How upfront property information could make buying a home quicker - Mark Manning
Buying a new home should be one of life's most exciting experiences, but in England it can often become one of the most frustrating.
We have one of the slowest and most complex home-buying processes in the world, and the biggest delays are rooted in the way the system operates.
One of the biggest differences between England and countries such as the United States, is the amount of information available when a property is first marketed. Here, buyers often agree a purchase based on little more than the details provided by the estate agent. Essential information, including legal documentation, searches and key property facts, only starts to emerge once solicitors become involved.
As a result, much of the real investigation into a property happens after an offer has been accepted, creating unnecessary delays and uncertainty.
For many years there have been discussions about providing much more information upfront. Home Information Packs attempted to tackle the issue but never gained widespread acceptance, yet the principle behind them remains sound.
A comprehensive legal information pack, similar to the systems used in Scotland or for auction properties, would give buyers access to the key information before making an offer. This would enable them to make far more informed decisions while significantly reducing the number of unexpected issues that arise later in the transaction.
It would also place greater responsibility on sellers to prepare their property properly before they put it on the market. Buyers would still commission their own survey, but many of the legal queries that currently slow transactions could be resolved much earlier.
Just as importantly, it would reduce the number of sales that fall through. One of the biggest weaknesses of the English system is that neither party is legally committed until contracts are exchanged. Buyers can withdraw, sellers can accept a higher offer, and weeks of work, expense and emotional investment can disappear overnight.
That uncertainty doesn't just affect the people directly involved. It also contributes to lengthy property chains, where one delayed or collapsed transaction has a knock-on effect on several others.
In Scotland, buyers and sellers become committed much earlier in the process, making transactions more secure and reducing reliance on long chains. England may not adopt exactly the same model, but introducing greater certainty earlier would undoubtedly improve confidence and reduce delays.
Leasehold properties present another significant challenge. Obtaining information from freeholders or management companies can regularly add six weeks or more to the process, because the documents simply aren't available when the property is first listed.
Mortgage lenders are sometimes blamed for slowing transactions, but in reality, many delays occur because solicitors are still waiting for information that could have been gathered much earlier.
Encouragingly, reform of the home-buying process is no longer just being discussed. The Government has published a roadmap that includes many of the changes the industry has been calling for, including upfront property information, digital sales packs and measures to reduce fall-throughs. If successful, they have the potential to make transactions faster, reduce uncertainty and give buyers and sellers far greater confidence throughout the process.
Mark Manning is managing director of Manning Stainton estate agents