Sharon Jenkins had spent months searching for her first home. She found a two-bedroom terrace in Bristol, had an offer accepted, instructed a solicitor and paid for a survey. Then the seller rang her estate agent: a higher bid had come in, and the deal was off. Jenkins was left hundreds of pounds out of pocket, with nowhere to live.
Under sweeping reforms announced by the government, that experience – known as gazumping, where a seller pulls out after accepting an offer to take a higher one – will become a thing of the past. The changes, first floated last October, will introduce legally binding sales agreements much earlier in the process, potentially as soon as an offer is accepted.
“Landmark reforms to ban gazumping and introduce early binding contracts will save buyers £650 on average.”
Housing Secretary Steve Reed said the new system would be “faster, fairer and more secure”. Buyers, he estimated, would save about £650 on average from not having to pay for multiple surveys and legal fees on deals that fall through.
The reforms, which will be introduced by the end of this Parliament in 2029, also require sellers and estate agents to share key information about a property – its condition, any chain it sits in, and other details – in advance through so-called sales packs. That echoes Home Information Packs brought in by a Labour government 20 years ago, but later scrapped by the coalition.
Prime Minister Sir Keir Starmer said the current system leaves “people in limbo” and puts home ownership “out of reach for some”. He added: “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 Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve.”
The changes have been widely welcomed by the housing sector, though some have warned of unintended consequences: requiring sellers to prepare paperwork in advance could mean properties take longer to get to market.
At the moment in England and Wales, a buyer has no legal recourse if a seller pulls out weeks or months into a transaction. In Scotland, formally accepted offers are already binding, and sellers must provide home surveys. If either party withdraws after solicitors exchange missives, they are liable for the other’s financial losses.
The government’s proposal would introduce binding conditional contracts, making the deal legally binding from acceptance. A new code of practice for property agents is expected this year.
For home-hunters like Jenkins, the question is whether the reforms will survive the three-year wait before they take effect.