The government is looking at ways to reform the way that properties are bought and sold. The objectives are to shorten timelines, reduce costs, and lower the risk of transactions collapsing.
Overall, it sounds promising. We welcome much of what is on the table. But, in saying that, there are certain caveats to our support: any reforms must be practical, well phased, and recognise that estate agents already operate under rules and obligations designed to protect both buyers and sellers. In fact, many agents are already supportive of other proposed reforms designed to improve the process and protect the public – the so-called ‘ROPA’, which has been discussed and debated for many years but which has failed to materialise. Is the government planning to abandon that line of reform, something that the industry has consulted on in depth?
With all this in mind, then, what is it that the government is proposing now, exactly, how does it change what is already in place or differ from proposed reforms already being pushed and gaining traction, and should we feel as enthused as we might from the opening headlines?
Let’s take a look.
Here’s a summary of the main reforms that have been tabled this week:
These reforms are ambitious, and they are largely welcome. They reflect long-standing frustrations in the industry: delays, surprises, information asymmetry, and uncertainty in property chains all contribute to inefficiency, stress, and not just disappointment but cost when property transactions fail – and professional standards, regulation and enforcement of the industry is something that not just the public but also many estate agents often call for.
But… there are already professional standards, codes of practice, regulation and enforcement in place, and legislation has already been introduced that mandates certain information to be made available on advertising.
So, what exists already, what is set to change, and what more is being called for?
Estate agents are already regulated today. It’s not the “wild west” that it is sometimes made out to be.
That is not to say that there are not rogue operators out there, but whenever people talk about reform – especially politicians – it often sounds like a ‘good idea’; nevertheless it is worth making sure that whatever is on the table is going to move things forwards from where we already are.
Here is a bit about how the industry is already regulated:
Of course, estate and letting agents must also abide by catch-all acts – such as the Proceeds of Crime Act 2002, Anti-Money Laundering Regulations 2017, and the Digital Markets and Competition Act 2024, which itself has swallowed the Consumer Protection from Unfair Trading Regulations 2008 (more on this last point, a little further on in this article).
Clearly some of these are more concerned with lettings and tenants’ rights, rather than protecting property purchasers – but nevertheless, it speaks to the fact that the industry is and has been regulated for many decades, with several updates made in recent years to tighten those regulations.
The proposal this week includes a mandate to provide key information upfront, to protect buyers.
As mentioned earlier, however, agents are already governed under the Digital Markets, Competition and Consumers Act 2024, which absorbed legislation set out by the Consumer Protection from Unfair Trading Regulations 2008 (amended 2014). This saw guidance brought in by National Trading Standards, Material Information Parts A, B and C. Here’s a bit more detail:
From November 2023, new guidance was issued clarifying how “material information” was to be structured (Parts B and C, supplementing an earlier Part A), in order that buyers had relevant key information up front – although bear in mind that under the Consumer Protection Regulations, agents already needed to disclose information that would affect a reasonable buyer’s decision.
The NTSELAT (National Trading Standards Estate & Lettings Agency Team) set out a clearer template to help agents stick to the rules:
There is a grey-area issue to note, however…
In theory, this was guidance to help agents fulfil their obligations under the Act, not the law itself, and since the regulation and enforcement of agents has now moved away from Trading Standards, to a team called the Competition and Markets Authority (CMA) – leading to the NTSELAT guidance being removed online – perhaps it is no surprise that legislation be brought in to specify, once and for all, what an agent’s obligation under law is.
Nevertheless, ignoring the removal of that guidance, that existing legislation the guidance was issued to help agents abide by still means that estate agents already must not omit material information or present misleading statements. If a homebuyer suspects this has happened to them, they can seek to report it through whichever redress scheme the agent is part of, in line with that agent’s internal complaints procedure, or they could bring it to the CMA for enforcement.
In other words, estate agents will not be starting from zero. The reforms we have heard about this week, proposing more upfront disclosure, is aligned with our existing obligations, albeit possibly pushing them further.
One of the more compelling proposed elements is the use of binding commitments when offers are agreed. The upside is obvious, of course: fewer deals would fall apart, reducing cost, delay, and disappointment (for buyers and sellers alike).
But there is nuance needed, here.
For binding contracts to work in practice, they must be well defined (when exactly does an offer become binding, what exceptions or escape routes are there, how to handle buyer or seller issues discovered later, etc.). Any policy should allow safeguards for genuine change of circumstance, delays beyond control, or significant new information coming to light. The devil is in the detail.
One of the headlines this week was the government’s commitment to raising professional and regulatory standards. This will include adherence to a mandatory code of practice, as well as public reporting of, essentially, KPIs – Key Performance Indicators – such as percentage of properties successfully sold, speed of transactions, etc.. There is also talk about agents being required to sit certain qualifications and perhaps undertake licensing…
All sounds sensible; but let’s take a look at what is in place and what is already on the table.
Agents signed up to The Property Ombudsman scheme (and remember, agents must by law sign up to a redress scheme, many of us are under the TPO) will have signed up to their code of practice for a start; agents who are members of Propertymark, which absorbed the National Association of Estate Agents (NAEA) will be signed up to that body’s Code of Practice; members of The Guild of Property Professionals are signed up to their Code of Conduct… and so the list goes on. As it happens, here at Petermans Estate Agents we are members of all three, and abide by all three of their ‘codes’ already.
Ultimately, of course, we also have to comply with the Estate Agents Act 1979, much of which is what these various Codes of Practice or Codes of Conduct aim to adhere to in codified form.
We shall have to wait and see.
This might come as something of a surprise to many people. It might also surprise people to know that it is something that many estate agents are also calling for. By and large, estate agents do wish to see standards raised, and many advocate minimum qualifications. ‘ROPA’ – or ‘Regulation of Property Agents’ – is something we seem to have been talking about for years. Many agents are keen. It is something that agents often talk about as something that will weed out rogue agents from the industry.
Raising professional standards is a good thing. What might not be clear to the public is that it is something that Estate Agents have also been calling for – and something that many have found frustrating after years of consultation about it has failed to lead anywhere tangible.
This package of reforms could represent genuinely welcome progress for homebuying in England and Wales; quicker timescales, greater certainty, clearer standards… it’s hard to see what’s not to like.
Yet optimism alone is not enough. For these changes to fulfil their promise, they must be implemented thoughtfully and fully. Not only that, but any system designed to replace or supersede existing regulations, or to take the place of long-awaited reforms such as RoPA, must be utterly fit for purpose from the outset.
Most crucially, meaningful consultation with the property sector is essential – not just as a box-ticking exercise, but in a way that learns from previous mistakes and ensures the process is more coherent and inclusive than many agents and landlords feel they have seen with the Renters’ Rights Bill.
After all, lasting positive change can only happen if those delivering it are genuinely heard and empowered to act.
What is the UK Government’s home-buying reform?
The UK government has announced its intention to make the home-buying process faster, clearer, and less prone to collapse. Measures under discussion include more upfront information, binding offers, and higher professional standards for estate agents and conveyancers.
Will estate agents have to provide more information upfront?
Yes, but in practice this builds on what already exists. Estate agents are already required by law to disclose “material information” under the Digital Markets, Competition and Consumers Act 2024. The reform aims to formalise and expand those requirements so buyers receive all key details when a property first goes on the market.
What does a ‘binding offer’ mean?
A binding offer would make it harder for either party to withdraw from a sale after a certain stage, helping reduce the number of failed transactions. The details (such as when an offer becomes binding and what exceptions apply) are still being developed through consultation.
Are estate agents regulated?
Yes. Estate agents are governed by long-standing legislation including the Estate Agents Act 1979, and must belong to an approved redress scheme such as The Property Ombudsman or the Property Redress Scheme. Many also follow additional professional codes of practice via membership organisations.
When will the reforms take effect?
A full roadmap is expected following the current consultation period, with draft legislation and phased implementation likely to begin from early 2026.
We are required by law to conduct anti-money laundering checks on all those selling or buying a property. Whilst we retain responsibility for ensuring checks and any ongoing monitoring are carried out correctly, the initial checks are carried out on our behalf by Lifetime Legal who will contact you once you have agreed to instruct us in your sale or had an offer accepted on a property you wish to buy. The cost of these checks is £60 (incl. VAT), which covers the cost of obtaining relevant data and any manual checks and monitoring which might be required. This fee will need to be paid by you in advance of us publishing your property (in the case of a vendor) or issuing a memorandum of sale (in the case of a buyer), directly to Lifetime Legal, and is non-refundable. We will receive some of the fee taken by Lifetime Legal to compensate for its role in the provision of these checks.