A UK initiative to introduce reusable digital identity verification in the property sector has been put on hold, highlighting growing industry frustration with the government’s digital identity strategy.
Organizers of the MyIdentity project say that “confidence has dropped dramatically” in the government and advised companies in the real estate industry to reconsider investing in digital ID systems until “clear regulation and legislation” is available.
MyIdentity was due to simplify property transactions by enabling buyers and sellers to conduct identity verification once, rather than multiple times, with information shared with estate agents, mortgage providers, and other parties in line with the UK’s Digital Identities and Attributes Framework (DIATF).
The project organizers, however, have informed the government that they are withdrawing their support due to “repeated delays and false starts in progressing a coherent identity strategy,” Computer Weekly reports.
“We are putting all activity on digital ID in the property sector on hold,” says Stuart Young, managing director of Etive, the project’s technology supplier. “We’re not convinced that it will work, as it provides no consumer benefit and, by default, no real sector benefit.”
MyIdentity received funding in 2020 from Innovate UK to create a digital identity trust scheme for the property sector. The team worked with 115 organizations and government departments on standards for customer identity verification and Anti-Money Laundering checks in the residential property sector. The scheme was trialed in 2021 across 11 locations in the UK.
“This is not a decision that has been made lightly,” says Young. “Following extensive work over the last year or so, it is clear that the people who work on the coalface of property are not convinced of what government is trying to do. In fact, confidence has dropped dramatically. Plus, the business case just doesn’t seem to be there.”
The setback comes as the UK property sector attempts a broader transition toward digital transactions built around reusable digital identities, interoperable data sharing and digital property records. Members of the industry gathered within the Centre for Finance, Innovation and Technology’s (CFIT) Open Property initiative have proposed a Digital Property ID that would serve as an authoritative record and single source of truth for buyers, sellers and service providers.
The digitalization process has been slow: The use of electronic signatures, for instance, remains very low at the His Majesty’s Land Registry (HMLR), with only two businesses submitting Qualified Electronic Signatures (QES) since HMLR enabled the capability last August.
The UK government has been encouraging the adoption of digital ID schemes in different industries. But their introduction has been marred by confusion and political instability.
The Labor government has watered down its own efforts to bring a single digital ID for all UK citizens, prompting the Home Affairs Select Committee to criticize the cabinet for a lack of robust policy development.
“For the government to try to introduce digital identity, which is only guidance and voluntary, makes it a tough sell for companies that have other shifting business priorities to deal with,” says Etive’s Young.
The pause highlights a broader challenge facing the UK’s digital identity ambitions: technology and standards alone may not be enough without clear regulation, market incentives and consumer demand.
Article Topics
digital government | identity verification | MyIdentity | real estate | reusable digital ID | UK digital ID
