Home buying and selling consultation: Reform or just a HIP replacement?
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The UK home buying and selling process is often criticised for being long, complicated and frustrating, with around one in three transactions collapsing before completion.
The Government is looking to address this issue with what it calls the ‘biggest shake-up of the home buying system in history‘ outlined in its October 2025 Consultation Paper, “Home Buying and Selling Reform”.
Upfront property information
One of the key proposals outlined in the Consultation is a proposal that would require sellers to make certain information available to buyers at the same time as the agent’s property listing. This information would include title details, leasehold and service charge information (where applicable), EPC rating, council tax band, building safety data, standard searches, planning consents, flood risk data, a property condition assessment and clear floor plans.
Of course, we have been here before. Home Information Packs (HIPs) were introduced by the Labour Government in 2007, requiring sellers to provide a pack of property documents upfront. However, the cost burden to the seller, the inconsistent quality, and the lack of lender buy-in meant that they never quite hit the mark. HIPs were suspended in 2010 and abolished in 2012, leaving only the requirement for a seller to provide an EPC.
The increased availability and quality of digital information, and the ability to share that information in a timely and cost-effective manner, make the current proposals more likely to succeed than the ill-fated HIP. However, some of the problems encountered back in 2007 do still remain. Sellers may still be reluctant to invest considerable upfront costs before listing a property to provide the required information, including legal and other professional fees (for example when selling a complicated leasehold structure). Buyers may still question the quality and accuracy of the information provided.
Digital property logbooks and packs
Proposals for the introduction of digital property logbooks are more innovative, having been used successfully in France, where a digital logbook is required for all new build properties. The use of a digital logbook would allow property data to be stored, updated and reused for future transactions. This, together with the additional proposals encouraging search providers to “refresh” rather than renew searches at full cost, would make it simple and cost effective for homeowners to provide buyers with up-to-date information should they wish to sell.
Professionalising property agents
Proposals for mandatory qualifications and standards for those involved in the conveyancing process will be welcomed by most. Suggestions to let buyers and sellers rate professionals, and possibly each other, during a transaction (Uber or Airbnb style), could yield valuable feedback.
Binding conditional contracts
Another key proposal is the use of an optional binding conditional contract, or reservation agreement, to make transactions binding at an earlier stage, as is the practice in Scotland and the US. In both countries, significantly fewer transactions fall through because of gazumping and last-minute withdrawals. The success and adoption of conditional contracts would however be entirely dependent on the quality and accuracy of the up-front property information provided by the seller, and relied on by the buyer prior to the “early” exchange.
Potential impact
The consultation sets out some bold anticipated improvements, should the proposals be implemented. These include reducing transaction times by four weeks, halving the number of failed transactions, and saving consumers the costs associated with failed transactions (estimated at £800 per transaction). These potential improvements should be balanced against the estimated increased costs to sellers of £310 per transaction, in providing the additional up-front information.
The Government’s proposed reforms are underpinned by a strong digitalisation agenda, reflected in the emergence of new and innovative products. These products allow those involved in the conveyancing process to provide and share standardised data, monitor chain transactions, and share identity checks. The products also present an opportunity to use AI, where appropriate, to streamline enquiries and accelerate document drafting and reporting.
Whilst the consultation relates to residential property, the Government is keen to stress the “ripple effect” and potential benefits to the commercial property market, which largely relies on the same types of data and systems as the residential market.
The proposals outlined in the Consultation certainly echo the original aims of HIPs in looking to provide greater transparency and upfront information, but past pitfalls are acknowledged and addressed by the proposed use of appropriate digital tools and improved industry-wide standards. If implemented effectively, these measures could reinvigorate the conveyancing process and reduce consumer frustration. The Consultation is open until 21 December 2025 and comprises 30 straightforward questions. The responses, once reviewed, will be used to prepare a roadmap for change, to be published in 2026.
See the government page on the home buying and selling reform here.
