Government pursues digitalisation drive as part of plans to streamline conveyancing process
The Ministry of Housing, Communities and Local Government (MHCLG) has unveiled plans to modernise the way the conveyancing process works, in order to bring down current delays of almost five months and cut 'fall-throughs'.
The Ministry said: “One of the key reasons the buying and selling process can be long and frustrating is a lack of digitalisation and join up in the sector, which is why the government is opening up key property information, ensuring this data can be shared between trusted professionals more easily, and driving forward plans for digital identity services to slash transaction times.”
It added: “By making information available at people’s fingertips, it will be far less likely for surprises to be encountered later on in the process. This will make it easier for people to get onto the housing ladder, reduce the requirement to share ID in-person in the long-term, and decrease the number of transactions collapsing.”
The MHCLG noted that, currently, information such as building control and highways information is predominantly paper-based or recorded in non-machine-readable formats. “On top of this, where data is available electronically, there are not established protocols for accessing, sharing and verifying that data which leads to more delays.”
The Ministry said that under a fully digitalised home buying and selling process, the information key parties need – from mortgage companies to surveyors – will be within reach immediately, with the necessary identity checks carried out once.
“Clear information early on will mean there are no surprises late on in the transaction which might cause it to fall through, so instead the transaction is completed smoothly without unnecessary time, energy or money spent,” the MHCLG said.
The Ministry has launched a 12-week project to identify the design and implementation of agreed rules on data for the conveyancing sector, so that it can easily be shared between conveyancers, lenders and other parties involved in a transaction.
The Land Registry is meanwhile to build on its work in digitising property information and lead 10-month pilots with a number of councils to identify the best approach to opening up more of their data and making it digital.
The Government will push ahead as well with plans for digital identity verification services including in the property sector.
Housing and Planning Minister Matthew Pennycook said: “We are streamlining the cumbersome home buying process so that it is fit for the twenty-first century, helping homebuyers save money, gain time and reduce stress while also cutting the number of house sales that fall through.
“Our modernisation of the system sits alongside further reforms to improve the lives of leasehold homeowners across the country, allowing them to more easily and cheaply take control of the buildings they live in and clamp down on unreasonable or extortionate charges.
“These reforms build on the government’s Plan for Change to deliver higher living standards and 1.5 million safe and decent homes in this Parliament, and our ongoing efforts to protect leaseholders suffering from unfair and unreasonable practices as we work to end the feudal leasehold system for good.”
The MHCLG also confirmed that secondary legislation for the Right to Manage measures in the Leasehold and Freehold Reform Act 2024 was being laid today (10 February).
It said: “These changes, which will come into force on 3 March, will empower more leaseholders to take control of their buildings more easily, giving them power over how their service charges are spent, and removing the requirement for leaseholders to cover the legal fees of their freeholder when making a Right to Manage claim – potentially saving them up to £3,000 for the most costly claims, and reducing the incentive for landlords to obstruct the process.”
