Millions of homebuyers and sellers in the UK are expected to benefit from significant changes aimed at speeding up property transactions and reducing costs.
The government announced that it is moving forward with plans to modernise the system, targeting the lengthy delays that often stretch to nearly five months. One of the main contributors to these slowdowns is outdated processes and poor data sharing across the property sector. To address this, key property information will be made more accessible between trusted professionals, alongside efforts to introduce digital identity verification services, all designed to reduce transaction times.
These initiatives aim to simplify the process for buyers and sellers, with one million transactions occurring each year. By improving the availability of critical information from the start, unexpected issues can be reduced, making it easier for people to move onto the property ladder or move homes with more confidence. This approach is expected to cut down on unnecessary face-to-face ID verification and lower the number of failed transactions.
At present, around one in three sales collapse before completion, costing sellers roughly £400 million annually. Estate agents and conveyancers lose around four million working days each year due to these inefficiencies, equating to around £1 billion in wasted time. Drawing inspiration from countries like Norway, where property sales typically complete in about a month, the government aims to put more money back into the pockets of homeowners and strengthen its Plan for Change to support economic growth.
Leaseholders will also see improvements, as secondary legislation relating to Right to Manage measures under the Leasehold and Freehold Reform Act 2024 will be introduced earlier than expected. These changes will take effect from March 3 and will allow more leaseholders to gain control over decisions regarding their buildings, influence how service charges are spent, and avoid having to pay their freeholder’s legal costs in Right to Manage claims – a change that could save up to £3,000 in the most expensive cases.
Housing and Planning Minister Matthew Pennycook commented, “We are streamlining the cumbersome home buying process so that it is fit for the twenty-first century, helping homebuyers save money, gain time and reduce stress while also cutting the number of house sales that fall through.
“Our modernisation of the system sits alongside further reforms to improve the lives of leasehold homeowners across the country, allowing them to more easily and cheaply take control of the buildings they live in and clamp down on unreasonable or extortionate charges.”
“These reforms build on the government’s Plan for Change to deliver higher living standards and 1.5 million safe and decent homes in this Parliament, and our ongoing efforts to protect leaseholders suffering from unfair and unreasonable practices as we work to end the feudal leasehold system for good.”
Much of the property data – such as building control or highway records – is either paper-based or in formats that can’t easily be processed by machines. Even where data is held digitally, the lack of clear protocols around access and verification leads to delays.
Under the new approach, essential data for all parties – from mortgage lenders to surveyors – will be available almost immediately. With identity checks completed just once, the entire process is expected to become smoother and more efficient, reducing the likelihood of failed transactions and cutting back on wasted time and money.
The Department for Levelling Up, Housing and Communities is working closely with industry partners and HM Land Registry (HMLR) to deliver these changes. A new 12-week project has been launched to establish common rules for data sharing within the sector. HMLR will also run 10-month trials with several councils to find the most effective way to digitise and open up local data. Work will proceed in collaboration with the Digital Property Market Steering Group, a team of government and industry representatives focused on advancing digitalisation across the home buying and selling process.
These announcements follow a series of initiatives already rolled out by the government, including:
- Launched a New Homes Accelerator to unblock thousands of homes stuck in the planning system.
- Set up an independent New Towns Taskforce, as part of a long-term vision to create large-scale communities of at least 10,000 new homes each.
- Awarded £68 million to 54 local councils to unlock housing on brownfield sites.
- Awarded £47 million to seven councils to unlock homes stalled by nutrient neutrality rules.
- Announced an additional £3 billion in housing guarantees to help builders apply for more accessible loans from banks and lenders.
- Extended the existing Home Building Fund for next year providing up to £700 million of vital support to SME housebuilders, delivering an additional 12,000 new homes.
Additional information for editors:
Research by the HomeOwners Alliance and IMMO.co.uk found that over 300,000 property sales fail each year, costing sellers approximately £400 million.
A recent survey by the Homeowners Alliance in 2024 showed that almost one-third of respondents wanted the conveyancing process to be quicker.
The Ministry of Housing, Communities and Local Government recently took on the leadership role of the Digital Property Market Steering Group, made up of representatives from across the property sector.
Right to Manage remains one of the few tools available for leaseholders to challenge unfair fees and mismanagement without having to purchase the freehold.
The Right to Manage statutory instrument will be presented to Parliament on Monday and will come into effect on March 3, 2025.
Reference: GOV.UK
