Home buyers in England and Wales have long faced the agony of gazumping – agreeing a sale only to be outbid weeks or months later, with no legal recourse. That could finally end under government plans to introduce legally binding agreements much earlier in the house-buying process.
The reforms, first announced in October last year, will be phased in by the end of this Parliament in 2029. They include requiring sellers and estate agents to share key information upfront through so-called sales packs – covering a property's condition and its place in a chain – so buyers know what they are getting into from the start.
“Government plans to end gazumping by introducing binding house sale agreements by 2029.”
Housing Secretary Steve Reed said the changes would make the system "faster, fairer and more secure." The government estimates buyers will save about £650 on average, largely by avoiding wasted costs from collapsed chains.
The current system in England and Wales leaves buyers exposed. A seller can accept an offer, then months into the process accept a higher bid, leaving the original buyer with no legal right to compensation. In Scotland, by contrast, formally accepted offers become binding once solicitors exchange letters (known as missives), and a withdrawing party must cover the other side's financial losses.
Under the proposal, binding conditional contracts would make a transaction legally binding much earlier – potentially as soon as an offer is accepted. A new code of practice for property agents is due this year.
Prime Minister Sir Keir Starmer said the current home-buying system leaves "people in limbo" and puts home ownership out of reach for some. "We're turning the page. Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve," he said.
The move echoes Home Information Packs introduced by a Labour government 20 years ago, which were swiftly dropped by the coalition government. While widely welcomed by the housing sector, some have raised concerns about unintended consequences – for instance, properties taking longer to get onto the market as sellers prepare the required paperwork.
With previous attempts to improve the system having limited success, the question now is whether these latest changes will finally give buyers the certainty they have been denied for so long.