In October 2017, it was acknowledged by the UK Government that the general public aren’t satisfied with the current process of buying and selling homes. In order to address the problem, a consultation was launched by the government with an aim to improve the system.
Generally, the government demands the home buying and selling process to be faster, cheaper and less stressful. According to a survey, 62 percent of buyers and 69 percent of vendors report that they had felt worry and stress because of delays.
The government recognises that for a long time, buyers and sellers have remained trapped in a system that is plagued by uncertainty and delays. Therefore, it aims to put the consumers back in the driving seat. In this post, we highlight the things that will be implemented by the UK government and what we can expect from these changes.
Clamp Down on Gazumping
The government has realised that gazumping- where a seller who has accepted an offer from a buyer accepts a better offer from another buyer before completion – is on the rise. In order to combat the issue of gazumping, the government is introducing new rules that will increase the robustness of the bidding process, and ensure that both the seller and buyer honour their obligations.
Conveyancers and property solicitors alike believe that these new rules will result in a more stringent progression of the process and heighten the trust of buyers. As lock-in agreements will become mandatory if the new proposal is implemented, neither the seller nor purchaser will be able to back out from the contract, without paying a fee.
Regulations Surrounding Real Estate Agents
The fees of estate agents are high and often present a problem for buyers, so the government is taking action against lettings fees and other unfair charges. Experts believe that challenges will rise for real estate agents since the government is planning to introduce rules that are more consumer-friendly.
Reduction in Completion Times
Often, the right solicitor or conveyancer can be the difference between a convenient completion and an extensive one. Typically, it takes about eight to twelve to complete the process. Going forward, the government is working with consumers and the legal industry to bring novel digital technologies to make the conveyancing process faster. They may also impose strict deadlines on searches, which Woodgrange Solicitors believe will have a positive impact on transaction times, and along with the introduction of new technology, will improve the satisfaction levels of buyers and sellers alike.
End of the Blame Game
Whilst it is true that conveyancers can sometimes delay the process, pointing fingers at the other party’s conveyancer every time a delay occurs is just not the right way to go about things. We believe that it is often the system’s fault, not the mistake of the person.
Let us be honest: there are 70 procedures and steps that must be completed for an efficient progression of case. This complexity is the reason for major delays and many transactions fail due to the complex nature of the conveyancing process. The government is taking action to reduce the need for physical signatures on the documents. Hopefully, this will make the home buying and selling process faster and put an end to the blame game once and for all.