Why the current system needs fixing
One in three property sales in England and Wales fall through before completion. That failure rate costs buyers and sellers around £400 million every year in wasted legal fees, surveys, and mortgage arrangement costs. The average transaction currently takes 120 days from offer acceptance to completion. The June 2026 government announcement is a direct response to those figures, and it sets out the most substantial reform to the buying and selling process in a generation.
Pillar one: digital sales packs before a property goes on the market
Under the proposed reforms, sellers will be required to prepare a digital sales pack before their property is listed, rather than scrambling to gather information once a buyer is found. The pack will need to include:
- Local area information, such as planning constraints and flood risk
- Lease terms, service charge history, and ground rent details for leasehold properties
- A property condition report covering known defects and recent works
- Chain details, so buyers can see from the outset how many linked transactions are involved
The aim is to put all the material facts on the table before negotiations begin. At present, solicitors often spend weeks simply gathering documents that the seller could have provided at the start. Earlier access to that information should cut the time spent in legal due diligence and reduce the chance of a buyer pulling out late because something unexpected surfaces.
For sellers, preparing a pack upfront does mean some cost and effort before you have even found a buyer. Ask our team about what that is likely to involve for your specific property type.
Pillar two: earlier legal commitment and financial penalties
The second pillar addresses the point at which buyers and sellers become legally bound to complete. At the moment, either party can walk away at any time before exchange of contracts, with no financial consequence. That freedom contributes directly to the fall-through rate.
Under the proposed new framework, buyers and sellers would become legally committed at an earlier stage in the transaction. Walking away after that point without a valid reason, such as a serious defect uncovered by a survey or a mortgage falling through due to circumstances beyond the buyer's control, could trigger a financial penalty. The detail of what counts as a valid reason will be subject to consultation, so speak to your solicitor before assuming any specific protection applies to your situation.
This is where the reform is most likely to affect behaviour. Buyers making low offers on multiple properties and dropping out speculatively will face a real disincentive. Sellers who accept an offer and then accept a higher one from a different buyer, a practice known as gazumping, may also face consequences. That said, gazumping will not disappear overnight. The mechanism depends heavily on how the legislation is ultimately drafted.
What the timeline looks like
The government has set out a phased schedule:
- Late 2026: a code of practice for estate agents, covering how sales packs must be prepared and presented
- 2027 to 2028: a consultation on mandatory professional qualifications for estate agents, which currently have no legal minimum standard
- Mid-2029: full legislation bringing the reforms into force
That means the full legal framework is still roughly three years away. The reforms are subject to consultation at each stage, and the detail could change. What is likely to arrive sooner is pressure on agents to adopt the new practices voluntarily ahead of the legal deadline.
What buyers stand to gain
For first-time buyers, the government estimates a saving of around £650 per transaction, largely from reduced abortive legal costs when sales do not fall through. Shorter transaction times would also mean less exposure to interest rate changes between offer and completion, and less time in limbo if you are renting while waiting to move.
Chains will still exist. Surveys will still uncover problems. Mortgage offers can still be withdrawn if your circumstances change. The reforms reduce friction in the process; they do not remove the complexities that come with buying a home in a chain-dependent market.
What sellers should think about now
If you are planning to sell in 2026 or early 2027, you are likely to be ahead of the full legal requirement but increasingly expected to meet the spirit of the new rules. Gathering your leasehold documents, commissioning a condition report, and having your solicitor ready to act quickly will put you in a stronger position regardless of when legislation passes.
If you are already thinking about moving, talk to us. We can walk you through what good practice looks like now and how to prepare your property for sale in a way that reflects where the market is heading.
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