Home buyers and sellers face an end to the practice of gazumping under a major shake-up designed to speed up housing sales, with legally binding agreements set to be introduced much earlier in the process.
Under the reforms, buyers or sellers will no longer be able to walk away from a sale at a late stage without a legitimate reason, addressing a long-standing frustration in England and Wales where chains can collapse months into negotiations, leaving buyers out of pocket.
“Binding sales agreements to end gazumping in England and Wales by 2029, saving buyers £650 on average.”
Housing Secretary Steve Reed said the changes would make the system “faster, fairer and more secure”, while Prime Minister Sir Keir Starmer described the current system as leaving “people in limbo” and putting 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 Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve,” he added.
The plans, first announced in October last year, will be introduced at the end of this Parliament in 2029. They require sellers and estate agents to provide more upfront information about a property – including its condition and status in a chain – through so-called sales packs. The government estimates buyers will save about £650 on average.
The proposals echo Home Information Packs introduced by a Labour government 20 years ago, which were swiftly dropped by the coalition government. The timetable suggests a new code of practice for property agents will be introduced this year.
While widely welcomed by the housing sector, some have raised concerns about unintended consequences, such as properties taking longer to get onto the market as paperwork is prepared.
Currently in England and Wales, a buyer and seller may agree on a sale only for the seller to pull out weeks or months later because someone has offered a higher price. The gazumped buyer has no legal recourse. In Scotland, formally accepted offers are already legally binding, and sellers must provide home surveys. If a party withdraws after solicitors exchange letters (missives), they are liable for financial losses.
Under the government’s proposal, binding conditional contracts would make a transaction legally binding much earlier – potentially once an offer is accepted.