Homebuying shakeup: What it means for sellers

June saw the government unveil the long-awaited details of its homebuying shakeup. It says the changes it wants to introduce will simplify homebuying, allowing the market and buyers and sellers within it to move more quickly and responsively than ever before.

Meanwhile, it says that the shake-up will save first-time buyers an average of £650. But what do the changes mean for sellers?

Upfront sales packs

The provision of key information has long been a stumbling block in the sale of a property. For too long, potential buyers have been forced to make buying decisions without all the information they need. That means offers can get withdrawn or renegotiated as new information comes to light.

Under the proposed changes, sellers and estate agents will have to provide key information upfront in sales packs available to potential buyers at the point of listing. These will set out a home’s condition and details such as leasehold costs and chain status, to allow buyers to make clearer, more informed decisions.

Proactive sellers will already realise the value of having all information to hand early in the process, but the sales packs will formalise the process.

Earlier binding agreements

Although deals can fall apart when new information comes to light, buyers can also walk away just because they feel like it, leaving sellers’ plans disrupted. Previously, sellers have had little recourse, but the reforms will introduce new, earlier binding agreements introduced that will help prevent prospective buyers from walking away months into negotiations without a legitimate reason.

Digitisation of the sales process

The sales process will also shift from its antiquated, paper-based roots to a digital process that will speed up access to information, making the sellers’ hunt for old documents a thing of the past.

Digital proof of identity

Digital identity checks, electronic signatures and AI-assisted conveyancing will also help to speed up the transaction process and, importantly for sellers, highlight and reduce instances of fraud.

The timeline

The changes promise reform and a better process for sellers and buyers alike. The challenge, however, is the timeline for these changes. Later this year, a code of practice that will include guidance to improve the quality of information in property listings will be published.

However, the wider legislation, including the requirement for sales packs, binding contracts and digital systems, will take longer to deliver and has simply been pledged ‘by the end of Parliament’. This is to give the industry time to manage and deliver the changes.

So, while the homebuying reforms will ultimately improve the process for sellers (and buyers) it will be some time yet before it actually happens.

In the meantime, if you are thinking of selling, buying, renting or letting a property and would like to discover more about how a 5-star rated multi-award-winning Agency can help, we’d love to hear from you. Contact us on 0207 231 0002 or email us at welcome@living-london.net.