It says that property log books would cut down the number of failed property transactions and speed up the process of property buying and selling.
There are various problems with the current process that property log books could address. At the moment if any paperwork is missing, this can set back a transaction or even cause it to fall through.
In the first quarter of last year, 38.8% of sales fell through before completion – the highest rate in a decade.
Research from Homeowners Alliance found that it takes an average of around six months from a property being listed to completion of sale.
Advantages of a property log book
NAEA Propertymark cites a number of advantages to having a digital log book. It documents each stage of the housing transaction with deadlines for submission and will simplify long and complicated property chains.
By using blockchain technology, paperwork would be accessible for all parties involved and be passported when the property is sold on.
The log-book would help to avoid delays and allow regular contact with the agent and buyer to help deal with any issues that arise.
There would be an increase in property sales, and consequently an increase in revenue obtained through churn and the taxes associated with the purchase of a property. This will lead to more revenue generated for spending on local goods and services.
Prop tech is becoming increasingly important, with HM Land Registry moving towards digitisation. It launched the first digital mortgage in April 2018 and last week reached its 7,000th case to be digitally signed.
