Reforms to the homeownership acquisition process could significantly increase property availability. A study by Jackson-Stops suggests that more than 260,000 owner-occupied homes could enter the market within a year, provided uncertainties regarding transaction times are reduced. According to the study, improved predictability of sale processes would enable owners to sell their properties more quickly and with greater confidence in market placement.
The estate agency Jackson-Stops estimates that over a three-year period, more than 700,000 owner-occupied homes could be released if confidence in the selling process increases significantly. Currently, the British property market is often characterised by long and unpredictable transaction durations, deterring many potential sellers from taking action. Optimising these procedures could therefore make a considerable contribution to easing the housing market.
Potential of Process Optimisation
Jackson-Stops' analysis highlights the direct effects of increased efficiency in property sales. If homeowners can rely on a quicker and more transparent process, this would significantly lower the inhibition threshold for selling. This particularly affects those who wish to sell their current home to acquire a new property and who currently fear the risks of a protracted or even failed transaction.
The proposed reforms could encompass various areas, from standardising documentation to introducing more binding timelines for the different phases of a property sale. Digital solutions and improved communication between the parties involved, including buyers, sellers, solicitors, and financial institutions, could also significantly contribute to reducing transaction times.
Outlook for the Property Market
The release of such a number of homes would have far-reaching consequences for the entire property market. Increased supply could contribute to price stabilisation and create more options for buyers, while simultaneously increasing market liquidity. This would not only benefit private households but could also generate positive impetus for the overall economy.
- —More than 260,000 homes could become available within 12 months.
- —Potentially over 700,000 homes within three years with increased confidence.
- —Shorter transaction times motivate owners to sell.
- —The market analysis was conducted by Jackson-Stops.
