Mortgage and property firms have written to the government to ask for help reducing the time it takes to buy a property, with key players saying it now takes almost 80 per cent longer to complete the purchase of a property than it did in 2007.
In an open letter sent yesterday (May 9) to Housing Secretary Michael Gove, a number of businesses involved in the property market, including Mortgage Advice Bureau, L&C Mortgages and Landmark Information Group called on the government to support improving speed and efficiency in the home buying and selling process.
Data from Landmark Information Group showed that it takes on average 133 days to complete a property transaction in England in the UK.
The coalition of businesses have said this is causing needless stress and frustration for home movers, with knock on effects on the wider economy.
The letter read: “Slowness, delays, and poor transparency within the process has led to an increased number of fall throughs, with 90,188 transactions estimated to have fallen through in Q3 2022, a 15.6 per cent increase on a quarterly basis and a 3.6 per cent uplift versus the same time last year.
“In practice, this means professionals in the market work for months only for transactions to fall through, leaving them unpaid.
"Meanwhile our economy does not get the full benefits as movers hold back on spending for more than four months before they are able to renovate, decorate or furnish their new home.”
Signatories to the letter asked Gove to create a new ‘Time to Buy’ strategy that will set out a plan for the future of the market and support businesses to take up technology and innovative solutions.
“We want to create a more efficient and better-connected market, where everyone benefits from shared data and insights,” Landmark’s chief executive, Simon Brown said.
“The UK’s home-moving process suffers from systemic challenges, with duplication and inefficiencies leading to delays for home-movers. This is both stressful and frustrating for home-movers, and enormously wasteful for property professionals,” he added.
Signatories to the letter said they want to see the industry commit to reform the “analogue processes” that power the home buying process.
They said they believe solutions can be delivered now by key players in the industry and can be “turbocharged” by government endorsement.
“Greater data sharing, more upfront information and standardised tools across the industry will transform how businesses help consumers move and give them more certainty that they will complete their purchase on the day they want to,” the letter read.
Mortgage Advice Bureau deputy chief executive Ben Thompson said solving the problems that exist in the home buying market will “not only make people’s lives easier” but the multiplier effect of more home moves each year will benefit the UK economy too.
“The UK needs a fluid housing market where people who need to move home can do so with confidence and also with a far greater degree of ease,” Thompson said.
Yopa, Simplify, O’Neill Patient, Enact, and TwentyCi were also signatories to the letter.
Last month, Landmark shared its plans to launch a mortgage hub which it said will greatly reduce the amount of time it takes to complete a house purchase.
Speaking to FTAdviser, Landmark’s chief executive Simon Brown explained that the hub, which is due to be up and running this summer, will connect mortgage providers, conveyancers, lenders and agents to help streamline the purchasing process.
jane.matthews@ft.com
