Efforts to save as much as £800 million by stripping back outdated paperwork, unnecessary form filling, and extending suspensions on tariffs for business have been announced by the government.
Included amongst the plans is a commitment to streamlining the home-buying and selling process, “saving businesses in the transaction chain £116 million a year.”
With the government previewing the upcoming budget, chancellor John Healey has announced plans to cut administrative and tariff costs, leaving more time to run and grow business said Healey.
Commenting on the plans Prime Minister Andy Burnham said: “If you run a business, you want to spend your time serving your customers, creating jobs and growing your firm, not filling in unnecessary forms.”
“It’s not right that pointless bureaucracy gets in the way of people working hard to build something that matters to their high street. So we’re getting government off their backs and giving businesses the breathing space to grow. Because when businesses succeed, they create good jobs, strengthen their communities and bring growth to every part of the country.”
The budget will also reveal the detail of the Your First Home scheme, the replacement to Help to Buy announced in September with reports the thresholds for eligibility could be increased but the cap at which a property would be eligible could be lower than Help to Buy. According to reports, the earnings threshold for Your First Home, which will offer first time buyers a loan of 20% for new build homes, with an initial interest free payment and a minimum deposit requirement of just 2.5 per cent, was set to be £90,000 outside London and £110,000 in the capital.
The reports suggest concerns raised over the accessibility of the scheme for middle earners have forced a rethink and the thresholds could be raised to £110,000 outside London and £140,000 in the capital.
Over the weekend The Sunday Times reported the cap on property value for Your First Home would be set at £500,000, lower than the £600,000 cap that was in place under Help to Buy before it was abolished in 2023.
While the detail of how £116 million in savings in home buying is to be achieved is not revealed, the government’s home buying and selling reform roadmap, published in June of this year, provides an outline of the direction of travel.
The programme includes the introduction of up-front sales packs to include searches and a property condition report, embedding digital logbooks into the transaction, and requiring the use of binding conditional contracts.
As well as streamlining the home buying and selling process, the announcement include £290 million in savings by streamlining company reporting requirements; and £105 million a year by reducing duplicative reporting burdens for asset managers.
Commenting on the announcement Simon Brown, CEO, Landmark Information Group said: “The Government’s ambition to save businesses across the property transaction chain £116 million a year, particularly through plans to streamline the homebuying and selling process, is welcome.
“Our latest research shows property professionals spend approximately a third of their working day chasing updates and overcoming unnecessary friction in the transaction process, highlighting the significant opportunity to improve productivity by removing these barriers.
“The real test of its homebuying and selling reform roadmap, however, will be whether it delivers meaningful change on the ground, with reliable property information available earlier, better-connected processes and fewer delays and duplicated efforts. Success should ultimately be measured by the time and costs saved for businesses, and the greater certainty delivered to home movers.
“As we look ahead to the Budget, we will continue working with government and industry to help shape reforms that deliver on this ambition.”
