Only one use of QES for HMLR in three months

HM Land Registry (HMLR) has recorded the use of only one e-signature in the three months since it launched the technology for conveyancers, according to a report from Novus Strategy.

The home buying and selling consultancy discovered the take-up rate following a freedom of information requestion to HMLR, which invited conveyancers to start using Qualified Electronic Signatures (QES) at the beginning of August.

Firms can use QES for charges, transfers and assents, but in the first three months following the launch, only one use was recorded in 1,194,439 applications from 5,964 firms.

“We were surprised by the lack of uptake but there are practical reasons why adoption would be constrained,” Novus Strategy CEO Claire Van der Zant said.

“As consumers, we all understand what an e-signature is and how user-friendly this technology can be. However, for businesses in this space, the challenge is bigger than simply adopting new tools and adjusting internal processes. 

“In the case of QES, adoption is impossible without an interoperable digital ID solution. And they will only work effectively alongside wider changes that reduce the friction in the data handoffs between different actors in the transaction. 

“Conveyancers would point out there’s very little out there in the way of integrated solutions for QES at the moment, and they’d be right. There are almost no QES solutions that combine with that essential digital ID component.”

However, Van der Zant believes QES is “a significant opportunity” that is vital to the progress of the sector, but says it’s important not to confuse cause and effect.

“To be able to take advantage of QES, firms first need to redesign the customer journey and reconfigure their operations,” she explained.

Increasing the use of QES would indicate other important steps had already been taken by the industry to enable the potential of frictionless property transactions, she added, which “takes time and careful planning”.

One of the key changes required for the use of QES, Van der Zant says, is Horizontal Digital Integration (HDI), a framework which connects conveyancers, lenders brokers and agents to combine data and checks across the home buying and selling process.

“So digitisation alone isn’t the answer,” she added.

“QES is now available. To fully leverage this opportunity, industry needs to reframe strategies to look left and right of their part of the transaction, embracing HDI as the key framework to unlock opportunities like QES to bring efficiency into the home buying and selling journey. It’s encouraging that the government is introducing digital ways of working, but achieving that adoption requires a different approach.”

HMLR said it believes QES technology is integral to the home buying and selling market and invites those interested in adopting it to get in touch. In a statement given to Today’s Conveyancer, the organisation said:

“HM Land Registry has begun to accept qualified electronic signatures (QES). We believe this technology is the future of the market, bringing greater security and ease for anyone involved in buying or selling property.

“We hope that signalling this to the market will act as a catalyst for the development and adoption of underlying technology solutions for QES from third-party providers. It’s still early stages and potential providers have been engaging with us to ensure the compatibility of their solutions.

“HM Land Registry invites all customers interested in using the technology to contact QES@landregistry.gov.uk.”