The UK government has announced new measures to prevent gazumping, the practice where a seller accepts a higher offer after already agreeing to sell to another buyer. The reforms will introduce legally binding sales agreements early in the home buying process, meaning sellers cannot withdraw without a legitimate reason.
Details of the Reforms
Housing Secretary Steve Reed confirmed that the changes will be implemented by 2029. Under the new rules, buyers will receive comprehensive sales packs containing information about the property's condition and whether the seller is part of a chain. This aims to reduce the number of collapsed deals, which currently affect 20% of transactions according to Rightmove.
Timeline and Implementation
A new code of practice for property agents is expected this year, while digital improvements will require further consultation. The key legislative change for sales packs will be introduced before the end of 2029. The reforms bring England and Wales closer to Scotland's existing system.
Prime Minister Sir Keir Starmer stated: "We're turning the page. Our reforms will bring this outdated process into the modern age, saving people time and money, and giving them the certainty they deserve." Chancellor Rachel Reeves added: "Delays, hidden costs, and deals collapsing at the last minute are not only bad for homebuyers, it's bad for the economy too."
Background
Home Information Packs were introduced 20 years ago under a Labour government but were scrapped by David Cameron's administration. The new rules aim to address the average six-month completion time and reduce the number of failed transactions.
