The government has unveiled major housing market reform plans which will aim to cut costs, reduce delays and halve failed sales.

Housing Secretary Steve Reed said the changes would “fix the broken system” and put more money “back into working people’s pockets”.

Hundreds of thousands of families and first-time buyers could benefit from the reforms, in what the government claims would be the biggest house buying shakeup in decades.

The overhaul could save first-time buyers an average of £710 and cut up to four weeks off the typical property transaction timeline, according to the government.

Those in the middle of a chain could also potentially gain a net saving of £400 as a result of the increased costs from selling being outweighed by lower buying expenses.

The consultation also draws on other jurisdictions, including the Scottish system where there is more upfront information and earlier binding contracts.

Under the new proposals, sellers and estate agents will be legally required to provide key information about a property up front.

This will include being up front about the condition of the home, any leasehold costs, and details of property chains.

The government says this transparency will reduce the risk of deals collapsing late in the process and improve confidence among buyers, particularly those purchasing a home for the first time.

Binding contracts may also be introduced to prevent parties from walking away late in the deal, a move intended to halve the number of failed transactions, which currently cost the UK economy an estimated £1.5bn a year.

“Buying a home should be a dream, not a nightmare,” said Reed. “Our reforms will fix the broken system so hardworking people can focus on the next chapter of their lives.”

The reforms will also aim to boost professional standards across the housing sector.

A new mandatory Code of Practice for estate agents and conveyancers is being proposed, along with the introduction of side-by-side performance data to help buyers choose trusted professionals based on expertise and track record.

The government says a full roadmap for the changes will be published in the new year, forming part of its broader housing strategy, which includes a pledge to build 1.5 million new homes.

Rightmove chief executive Johan Svanstrom said: “We welcome the announcement today aiming to drive forward that much needed change and modernisation.”

Adding: “The home-moving process involves many fragmented parts, and there’s simply too much uncertainty and costs along the way. Speed, connected data and stakeholder simplicity should be key goals.”

Paul Whitehead chief executive at Zoopla said: “We look forward to working closely with government and the wider industry to modernise the homebuying process, so that buyers are given certainty earlier and to help reduce any unnecessary costs.”