Lenders back govt reform on home buying and selling process: Imla – Mortgage Strategy

The Intermediary Mortgage Lenders Association (IMLA) has welcomed the government’s consultation on reforming the home buying and selling process.

The association describes the consultation as “a long-overdue opportunity to modernise one of the most outdated elements of the housing market”.

Imla highlights four areas of particular importance to lenders. These include reducing the number of failed property transactions.

It notes that around one in three transactions currently fall through, costing consumers and the economy hundreds of millions of pounds each year.

Another area to note is increasing clarity and reducing stress. The association suggests a better flow of information from the outset would mean fewer surprises late in the process.

Imla recognises harnessing technology as another area. It says that lenders have invested heavily in digitising their own processes, enabling faster approvals and smoother broker and customer journeys.

However, the association warns that progress will only be fully realised when the entire property chain modernises together.

Finally, it highlights raising professional standards as the fourth area.

The association strongly welcomed the proposal to introduce mandatory qualifications for estate agents and a new Code of Practice for property professionals.

IMLA executive director Kate Davies says mortgage lenders supported any initiative that would make transactions faster, clearer and less stressful for consumers while reducing wasted costs across the economy.

Davies comments: “Buying or selling a home is the most significant financial transaction most people will ever make — yet the system that underpins it has barely evolved in decades.”

“Far too many sales collapse unnecessarily, creating frustration for consumers and inefficiency for the industry. Every failed transaction is wasted time, money and emotional energy for borrowers, sellers and the many professionals involved.”

“Lenders welcome any reform that helps reduce these failures, introduces greater clarity and harnesses technology to deliver a smoother experience. The current process is ripe for change.”

Davies adds that reforming the process could also re-energise market activity and consumer confidence.

She explains: “The current system is so clunky and unpredictable that it can be genuinely demoralising for many would-be buyers. Some simply give up altogether, and that can’t be good for the housing market or the wider economy.”

“We need more movement at every level of the ladder, enabling people to enter the market, move up as their families grow and downsize when the time is right. A modern, reliable process would help unlock that natural mobility.”

Davies adds: “The government’s consultation is a chance to bring the property transaction process into the 21st century. Lenders stand ready to play their part in delivering a system that is faster, clearer, more consistent and more professional, for the benefit of consumers and the wider economy.”