Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Concerns Raised Over Estate Agent Power in Homebuying Reform Plans

The government’s proposed overhaul of the homebuying process has been welcomed by some in the property industry as a way to address delays and inefficiencies. However, concerns have been raised that the reforms could give estate agents too much influence over key parts of the transaction process.

Rob Houghton, founder and chief executive of home-moving comparison site reallymoving, warned that the plans risk concentrating control of upfront services such as conveyancing and surveys in the hands of estate agents unless strong safeguards are introduced. Houghton supports greater transparency and earlier information sharing, but argues that the reforms could encourage preferred provider arrangements, inflated pricing, and opaque referral fee structures.

Houghton believes the proposed Code of Practice for estate agents must include clear protections to ensure buyers are made fully aware of all available options when choosing a conveyancer or surveyor. He warned that without greater transparency, the reforms could shift the balance of power within the homebuying process rather than simply making it more efficient.

Houghton also highlighted the potential impact on the surveying sector. He noted that only around 20% of homebuyers currently commission a detailed survey, with many relying solely on their lender’s valuation. Under the proposed reforms, sellers would be required to provide a survey as part of the sales pack. Houghton questioned whether buyers would always be willing to rely on a seller-commissioned report, suggesting that some may still choose to instruct their own surveyor or seek a more detailed inspection. He warned this could lead to a substantial increase in demand for surveying services, creating capacity challenges for the sector.

Stephen Larcombe, founder of the Property Lawyers Alliance, also voiced strong opposition to the proposed reforms. Larcombe questioned both the substance and timing of the government’s plans and was critical of the consultation process that preceded the reforms.