Lloyds Banking Group, Nationwide, NatWest – along with Rightmove – have announced a strategic investment in Coadjute, a prominent PropTech business.
This is the first time that the UK’s three largest mortgage providers have come together to fund a PropTech and the announcement is the latest in a series of high-profile activities by Coadjute – last year it struck a collaboration with the Bank of England, HM Land Registry, and the Bank of International Settlements on Project Meridian, to streamline and digitise some property sales processes.
Lloyds Banking Group, as lead investment partner in the latest fund-raise for the company, has invested £3m as part of a £10million funding round to support Coadjute’s long-term ambition to digitise the UK housing market and offer buyers a one-stop shop for the process.
Rightmove analysis shows that it takes an average of five and a half months from a seller accepting an offer until the transaction completes.: this is due, claims the portal, to “disconnected parties, manual processes, and closed data.”
Coadjute says it’s on a mission to transform this process and bring agents, conveyancers, lenders, buyers and sellers together onto a single network where all parties are verified, and data can be shared securely in a standardised way. This requires all key information in the process – from deeds, to digital identity, to financial transactions – to be standardised and digitised.
The new funding will be used to power Coadjute’s national roll-out and expand the scope of the network to include mortgage brokers and lenders. It takes the total investment in Coadjute since its launch in 2018 to £23m.
Chief executive Dan Salmons says: “We’re delighted that the Coadjute network is now being backed by the biggest players in the UK property market, enabling us to further expand our offering and roll out to more home movers and the professionals that serve them. Together with the estate agents, conveyancers and brokers joining the network, we hope to transform the experience of moving home in the UK, making it quicker, easier and safer for everyone in the future”
And Esther Dijkstra, managing director of Intermediaries at Lloyds Banking Group, adds: “As the UK’s largest mortgage lender we know buying a home is incredibly rewarding, but it can also be stressful and complicated, particularly if it’s the first time you’ve bought a home. To play our part in making things as easy as possible for home buyers, we’ve invested £3 million in Coadjute, who are transforming the house buying process by developing technology which brings everyone involved together securely, so homes can change hands smoothly and quickly and people can start enjoying their new home as soon as possible.”
Henry Jordan, Nationwide’s director of home, comments: “Buying a home is one of the most complex and stressful things that people will do in their lifetime. The homebuying process needs streamlining into a single, integrated journey for the benefit of consumers and industry participants alike. We’re investing in Coadjute because we believe its technology has the potential to achieve this and be a game changer for the property industry.”
And Miguel Sard – managing director of One Bank mortgages at NatWest – states: “As a key supporter of the UK housing market, we’re pleased to be supporting Coadjute and delivering clear, practical benefits for homebuyers by making buying and selling homes easier for all parties. We’re continuing to look at innovative ways that we can make it faster and more straightforward for people to own a home.”
