A new investigation from HSBC has revealed that Britain comes out on top for conducting property research online. 93% of would-be property buyers revealed that they used online channels in order to drive their search for accommodation.
However, PropTech expert James Dearsley believes that property could be the next industry to face significant disruption. This is due to property websites using technologies such as artificial intelligence and virtual reality to transform the home purchasing process.
Online Interaction
Traditionally, an estate agent has been a key figure in the buying process, but the report indicates that this is now moving more towards online interaction, as opposed to face-to-face.
51% of recent home buyers questioned said that they started talking to an estate agent online as opposed to in person. An increase in property websites offering financing, conveyancing and negotiation services could lead to a significantly quicker property purchasing process moving forwards.
Mr Dearsley observed: ‘Property websites will become considerably more sophisticated, using big data to bring more and better properties in front of prospective buyers and taking over much of the traditional estate agent’s role. There will be no more ‘fifteen minute windows’ to view a property. Virtual reality will allow home buyers to view more homes, narrow down their choice and then ‘live’ in a virtual version for several days to truly try before they buy.’[1]
UK out in front for digital house hunting
Stresses
The main stresses of house hunting were found to be dealing with too many people, such as estate agents, solicitors and developers –cited by 34% of respondents. Understanding legal paperwork (21%), fees (19%) and negotiations over price (16%).
A number of would-be home buyers have been driven online by these stresses.
However, despite the lean towards digital methods, there is still reluctance to digitilise the entire buying process. Mortgage providers (41%) and family (46%) were found to be the most trusted sources of mortgage advice amongst millennial buyers.
Tracie Pearce, Head of Mortgages at HSBC, noted: ‘The process of buying a home will change beyond recognition in the coming years. The market may not quite be ready for ‘Robo Advice’ but this type of service will, in time be helpful for the financially astute borrowers who need guidance through just a few steps of the mortgage process. There will still be those borrowers that desire face-to-face advice, or prefer to speak with an adviser over the telephone and lenders should look to provide home buyers with a choice of channels in line with their needs and preferences.’[1]
[1] http://www.propertyreporter.co.uk/property/uk-leads-the-way-for-digital-house-hunting.html