Buying and selling property should be an exciting experience, but the current process, replete with legal requirements and financial considerations, still makes it one of the most stressful activities we undertake in our lives.
Those of us working in the industry can become hyper-normalised to this, forgetting what it is like to buy or sell, especially for the first time, and to not know what is coming next. Having recently spoken with first-time buyers, I have observed two recurring themes.
Firstly, there is a lack of understanding about the upcoming steps in the process at the outset. Unsurprisingly, the early focus is on the need to secure the right property and then obtain the mortgage to fund it. However, there is less emphasis on availability of all the information that might guide a first-time buyer through the various steps in the process, providing vital detail at the most pertinent point in time and as early as possible.
This tends to lead to the second issue of there being too many surprises that materialise along the way, few of which prove positive and most of which involve unexpected extra costs (our research indicates in excess of 50% of buyers face unexpected costs of greater than £1,000), delays, or indeed the transaction falling through. Our industry is undoubtedly committed to collaboration, but in our competitive world, progress is not always as quick and cooperative as we might need.
Those of us that have been around a while will remember the ill-fated Home Information Packs, a promising idea in principle, but sadly one that became embroiled in politics and procrastination. Today, there remains little doubt that increased information and certainty in the transaction would assist all stakeholders involved. The provision of improved upfront property information including a “better map” of the end-to-end process and higher visibility continues to be the key.
If industry innovation had not already been mobilised pre-COVID, the pandemic certainly accelerated it. Innovative organisations are increasingly in-market, hunting down the right data sources that can be disclosed by sellers to potential buyers before a property transaction takes place. If the right information is packaged correctly and at the right time, this could provide much needed transparency and protection, and ensure informed decision-making at the earliest stage can be undertaken, helping potential buyers to understand and gauge a property’s condition, potential risks, and any legal or financial obligations associated with it.
Law firms play a crucial role in facilitating the exchange of information between the buyer and seller, but they themselves can be put under undue pressure by the order in which steps in the process are currently taken and the availability of information. Whilst ensuring that the necessary documents are collected, reviewed, and provided to the buyer for their due diligence, they are still at the mercy of an overall clunky and unfavourably ordered process.
Unfortunately, on completion day, we still have some instances of buyers waiting in vans to receive confirmation that their sequential CHAPs payment has finally been processed to complete their transaction. In long chains, this can mean individuals waiting on a knife’s edge to see if their payment will beat the CHAPs deadline on a Friday afternoon.
There is progress being made to mitigate the last-minute rush. Customers electing to implement digitised remortgages are benefitting from the use of PEXA Pay, which with continued adoption will underpin more certainty in the payments process as sequential payments become a thing of the past and payments are facilitated between lenders on a net settlement basis, all at once and much earlier in the day at guaranteed time slots.
PEXA is both a supporter and a collaborator in initiatives driven by our industry to uplift the experience consumers have buying and selling property in the UK. We, together with industry, look forward to a day when fewer transactions unnecessarily fall through, when transactions can complete in a timelier fashion and with increased certainty and indeed when buying your first property can feel like a more positive life affirming moment rather than leaving nervous and worried buyers sitting in a van wondering where they will sleep that night.
This article was submitted to be published by PEXA as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
One Response
There have been various articles on the subject of upfront information (not least by Beth Rudolf and myself) – all of which contain detailed proposals as to how this should be facilitated rather than an overview of the current situation. Paul is to be congratulated for adding to the debate in a general manner; it all helps. As I have said in a recent article to be published on this website however, it is time to lay down the roadmap to full digital conveyancing rather than focusing on individual parts thereof – however important they may be. PEXA Pay is certainly one example of how payment and registration can be harmonised. There are others however – not least the excellent Project Meridian initiative which demonstrates true leadership by major stakeholders in the home moving process. The Home Buying & Selling Group will continue to drive this forward for the benefit of all involved in the process.