New digital processes are speeding up the homebuying process and making it safer. But how does it work for buyers and sellers and how will it develop? Stephen Ward explains
Anyone who has bought or sold a home in recent years will know the process has become lengthy.
In fact, earlier this year, Home Sale Pack analysed the average time it takes to sell a home in ten of the world’s busiest housing markets. According to their research, the average timeline in the UK is 183 days or six months.
So, what is being done to help streamline this and make it a more efficient process?
You will undoubtedly have heard of digital ID. The Covid-19 pandemic did much to move the industry forward at speed in this regard, but there is still further to go.
What’s being done to help home buying ‘go digital’?
It is two years since the government introduced digital ID as an accepted form of identity.
HM Land Registry’s rules have also changed in the last couple of years and they now have the capability to allow transfers of ownership of property, leases, mortgages and other property dealings to be signed electronically.
Witnesses are also able to now sign electronically as well, although they do need to be in the same room as the person they are witnessing.
With effect from 15 July this year, HM Land Registry removed the requirement that all conveyancers acting in a transaction agree to the use of electronic signatures as this was slowing adoption of new tools and processes that deliver benefits to clients and conveyancers.
This coordination across the industry has allowed significant inroads to be made in streamlining what was once a fairly disjointed process. And of course, streamlining leads to greater time efficiencies, speeding up the process for both sellers and buyers.
How do digital services work for homebuyers in practice?
Until recently, proving your identity involved physically presenting yourself in front of your conveyancer with documents like your passport, bank statements, and utility bills.
While some people still prefer this method, most firms will now use digital services to verify identities.
These online systems cross-check your personal details against records from mobile phone providers, credit agencies, HM Passport Office, or the DVLA. This digital process is not only more convenient but also more secure than handling physical documents.
It also provides greater efficiency as digital identity checks can be completed within minutes, whereas manual document processing can take days or weeks. Additionally, these checks can be performed remotely, providing greater flexibility in selecting a conveyancer.
Digital identity tools utilise various technologies, including:
- Biometric verification: Techniques such as facial recognition or fingerprint scanning.
- Liveness tests: Technology to confirm the genuine presence of a user.
- Cryptographic checks: Ensuring that only the sender and recipient can view the messages, enhancing security.
This minimises the chance of human error and allows information to be encrypted and stored digitally, reducing the risks associated with physical document storage and management.
Additionally, many firms now provide secure portals for document uploads and reviews, offering significantly more security than email.
These portals aid in verifying identities and the source of funds from buyers, thereby expediting mortgage offers as lenders can access the necessary information directly.
Portals also enable clients to track the progress of their property transactions, indicating the stages towards exchange and completion. This feature reduces the time conveyancers spend updating clients, allowing them to focus on efficiently completing transactions.
Choosing a conveyancer – checking digital credentials
While digital identity checks are quickly becoming the norm in legal services, just as in other sectors such as banking, and the vast majority of CLC-regulated conveyancers use digital ID tools, manual ID verification still has a place in certain circumstances. For example, where a client is unable or unwilling to use digital tools. As such, conveyancers should be comfortable using both.
You can check for details of the onboarding process on a conveyancer’s website or ask them direct.
The most important consideration when choosing a conveyancer, however, remains that they are regulated to ensure you are protected and can seek redress should anything go wrong.
Practices regulated by the CLC have our badge displayed prominently on their websites which, when clicked on, will take people to our site and confirm they are genuinely regulated by us.
You can find a list of CLC-regulated conveyancers as well as guides to buying and selling a property here.
Stephen Ward is director of strategy and external relations at the Council for Licensed Conveyancers
