Conveyancing overhaul: Government proposals to introduce significant reforms to Homebuying

On 6 October 2025, the Government unveiled plans for what it described as the biggest overhaul to the homebuying system in our country’s history. The proposed reforms aim to reduce delays, lower costs, and halve the number of failed transactions by requiring greater transparency from sellers and estate agents from the outset of the conveyancing process. Most notably, there is a proposal to use conditional contract at an early stage carrying financial penalty for any breach of contract, including withdrawing from a transaction.

Background

Under the proposals, sellers and estate agents will be required to provide key information about a property upfront, including details on condition, leasehold costs, and property chains. This will allow buyers to make more informed decisions and reduce the risk of “nasty surprises” that often lead to last-minute collapses or further complications.

Recent high-value disputes, such as the 2019 sale of a £32.5 million Notting Hill home that became the subject of litigation after buyers discovered a severe moth infestation, have underscored the importance of greater transparency in property transactions.

The reforms are expected to save first-time buyers an average of £710 and shorten the average transaction time by around four weeks. The Government estimates that failed sales currently cost the economy approximately £1.5 billion each year.

Key proposals

The consultation outlines several measures designed to modernise and simplify the process:

•  Sellers and agents must disclose material information at the point of listing, including tenure, council tax band, EPC rating, title information, building safety data, planning consents, and chain status.
•  Digital tools such as property logbooks and standardised data sharing will be used to improve transparency and security.
• Mandatory qualifications and a new Code of Practice will be introduced for estate, letting, and managing agents.
• The Government will publish side-by-side performance data on estate agents and conveyancers, covering service quality and transaction speed.
• Binding contracts may be introduced to prevent parties from withdrawing late in the process, reducing the likelihood of gazumping and failed deals.

Industry reaction

The announcement was broadly welcomed across the property and finance sectors. Justin Young, Chief Executive of the Royal Institution of Chartered Surveyors, stated the reforms could help “embed transparency, professionalism, and innovation” in the housing market. Nathan Emerson, Chief Executive of Propertymark, described the move as a “renewed commitment to reform” focused on digitisation and consumer protection.

Context and comparison

The reforms mirror earlier efforts to increase openness in the property market, notably the Home Information Packs introduced by the Labour government in 2007 and withdrawn three years later after concerns from industry bodies. This time, the approach draws on the Scottish system, where sellers provide more information at the outset and agreements become binding at an earlier stage.

Housing Secretary Steve Reed described the measures as part of the Government’s “Plan for Change” to “fix the broken system” and help families move more easily. He reaffirmed the Government’s target to build 1.5 million homes, pledging to “leave no stone unturned” in achieving that goal.

Next steps

A 12-week consultation (6 October -29 December 2025) on the proposals has been launched. The Government plans to publish a full roadmap in the new year, setting out the legislative and practical steps needed to deliver the reforms.

We will continue to provide updates on the consultation process as and when they are announced.

The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please do contact the Bates Wells team if you require further information.