Where Scotland goes, the rest of the UK follows

David J Alexander says adopting Scottish ways when buying and selling property makes sense for England and Wales.

The news that the Westminster government is going to introduce new legislation to simplify the buying and selling of homes is long overdue. The current system in England and Wales is fraught with difficulties, delays and unnecessary costs so resolving any of those issues will help home buyers and sellers enormously. 

The fact that the proposals broadly replicate the Scottish system provides a useful model for them to follow and will also broadly unify the property market across the UK. The lessons to learn from the Scottish system are many and there is data to prove that the housing market north of the Border is quicker, less costly in survey fees, and more effectively protects buyer and seller. The new plan for England and Wales is to make offers legally binding at an earlier stage, ensure sellers provide and pay for information on the property, end gazumping and establish higher standards for estate agents who will be more closely involved in all aspects of the sale.  

All these points already exist in Scotland. At present in England and Wales a sale is only legally binding after the exchange of contracts. In Scotland most sales are conducted by estate agents that also provide conveyancing services which have strict operational rules. Once a seller has formally accepted an offer the agent cannot accept a higher one from another buyer. After the acceptance of an offer a final legal letter is issued and if either party 
withdraws after this then they can sue. 

Scottish sellers must provide and pay for a home report which includes a survey and an energy performance certificate. The result is that fewer sales fall through and the average number of days to complete is shorter. 

There is also less financial cost in the purchasing and selling process. Before the introduction of the Home Report multiple surveys would be ordered for the same property and, if buyers were interested in several properties, it 
could cost them thousands of pounds. 

So, there is an existing system in operation which can be repeated in England and Wales, there is data and experience of the pitfalls to avoid, and there are regulatory and legislative precedents in place to utilise as a model for this new arrangement. 

What is missing in all of this is a sense of urgency. The housing market is slowing a lot more in England and Wales than in Scotland and these changes would go some way to giving the market a boost. And yet, for some reason, 
these changes have been pencilled in for a bill to go before MPS in 2029.  

Why the delay? There can’t be any MPS who won’t agree to these changes. The housing sector largely welcomes these proposals, and most estate agents will be delighted to have a simpler, more cost effective and efficient 
system in play. 

Obviously, this legislation requires proper consultation but there should be more urgency in introducing this legislation to support the housing market in the immediate future. 

Why is this important for Scotland? Because markets don’t exist in isolation and home buyers move anywhere in the UK. The more the buying and selling process can be unified the stronger the market will be for everybody.