A new era for digital conveyancing?

The Land Registry kicked off August by announcing the formation of the Digital Property Market Steering Group (DPMSG), a new coalition of key property industry players designed to lead the drive towards digital conveyancing. The announcement has, however, sparked new questions.

What is immediately obvious is that the group intends to push for a digital conveyancing process with a focus on upfront information. Their vision reads:

“We want everyone involved in buying, leasing and selling land and property to experience a secure and modern market that is transparent, customer-friendly, and business-friendly at all stages […] We will build on existing progress across the home buying and selling system to get a better result for the customer: simpler, faster, more certain and less stressful.”

In doing so, the DPMSG has representation from “key areas of the sector”, namely legal property professionals, surveyors, conveyancers, lenders, and estate agents.

However, the move has been met with confusion in some quarters. For example, the way in which this new group would work alongside the existing Home Buying and Selling Group (HBSG) was unclear, perhaps not helped by the absence of any mention of the HBSG in the initial announcement.

Indeed, a snap social media poll held by Today’s Conveyancer found four in five conveyancers don’t know which industry body is leading the digitalisation of conveyancing.

‘The culmination of five years of hard work’

Speaking to Kate Faulkner, Chair of the HBSG, it becomes clear the work of the HBSG is at the heart of what the DPMSG looks to achieve. “A lot of this is the culmination of five years of super hard work on behalf of a lot of volunteers,” said Faulkner.

The HBSG’s close involvement with the DPMSG was further emphasised by the Land Registry, whose Deputy Chief Executive and Director of Customer Strategy Mike Harlow said on Monday:

“As you know, Kate Faulkner and Maria Harris have been working closely with us as we formed the DPMSG together. Up until now, Beth Rudolf has represented the HBSG on the DPMSG. We’re really pleased […] that from now on Maria will also represent the HBSG as a member of the DPMSG. Maria joins us as Chair of the HBSG Technology Group.”

On what’s next, Faulker told Today’s Conveyancer:

“We’re now moving into an implementation stage of that as best we can without the government mandation that we want and that we need to drive upfront information throughout the home buying selling process to make a full change. We need everybody on board and working through the same consistent system.”

Faulkner says that, with time, digitised information will be available to answer any one of 220 questions – put together by the HBSG – buyers may have when buying properties, with lenders and other parties having access to this information, the provenance of which is held within the Property Data Trust Framework.

The DPMSG, suggests Faulkner, is the next step in making this a reality. The Land Registry, which is now part of the Department of Levelling Up, Housing and Communities, will host a conference of 300 key property industry players to “really push things to the next level” in September.

Faulker also pointed out that, while the objectives of the DMPSG are not to recreate HIPS or the Chain Matrix, “just because something didn’t work the first time, it doesn’t mean it won’t work again in future.”

The HBSG Chair was also unequivocal on the value of being challenged:

“Here’s the way we’re looking to move forward. Tell us how much you hate it and why, so that we can listen.

That’s what the conference is about. I hope that we’ve thought of most things, but I also know that people will pick up stuff that we haven’t to date, and we need the help.

The problem with fabulous ideas and solutions is you forget to listen to the people that say: ‘don’t do that.’

We’ve got government with us. We’ve got national trading standards, everybody works brilliantly together and that’s great. Now what we need to do is get everybody in the industry going: ‘Yeah, do you know what? We can do this.’”

What do conveyancers think?

Faulkner is clear that conveyancers’ views on upfront information are key in shaping the next steps and implementation process. However, it is obvious that there is a sense of apprehension amongst many. A recent survey conducted by Today’s Conveyancer found:

• A quarter of conveyancers don’t yet understand the difference between material information and upfront information
• One in three conveyancers don’t know which parts are intended for an estate agent and which for a conveyancer
• Only a quarter of firms are currently utilising an upfront information mechanism
• Just one in six are clear on the Law Society’s position on the adoption of upfront information
• Nearly half would support the return of HIPs

Many respondents cited concerns on clarity and confidence. One said:

“I agree with it in principal but don’t want to be a first adopter. We have enough on with managing workloads and staff and refining our processes without trying something that may turn out to be speculative.”

Others are more positive:

“I have been an advocate for upfront information for years. The benefits – especially in the current market – are huge. Industry adoption of the concept would have a massive effect on transaction timeframes.”

With regards to barriers to adoption, there were several theories from respondents: a lack of mandation; “old school industry attitudes”; risk aversion of agents not wanting to be contract ready; data protection, and more.

Victoria Marshall, Head of Residential Conveyancing, Pearson, told Today’s Conveyancer:

“The idea is great. However, we can see time and time again that these parties do not work together well enough to achieve the goals they aim for. Involving the lawyer early doors is only one of the issues that impedes a transaction…

…Digitalisation – although needed – is not the solution to the current problem. However, I do welcome it as a step in the right direction – the law as it stands at the moment does not allow for a tick box digitised system.”

Rubina Ferreira, Consultant Residential Conveyancer, pointed out that “we cannot move forward to digital conveyancing when there is a huge backlog of registrations with First Registrations, Transfers of Part, and new Leases taking almost two and sometimes three years to get registered”. She continued:

“There are other underlying issues as to why transactions are taking as long as they are and I do believe that no amount of digital tech will solve all the problems and issues we are having as a profession.

We also have huge issues with the Building Safety Act which seems to have been swept under the carpet by some members of the Group which is having a huge impact on transactions. I feel that perhaps more focus should be directed at sorting out the Building Safety Act first.”

“I read with interest – and some surprise – at the formation of the DPMSG,” added Rob Hailstone, CEO, Bold Legal Group:

“Surprise because I can’t recall if The Bold Legal Group were invited to join, and I declined, or we weren’t invited in the first place. Either way, I really don’t feel the urge to join yet another group that want to ‘speed up the property market and reduce stress and the risk of failed transactions’.

I believe that most front-line conveyancers already have a basic understanding of what digital conveyancing is, or could be, but they don’t mind too much who ends up delivering it as long as it is fit for purpose.

I wish the group well and will monitor and report to my members any progress. Should the DPMSG want to hear the views and opinions of front-line conveyancers, I would be more than happy to engage with our membership on their behalf.”

What do tech companies think?

One clear absence from the list of parties to the DPMSG is those technology companies that will be effecting the change. Many are supportive, such as Rob Gurney, MD, Ochresoft:

“Landmark has long advocated for an industry-wide, collaborative effort to improve the home moving process, centring on digitisation, migration of large established legacy systems and improvements from using upfront data. We welcome this positive step forward and the potential benefits for industry and home-movers alike.”

Sam Jordan, COO, InfoTrack, said:

“A number of the founding partners in the DPMSG are naturally also InfoTrack’s key partners in delivering digital conveyancing solutions, so we are very supportive of their announcement of the new body.

Between them the members have the power to mandate changes that would drive the industry forwards – this would be the biggest impact they could have. It will also be important for them to engage the industry’s technology leaders to help them shape and deliver change, so most of all we’re looking forwards to continuing to collaborate and innovate with the partners individually and now hopefully collectively.”

Others, while also supportive of the intentions, point out a lack of any “seat at the table”. Paul Albone, Legal Software Suppliers’ Association Chair, said:

“We can only welcome the sentiment behind driving the digitalised journey of a property transaction: trying to bring together numerous member organisations to agree a common goal is no mean feat.

However, it is disappointing to not see any initial representation from technology companies on the steering group, as without their buy in and agreement to implement any outcomes in their products, it is likely to be another failed initiative. It is interesting that many a number of the tech companies have been invited to join the launch meeting, but that is not the same as having a ‘seat at the table,’ helping to construct the agenda through representation of their member body.”

Nigel Walley, Residential Logbook Association Chair, said the “bizarre” announcement “raises more questions than it answers”, as well as suggesting HBSG participants have been “left in the dark”. He added:

“In its emphasis on upfront information as a solution to be pursued, it has effectively ruled on potential outcomes from its research activity even as significant questions are being asked about the importance of upfront information in the broader sweep of new initiatives required to digitise conveyancing.

There is growing awareness that we need a ‘whole lifecycle’ approach to digital property data and that upfront information is only one, small component.

So, we are not sure that this announcement advances the cause of digital property transformation in any meaningful way.”

One product of the focus on upfront information is that synchronised settlement goes somewhat under the radar. Andrew Lloyd, UK Chief Customer Officer, PEXA, said that, while PEXA “strive to be leaders of positive change in the property market” by collaborating with the industry, synchronisation “is not a panacea”:

“On its own it cannot address the consumer detriment we are seeing in the process today and needs to be coupled with other process and technology enhancements to improve the process for all industry stakeholders.”