The government’s recently announced reform roadmap promises to revolutionize the process of buying and selling homes.
This follows two major consultations, which sought the views of professionals working in the property market to help shape what will be the biggest shake-up to the market in a generation, Increased clarity and certainty and confidence that transactions will occur much earlier in the buying journey for all participants.
As a long-standing member of the Home Buying and Selling Council and the Digital Property Market Steering Group, and having done much to advance the plans adopted by the Government, the CLC looks forward to working with colleagues across the industry to make this vision a reality and continue our mission to support innovation in the delivery of legal services.
Main meals
The key point is to introduce mandatory, legally binding contracts very early in the process to prevent buyers and sellers from backing out at a late stage without a legitimate reason. This will be supported by Sales Packs containing all the preliminary information potential buyers need in order to make an informed decision. This will give buyers and sellers more confidence in the deal much sooner than now.
This speed of trust is arguably far more important than reducing the overall length of transactions, however, this is also important, and the government estimates that these measures will reduce the average home buying time by four weeks, as well as delivering an expected saving of £650 for first-time buyers.
The new Code of Practice will also set out standards for estate agents, along with proposals for mandatory qualifications for the sector.
Surf the digital wave
Among the government’s plans is a continued focus on digitization. The use of digital identity checks and property records and eventually digitizing ‘sales packages’ will mean that professionals, potential buyers and sellers alike will quickly have all the necessary information at their fingertips.
To be clear, this means moving away from a model-based approach that often sees data buried in pdf documents rather than being able to flow freely and relying on it as consistently intelligible data fields.
We particularly welcome the stated commitment to support better use of AI transfer technology, with a plan to integrate AI tools and automate certain aspects of the transfer process. The government recognizes the need to ensure secure data sharing, and we look forward to seeing the details of the regulatory framework the government is planning.
Our position has always been that AI can enhance a carrier’s work, freeing them to use their skills and experience and focus on providing advice to their clients. The use of AI is not to diminish skills and disrupt the market, but to help the very important human work of buying and selling homes.
As part of this, CLC is proud to be a partner in the launch of the government’s recently announced AI Growth Lab, sponsored by the Department of Science, Innovation and Technology (DSIT).
The laboratory will serve as a regulatory sandbox to facilitate the development and adoption of artificial intelligence products, within existing frameworks. The CLC and other relevant bodies will work directly with AI innovators to develop new tools and software. Applications for AI innovators – including legal technology companies, legal service providers and providers, and conveyancing companies – are expected to open in the coming weeks.
CLC is also proud to partner with Raidiam and the Open Property Data Association (OPDA) on the Intelligent Property Data Trust Framework, a sandbox being developed through a £750,000 grant from the regulators’ Leading Fund. Data providers and users, including legal technology firms and conveyancing companies, have been able to test how proprietary data can be confidently shared and reused by professionals across the home conveyancing process in the future.
The Sandbox’s success, from proof of concept to testing a wide range of business use cases, is a promising look into the future, as we move beyond a paper-based system and move to a truly digital, fast and reliable home buying and selling process.
Rebuilding the home buying and selling market
The government’s roadmap promises to begin a generational shift towards buying and selling homes. These are comprehensive reforms that will be implemented in a coordinated manner, and CLC looks forward to playing its part alongside the rest of the industry.
Stephen Ward is Director of Strategy and External Relations, Board of Licensed Carriers
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