Any technology that shortens the length of time it takes to buy and sell a home will kick up a stir in the industry, and a proptech solution could be just around the corner.
NatWest Bank has struck a deal with real estate blockchain network start-up Coadjute to create a fully app-based process for buying a selling houses using blockchain technology, in what could be a groundbreaking step forward for the industry.
The app will enable to apply for a mortgage, then monitor the entire process from mortgage approval right through to completion of the transaction, all on their mobile phones. Using blockchain, or distributed ledger technology (DLT), the customer journey should be “seamless” and could reduce the time it takes to complete a property transaction from three months to just three weeks.
Reducing the complexity of conveyancing
NatWest and Coadjute are joined by a consortium of software and property companies, including Dezrez, Redbrick Solutions, eTech, Search Acumen, Conveyancing Data Services and LMS.
Dan Salmons, director of mortgage innovation at NatWest, says: “We are committed to finding innovations that make our customer’ lives easier, and know that the complexity of conveyancing is a key pain point for many.
“The Coadjute consortium has brought all the parties involved together to create a single mobile app, and used distributed ledger technology to make the customer journey safe and seamless. We believe the approach has the potential to be a real game-changer, not just for our customers but for the entire property market.”
Time to modernise
There have been calls among those in the industry for several years for changes to be made to bring the homebuying process up to date. If blockchain technology like the one being developed here can be applied across the industry, it could reduce headaches for many homebuyers and sellers.
John Reynolds, CEO and founder of Coadjute, said: “Customer adoption will be driven by businesses coming together to provide a joined-up service. Even at this stage, we have connected up 12% of the mortgages market, 1,000 estate agency brands, 4,000 conveyancers, and 80% of all property valuation instructions.
“With a pipeline of leading platform providers signed up and ready to on-board, we will have a significant percentage of the property industry on the platform when it goes live.”
“We envisage a time when Coadjute-enabled businesses will be the go-to choice for all customers to get a mortgage and move home in one simple, fast and secure digital journey.”