The government has confirmed that letting agents will have to be qualified and work to a new code of conduct.
The measures are part of a wide ranging package of reforms unveiled by the Mjnistry of Housing, Communities and Local Government.
A government statement says the combined code and qualifications “could ensure agents are properly equipped to support efficient transactions and rebuild trust in the sector.”
Even bigger changes are planned for the sales sector with the government outlining reforms which it claims will “stop sales falling through.”
And it says the reforms will also cut buying times by four weeks, save first-time buyers an average of £640 and get the housing market moving more quickly
Digitisation, the return of an upfront sales pack at the point of listing, and binding sales agreements are the key elements of the plan.
Agents and vendors must provide key information upfront in ‘sales packs’.
These will set out a home’s conditions, leasehold costs, and chain status so buyers can make better informed decisions.
There will also be a new earlier binding agreements “to stop parties walking away months into negotiations without a legitimate reason.”
It says the average home purchase is now taking around 120 days, one in three sales falling through costing sellers around £400 million per year, and failed transactions costing the economy up to £1.5 billion every year.
At the heart of the sales reforms is a major shift to digital, replacing paper-based systems.
Digital property logbooks and sales packs will allow information to be shared between professionals and accessed by buyers and sellers in real-time.
The government will also back digital identity checks, electronic signatures and AI-assisted conveyancing.
It says the aim is “to strip out duplication, reduce fraud risk and accelerate transactions from start to finish” and create “a modern, end-to-end system where people can track and progress their move more easily.”
The government announcement cites exemplars from overseas.
The Netherlands uses a live tracking system for buyers and sellers to check their transaction status helping to achieve a final completion time of 20 days on average, whilst Norway’s efforts to streamline and digitalise the system has estimated savings of up to £1.4 billion over 10 years.
The government announcement concludes: “This package will inject fresh momentum into the housing market and help people keep more money in their pockets by cutting the hidden costs and delays in buying a home to ease cost of living pressures.”
The government has given a broad timeline for the changes.
- Later this year: a Code of Practice to set out minimum standards for property agents and guidance to improve the quality of information in property listings;
- From 2027: consultation on estate agent qualifications and expanded digital tools;
- By the mid-2029 (the end of this parliament): comprehensive legislation to require sales packs, binding contracts, and digital systems that support the efficient sharing of trusted digital property information.
TV property guru and Estate Agent Today columnist Phil Spencer says: “I welcome these proposals – they address many of the issues consumers have been grappling with for years, from a lack of upfront information to unnecessary delays and last-minute surprises.
“Giving people a clearer picture from the outset and creating greater certainty throughout the transaction process can only be a positive step.
“Having spent decades at the heart of the housing market, I’ve seen first-hand the emotional and financial toll that a failed transaction can take. Anything that helps buyers and sellers move with greater confidence and fewer obstacles is to be applauded.”
