Why Property needs PropTech to have its FinTech moment.

By Matt Gilpin, Sprift CEO…

FinTech has revolutionised the way we bank and run our finances, yet even with the best endeavours PropTech has not quite had the same impact on our society…so far.

Clearly, I am a huge fan of PropTech, I love the innovations, the disruption, the game-changers we have already witnessed, but why has it not yet had the wide-ranging impact of its financial cousin, well…

:credit_card: In Finance:

  •  Transactions are mostly instant
  •  Data is shared seamlessly, even abroad
  •  We can access our finances anytime, anywhere

:house_with_garden: In Property:

  •  Transactions experience weeks of delays
  •  Data is disparate, disjointed, siloed
  •  Manual processes slow everything down

The underlying difference is really very simple, FinTech handles assets that are clearly defined, exact amounts, precisely stated, whereas PropTech has to handle anything but.

My bank balance at any given moment is an explicit amount, the value of your ISA, pension pot, credit-card balance…all exact amounts that you can, in most cases because of some FinTech wizardry, view instantly, anytime. But with our homes, so much information is unclear or hidden away as if it’s some kind of top secret.

Now I’m not advocating that buyers and sellers want or need the ability to just tap phones together and instantaneously transfer ownership of a property. I’d say about 4 to 6 weeks feels right, but even how milestone dates are set in a transaction is part of the problem, everything with property is just a bit…vague.

You wouldn’t expect your salary being paid a few days late, so why do we allow property transaction timescales to vary.

Then there are the many key property features that are also approximate, e.g.

  • Boundaries and who owns them (title plan issues, anyone?)
  • Service charges, ground rents, energy bills, etc (ask agent?)
  • Even what dark art is used to create Council Tax bands

The move to provide upfront material information is a start but ask any lender or conveyancer and for them it hardly scratches the surface of the mandatory data they have to collate prior to completion.

Possibly with AI, data standardisation and better transparency, we can now see a future where property is a more exact, digital-first asset, allowing:

:white_tick: Milestone dates set at outset that all parties can then rely on

:white_tick: Pre-approved mortgage offers based on verified property details

:white_tick: Legal risks flagged (and indemnified?!) before an offer is made, not weeks later

Well that’s why myself and others are on a mission to simply make property more explicit and challenge the status quo.

FinTech changed banking forever, let’s now see what PropTech could really achieve.

Simply then, if our housing stock was as explicit as our finances, then it would be a lot easier to transact, and if it was easier, would we do it more often?