The housing market needs change but let’s get it right - Tim Waring
It is no surprise there has been such widespread coverage of the Government announcement last Monday of a major reform to the home buying process in England and Wales.
From high profile TV property personalities and the major property portals to professional organisations and related trade bodies, all have been quick to acknowledge what has been apparent for many years, namely the current process is fundamentally flawed and requires significant change.
As a practising estate agent enduring the daily rigour of the present fraught system, at the very outset there are important factors that must be addressed if the well-meant overhaul of the current system is to successfully achieve its objective.
It has to be workable, and introduced in phases, otherwise the marketplace itself will suffer. The legalities and liabilities must be properly thought through before implementation. The risk of unintended legal consequences is massive, especially if data is to be widely shared, only to result in litigation where information proves to be wrong, albeit with the benefit of hindsight.
The argument for change is being driven by perceived difficulties experienced by prospective buyers. It must not be forgotten that sellers also have abortive costs when a buyer changes their mind.
In fact both can suffer when a chain of sales suddenly collapses, despite the best of intentions. So whatever reform is introduced, it must find a way of creating early binding commitments that buyers and sellers can rely on. The ever longer timelines that currently exist from acceptance of offer to exchange of contracts cannot continue.
At the heart of the debate is the provision of more upfront information before a property can be legally offered for sale. This makes a lot of sense. But can this information be collated within a reasonable timescale and what level of detail will be expected?
Much has been made of the potential for modern technology to improve the situation. But in many areas the technology is already in place, meanwhile the selling process has become more drawn out. Why? Too many stakeholders have their own procedures and protocols. Surely these could be simplified by having statutory industrywide standards that are the binding on all concerned.
At present, the process is too fragmented, and in my opinion, often stifled by self-interest, creating major challenges if meaningful improvement of the selling/buying process is to be achieved.
Many readers will remember the Home Information Pack (HIPs) legislation introduced by New Labour that was subsequently repealed largely because of side-effects, most notably reducing the number of homes offered for sale.
The Home Report system used in Scotland might have critics, but it serves a purpose and works. However, even north of the border, the speed with which sales progress remains in the hands of numerous protagonists, be that solicitors, lenders, agents or surveyors. I shall watch the debate with considerable interest and can only hope this time, the process of buying and selling residential property can be improved in a realistic and effective manner to achieve one key objective – a quicker and simpler process. We shall see.
Tim Waring, is a prime residential estate agent at GSC Grays. gscgrays.co.uk