Major reforms to streamline property transactions and improve leaseholder rights

Millions of home buyers and sellers in the UK are set to benefit from a major overhaul of the property transaction process. The government has announced plans to modernize home buying and selling, aiming to cut delays—currently averaging nearly five months—while saving people time and money.

A key issue slowing down transactions is the lack of digital integration across the sector. To address this, the government will open up key property data, enabling secure sharing between trusted professionals. Additionally, new digital identity services will speed up verification processes, making transactions faster and more efficient.

These changes will bring home buying into the 21st century, providing much-needed certainty for buyers, sellers, and industry professionals. With one million property transactions occurring in the UK each year, having crucial information readily accessible will reduce last-minute surprises, lower failure rates, and make it easier for first-time buyers to get on the property ladder.

Cutting costs and reducing failed transactions

Currently, one in three property transactions falls through, costing buyers and sellers around £400 million annually. On top of this, conveyancers and estate agents lose an estimated four million working days due to inefficiencies, equivalent to a £1 billion loss.

By embracing digital solutions—similar to those in Norway, where transactions complete in about a month—the UK aims to put more money back into the pockets of homeowners. This aligns with the government's broader economic plan to support growth and efficiency.

Empowering leaseholders with greater control

The government is also taking steps to improve the lives of leaseholders, many of whom have faced unexpected costs and restrictions despite owning their homes. From March 3, new Right to Manage measures under the Leasehold and Freehold Reform Act 2024 will take effect, ahead of schedule.

These reforms will make it easier for leaseholders to take control of their buildings, giving them greater authority over service charges. Additionally, leaseholders will no longer have to cover their freeholder’s legal fees when filing a Right to Manage claim—potentially saving up to £3,000 in costly cases and preventing landlords from obstructing the process.

A more transparent and efficient property market

Currently, much of the essential property data—such as building control and highway records—is stored on paper or in outdated formats, creating unnecessary delays. Even when information is digitized, there are no standardized systems for accessing or verifying it.

A fully digitalized home buying process will give key players, from mortgage lenders to surveyors, instant access to verified data. Streamlining identity verification and ensuring transparency from the outset will prevent transactions from collapsing due to last-minute issues.

To make this happen, the government is working closely with HM Land Registry (HMLR) and the wider property sector. A new 12-week initiative will define standardized data-sharing rules, ensuring seamless collaboration between conveyancers, lenders, and other stakeholders. HMLR will also lead 10-month pilot projects with local councils to explore the best ways to digitize and open up property data.

The Digital Property Market Steering Group, made up of industry and government experts, will oversee these efforts, ensuring the transition to a more modern, efficient system.

Progress so far: government housing initiatives

These new reforms build on existing efforts to boost the housing market, including:

- Launching the New Homes Accelerator to fast-track developments stuck in the planning system.

- Establishing an independent New Towns Taskforce to create large-scale communities of at least 10,000 homes.

- Allocating £68 million to 54 local councils to unlock housing on brownfield sites.

- Providing £47 million to seven councils to support stalled developments affected by nutrient neutrality rules.

- Announcing an additional £3 billion in housing guarantees to help builders access financing.

- Extending the Home Building Fund with £700 million to support small and medium-sized developers, unlocking 12,000 new homes.

A future-proofed housing market

Housing and Planning Minister Matthew Pennycook emphasized that these changes will simplify the home buying process, saving buyers money and reducing stress. He highlighted that the government remains committed to protecting leaseholders from unfair charges and phasing out the outdated leasehold system.

By embracing digital transformation, these reforms will cut delays, reduce costs, and create a more transparent housing market, ensuring that homeownership is more accessible and hassle-free for millions across the UK.

The British Ambassador to Ukraine, Martin Harris said:  

“I am proud that the UK is announcing critical funding for Ukraine’s social recovery. The £25m contribution will strengthen Ukraine’s social systems and services that are under overwhelming pressure from Russia’s brutal invasion. Investing in Ukraine’s social systems is an investment in Ukraine’s people - and we know that Ukraine’s people are its greatest resource.

SPIRIT is a testament to 100 Year Partnership and shared values between our two countries, including our commitment to meet the needs of women, children, people with disabilities, older people, veterans, and marginalised groups.

In the very worst of circumstances, Ukraine is pursuing an ambitious reform agenda to build a brighter, fairer and ‘barrier-free’ society.  In partnership with the Government of Ukraine, UNICEF and the World Bank, the SPIRIT programme will drive forward this vision and lay the foundations for a future where the well-being, dignity and potential of every Ukrainian is ensured”.

Oksana Zholnovych, Minister of Social Policy of Ukraine outlined:

“Human capital development is at the centre of Ukraine’s recovery. The SPIRIT programme represents a crucial step in building institutional capacity, strengthening the social protection system and supporting critical reforms to improve efficiency, effectiveness, and inclusion. We are grateful to our partners, the FCDO, World Bank, and UNICEF, for their support and shared commitment to fostering social cohesion, leaving no one behind”.

Munir Mammadzade, UNICEF Representative to Ukraine indicates:

“The SPIRIT programme is a critical investment in protecting and improving the lives of the most vulnerable, especially children and families in need across Ukraine. This initiative will further strengthen national systems and community-based services to nurture and maximize the country’s most important resource, its human capital, to drive inclusive and prosperous growth.

Bob Saum, World Bank Regional Country Director for Eastern Europe added:

Addressing social cohesion and inclusion, including meeting the needs of vulnerable populations will contribute to maximizing benefits of Ukraine’s post-war recovery economic growth. The SPIRIT program will help build institutional capacity to support veterans, people with disabilities, and other at-risk groups while advancing Ukraine’s EU integration goals”. Photo by UK Government, Wikimedia commons.