A buyer agrees a price, instructs a solicitor, pays for a survey — only for the seller to accept a higher offer days before completion. In England and Wales, that scenario has no legal remedy. But under sweeping reforms announced by the government, such 'gazumping' could soon be a thing of the past.
The planned changes, first unveiled in October last year, will make sales agreements legally binding much earlier in the process, preventing buyers or sellers from walking away without a legitimate reason. The government says the reforms will be introduced at the end of this Parliament in 2029.
“Legally binding house sale agreements to end gazumping in England and Wales by 2029, with upfront sales packs and estimated £650 savings for buyers.”
Currently, a seller can pull out weeks or months into a sale because someone offered a higher price, leaving the gazumped buyer with no legal recourse. The new system would introduce binding conditional contracts, potentially as soon as an offer is accepted.
Alongside the earlier binding agreements, sellers and estate agents will be required to share more information about a property upfront — including its condition and status in a chain — through so-called sales packs. The government estimates buyers will save about £650 on average as a result.
Prime Minister Sir Keir Starmer said the current home buying system leaves "people in limbo" and puts the prospect of 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 Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve," he said.
Housing Secretary Steve Reed described the reforms as making the system "faster, fairer and more secure".
The move has echoes of Home Information Packs introduced by a Labour government 20 years ago, which were swiftly dropped by the coalition government. The plans have been widely welcomed by the housing sector, although some have raised concerns about unintended consequences — such as properties taking longer to get onto the market as paperwork is prepared.
The timetable suggests a new code of practice for property agents will be introduced this year, ahead of the full reforms in 2029.
In Scotland, formally accepted offers are already legally binding, and sellers must provide home surveys to prospective buyers. Once the buyer's and seller's solicitors have exchanged letters, known as missives, if a party withdraws from the sale they are liable for financial losses to the other party. The government's proposal would bring England and Wales closer to that model.
Whether the 2029 deadline will hold remains to be seen — but for home buyers tired of being gazumped, the direction of travel is clear.