Homebuying reforms set to tackle gazumping

Homebuying reforms set to tackle gazumping
One of the headline proposals is to make sales agreements legally binding much earlier to tackle gazumpingBuyers or sellers who withdraw without a valid reason could face financial penalties, helping reduce failed transactionsThe reforms are expected to make homebuying faster and more transparent, saving first-time buyers an average of £650

The UK government has unveiled plans to improve the homebuying process in England and Wales, aiming to reduce delays, lower costs and give buyers greater certainty.

Ending gazumping

One of the headline proposals is to tackle gazumping, which happens when a seller accepts a higher offer after already agreeing a sale with another buyer. As contracts are not legally binding until exchange, buyers can spend time and money on surveys, mortgage arrangements and legal work, only to lose the property at the last minute.

Under the proposed reforms, sales agreements would become legally binding much earlier in the process. Buyers or sellers who withdraw without a valid reason could face financial penalties, helping to reduce the number of failed transactions.

More information upfront

The government also plans to introduce sales packs, requiring sellers and estate agents to provide key information when a property is listed. This could include details about the property’s condition, leasehold costs and chain status, allowing buyers to make more informed decisions from the outset.

A smoother buying journey

The reforms are expected to make homebuying faster and more transparent. The government estimates the changes could reduce transaction times by around four weeks and save first-time buyers an average of £650.

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