Phillips Law welcomes Government Reforms to end gazumping as house offers to be made legally binding in UK 

Phillips Law welcomes the government proposed reforms for the home buying and selling process, promising to cut delays, digitalise paperwork, and significantly reduce the number of collapsed sales.

Phillips Law estimates that these changes could cut transaction times by around four weeks and save first-time buyers an average of £650 and bring this outdated process into the modern age for potentially 10,000 failed property transactions in Hampshire during that same period – saving the region up to £20m in wasted expenses from broken property chains and aborted transactions.*

The reforms, announced by the Ministry of Housing, Communities and Local Government, mandate a shift to digital processes, including property logbooks and sales packs. These will allow trusted information to be securely shared and accessed by buyers and sellers in real-time. The government is also backing digital identity checks, electronic signatures, and AI-assisted conveyancing to eliminate duplication, reduce fraud risk, and accelerate transactions.

A core component of the new roadmap is the requirement for sellers and estate agents to provide key information upfront in “sales packs” at the point of listing, detailing a home’s condition, leasehold costs, and chain status. Furthermore, binding conditional contracts will be introduced to secure commitments from both parties much earlier in the process, as soon as an offer is accepted, with financial penalties for withdrawing without a valid reason.

Kate Atkinson, Head of Residential Property at Phillips Law, commented on the announcement: “We strongly support the government’s recognition that the current system is outdated and in need of fundamental change. For conveyancers, the biggest hurdle is often that crucial information regarding title, leasehold arrangements, or property conditions arrives far too late. By mandating upfront sales packs and digital property data, we can identify potential issues earlier, streamline legal processes, and help transactions progress without the usual friction. Shifting from a reactive process to a prepared and predictable one will be a game-changer for our clients.”

The introduction of earlier legally binding agreements aims to eliminate the frustration of last-minute fall-throughs, which currently leave people in limbo and cost the economy heavily. Atkinson added: “All parts of the property market—from estate agents and lenders to conveyancing lawyers—must work collaboratively to adopt these standards. We look forward to seeing the detailed timetable for implementation and stand ready to embrace the new digital tools that will deliver faster, more reliable outcomes for home movers.”

The implementation will follow a phased approach:

1. A new code of practice for estate agents is expected later this year.
2. From 2027, there will be consultations regarding agent qualifications and the introduction of expanded digital tools.
3. Comprehensive legislation requiring sales packs, binding contracts, and digital systems is planned by the end of the current parliament

There have been binding agreements and upfront sales information in Scotland for decades, and these reforms would extend a modified version of that system to the rest of the UK. According to Hamptons Estate Agency, home purchases are seven weeks faster on average in Scotland and half the number of deals fall through.

For buyers and sellers, the prospect of fewer delays, greater transparency and reduced uncertainty will be welcome. For property professionals, the challenge will be ensuring the industry is ready to embrace a more modern and efficient way of working.

Get in contact with our expert Residential Property team today:

[email protected]

Basingstoke: 01256 460830

Farnborough: 01252 541633

Yateley: 01252 872617