The government is set to digitalise property transaction data in a bid to cut delays and streamline the homebuying process.
Labour yesterday launched a 12-week initiative to establish clear rules on data sharing, ensuring information can flow seamlessly between conveyancers, lenders and other key parties involved in a sale.
The proposed changes aim to modernise what is often seen as a slow and outdated system, replacing paper-based or non-machine-readable documents with a digital framework that enables faster, more efficient transactions.
Millions of people are set to benefit from improvements to the way homes are bought and sold, saving them both time and money by helping stop property transactions from falling through.
CUT DELAYS
Under the plans government it will modernise the way the process works to bring down current delays of almost five months.
One of the key reasons the buying and selling process can be long and frustrating is a lack of digitalisation and join up in the sector, which is why the government is opening up key property information, ensuring this data can be shared between trusted professionals more easily, and driving forward plans for digital identity services to slash transaction times.
Fall throughs – which impact one in three transactions – cost people around £400 million a year.
Currently, fall throughs – which impact one in three transactions – cost people around £400 million a year, on top of the four million working days lost by conveyancers and estate agents alone which is equivalent to £1 billion.
CUMBERSOME PROCESS
Housing and Planning Minister Matthew Pennycook says: “We are streamlining the cumbersome home buying process so that it is fit for the 21st century, helping homebuyers save money, gain time and reduce stress while also cutting the number of house sales that fall through.
“Our modernisation of the system sits alongside further reforms to improve the lives of leasehold homeowners across the country, allowing them to more easily and cheaply take control of the buildings they live in and clamp down on unreasonable or extortionate charges.
“These reforms build on the government’s Plan for Change to deliver higher living standards and 1.5 million safe and decent homes in this Parliament, and our ongoing efforts to protect leaseholders suffering from unfair and unreasonable practices as we work to end the feudal leasehold system for good.”
PAPER-BASED
Currently, information such as building control and highways information is predominantly paper-based or recorded in non-machine-readable formats. On top of this, where data is available electronically, there are not established protocols for accessing, sharing and verifying that data which leads to more delays.
But under a fully digitalised home buying and selling process, the information key parties need – from mortgage companies to surveyors – will be within reach immediately, with the necessary identity checks carried out once. Clear information early on will mean there are no surprises late on in the transaction which might cause it to fall through, so instead the transaction is completed smoothly without unnecessary time, energy or money spent.
CONSUMNER VALUE
Nathan Emerson, Chief Executive of Propertymark, says: “We welcome plans to help speed up the buying and selling process via the proposal of making better use of technology.
“The housing sector will benefit enormously from digitisation, such commitment will ultimately bring vast consumer value and help streamline systems that have long needed progression.”
POSITIVE NEWS
Beth Rudolf, Director of Delivery for The Conveyancing Association, says: “Clearly, this announcement has the potential to be incredibly positive for those going through the home buying and selling process.
“We have been heavily involved in pushing forward the digital property data agenda and what greater provision can achieve.
“We believe this is not just about its use for home buying and selling, but it will provide far greater benefits across the lifecycle of property, enabling parties to have the right view of the property data whenever they transact or need to act, whether that is a remortgage, altering or finding a planning application, for letting purposes, or retrofitting to meet net zero targets.”
WIDER BENEFITS
And she adds: “What we want is a much more joined-up, digitally-enhanced process that reduces the stress of buying and moving for people by cutting down on the uncertainty, the frustrations, the wasted money, and the simple time spent waiting for all aspects to progress. We at the CA are very supportive of this announcement and will be working with the Government and all other stakeholders to make it a reality as soon as possible.”
