The application of smart data to the property market could contribute up to £2bn to UK GDP by the 2040’s according to a new report published by government his week.
The Department for Business and Trade report “Economic analysis: understanding the costs and benefits of smart data use cases” analysed five use cases for smart data (Digital information for homebuying | Digitising trade finance | Consumer experience of online groceries | Supporting green home upgrades | Verified electricity emissions reporting for SMEs) and outlining how each of these use cases could positively impact the sector and wider economy.
By some distance the use of smart data in the home buying process offered the single most economically impactful use case across all sectors studied. Across the five use cases, improving homebuying offered a benefit-cost ratio of 9.81, meaning that for every £1 of cost incurred, nearly £10 in benefits are generated. The report highlights how smart data can significantly reduce transaction failures, improve market efficiency and cut the time and cost burdens currently placed on consumers and property professionals.
The smart data use case in home buying “envisions an Authorised Third Party enabling real-time, secure sharing of verified property information by providing digital property packs to homebuyers, property service providers and mortgage lenders” says the report.
“This property pack could include material facts at the point of marketing (for example, address and property type) and additional legal information (for example, legal boundaries, smart home systems). By streamlining data flows between key stakeholders, this initiative aims to reduce transaction failures, cut costs, and enhance market liquidity.”
But, the report warns, to realise the full benefit of these possible contributions, there are significant costs and expectation on government to develop and maintain digitalised property records. What is required for digitalisation, including LLC1 and CON29 data, will be expensive said the report.
“This information is currently held in a variety of formats across Local Authorities, including in paper-based records in many instances, and will require substantial investment from HM Land Registry and Local Authorities to enable this use case.”
Although the completion date for LLC1 migration was recently pushed back, the report highlights that by September 2025, 127 local authorities had transferred to the Local Land Charges Register, with 3 more in the pipeline. The new register and search service provides instant, high quality data and standardised search fees, saving an average of over 12 days and nearly £11 per search. On progress digitising CON29 data, the Ministry of Housing, Communities and Local Government (MHCLG) is working with HM Land Registry, holding pilots with 9 local authorities, testing the impact of improving access to key data in the home buying and selling process. The pilots are centred on local searches focusing on two data categories which frequently cause delays in CON29 searches; highways and building control data. The pilots will last for 10 months, completing in spring of this year.
.The report does also highlight the need for legislative intervention in order to fully realise the benefits of smart data
“Crucially, simple digitalisation of records would not be sufficient to realise these projected benefits. The “Do Minimum” scenario, which envisions basic digitalisation without such requirements, would deliver only a fraction of the potential benefits – demonstrating that a full Smart Data scheme with proper legislative backing is necessary to achieve the projected economic gains, in addition to digitalising property records.”
The report has been welcomed by The Open Property Data Association (OPDA), describing the findings as “compelling evidence modernising the UK’s slow and outdated, homebuying process is both an economic necessity and a major national opportunity.”
Maria Harris, Chair of the OPDA said:
“This report confirms that Smart Data in homebuying is one of the highest‑value digital reforms available to the UK. By enabling secure, standardised and reusable property data, we can reduce delays, fall‑throughs and inefficiencies—and unlock billions in economic growth.
“Government now has a clear mandate to prioritise Smart Data for homebuying. With the right policy support, we can build a faster, more transparent and more resilient property market that benefits consumers and the wider economy.”
The OPDA is already developing the standards and frameworks required to make Smart Data for homebuying a reality, including the Open Property Data Schema and the Smart Property Data Trust Framework, enabling secure, consistent and reusable property information across the transaction journey; and is urging government to prioritise Smart Data for homebuying, invest in digital infrastructure and support industry adoption of common data standards.
One such project is currently underway at the Council for Licensed Conveyancers (CLC). The regulator was awarded almost £750K in government funding last year for a first-of-its-kind project which aims to transform the homebuying and selling process. In partnership with the Open Property Data Association (OPDA) and Raidiam, pioneers of Open Banking, the CLC will create what is believed to be the first framework for digitising property data and enabling the safe and secure sharing of information upfront among all parties involved in a transaction.
Explains Stephen Ward, Director of Strategy at the CLC said:
“This careful analysis shows the value of the work that is underway to transform home buying and selling in England and Wales. The CLC is very pleased to be the regulatory sponsor of the Smart Property Data Trust Framework project being delivered by the OPDA and Raidiam. We urge conveyancers of all kinds to consider getting involved with the work to develop and test a truly digital way of delivering property transactions with benefits for clients and conveyancers, as well as the housing market and wider economy.”
“Smart Data for homebuying is critical for economic growth and improving our national infrastructure,” Harris concluded. “By working together, we can deliver a homebuying system that is faster, fairer and fit for the future.”
