Latest News

Government to introduce ‘Reservation Agreement’ pilot

The Government is set to push ahead with plans to introduce a ‘reservation agreement’ system to help reduce the number of housing transactions that collapse each year.

The Ministry of Housing, Communities and Local Government began the second stage of research into the agreements after the Government confirmed the 10-month trial into the programme in the summer.

Under the current rules, an offer can be withdrawn up until contracts are exchanged on a property, which leaves many transactions exposed to a significant risk of falling through.

Each year, more than one-third of property sales in England and Wales fall through before contracts are exchanged, which has caused the Government to act.

The introduction of a legally binding agreement following the acceptance of an offer could mitigate the risk of a sale collapsing. It could also prevent gazumping and gazundering, which can cause complications and disagreements between the buying and selling parties during the property transaction.

As a part of the Government’s Call for Evidence on ‘How to Improve the Home Buying and Selling Process’, a number of initiatives are being researched, with a ‘reservation agreement’ forming a part of this, as well as more information upfront, such as through a seller’s pack.

Guy Gittins, Managing Director at Chestertons, said: “Fall-throughs are costly, frustrating and prevent people (from) getting on with their lives. We, therefore, support the move to try and reduce fall-throughs and increase both buyers’ and sellers’ confidence in the process by introducing a binding reservation agreement.

“Property transactions fall through far too frequently and this is due to a wide range of factors, including changes in personal or financial circumstances, changes of heart and disagreements over specific terms of the deal.”

For advice on matters relating to property law, contact our expert team today.

Share this article:Email this to someone
Share on Facebook
Tweet about this on Twitter
Share on LinkedIn
The following two tabs change content below.
Mander Hadley
Mander Hadley Solicitors is not only a long established firm, but is vibrant and successful, with a forward thinking approach.

Make an enquiry

What is your name?*

What is your post code?

What is your phone number?

What is your email address?*

I confirm that I am aged 16 years or over.*

Brief message

*Mandatory fields

I am happy to receive promotional information and news from Mander Hadley.

If you would like to see full details of our data practices please visit our Privacy Notice and if you have any questions please email