Plans to end gazumping with binding agreements in house sales shake-up
Home buyers and sellers can expect an end to "gazumping" in a major shake-up aimed at speeding up housing sales. Legally binding sales agreements will
Home buyers and sellers can expect an end to "gazumping" in a major shake-up aimed at speeding up housing sales. Legally binding sales agreements will be introduced earlier to stop buyers or sellers walking away at a late stage in the process without a legitimate reason. In England and Wales, buyers can currently be outbid at a late stage of the sale and chains can fall apart months into the process, causing huge frustration for buyers as well as being expensive.
Previous attempts to improve the system have had limited success and few of the latest proposed changes will happen immediately. The planned reforms, first announced in October last year, will be introduced at the end of this Parliament in 2029. The changes include home buyers receiving more information about properties listed for sale. Sellers and estate agents will be required to share important information about the 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 reforms will make the system "faster, fairer and more secure," says Housing Secretary Steve Reed. The move has some 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 BriefWire