Support for home buying and selling reform but more detail needed

News:

The home buying and selling process should be streamlined without disrupting the property market in a negative way, says the Law Society of England and Wales.

The Law Society has submitted responses to the Ministry of Housing, Communities and Local Government (MHCLG) consultations on home buying and selling reform and material information in property listings.*

The responses have been informed by extensive consultation with Law Society members.

“We share the government’s objective of a more reliable home buying and selling system, driven by informed consumers, innovative technology and high-quality professional services that ensure strong consumer protection,” said Law Society president Mark Evans.

“We are pleased to see recognition that there is no silver bullet to improve the process, rather a need to streamline multiple parts of it without disrupting the property market in a negative way.

“The role of the conveyancer has expanded enormously over recent years through the introduction of multiple regulatory and legislative requirements, and many aspects of the role have become more challenging.

“Those who provide this essential service, which sometimes can be difficult and frustrating for all parties, should be assisted by the development of a more streamlined and less stressful process.

“Technology can have a significant role to play in improving the conveyancing process, but it is just one part of it. Improving technology without addressing other factors, especially the increase in regulatory burdens, will not deliver real gains for the public or conveyancers.

“The government’s consultation proposals lack detail and therefore make it difficult to comment on how valid and workable they are. It is vital that further consultations take place when these proposals are developed further.”

On material information in property listings, Mark Evans added: “We support the objective of improving transparency and consumer understanding in residential property transactions. However, our evidence strongly suggests that material information alone will not resolve the structural causes of delay or failed transactions in the home buying and selling process.

“Delays and transaction failures are rarely caused by a lack of information at listing stage alone. They more commonly arise from late discovery of legal or financial issues, inconsistency of data, and a lack of early professional verification.

“Any reform should initially focus on limited, high-quality material information, improvements within the existing estate agent framework, and realistic lead-in periods that allow the market to adapt.”

Notes to editors

Some of the key points the Law Society makes in the response to the government’s consultation are:

• Any changes should not favour certain types of firm structure over others. We are keen to see the implementation of policy measures that independent SME firms as well as national practices can realistically adopt.

• It is vital that further consultation takes place, with options to pilot and refine new processes before they are implemented more widely.

• The Law Society supports government intervention to drive up standards amongst estate agents. This is critical if the process is to improve overall. The estate agency market currently lacks a uniform, enforceable baseline of professional qualifications and standards comparable to those that underpin legal and surveying professions. This gap reduces trust in information provided by estate agents.

• It is neither realistic nor desirable to try to define material information as a single standardised set of items that must always appear at the marketing stage. Much of the information cited in the government’s consultation will be material to someone, but its importance will vary depending on the stage of the transaction and the needs of the buyer.

• To make the market more attractive for conveyancers, regulatory burdens on them should be minimised.

• Without regulation and credible enforcement it will be hard to change the market so that more comprehensive information is provided upfront.

• Sole practitioners and SME law firms can face particular barriers and challenges around technology adoption, including creating digital literacy among their staff. These can be addressed through support on skills and investment in LawTech.

• * See the home buying and selling reform consultation and material information in property listings consultation and our full responses