Nine in 10 sellers say they would pay around £300 for comprehensive upfront property information, provided it results in faster and more secure transactions.
Sellers appear willing to invest in reform of the homebuying process, but only if they are confident it will deliver tangible results, according to new research from LRG.
The survey of 221 buyers and sellers across England and Wales found that 90% of sellers would be prepared to pay around £300 for a comprehensive pack of upfront property information if it helped to secure a quicker and more certain transaction.
Such a pack could include Energy Performance Certificates, title information, property searches, lease details where relevant and responses to standard buyer enquiries.
CONDITIONAL SUPPORT
However, support is conditional. Half of respondents say they want evidence that the proposed reforms will work before committing their money, while just 22% would pay upfront without question.
Kevin Shaw, national sales managing director at LRG, said: “Sellers are telling us they’re ready for change, but they’re not prepared to pay for another failed experiment.
“The lesson from Home Information Packs is that any new system must ensure the information is used and not duplicated.”
Home Information Packs were introduced in 2007 but withdrawn by 2010. Designed to provide buyers with key information at the outset and reduce delays, the policy faltered when many buyers’ solicitors repeated searches for liability reasons, leaving sellers to shoulder duplicated costs without any meaningful time savings.
BUYER APPETITE FOR MORE INFORMATION
The government has recently consulted on fresh proposals to reform the homebuying process, with a roadmap expected later this year. There are signs that buyers may respond positively to improved transparency at the start of a transaction.
Just over half of buyers surveyed – 51% – say having more information upfront would increase their chances of making an offer, while 22% say it would make them more likely to do so.
Shaw said: “This is the key difference. If buyers are genuinely more likely to make offers based on this information – and, according to our research, they are – then sellers will see a real return on their investment. It’s not just about providing information; it’s about providing information that influences decisions.”
REDUCE FALL-THROUGHS
And he added: “As we outlined in our formal response to the government consultation, we believe that if upfront information is implemented correctly, it could naturally reduce fall-throughs without the need for more interventionist measures like binding contracts, and buyers armed with comprehensive information are more likely to commit with confidence.”
Awareness of the proposed reforms is already relatively strong. Some 65% of respondents say they have heard about the planned changes to the homebuying process.
There is also support for greater digitisation. Half of those surveyed back the creation of a permanent online property record containing sales history, surveys, certificates and details of building works.
Shaw added: “If these reforms are executed well, the entire chain benefits. Faster transactions, fewer fall-throughs and sellers who feel their investment was worthwhile. But get it wrong, and we’re back to square one.”
