Buyers and sellers in England and Wales will no longer be able to walk away from a property sale at the last minute under a major government shake-up designed to end the frustating practice of gazumping.
Legally binding conditional contracts will be introduced earlier in the process, meaning a buyer or seller who withdraws without a legitimate reason could face penalties. Currently, a seller can accept a higher offer weeks or months into a transaction, leaving the original buyer with no legal recourse and significant costs.
“Government plans to end gazumping by introducing legally binding sales agreements earlier and requiring sellers to share property info upfront.”
The reforms, first announced in October last year, will be phased in by the end of this Parliament in 2029, the government said. But a new code of practice for property agents is expected this year.
Housing Secretary Steve Reed said the changes would make the system "faster, fairer and more secure".
The planned overhaul also requires sellers and estate agents to share key information about a property – including its condition and position in a chain – upfront through so-called sales packs. The government estimates this will save buyers about £650 on average per transaction.
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 Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve," he said.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.
The housing sector has broadly welcomed the plans, though some warn of unintended consequences – such as properties taking longer to come to market while paperwork is prepared.
In Scotland, formally accepted offers are already legally binding, and sellers must provide home surveys. Once solicitors exchange letters – known as missives – a party that withdraws is liable for the other side's financial losses.
The government's proposal would introduce similar binding conditional contracts for England and Wales, aiming to bring an end to the practice of gazumping and give buyers the certainty they have long been denied.