The process of buying a home is going digital – but does it suit everyone? Stephen Ward explains how everything from viewings to ID verification is being digitalised and examines the pros and cons
September marked the end of one of the busiest summers on record for the housing market as buyers raced to take advantage of the stamp duty holiday.
But even with the tax returning to pre-pandemic rates (on properties over £125,000) from 1 October, there is little sign of business slowing down.
As conveyancers strive to meet demand, however, one significant change brought about by Covid is helping to make the house moving process easier.
The digitisation of services may have been accelerated by the unprecedented restrictions they found themselves working under, but our regulated community tells us it’s one of the few positives and is definitely here to stay.
How does it work?
Prior to the pandemic, clients were required to produce physical evidence to prove who they were – usually a passport and bank statement or utility bill.
These days, a large number of firms are using digital services to confirm ID – online systems which check your personal details against records held by, for example, mobile phone providers, credit agencies, HM Passport Office or the DVLA. This is much more convenient and also much more secure than using paper.
HM Land Registry also changed the rules last year, allowing transfers of ownership of property, leases, mortgages and other property dealings to be signed electronically for the first time.
While witnesses can also sign the documents electronically, they are still required to be physically present – although there are plans in the pipeline for a virtual verification system for this too.
In the main though, the move to confirm identification and sign documents online does save valuable time and it enables social distancing too.
Will it catch on?
In the modern world, the very idea that something can’t be done online seems almost alien. And with the average time between putting in an offer and picking up the keys still standing at 14 weeks, anything that streamlines the process is a good thing, right?
Surprisingly, this is not the case for everyone.
Feedback from our community showed there had been little change in the demand for services to be offered online. That said, conveyancers should look to offer both and help aid consumer choice.
Landlords looking for properties to add to their portfolio may prefer to complete transactions as swiftly as possible online. For people buying their first or family home, the process is far more meaningful and part of that experience is signing on the dotted line, but consumer acceptance of electronic transactions is changing fast.
It’s also just a matter of getting used to a new way of doing things though and in the future, like shopping for groceries or booking a holiday, doing the majority online will likely become the new norm.
Choosing what’s best for you
With buying a house still considered to be one of life’s big stresses – as well as a major financial commitment – one of the most important factors to consider is your peace of mind.
Do you prefer the personal touch of face-to-face meetings or are you happy dealing with matters on email? Or a mix of both? Some firms have even introduced apps to let you track the progress of your case from the palm of your hand.
For first-time buyers particularly, it can be difficult to know what to look for and nothing beats good old-fashioned word of mouth. Ask family and friends who they used and what their experience was and check out reviews on reliable sites like Feefo and Trustpilot.
It’s worth noting that all property lawyers are required by law to clearly publish price, service and quality information on their websites so you know how much to budget for from the outset.
It’s also important to find someone who is regulated by one of the legal sector regulators – either The Council for Licensed Conveyancers or the Solicitors Regulation Authority.
Having a regulated professional – a requirement by any mortgage provider – will not only ensure that matters are
dealt with properly and any issues identified, but in the unlikely event that something does go wrong, it means you will be protected and have a clear means of redress.
If you want to know any more about the property buying and selling process, read the CLC’s guides on buying or selling your home.
Stephen Ward is director of strategy and external relations at the Council for Licensed Conveyancers
