system.

Digital property logbooks and sales packs will allow information to be shared securely between property professionals and accessed by buyers and sellers in real time.

The government also plans to support the use of digital identity checks, electronic signatures and AI-assisted conveyancing in a bid to reduce duplication, lower fraud risks and speed up transactions.

The proposals are intended to create a more streamlined end-to-end process, allowing consumers to track the progress of their transaction more easily.

The government pointed to examples from overseas, including the Netherlands, Norway and Finland, where greater digitisation and process reform have delivered faster transaction times and efficiency gains.

INDUSTRY REACTION

Simon Brown, CEO at Landmark Information Group, welcomed the announcement and said: “Today’s announcement marks an important step towards modernising the home buying and selling process. For years, transactions have been slowed by fragmented information, inconsistent standards and a lack of transparency, often leaving consumers facing costly, unnecessary delays and uncertainty.

“We welcome the government’s focus on upfront information, digital property packs and Smart Data. These are essential foundations for a faster, fairer and more trusted property market and will enable the sector to unlock the real opportunity that lies in making trusted property information available earlier in the process and enabling it to be shared securely across the transaction chain.

“Looking ahead, success will depend on continued collaboration between the government and industry to ensure trusted information can be shared consistently, securely and at scale. If we get that right, these reforms have the potential to improve the experience of moving home while unlocking significant economic benefits across the wider property market.”

Claire Van der Zant, CEO of Novus Strategy, said: “The industry has been very vocal in its demands for mandation and this is the most impactful example yet of government intervention that will drive the change everyone has been asking for. What it will mean is the complete reorganisation of the customer journey for those on both sides of each transaction from day one. It will be unrecognisable in the most exciting way.

“Sellers are desperate for more commitment and buyers will insist on more information up front, but you can’t have one without the other. That’s the central challenge. The entire industry needs to figure out how they will stop repeating each other’s work, and be part of a brave new world where information doesn’t arrive later than it should or get stuck in a way that creates delay. If you front load everything, the waterfall process we have at the moment vanishes, and fall-throughs with it.

“Only then will buyers have enough upfront information about a property to make an earlier, binding commitment. Without that, they’re not going to take the purchase risk if they don’t know what they’re committing to. It’s for this reason that reservation agreements today are few and far between.

“Work to make sure information flows across organisational boundaries has already started with various public and private sector initiatives trialling what a new world based on transparency and readily-available data might look like. What the government’s intervention now signals is a recognition of the role it must play when change on this scale is required and confirmation that this is the right direction.

“We’re not yet in a world where government is mandating how these requirements will be met exactly. It will be shaped by departments like DBT around Smart Data, but they’re using their influence to create clear expectations that will ultimately unblock delays and fall throughs at critical points in the process.

“The four-week acceleration in completion times promises to be transformational but, if anything, the reforms could have an even bigger impact than that.”

The government said the reforms form part of a wider strategy to support home ownership, reduce transaction costs and improve confidence in the housing market.