UK Government to modernise home buying and give leaseholders new powers
Millions of people are set to benefit from UK government reforms aimed at speeding up property transactions and empowering leaseholders, saving time and money while reducing the chances of deals falling through.
The measures, announced on Sunday, will bring the home buying process into the digital age, addressing long-standing frustrations around delays that can stretch to nearly five months. Currently, one in three transactions falls through, costing buyers and sellers an estimated £400 million annually.
Under the new plans, key property information will be made more accessible to trusted professionals in a secure digital format, helping to streamline the process. The government also aims to roll out digital identity services to replace the current requirement for repeated in-person ID checks.
Matthew Pennycook, Housing and Planning Minister, said: “We are streamlining the cumbersome home buying process so that it is fit for the twenty-first century, helping homebuyers save money, gain time and reduce stress while also cutting the number of house sales that fall through.
“Our modernisation of the system sits alongside further reforms to improve the lives of leasehold homeowners across the country, allowing them to more easily and cheaply take control of the buildings they live in.”
Reducing Transaction Times
Much of the current delay in property transactions is caused by the lack of digitalisation. Key information, such as building control and highways data, is often recorded on paper or in incompatible formats, slowing down communication between conveyancers, surveyors, and mortgage providers.
In response, HM Land Registry (HMLR) will lead a series of pilots with local councils to develop a fully digitalised system for sharing data. This will include a 12-week project to establish protocols for accessing and verifying property information digitally. The government is also working with the Digital Property Market Steering Group, a coalition of industry and government experts, to implement these changes.
The reforms are inspired by models in countries like Norway, where transactions are completed in as little as one month. The government hopes that by introducing similar digital solutions, the UK can reduce transaction times significantly.
New Rights for Leaseholders
The government is also introducing changes for leaseholders through secondary legislation under the Leasehold and Freehold Reform Act 2024, which will take effect from 3 March 2025. These reforms will make it easier for leaseholders to exercise their Right to Manage, allowing them to take control of their building’s management without being liable for their landlord’s legal fees.
Under the new rules, leaseholders could save up to £3,000 in legal costs for the most expensive claims. The changes aim to reduce the incentive for freeholders to obstruct the process and will give leaseholders greater control over how service charges are spent.
Right to Manage is often the only way for leaseholders to challenge high service charges and poor management without having to purchase the freehold. The government says these measures will pave the way for further reforms, with a long-term goal of replacing the leasehold system altogether.
A Step Towards Transparency and Efficiency
The announcement follows several other government initiatives aimed at addressing housing challenges, including a £68 million investment to unlock housing on brownfield sites and an additional £3 billion in housing guarantees to support small and medium-sized housebuilders.
By digitalising property transactions and empowering leaseholders, the government hopes to make home buying in the UK faster, more affordable, and less prone to failure.
“The changes we are introducing will give more certainty to homebuyers and leaseholders,” said Pennycook. “This is part of our broader plan to deliver 1.5 million safe and decent homes during this Parliament.”
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