One in three UK home sales falls through – the government thinks it has the fix
Key Points
- UK government announced major homebuying reforms on 18 June.
- Sellers must provide upfront "sales packs" with condition, leasehold and chain details at listing
- Earlier binding contracts will penalise parties who pull out without valid reason
- Reforms aim to cut around four weeks off purchases and save first-time buyers ~£650
- Phased rollout: Code of Practice in 2026, qualifications consultation from 2027, legislation by end of Parliament
The UK government has unveiled reforms requiring sellers to provide upfront “sales packs” and introducing earlier binding contracts. The aim is to cut around four weeks off the average home purchase and reduce the one-in-three rate of sales that collapse.
The changes, announced by the Ministry of Housing, Communities and Local Government on Thursday (18 June), will require sellers and estate agents to hand over key information at the point a property is listed.
The sales pack will set out a home’s condition, leasehold costs, and chain status, allowing buyers to make decisions before paying for searches and surveys and letting conveyancers begin work sooner.
The government said the average purchase currently takes around 120 days, roughly one in three sales falls through, and failed transactions cost the economy up to £1.5 billion a year.
It estimates the reforms will cut around four weeks off the typical buying time and save first-time buyers an average of £650 per transaction. Separate research cited in the HMLR Strategy 2025+ put the cost of fall-throughs to sellers at around £400 million a year across England and Wales.
The reforms also introduce earlier binding agreements, making a deal legally binding sooner – potentially once an offer is accepted – so a party that withdraws without a legitimate reason faces a financial penalty.
The government said the requirement will not take effect until after sales packs are embedded, to avoid buyers being bound to a transaction before they have key property information. Penalty levels, exception clauses, and dispute resolution processes are still to be set with industry.
The roadmap also covers digital property logbooks, digital identity checks, electronic signatures, and AI-assisted conveyancing, intended to cut duplication and reduce fraud risk.
The government cited the Netherlands, which uses a live tracking system and averages 20 days to completion, and Norway, where digitisation is estimated to save up to £1.4 billion over 10 years.
Housing Secretary Steve Reed said buying or selling a home should not be a “drawn-out nightmare of delays, hidden costs, and failed deals”.
Prime Minister Keir Starmer said the reforms would bring “this outdated process into the modern age”. Chancellor Rachel Reeves said collapsing deals were bad for homebuyers and for the economy.
Rightmove CEO Johan Svanstrom called the announcement an encouraging step, noting that the platform’s data puts the average completion time at 170 days, with more than one in five transactions initially falling through, and that phasing and adoption would be key.
Property expert Phil Spencer said the proposals addressed issues consumers had faced for years. The Law Society, RICS, and Propertymark backed the reforms while flagging that the sector would need the capacity and skills to deliver them.
