First-time buyers to save time and money under major changes to system

Hundreds of thousands of first-time buyers are set to save hundreds of pounds under a major shakeup in the homebuying system.

Proposals announced today will speed up the protest of buying a home by four weeks, putting an average of £710 back in the pockets of those getting on the property ladder.

Changes could include requiring property sellers and estate agents to provide more information when a home is listed for sale, reducing the need for buyers to carry out searches and surveys. Binding contracts could also be introduced at an earlier stage, reducing the risk of a chain collapsing.

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The proposals could also deliver clearer information to consumers about estate agents and conveyancers, including their track record and expertise, along with new mandatory qualifications and a code of practice to drive up standards.

Housing Secretary, Steve Reed, said: “Buying a home should be a dream, not a nightmare. Our reforms will fix the broken system so hardworking people can focus on the next chapter of their lives.

“Through our Plan for Change we are putting more money back into working people’s pockets and making a simple dream a simple reality.”

Officials believe the proposed package of reforms could cut around a month off the time it takes to buy a new home and save first-time buyers an average of £710.

People selling a home could face increased costs of around £310 due to the inclusion of upfront assessments and surveys.

Those in the middle of a chain would potentially gain a net saving of £400 as a result of the increased costs from selling being outweighed by lower buying expenses.

Wider use of online processes, including digital ID, could help make transactions smoother, the Government argued, pointing to the Finnish digital real estate system which can see the process completed in around two weeks.

The planned shake-up was welcomed by property websites and lenders.

Rightmove chief executive Johan Svanstrom said: “The home-moving process involves many fragmented parts, and there’s simply too much uncertainty and costs along the way."

Zoopla boss Paul Whitehead said: “The homebuying process in the UK remains far too long, too complex, too uncertain, and has seen far less digital innovation than many other sectors. ”

Santander’s head of homes David Morris said: “At a time when technology has changed many processes in our lives, it is incredible that the process of buying a home – an activity that is a cornerstone of our economy – remains much the same for today’s buyers as it did for their grandparents.”

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