Why is buying and selling property in England such a painful process?

[FinanceLPlates]

There must be better systems. I think Scotland and the US both operate differently for example? I’m not sure how exactly, having only ever dealt with the English system.
The thought of endless delays, chain breakdowns, months of uncertainty is seriously putting me off going through it ever again. Let alone dubious leasehold conditions, weird obligations to some medieval former manor or parish, dodgy build quality…
How is property bought and sold elsewhere? Surely there must be a better system!

And why doesn’t the English system get reformed?

I've bought and sold 9 times under the American system. We don't have the concept of a chain. The steps:

1. house is for sale
2. buyers walk through
3. Realtors (estate agents) for both parties negotiate a contract, the exact format of which is determined by state law
4. contract is signed, buyer puts down thousands of dollars, called earnest money, to guarantee their willingness to perform under the contract
5. depending on the laws of the state, buyers have a short period of time, usually a few weeks, to get an inspection done and negotiate any repairs, etc. The exact length is determined by state law.
6. after the inspection period, buyers can only stop the sale if they are willing to forfeit their earnest money to the seller
7. the closing date arrives and documents are signed by both parties. At closing, the property must be empty and the keys already passed on to the lawyer or title company which is closing the sale. Legal possession by buyer takes place at the moment all the paperwork is signed at closing. Seller received their profit directly into their bank account the same day.

I have had the entire process take place in less than a month. The quickest was a sale in 2023. The house we sold was put on the market March 17, the contract was signed by both parties on March 18, and closing was April 12. And although it does occasionally happen, I have never had a sale or a buy not go through once a contract is signed.

Absolutely!
They could take a lot of stress out by making offers legally binding (on both sides), with set dates that survey must be done, mortgage must be applied for etc. There could be conditions, like 'upon satisfactory survey', but the exchange and completion date should be part of the negotiation.
Also, any agent should be able to show any property. At least online portals like Rightmove have made it easier to see what's on the market (my goodness registering at all agents within a certain area and constantly badgering them was a nightmare). This would mean the agent percentage would need to go up (as fee would be split between listing and showing agent), but if it makes the system easier I'd pay more. Plus agents should be licensed and all regulated.

@Seaside3 no one could pull out after exchange without consequences although those depend on the size of deposit. I think chains are much worse now as there is a lack of suitable property meaning that many won't risk loosing a home they are happy with and not being able to buy another. Which is a broader issue than the mechanism of sale. Its really interesting to hear about other systems although they do seem to put a lot of pressure and risk on the buyer to commit early. Its easy to forget the advantages of our system when frustrated with it.

The part of the Scottish system where the Home Report (survey) and seller's questionannaire must be available prior to marketing the property would improve things greatly. And surely not a difficult change to make.

As I recall, the government looked at changing to a similar system for England and Wales some years back, and concluded that it was 'too complicated' which doesn't seem very plausible.

Presumably, using the US system outlined above, the seller is likely to need to move into temporary accommodation if there is a gap between selling and buying.

That is what the chain system avoids.

There was a really interesting thread on here a few years ago talking about this. People who lived, or had lived, in various countries were outlining the buying and selling process there. The system in every other country mentioned was SO much more sensible and less stressful than England! 🙁

I used to watch US programmes like 'The Property Brothers' and it amazed me that at the end it was saying, '4 weeks later the Browns are in their new home,' and showing them all happily playing basketball in the front yard. Can it really be that simple to move in the States?

I am in the house I've lived in for 20 years, now without any DC, who have grown up and left home. I'm probably going to live here for ever, even once the mortgage is finally paid off, simply because I cannot face the huge stress of trying to move and downsize and find somewhere else to live.

If I'm not paying a mortgage I can afford the bills here. Why would I bother move? People who complain about old people living in 'family homes' can get stuffed. I can't face the hassle of moving from somewhere I like and can afford when the buying and selling process is such an utter nightmare. Much easier to just stay put, frankly.

@CranfordScones the home buyers report system failed because in this jurisdiction searches expire after 3 months so did not last long enough in this system. In Scotland they work better because the buyer commitment comes much earlier as it does in all the other jurisdictions discussed so far...

Honestly think that whichever political party promised to fix it would win a landslide. For starters:

• % of deposit paid on exchange and forfeited by the side which pulls out
• property information packs (like the Scottish ones) with all searches/EPCs etc to be complete before property goes on the market
• exchange of documents to be fully digitised

Well either that or the whole creaking system would fold, people are less and less keen to sell and aren't moving around like they used to at all. Kids stay at home and deficit of homes continues to grow. Also remember that the banks need to buy into the system and the fully digitised approach - it is quite digitised would need considerable investment. I don't disagree that substantial reform is needed but that would need to be very carefully done to avoid upsetting the whole apple cart. Post 2008 the answer was more responsible lending with bigger deposits. Arguably the turning point where many were locked out of owning housing permanently although that was not the intention.

It seems as simple as the US system in Canada when I have watched Property Brothers, find a house, make an offer and it’s all legal once offer is accepted they then they sell their own, no chains.

Does the US use bridging loans? So you sell you house and it needs to be empty before completion/closing. You can't close on your purchase until you have the money from your sale. Or where are you and your stuff going until your new place goes through? It does sound less stressful!

Everyone is right of course, the English system is an absolute nightmare and could surely be improved! Our last move we were in the middle of a hellish 7 property chain. We made it in the end after issues and delays and lots of stress, but I don't intend to get involved in a chain ever again!

I’ve bought and sold two houses in France, and several in England. I don’t think there is that much difference in terms of how it affects the buyer or seller, although there are some significant differences in the role of the EA and of the Notaire. A solicitor ie lawyer is not involved, and there is not usually a survey in the sense of the English surveyor, although if you need a mortgage the lender will value the property. The State regulated inspection of the house before it is put on the market is just a joke in my experience, most people just regard it as a way for the State to make money out of house sales ( the inspectors bid for their contrat from the state).

In France after exchange, though, there are legally ten days cooling off, during which either side can withdraw. People often have a Dix jours celebration as that’s when you have actually agreed! There is generally an expectation of three months between exchange and completion , though you can agree different terms .

The main difference is the degree of detail and agreement. At exchange and completion it is mandatory for both parties ( anyone who is an owner) to listen to the EA at exchange and then the Notaire at completion read out every page of the contract, which all parties sign on every page. At least this means that no one can claim they didn’t know something about the house they are buying. Thé Notaire is responsible for confirming the legal outline of the property , registering the owner and handling the transfer of the money. They can be very, very slow…..

You can opt out of the chain. I found the house I wanted and bought it with a bridging loan before I sold the house I was living in. Which, incidentally, sold the same day I put it on the market. I suspect that not having a chain helped.

@focacciamuffin that is an interesting approach, quite a lot of risk taken on by you that the sale wouldn't complete but it paid off. I do think it's beneficial to consider the passing of risk as a factor more when critiquing the system. Often cherry picking certain elements like quite completion but not necessarily the buyer's early commitment in those systems can be unrealistic. I still think the elephant in the room is housing supply and demand as well as the cost of housing relative to income and how highly geared those properties are. This is what is driving the chains which the system was never designed to deal with.

@CountryCob Agreed. It was but the market was buoyant at the time and prices were rising fast.

I could have done it the other way round. Sold first and then moved to rented accommodation while I looked for somewhere to buy. It would probably have cost more overall than the interest on the bridging loan.