Digitising Property Data To Revamp Homebuying Process Labour Unveils Ambitious Plans To Modernise Property Transactions

The UK government has announced ambitious plans to digitalise the homebuying process, aiming to eliminate delays and make property transactions more efficient. As part of the initiative, Labour has launched a 12-week project to establish protocols for the design and implementation of shared data standards. These changes are expected to streamline the often cumbersome, paper-based system and allow quicker information exchange between conveyancers, lenders, and other stakeholders.

Matthew Pennycook, the housing and planning minister, described the move as a way to modernise an outdated process, making it fit for the 21st century. Pennycook highlighted the benefits for homebuyers, including reduced costs, fewer delays, and lower stress. Additionally, smoother transactions may help prevent the large number of collapsed property sales, which currently represent one in five purchases, according to property website Rightmove.

Figures from Rightmove emphasise the challenges faced by homebuyers under the current system. On average, it takes five months to complete a home purchase after an offer is accepted. This is on top of the two months typically required to find a property and agree on a price. The company’s chief executive, Johan Svanstrom, notes that digitising the property market will reduce these timelines and create a more seamless process. Increased efficiency may also cut the proportion of sales falling through due to administrative delays.

The Ministry of Housing, Communities and Local Government has outlined steps to implement a digital-first approach. These plans include digitising crucial property-related documents such as building control and highways information, which are still largely paper-based or incompatible with modern systems. Government-led pilots, directed by HM Land Registry (HMLR), will test digital infrastructure with local councils over a 10-month period. By introducing standardised protocols and improving online access, this initiative could remove significant barriers currently slowing down transactions.

Digital identity verification services will also play a critical role in transforming property transactions. Buyers will no longer need to complete repetitive verification checks with multiple parties, as a unified system will allow mortgage companies and surveyors to quickly access essential information. These improvements are expected to save time, increase accuracy, and reduce duplication in the process.

Leasehold reforms are also part of Labour’s housing agenda. From 3 March, leaseholders will gain greater powers over how service charges are spent and will no longer be required to cover freeholders’ legal fees when pursuing right-to-manage claims. These measures could save leaseholders thousands of pounds per claim while creating disincentives for landlords to obstruct the process.

Pennycook expressed confidence that these reforms will shift control back to leaseholders and prevent exploitation through unreasonable fees. By addressing inefficiencies and injecting greater transparency into the homebuying process, the government’s digitalisation project has the potential to modernise the property market and improve outcomes for millions of prospective homeowners and leaseholders.