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Homebuyers will get upfront transparency about problems with properties on the market and the option of binding contracts, as part of government reforms to speed up sales and curb failed transactions.

The planned overhaul to the retail property market will increase the burden on sellers, and is intended to “end nasty surprises” that collapse sales at the last minute and cut the time it takes to buy a house.

“Buying a home should be a dream, not a nightmare,” said housing secretary Steve Reed.

The previous Labour government in 2007 enacted similar reforms by introducing home information packs, also with the goal of speeding up housing sales.

But the policy was reversed in 2010 by the Conservative-led coalition government after complaints from industry that it discouraged sellers from putting their homes on the market.

“This risks reinventing the last Labour government’s failed home information packs, which reduced the number of homes put on sale and duplicated costs across buyers and sellers,” said Paul Holmes, Tory shadow housing minister.

Under the plans out for consultation, sellers and estate agents would have to disclose data from searches and surveys when listing a home for sale so buyers were aware of potential planning problems or issues with the property such as damp.

They would also provide information about property chains to help buyers understand the risk of the purchase collapsing because of other linked transactions.

The government is also proposing mandatory qualifications for estate agents and publishing information about the records of agents and conveyancing lawyers, such as “speed and quality of service”.

Greater transparency would enable the use of binding contracts, which would halve the number of failed deals, the Ministry of Housing, Communities and Local Government added.

Currently buyers and sellers are not required to follow through with a deal even after an offer is made and accepted. The deal is typically only binding at a late stage, when final contracts are exchanged.

Estate agents and homebuyers have long complained that transactions can unravel at short notice after a buyer or seller pulls out despite months of negotiations between two parties.

The proposals “should be helpful and remove some of the challenges and uncertainty in the market”, said Neal Hudson, a housing analyst.

But they do not “fix the underlying issues of high rates and unaffordable house prices that are a drag on the market — especially in London and south of England”.

The proposed reforms are similar to the practice in the Scottish market, where deals are binding at an earlier stage in the process and where sellers are required to disclose more information upfront.

The government said it had not yet decided whether its reforms would apply only in England or across the UK.

Housing is a key focus for the Labour government, which is trying to meet its 1.5mn housebuilding target set out in its election manifesto.

But the pace of housebuilding, particularly in London, has been slow, prompting the government to try different approaches to jump-start the sluggish system.

Martin Samworth, chair of the Royal Institution of Chartered Surveyors, an industry body, welcomed the proposals, particularly digitalising aspects of the homebuying process.

“Speeding up the process while making sure the borrower is properly protected can only help the pace at which those transactions go through,” he said.

But he cautioned that mortgage availability, stamp duty and interest rates were also issues for homebuyers.