Inspired by a recent Property Investor Today article, “Timescale Too Long for Homebuying Reforms”.
The government wants to speed up the homebuying process through digital tools, sales packs and earlier legal commitments. The aim is to reduce delays, cut failed transactions and make buying a home less stressful. Few would argue against that. The debate, however, seems to focus on the wrong issue. Industry figures are arguing that the reforms should be introduced sooner, while the government says implementation will take time. But both sides are concentrating on the process rather than the market itself. The real problem is not that property transactions take too long. The real problem is that there are fewer transactions happening in the first place. Affordability remains stretched. Borrowing costs are higher than they were a few years ago. Economic uncertainty has made buyers and sellers more cautious. Many people who might have moved are choosing to stay where they are. In that environment, reducing a transaction from sixteen weeks to twelve weeks may be helpful, but it is unlikely to transform the market.
A faster process does not create confidence. It does not improve affordability. It does not encourage people to move if they are worried about the wider economy. That is why this debate feels incomplete. Improving the mechanics of buying and selling homes is sensible. But it should not be mistaken for fixing the housing market itself. Before arguing about how quickly these reforms should be introduced, policymakers should focus on the bigger question: why are so many potential buyers and sellers sitting on the sidelines? A healthy property market depends on confidence, affordability and activity. Fix those issues first, and a faster buying process becomes a welcome improvement.
Focus only on speeding up the paperwork, and we risk treating the symptoms while ignoring the cause
©Michele Monticello https://www.michelemonticello.com/