Lack of new homes being built and wider economic uncertainty are the most prevalent factors slowing the property transaction process, according to Riz Malik, Director at Southend-on-Sea-based R3 Wealth
A NewsPage report captures the tension between government ambition and industry cynicism regarding regulatory change in the property sector. Here we unpack the government’s latest overhaul, which it claims is the “biggest shakeup” in residential property history, with industry optimists and sceptics sharing their viewpoints.
Government’s position
The government frames the overhaul as the “biggest shakeup” in history, designed to end a “long-drawn out and costly process” and make the dream of homeownership a “simple reality.”
The key benefits will be reducing nasty surprises, saving up to £710, saving time as much as four weeks and avoiding the “heartbreak and stress” of failed transactions.
Binding contracts could also be introduced, said the government, to “stop people walking away from agreements after buyers painstakingly spend months in negotiations.”
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.”
David Morris, Head of Homes, Santander UK 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.
Morris cited a Santander report, “Fixing the Broken Chain”, which he said highlighted “how our antiquated system is holding back economic and individual growth, causing property transactions to collapse, and deterring buyers and sellers from entering the market at all.”
Mixed industry reaction
Industry experts and commentators share their polarised viewpoints on the latest to UK property reform:
The Optimists
Ben Perks of Orchard Financial Advisers: Calls it a “huge step in the right direction” for providing upfront transparency, which he believes should have happened “decades ago”, so everyone knows where they stand at the outset.
Adam Stiles of Helix Financial Partners also agrees the overhaul will provide greater transparency, offering good and binding contracts, modelled on the Scottish system that should “weed out the time wasters and stop the gazumpers and gazunderers alike.”
Samuel Mather-Holgate from Mather and Murray Financial sees the government’s latest initiative as a “massive step forward in reducing the admin and bureaucracy”, given the advances in technology that could be put to better use.
However, some of their fellow property experts are not as convinced and see the latest government move as a tactic to distract from a faltering low-growth economy and costly housing crisis.
The Sceptics
The majority of commentators shared critiques that fall into three key areas:
Failure of precedent (the HIPs comparison)
The comparison to the Home Information Packs (HIPs) is the most potent criticism, suggesting a historical blueprint for failure. Rohit Kohli echoes this, saying they’ve seen “packs” like this before that were quickly “unpacked.”
Kohil said, “The real progress here is the plan to make estate agents qualified and accountable. That’s been long overdue and could finally lift standards across the industry.”
The “elephant in the room” (lack of supply/economy
Several experts argue the reforms address a secondary problem while ignoring the main issues.
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, suggested conditional selling needs to be addressed: “There doesn’t seem to be a specific mention of conditional selling, although that will hopefully be a focus when the full report is published. Conditional selling is a scourge on the industry and needs to be fixed.”
Lack of new homes being built and wider economic uncertainty are the most prevalent factors slowing the property transaction process, according to Riz Malik, Director at Southend-on-Sea-based R3 Wealth.
Malik said,
The housing market isn’t stalling because of missing information but due to wider economic uncertainty. Buyers and sellers are wary of what the upcoming Budget and Labour’s economic plans might bring.
He added: “Stamp Duty Land Tax remains outdated and continues to block movement in the market. The housing minister deserves credit for trying, but the bigger question is what’s actually happening with those 1.5 million promised homes?”
Implementation challenges and scope
The practical difficulties of implementing the changes are repeatedly mentioned. Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Lifetime Wealth Management, said, “On paper, this sounds great, but the true test will be the implementation and the roll-out.
She added, No plan survives contact,” especially in the “idiosyncratic and often arcane property world.”
Omer Mehmet, Managing Director at Welling-based Trinity Finance, argues the changes “trim the edges” but fail to tackle deeper systemic issues like conveyancing bottlenecks and mortgage delays.
One thing everyone agrees upon
All commentators are arguably on side when it comes to estate agents becoming qualified and accountable, a long-overdue measure, suggesting that lifting standards within the industry may be the most significant element of the overhaul, rather than the “packs” themselves.
