The Intermediary Mortgage Lenders Association 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 least efficient parts of the housing market.
Kate Davies, executive director of IMLA, said lenders supported any initiative that could make transactions faster, clearer and less stressful for consumers, while cutting the high level of waste that currently characterises the system.
“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,” she said.
“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.”
She added that lenders welcomed reforms that would reduce these failures and introduce greater transparency, noting that the current process was “ripe for change”.
IMLA identified four areas of particular importance for lenders, starting with the need to reduce the number of failed transactions. About one in three sales currently falls through, costing consumers and the economy hundreds of millions of pounds a year.
“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,” Davies said. “Reducing those failures will deliver real savings and greater confidence.”
A second priority is to improve clarity and reduce stress through better information flow and standardised documentation. “Providing upfront information and standardising documentation will make the system fairer, more transparent and less nerve-wracking for everyone involved,” she said.
Lenders also want the government to help accelerate the use of technology in the property chain. Davies said that while lenders had invested heavily in digitising their own processes, progress could only be fully realised when all parties modernised together.
“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.”
The fourth pillar of IMLA’s response is a call for higher professional standards, including the proposed introduction of mandatory qualifications for estate agents and a new code of practice.
“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,” Davies said.
“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 reforming the system could also boost market activity and confidence. “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 that the government’s consultation represented “a chance to bring the property transaction process into the 21st century”.
She added: “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.”
