The research identifies a series of flaws with the current system, including a susceptibility to delays that produce stress and dissatisfaction among buyers and sellers of property. The time taken between accepting an offer and exchanging contracts is slow by international standards and there is a high failure rate, with 28% of sales estimated to collapse after an offer has been accepted.
But better use of technology by lenders, including online mortgage applications and improvements in credit assessment techniques, are already speeding up the process, according to the CML. A survey of lenders conducted as part of the CML research shows that the average time to make a mortgage offer has been cut to 15 days, compared to 22 days when the Government undertook a review of the home-buying process in 1998.
Electronic conveyancing and the National Land Information Service will bring further improvements by providing online access to title deeds, contracts, searches and other key data. The research shows that within a few years these and other developments will lead to a significant narrowing of the gap between accepting an offer and exchanging contracts than the average of 62 days it took in 1998.
The CML’s Director General Michael Coogan said: “The Government is committed to legislate, but does it need to? Lenders and other professionals in the home-buying process can implement changes to improve it. There is a real opportunity – and a responsibility – to embrace innovation and technology to bring about a better service for everyone, based on the provision of more information for consumers earlier in the process. If the industry continues to take positive steps, the Government should not be in a hurry to intervene.”
