Major mortgage lenders, conveyancers and property technology providers are joining a new phase of industry testing aimed at reducing delays and improving the exchange of information during homebuying transactions.
The Centre for Finance, Innovation and Technology (CFIT) is moving its Open Property Coalition into an implementation phase, with participants set to test digital property identification, secure data sharing and the compatibility of existing industry systems.
The programme follows the publication of CFIT’s Open Property Roadmap earlier this year and comes as the government progresses reforms intended to make buying and selling homes more efficient.
HSBC UK, Lloyds Banking Group, NatWest, Connells Group, LMS, PEXA, Groundsure, OneID and TM Group are among the organisations taking part, alongside conveyancing bodies, technology businesses and other industry representatives.
Government departments, HM Land Registry and the Digital Property Market Steering Group (DPMSG) will monitor progress and consider the findings as part of wider efforts to modernise property transactions.
TESTING DIGITAL PROPERTY IDENTIFICATION
The next phase will examine whether information collected during a property transaction can be securely verified, shared and reused by different organisations without repeated checks or unnecessary duplication.
One priority will be testing Digital Property ID applications, with coalition members developing a prototype to establish how existing technical standards and systems can operate together.
The work will also consider the legal and commercial implications of greater data sharing, including questions of liability, assurance and the conditions under which organisations can rely on information supplied by other parties.
CFIT has divided the programme into three areas covering trust and legal requirements, product development, and the commercial incentives needed to encourage adoption across the property market.
Rather than introducing a separate set of industry standards, the coalition intends to build on existing initiatives, including the Smart Property Data Trust Framework Sandbox and the Smart Data Guidebook.
The findings will be used to identify obstacles to implementation and provide evidence for decisions about the future digital infrastructure supporting property transactions.
ROLE IN GOVERNMENT REFORMS
The programme will operate alongside the DPMSG, which coordinates industry involvement in the digital elements of the government’s Home Buying and Selling Reform programme.
While the steering group is responsible for strategic coordination, standards and governance, CFIT will provide a time-limited testing environment in which participating organisations can examine potential solutions.
The work is intended to complement the government’s recent response to its consultation on homebuying and selling reform, as well as recommendations made by the Housing, Communities and Local Government Select Committee.
Anna Wallace (pictured), chief executive of CFIT, said: “The breadth of industry support for the next phase of CFIT’s Open Property Coalition is a significant step forward.
“Today’s announcement reflects growing alignment between industry, government and the Digital Property Market Steering Group on what needs to change, and we now have a real opportunity to turn our ambition to create a digital and more efficient homebuying process into reality.”
LENDERS BACK GREATER DATA SHARING
Mortgage lenders are expected to play an important role in the testing because of their reliance on information from conveyancers, property professionals and other parties when assessing and completing transactions.
Brad Fordham, head of mortgage distribution & underwriting at NatWest, said: “Buying a home is one of the biggest financial decisions our customers make, but securing a mortgage is only one part of a much wider and often complex journey.
“Lenders rely on trusted information from across the property ecosystem, so there is a significant opportunity to use Smart Data and digital technology to make that information easier to verify and share securely.”
Travis Scholes, commercial director at LMS, said: “The foundations for a more connected homebuying process are already being established across the market.
“The opportunity now is to connect the organisations, expertise and infrastructure needed to drive adoption at scale.”
Over the coming months, coalition members will assess the results of practical testing and examine what would be required for successful approaches to be adopted more widely.
The programme will feed its findings into the work of the DPMSG and government, with the aim of establishing whether existing digital infrastructure can support more consistent information sharing throughout the homebuying process.
