Homebuying Reform Is Coming — Good News If You're a Contractor Buyer
The Point
MPs have called for sweeping reforms to the homebuying process in England, including earlier binding contracts and faster conveyancing timelines. For contractor buyers — who already face a more complex application process than PAYE employees — some of these changes could level the playing field. Here's what's being proposed and what it means for you now.
What the reforms actually propose
The core issue the reforms address is simple: England and Wales have notoriously high transaction fall-through rates. Estimates suggest 25–35% of property transactions in England collapse before completion. Nothing is binding until exchange of contracts — which can happen months after an offer is verbally accepted.
The proposals call for earlier legal commitment from both parties, faster conveyancing processes, and stricter timelines. The idea is to reduce the period where either the buyer or seller can walk away without penalty, and to speed up the entire process from offer to completion.
Other elements under consideration: standardised surveys and searches, faster local authority information, and reduced scope for renegotiation after survey results come back. The reforms essentially try to replicate faster processes that work in other countries — where transactions complete in weeks, not months.
Why contractor buyers get hit harder by the current system
PAYE buyers can often proceed quickly. A mortgage offer from a mainstream lender takes 1–2 weeks. Proof of income is straightforward — payslips and a call to the employer. The process is smooth.
Contractor buyers face a different timeline. Mortgage assessment takes longer because lenders need to verify day rate income, review contracts, sometimes scrutinise accounts. An Agreement in Principle (AIP) for a contractor can take 2–3 weeks, sometimes longer if multiple submissions are needed.
By the time a contractor has a confirmed mortgage offer and is ready to make an offer on a property, a PAYE buyer has already had their offer accepted and moved further down the chain. Estate agents and sellers sometimes favour PAYE buyers because they're perceived as "simpler" — even where the contractor has higher borrowing capacity and a stronger financial position.
When fall-throughs happen — and they do, often — contractors are disproportionately damaged. If a chain collapses, the contractor's mortgage process has to restart. A PAYE buyer can often move quickly to a different property with their offer still valid. A contractor loses momentum.
Earlier binding contracts would lock both parties in sooner, reducing the window where a seller can accept a higher offer or a chain can fall apart. For contractor buyers, this is a genuine advantage.
What to do now, before the reforms land
Reforms take time — if they happen, they'll be gradual. In the meantime, here's how contractor buyers can compete in the current system:
Get mortgage-ready before you start viewing. Don't fall in love with a property and then apply for a mortgage. Get an AIP from a contractor-specialist broker first. Yes, this takes a few weeks, but it makes you proceedable from day one. An AIP is valid for up to 6 months — by the time you find a property and make an offer, you're not waiting for mortgage approval.
Instruct a solicitor early, not after offer accepted. The moment you start seriously viewing, find a solicitor. A good one will start pulling information and searches immediately, shaving weeks off the process. The conveyancing industry is traditionally slow — but you don't have to be.
Be proceedable from day one. This means mortgage offer confirmed, solicitor instructed, funds available. It's the best defence against being gazumped or losing a property to a faster buyer.
Keep your accounts current. Lenders will ask for the latest accounts from your limited company. If they're 6 months old or incomplete, it slows verification. AutoBooks keeps your contractor accounts clean and current year-round — when a lender asks for them, there's no delay. It's not a gimmick; it's a genuine time-saver in the mortgage application process.
Clean accounts accelerate everything
One thing contractor buyers often miss: your company accounts are a material part of your mortgage application. Lenders use them to verify income, check for red flags, and build confidence in your financial position.
If your accounts are messy, incomplete, or delayed, the lender's verification process stalls. If they're clean and current, the lender moves fast. It's a small thing, but it compounds in a market where speed matters.
AutoBooks handles contractor accountancy specifically designed around mortgage applications. We know what lenders look for, we keep your accounts current, and we can provide them immediately when you need them. It's one less thing slowing down your purchase.
Clean accounts accelerate your mortgage application.
If you're planning to buy, get your limited company finances in order now. AutoBooks keeps contractor accounts clean and current year-round — no surprises, no delays when the lender asks for them.
Read our guide to contractor mortgages →