GOVERNMENT PLANS LEGALLY BINDING HOUSE SALES TO END GAZUMPING

The government will introduce legally binding sales agreements earlier in the property purchase process to prevent buyers or sellers withdrawing without legitimate reason, according to plans announced by Housing Secretary Steve Reed. The reforms will be implemented at the end of this Parliament in 2029. Home buyers will also receive increased information about properties through mandatory "sales packs" containing details of property condition and chain status, which sellers and estate agents must provide.

The property sale system in England and Wales has long generated frustration, with buyers facing the risk of being outbid late in transactions and sales chains collapsing months into the process. According to data from property listing portal Rightmove, completing a property sale takes an average of nearly six months across the UK, with more than one in five sales initially falling through. Prime Minister Sir Keir Starmer said the current system leaves people "in limbo" and undermines home ownership prospects, whilst the Chancellor stated the delays and collapsing deals damage both homebuyers and the broader economy.

The government estimates the changes will save buyers approximately £650 on average. Rightmove's chief executive Johan Svanstrom characterised the reforms as addressing major frustrations experienced by home-movers and industry participants, stating that increased transparency could reduce sales fall-throughs. Scotland already operates a system where formally accepted offers are legally binding and sellers must provide home surveys to prospective buyers.