Action to take the nasty surprises out of buying a home

Reforms unveiled today are intended to stop house sales falling through and save millions of people time and money.

The process of buying and selling a home will be “fully digitised” in effort to stop last-minute surprises derailing a transaction.

At present, “fall-throughs” affect one in three transactions at a cost of £400million a year. Conveyancers and estate agents lose four million working days – the equivalent of £1billion.

It is hoped that by bringing the digital revolution to the housing market the UK will become more like Norway, where transactions complete in around one month.

Today, much building control and highways information is still paper-based. But under the plans companies and surveyors will be able to access this immediately with identity checks carried out straightaway.

The announcement comes as the average price for a home in the UK hit a record high of £299,138 last month as purchasers scrambled to complete the sale before the loss in April of first-time buyer stamp duty relief.

Help for leaseholders will come into force on March 3, making it easier for them to take control of their building and strengthening their say on how service charges are spent. Crucially, leaseholders will no longer have to cover the legal fees of their freeholder when making a “right to manage claim”. It is hoped this will reduce the incentive for landlords to “obstruct the process”.

Matthew Pennycook, the housing and planning minister, said: “We are streamlining the cumbersome home buying process so that it is fit for the 21st century, helping homebuyers save money, gain time and reduce stress while also cutting the number of house sales that fall through. Our modernisation of the system sits alongside further reforms to improve the lives of leasehold homeowners across the country, allowing them to more easily and cheaply take control of the buildings they live in and clamp down on unreasonable or extortionate charges.”