The Levelling Up, Housing, and Communities (LUHC) Committee has unveiled a fresh inquiry aimed at streamlining the housing transaction process in England. This initiative seeks to bring much-needed relief to millions caught in the often stressful web of acquiring or parting with a property.
At the heart of this parliamentary probe lies a comprehensive review of the entire property transaction process. The cross-party group of MPs will delve into the intricacies of the current system, focusing on the accessibility and transparency of information for buyers, and scrutinising the roles played by conveyancers and estate agents.
Clive Betts, the driving force behind the committee, voiced a concern that echoes the frustrations of many, “The process of buying and selling a home in England is often stressful for those involved. Indeed, despite there being around two million households who successfully buy or sell their home each year, consumers often find the process is not as efficient, effective, or as consumer-friendly as it could be. As part of this inquiry, we will look at the chief obstacles to improving the process of buying and selling a home. We will be keen to examine issues such as the time taken to complete a transaction and challenges in finding the right information. Topics such as a lack of transparency around conveyancing services, the payment of ‘referral fees’, and the weak regulation of estate agents will also be on our agenda in this inquiry”
Key Areas of Focus
The Committee’s ambitious agenda is set to cover a wide range of topics, with an aim to identify and dismantle the chief barriers to a streamlined buying and selling experience. Among the critical issues on the table are:
- The overall efficiency and effectiveness of the existing transaction process and potential avenues for improvement.
- Strategies to enhance the consumer experience throughout the property transaction journey.
- The debate over whether current voluntary initiatives suffice or if legislative measures are necessary to foster improvements.
The Transaction Process at a Glance
The inquiry will scrutinise specific transactional hurdles such as gazumping and gazundering, exploring potential remedies. It will also evaluate the potential benefits of wider adoption of reservation agreements and investigate the obstacles preventing their widespread use.
Information Provision
A key concern is whether buyers are armed with the right information at the crucial moments. The committee will consider the impact of mandating sellers to provide comprehensive property information upfront and the steps needed to accelerate the digitisation of housing transaction data.
Conveyancers Under the Microscope
The inquiry will assess whether consumers have sufficient resources to choose the right conveyancer and explore ways to enhance transparency in this area. Additionally, it will ponder the potential benefits of mandatory professional qualifications for estate agents and the establishment of a unified, legally binding Code of Practice for property agents.
The Controversy Over Referral Fees
The practice of referral fees will come under scrutiny, with the committee evaluating the implications of a review, standardisation, or outright ban on these fees for both transactions and consumers.
Next Steps
With evidence sessions anticipated to commence in late April 2024, the committee is gearing up to consult a broad spectrum of voices, from consumers and professionals to industry stalwarts. The climax of this inquiry is expected to be a session with the Department for Levelling Up, Communities, and Housing Minister, aimed at drawing actionable insights and recommendations.
The deadline for written evidence submissions has been set for Thursday, 18 April, paving the way for a pivotal evidence session later in the month. This inquiry represents a critical step toward demystifying the home buying and selling process in England, with the potential to usher in a new era of efficiency, transparency, and consumer satisfaction in the property market.