The homebuying process is broken we need to fix it so Britain grows

Technology has transformed almost all touchpoints of life and society, while still providing us with the human interaction, we continue to crave.

Instant messaging apps have replaced handwritten letters, robotic surgery is no longer reserved for sci-fi, and in my world, digital banking is simply the base line. Technology is everywhere, we accept it, we value it, and a lot of the time, we depend on it.

That’s why it’s astounding that one of the biggest milestones in our lives – buying a home – has not seen the same transformational shift in process or the use of technology. The homebuying journey still operates within a framework designed a century ago, formalised in the Law of Property Act of 1925 - pre-dating the personal computer, the internet and the smart phone. It has failed to keep up with the times, and crucially, now it is failing to live up to its potential in driving economic growth for the UK with all the benefits that brings for UK citizens. This is increasingly concerning as the Government has put the property market at the centre of its plans for exactly that: growth.

In early 2025, it announced plans to modernise the homebuying process in a bid to tackle common challenges and delays that are exceedingly frustrating for all parties. Importantly, the critical need for digitalisation and data sharing across the sector was highlighted as key to making the homebuying process fit for the 21st century, but the scale of the challenge is largely underappreciated.

As it stands, the process is far too complicated, too slow, too paper-based, too costly and too often contributes to the fact that one in three property transactions fall through. Working with WPI Economics, our conservative calculations show just how big this issue has become and how ingrained the problems in the market are - every year there are over half a million failed transactions, costing the economy and consumers £1.5bn. This figure is alarmingly more than any previous estimates suggested.

But the impact is not just limited to failed transactions. As a result of the stress and emotional turmoil of the entire homebuying experience, people are simply putting it off or giving up altogether. 28% of consumers say they are less likely to move again after a disheartening experience of the process. The resulting housing misallocation reduces both labour force mobility and the number of owners able to downsize, as well as ultimately impacting the liquidity of the property market and locking thousands of would-be buyers out of the market altogether.

By contrast, a more streamlined process would make 88% of recent movers more likely to move again in the future.

But what should change?

Common digital infrastructure, processes and data are central to reform. We must expedite digitisation to connect stakeholders and streamline the user journey. We need to increase buyer confidence in the process, buyers should be provided with upfront information about a property before they begin the process, to help reduce fall throughs. And a system of sharing standardised open data among stakeholders - as we have successfully seen deployed with Open Banking - would mean all those involved in the process would be singing from the same hymn sheet. Additionally, a government-owned centralised property data system would drastically improve the speed of the conveyancing process.

Beyond digitisation, greater certainty in the chain is needed. Too frequently, gazumping and gazundering undermine transactions. Introducing disincentives in the right circumstances would reduce sales falling through.

Finally, and more broadly, it is critical that the Government takes a long-term view of housing market reform. Too frequently the short-term sugar rushes of policies such as Stamp Duty holidays have accelerated house prices rather than deliver sustainable growth. Building more housing stock is the only long-term solution that does not inflate house prices for the next generation, but this must be underpinned by an effective and efficient house buying process.

Technological advancements have transformed almost every aspect of our lives, from the lifesaving to the mundane. Yet the homebuying process remains largely untouched. We have the opportunity to transform home buying and selling in the UK for generations to come, creating a market that sets a global standard while delivering lasting value to both the economy and consumers. Now is the moment to seize it.

________________

David Morris is the Head of Homes at Santander UK

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

To contact us email opinion@lbc.co.uk