While a Stamp Duty holiday always gives the mortgage market a welcome lift, every time the cut-off deadline draws near, we see the same frustrating delays.
At the last count, Rightmove said over 550,000 homes had been sold ahead of the deadline and were still awaiting legal completion. Come April 1st I expect there will be some disappointed buyers who miss out on the savings simply because of how slow the home-buying process is in England and Wales.
That’s why the recent announcement about moving towards a digital home-buying process is such good news - with Maria Harris, Chair of the Open Property Data Association and various other trade associations and campaigners, having led the charge in pushing for a more digital, streamlined system.
No matter which part of the property market you’re in, we can all agree the process takes far longer than it should, with some delays dragging on for up to five months.
Moving to a digital system and making key property information more accessible upfront for everyone in the chain will make things much easier. With digital ID verification in place too, home buying should become quicker and smoother.
While the proposed digital property pack will include key details about the property - such as legal boundaries and its Energy Performance Certificate (EPC) - it stops short of including a valuation or survey, which would still take place after an offer is made as part of the mortgage application process.
If the Government is serious about reducing the number of property fall-throughs, as it has stated with these latest plans, then it’s surely also worth considering whether an upfront valuation could also be beneficial - similar to the Home Report system used in Scotland.
Scotland’s Home Report, which is put together before a property goes on the market, includes a single survey and valuation, a property questionnaire, and an energy report.
Some have long argued England should adopt a similar approach but despite plenty of discussion, it’s never quite made it over the line. If there was ever a time to introduce it - or at least have a proper debate - it’s hard to see a better moment than now.
The Home Report has been credited with helping to cut fall-through rates in Scotland to below 10%. In contrast, 28.8% of residential property sales in England fell through before completion in 2024, data from Quick Move Now shows.
The main reasons for these failed sales were buyers pulling out or failing to renegotiate a lower price after a survey (27.3%), buyers simply changing their minds (23.6%), and issues securing a mortgage (21.8%). While those numbers might appear high, the data shows that fall-throughs reached a staggering 53% in Q3 of 2023.
Can’t come soon enough
Right now, the Government estimates fall-throughs cost around £400 million a year. On top of that, conveyancers and estate agents lose around four million working days dealing with delays - equivalent to £1 billion in wasted time.
Given its focus on economic growth, it’s no surprise the Government has recognised the need to modernise home buying and selling - not just to simplify things for buyers and sellers, but to help prevent millions of pounds in lost transactions each year.
The Government has pointed to countries like Norway, where transactions complete in around a month, as an example of what could be achieved.
Closer to home, we can see how upfront valuations in Scotland have led to fewer fall-throughs, and a similar approach in England could have its benefits. Including the valuation upfront would give buyers a clearer picture before making an offer, helping to reduce uncertainty and delays while also potentially saving the Government money.
If there’s something a buyer isn’t willing to take on - like Japanese knotweed or structural issues - they can rule the property out straight away, rather than getting halfway through the process and then pulling out.
In some ways, an upfront survey and valuation feels like the missing piece in the Government’s plans to cut down on the high number of fall-throughs we see today. It wouldn’t be without its challenges, but it’s definitely possible.
At the very least, it’s a conversation worth having - and if there was ever a time for it, surely it’s now.
