Labour's home buying shake-up looks familiar - but will it make a difference?

Under the new proposals, sellers must provide key details about a property upfront - and binding contracts could stop either buyer or seller from walking away late in the process.

On paper, the new Material Information scheme is a win-win. Less stress and less money can surely only be a good thing.

House sales falling through are a daily occurrence - and that can lead to chaos for both buyers and sellers, and severely impact anyone and everyone along a chain.

Almost a third of agreed sales still collapse before completion; that’s time, money and hope wasted for thousands of people each year.

The government’s new scheme could prove a helpful step on the path towards the end of gazumping in England and Wales - a painful practice almost non-existent in Scotland, where a higher offer is made even after a sale has been accepted.

Purplebricks’ data shows a clear contrast north of the border in Scotland, where sellers must provide a Home Report, a legal document comprising a survey, a questionnaire (including details on parking and council tax), and an energy report.

This legal framework requires earlier commitment from both parties, meaning listing-to-completion rates are around 30 to 40% higher in Scotland than in England and Wales.

Ultimately, transparency and certainty mean Scots know where they stand much sooner in the process, reducing the risk of heartbreak.

So, a system in England and Wales that mirrors the successes in Scotland would be roundly welcomed by all.

However, if this all sounds familiar to people south of the border, it should. Because we’ve been here before, remember HIPS?

Home Improvement Packs were introduced in England and Wales by the Labour government in 2007 with the very intention of speeding up the house-selling process. But the opposite proved to be the case.

The packs – costing sellers up to £350 – were scrapped by the 2010 Coalition Government because they were bureaucratic, expensive and ineffective.

They ended up putting people off listing their homes and therefore failed to do what they were supposed to do in the first place, which was to improve the housing transaction process.

So, what’s so different about the government’s new Material Information scheme? Well, 15 years after the last scheme was scrapped, we have a new name.

But estate agents already need to disclose so-called ‘Material information’ as mandated under the Consumer Protection from Unfair Trading Act 2008, so there’s little new here.

Anything that truly helps the consumer and speeds up or simplifies the home-buying process is a good thing for both consumers and businesses.

Digitisation and proposed market changes can be good things. However, the proof will be in the pudding of the reforms and how they work. The government needs to make sure it actually helps customers rather than hindering them with another well-meaning big idea.

But, despite the best of intentions, I fear this latest scheme risks being another costly exercise that fails to achieve what it set out to do, just like the HIPS.

That is why Purplebricks launched our Purple Pact on October 1. By asking buyers to make a small upfront commitment once an offer is accepted, we create a similar level of confidence and reduce the risk of last-minute withdrawals.

It’s still early days, but interest from both buyers and sellers has been incredibly positive. As the industry evolves, we’ll continue to refine the Purple Pact and work with partners to deliver a faster, fairer, and more modern home-moving process across the UK.

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Andrew Harrison is Chairman of Purplebricks.

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