Home buyers and sellers in England and Wales will soon be able to complete a sale without the fear of being gazumped at the last minute, under radical government plans to make sales agreements legally binding much earlier in the process.
The reforms, announced by Housing Secretary Steve Reed, are intended to end a system where buyers can be outbid weeks or months into a sale, leaving them with no legal recourse. Under current rules, a seller can pull out after accepting an offer simply because someone else has offered more money.
“UK to ban gazumping by making home sale agreements legally binding earlier, with reforms due by 2029.”
"The reforms will make the system faster, fairer and more secure," Reed said.
The changes will be introduced at the end of this Parliament in 2029. They include requiring sellers and estate agents to share detailed information about a property — including its condition and status in a chain — through so-called sales packs before a property is listed. Buyers are expected to save about £650 on average as a result.
Prime Minister Sir Keir Starmer said the current 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 Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve," he said.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 has echoes of Home Information Packs introduced by a Labour government 20 years ago, which were swiftly scrapped by the coalition government. But this time, the government is proposing binding conditional contracts that would make a transaction legally binding much earlier — potentially as soon as an offer is accepted.
The system would mirror that of Scotland, where formally accepted offers are already legally binding, and sellers must provide home surveys to prospective buyers. Once missives are exchanged between solicitors, a party that withdraws must compensate the other for financial losses.
While the plans have been widely welcomed by the housing sector, some have raised concerns about unintended consequences — such as properties taking longer to get onto the market while paperwork is prepared. A new code of practice for property agents is due to be introduced this year, with the full reforms kicking in by 2029.
Previous attempts to improve the system have had limited success. The government says the changes will bring an end to the frustration and expense of collapsed chains, giving buyers the certainty they need to plan their moves.