The days of house hunters being outbid at the last moment could soon be over, with the government planning to make sales agreements legally binding far earlier in the process – a radical overhaul aimed at ending the scourge of gazumping.
Under current rules in England and Wales, a seller can accept a higher offer weeks or months into a sale, leaving the original buyer with no legal recourse and often significant costs. But a series of reforms, first announced last October, will introduce binding conditional contracts that lock both parties in once an offer is accepted.
“Government plans to end gazumping by making house sale agreements legally binding earlier, with reforms due by 2029.”
Housing Secretary Steve Reed said the changes would make the system "faster, fairer and more secure". The government estimates buyers will save about £650 on average, thanks to requiring sellers and estate agents to share essential information – including property condition and chain status – upfront through so-called sales packs.
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 Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve," he said.
The reforms echo the Home Information Packs introduced by a Labour government two decades ago, which were later scrapped by the coalition. This time, the timetable stretches to the end of this Parliament in 2029, with a new code of practice for property agents expected this year.
The housing sector has largely welcomed the plans, but some worry that requiring more paperwork before a property can be listed may slow down the market. In Scotland, where formally accepted offers are already legally binding and sellers must provide home surveys, withdrawals come with financial penalties once solicitors exchange missives.
Under the government's proposal, a binding conditional contract would potentially take effect as soon as an offer is accepted – a dramatic shift that could fundamentally change the way homes are bought and sold.
The question now is whether the long wait until 2029 will leave buyers and sellers stuck in the old system for years to come.