The Property Ombudsman has welcomed the UK government’s recent proposals aimed at increasing transparency in the home-buying process. The reforms seek to clarify the information estate agents must disclose during property sales, addressing longstanding issues that have contributed to transaction failures and consumer dissatisfaction.
In 2024, the Property Ombudsman investigated 617 cases where consumers felt that material information—details that could influence their decision to purchase—was not adequately disclosed by estate agents. This underscores the need for clearer guidelines and practices within the industry.
The Ministry of Housing, Communities and Local Government launched a consultation on 6 October 2025, inviting feedback on proposed reforms. These include mandating the upfront provision of vital property information, such as condition reports, leasehold fees, and planning data, to reduce the risk of failed transactions and associated costs. Currently, approximately one-third of property transactions fail, resulting in an estimated £400m in wasted costs annually.
The consultation also explores the introduction of binding pre-contract agreements and the possibility of requiring estate agents to disclose their track records and qualifications. These measures aim to enhance consumer confidence and streamline the home-buying process.
The Property Ombudsman continues to advocate for reforms that improve transparency and accountability in the property sector, ensuring that consumers are well-informed and protected throughout their home-buying journey.
Property Ombudsman Lesley Horton said: “We welcome any moves to make such an important and complex transaction clearer for consumers. Speaking to businesses, the industry is also supportive of clear guidance which is explicit about what information agents and sellers must disclose.
“Our casework shows that hundreds of buyers and sellers are falling foul of inconsistent practice every year, resulting in added costs and aborted sales.”
Issues not disclosed during purchases included the condition/dimensions of a building or land, flood risk, restrictive covenants, utilities supply, access rights, service charges and planning permissions. Examples include an investment property misrepresented and a fire damaged property sold without warning. The Government consultation runs until 29 December 2025.
Number of information-related casework breaches of the Code of Practice for Residential Estate Agents in 2024 (Code paragraph reference):
• Material information: Pictorial 31, Verbal 74, Written 242 (paragraph 7i)
• Particulars Agreed with Seller: 180 (paragraph 7j)
• Leasehold: Years Remaining 4, Restrictions or Covenants 23, Tenure 13, Circumstance/Event 3, Event fees 1, ground rent 5, Other Fees/Charges 3, Service charges 17 (paragraph 7k)
• Liability of incorrect information 14 (paragraph 7m)
• Marketing – legal, decent, honest and truthful 7 (paragraph 7n)
Read the orginal article: https://propertyindustryeye.com/property-ombudsman-backs-government-plans-to-boost-estate-agent-transparency/
