Government-backed research has concluded that digitising the UK homebuying process could unlock billions of pounds in economic value, piling pressure on ministers to accelerate long-promised reforms to the way property transactions are handled.
A new report published earlier this week, Understanding the Costs and Benefits of Smart Data Use Cases, found that introducing Smart Data into the homebuying process could generate £14.1bn in net social value and add £2.06bn a year to UK GDP by 2043 – the highest economic benefit of any Smart Data proposal assessed.
The study estimates that Smart Data schemes across all sectors could create £71.2bn in net social value between 2028 and 2043, but ranks homebuying as the single most valuable use case, ahead of trade finance digitisation, green home upgrades and online consumer data reforms.
The findings will fuel growing frustration across the property industry over the pace of change to what many regard as one of the slowest and most inefficient transaction systems in the developed world.
OVERDUE REFORM
The Open Property Data Association (OPDA), which has been pushing for standardised digital property information, said the report should remove any doubt that reform is overdue.
Maria Harris (main picture), Chair of the OPDA, says that the figures show modernising the homebuying process is no longer optional.
“This report confirms that Smart Data in homebuying is one of the highest-value digital reforms available to the UK. By enabling secure, standardised and reusable property data, we can reduce delays, fall-throughs and inefficiencies – and unlock billions in economic growth.
“Government now has a clear mandate to prioritise Smart Data for homebuying. With the right policy support, we can build a faster, more transparent and more resilient property market that benefits consumers and the wider economy.”
REDUCE TRANSACTION FAILURES
The report says smarter use of property data could reduce transaction failures, cut costs for buyers and sellers, and speed up completions – long-standing problems that continue to frustrate agents, lenders and conveyancers.
Industry bodies are now urging government to prioritise digital infrastructure and adopt common data standards, warning that without reform the UK risks falling further behind other markets where property transactions are already largely digital.
