Lenders support government reforms to home buying and selling process: Imla – Mortgage Strategy
The Mortgage Brokers Association (IMLA) welcomes the Government’s consultation on reforms to the home buying and selling process.
The association described the consultation as “a long overdue opportunity to modernize one of the most outdated elements of the property market”.
Imra highlighted four areas of particular importance to lenders. These include reducing the number of failed property transactions.
The report states that around a third of transactions currently fail, costing consumers and the economy hundreds of millions of pounds each year.
Another aspect to look out for is increasing clarity and reducing stress. Better information flow from the start means fewer surprises later in the process, the association said.
Imla believes leveraging technology is another area. Lenders have invested heavily in digitizing their own processes, resulting in faster approvals and a smoother broker and customer journey, the report said.
But the association warned This progress can only be fully realized when the entire property chain is modernized together.
Finally, the fourth aspect highlights improving professional standards.
The association strongly welcomes proposals to introduce mandatory qualifications for estate agents and a new code of practice for property professionals.
IMLA executive director Kate Davies said mortgage lenders supported any initiative that would make transactions faster and clearer, reducing stress for consumers while reducing wasteful costs across the economy.
Davis commented: “Buying or selling a home is the most important financial transaction most people will ever make, yet the systems that underpin it have barely evolved in decades.”
“Too many sales collapse unnecessarily, creating frustration for consumers and inefficiencies in the industry. For borrowers, sellers and the many professionals involved, each failed transaction is a waste of time, money and emotional energy.”
“Lenders welcome any reforms that help reduce these failures, introduce greater transparency and leverage technology to deliver a smoother experience. Current processes are ripe for change.”
Davis added that the reform process could also revive market activity and consumer confidence.
She explained: “The current system is so unwieldy and unpredictable that it can be really demoralizing for many potential buyers. Some simply give up altogether, which is not a good thing for the housing market or the wider economy.”
“We need more mobility at all levels of the ladder, allowing people to enter the market, move up as their family grows, and downsize when the time comes. A modern, reliable process will help unlock this natural mobility.”
Davies added: “The government’s consultation is an opportunity to bring the property transaction process into the 21st century. Lenders stand ready to play their part in delivering a faster, clearer, more consistent and professional system to the benefit of consumers and the wider economy.”
