The homebuying process has long been scrutinised for its complexity and delays. According to a report by Rightmove, it takes an average of seven months from listing to completion to sell a home. Instead of accepting these extended timelines as the status quo, it’s time for stakeholders across the housing sector to identify ways that collectively will improve the process.
So, who is to blame for the delays in homebuying transactions?
The reality is that there is no clear answer and rather than focusing on playing the blame game, the objective must be for brokers, lenders, estate agents, surveyors and conveyancers to work together and focus on the greater use of technology, data sharing, and transparency to ensure buyers are fully informed from the outset.
Clearly, positive technological intervention is already starting to make some positive inroads. Recent initiatives like the Digital Information and Smart Data Bill, outlined in the King’s Speech in July along with work being undertaken by the Open Property Data Association (OPDA), provide promising foundations for streamlining the homebuying journey by reducing paperwork and providing greater transparency.
Moreover, there is hope that that the recently introduced additional requirements on estate agents for more upfront material information will help make the process more efficient although we feel that even more needs to be done in this respect. One approach is to introduce a complete pre-sale information pack, including a condition report and we put this forward in our response to the call for evidence by the Levelling Up Select Committee earlier in the year. Such an initiative was also backed in a webinar we hosted in July, with a poll showing that over two-thirds (71%) of property professionals are in favour of pre-sale surveys, and there is compelling evidence that this can lead to a faster process. For example, in Scotland, where presale surveys are standard, the average time to completion currently sits at around 12 weeks.
A huge amount of resource is also being focused on data and process improvements, with artificial intelligence (AI) likely to make a significant impact. AI has the potential to handle much of the heavy lifting, i.e. managing documents, providing chatbot support, enabling better decision-making and virtual property tours to name but a few. These technologies will not only improve the efficiency of the homebuying journey but also free brokers and other professionals to focus on the high-value, human aspects of the process.
However, the benefits of AI can only be fully realised when the industry reaches a critical mass of adoption, and when the different stakeholders are aligned in their approach. For AI to be truly effective, it must be integrated into a cohesive, connected system where data is shared seamlessly between all involved parties. Addressing these issues is essential if we are to truly unlock the potential of digital solutions.
From a broker’s perspective, they already play a vital role in supporting the homebuying process by ensuring all relevant information is available from the outset whilst also using their experience to guide homebuyers through the maze of requirements. This allows potential obstacles to be identified early, helping to prevent wasted time and reduce the number of abortive transactions, around one-third of which fail due to unforeseen issues arising after an offer has been made.
Moving forward, to support this tech revolution, brokers also need to ensure that lenders receive comprehensive upfront information to enable faster decision-making. In complex cases, such as those involving cladding for example, brokers must closely follow lenders' guidelines to ensure all necessary details are sense checked and provided from the start.
Additionally, the advice process must play an even more prominent role in helping buyers to better understand the difference between a lender valuation and a survey. A mistaken belief that a mortgage valuation is equivalent to a survey remains a significant obstacle, with our survey showing that 54% of respondents continue to hold this alarming misconception.
Obtaining a proper survey can save buyers from unexpected repair costs and enable more informed purchasing decisions, ultimately leading to smoother completions. With only 10% of homebuyers currently opting for a private survey, it is essential that brokers emphasise the importance of professional home condition assessments. This approach aligns with Consumer Duty and the goal of achieving good customer outcomes, ensuring that clients are fully informed, confident, and more likely to complete their property purchases successfully. A combination that the whole industry would benefit from.
