The Intermediary – June 2025 - Flipbook - Page 85
T E C H N O L O GY
Opinion
Future of
digital property
transactions
D
espite what all
the naysayers and
pessimists might
say, the UK property
market has continued
to make progress in
the last few years. Recent data from
Smoove, part of the UK PEXA Group,
shows that the whole home buying
and selling process has improved:
instructions increased by 32% in 2024
and fall-through rates have dropped.
Transactions are also being processed
more quickly and efficiently, with
completion times down 9% between
2022 and 2024.
We should celebrate this. It will
be no surprise to this readership that
such improvements are the result of a
significant amount of hard work and
commitment from all stakeholders.
On top of the work of conveyancers,
lenders, estate agents and brokers,
third-party tech providers and
industry bodies such as the Open
Property Data Association (OPDA)
are striving to improve outcomes by
working with the industry to foster
a new era of efficiency, transparency
and innovation.
That said, there is still a very long
way to go. The level of uncertainty
in the property transaction journey
remains too high, given that, for most
people, it’s their biggest financial
decision. Time taken to complete is
still far longer than consumers expect,
and the same research from Smoove
shows that this is a primary concern,
with 51% of respondents who had
bought a house in the last year stating
they would prefer the process to take
half the time than cost half as much.
Clearly, there is work to be done
to bring the market in line with
consumer expectations and reduce
stress and uncertainty, both for them
and for their advisers.
It’s not just consumers and market
professionals that will benefit – geing
the housing market moving has the
potential to drive the UK’s economic
recovery, so it’s natural that there is
a vested interest from Government
bodies, too.
Building on initial progress and
reaching a point where the transaction
process is seamless and efficient is not
all that far away if we leverage the
right technology.
Creating a reality
PEXA recently completed the UK’s
first fully digital property purchase
in partnership with Hinckley and
Rugby Building Society and Muve.
It was processed through PEXA Pay,
the seventh net selement payment
scheme to clear through the Bank
of England, which enabled the
selement of funds to happen almost
simultaneously with the lodgement of
title with HM Land Registry.
With technology now able to
automate almost all the stages of the
process, remove duplication of data
entry and release funds and secure
lodgement when certain conditions
are met, the benefits are enormous.
For consumers, this creates faster,
more transparent transactions
that drastically reduce stress and
uncertainty. In turn, brokers benefit
from delivering beer outcomes and
doing so more quickly and efficiently,
which also means they can benefit
from more work with the associated
upli in revenue.
Lenders benefit from streamlined
processes, while secure payment
systems designed specifically for
this purpose reduce the reliance on
traditional banking systems and
minimise the risk of errors or delays.
Conveyancers see their administrative
burden drastically reduced and
JOE PEPPER
is UK CEO at PEXA Group
increased profitability – the lessening
risk of fraud reduces their insurance
costs and operational overheads, while
automation allows them to handle a
higher volume of cases and focus on
delivering the right levels of service
and experience to the customer.
This change is crucial if the industry
is going to be able to support the
Government’s growth ambitions for
the UK housing market.
Naturally, all market participants
must embrace this innovation if this
technology is going to pave the way for
a more modern and efficient property
market, but this is certainly not an
issue judging by the level of positive
support, interest and forthcoming
collaboration PEXA has seen
throughout the journey to the first
digital transaction.
The level of interest following
the Smoove conference in May,
and the future launch of the full
sale and purchase proposition, are
testament to that.
None of this is speculation. The
evidence of the benefits for the whole
market can be seen in other similar
legal jurisdictions, such as Australia.
The progress PEXA has made so far,
along with the completion of the UK’s
first fully digital property transaction,
shows that the future of the market is
very bright indeed. While the laer
was undertaken in a trial phase, it
marks a turning point in the evolution
of the property market and lays the
foundation for the future of property
transactions in the UK.
With continued collaboration and
investment, the property market is
poised to enter a new era of efficiency,
security, and modernisation. ●
June 2025 | The Intermediary
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