Like most industries over the last few years, real estate in the UK is seeing an emergence of new types of tools and technology that is changing the way things are done. Different segments of the market, including buyers, sellers, and renters, are being impacted in different ways and each group needs to understand how things are changing for them.
Property Tech and Buyers
Before buying a house, it makes sense that you’d want to inspect it and make sure everything is as it’s supposed to be. This could pose a problem if you were trying to buy in an area far away, but new technology has come up with a solution. Potential buyers can now be taken through a home digitally, with an estate agent filming what they see in each room, allowing for a proper inspection without actually being present physically.
Financing for housing has evolved, as well. Not only are there advanced mortgage aggregation and comparison tools readily available, but there are even automated mortgage advisors. These robo-advisors are capable of providing personalised financial advice and tailored recommendations due to their ability to analyse huge swathes of data and identify patterns.
Source: Pexels.
Impact on Sellers
The main way that things have changed for sellers in recent years is the rise of online platforms that facilitate the sales process. In the past, you were largely limited to using a local estate agent, and the process could take quite some time. Today, geography is no longer a restriction. For example, if someone in England’s North West woke up and thought, “I want to sell my house in Manchester,” while someone in the North of Scotland had the same thought, both could use the exact same platform despite not being anywhere near each other.
These types of companies also value speed, meaning that sellers often sell their property and receive their funds in as little as seven days, all without the hassles of using a traditional estate agent. Most of these online companies also provide digital mortgage options for buyers in few clicks.”
Effects on Renters
For renters, there’s a different set of effects. The same technology that allows buyers to inspect a property remotely can be used for regular rental inspections. This is often a preferred solution for renters, and it saves time for the agents, as well.
One potential negative effect for renters is the invention of tenant screening tools. These tools can perform credit checks, analyse past rental history, and verify identities, all to help landlords pick suitable tenants. However, some tenants view these tools as invasive. The increased risk of fraud is a concern, particularly given how much more personal information is required for a tenancy agreement now compared to even 10-20 years ago.
On the more positive side, it’s now easier than ever before for renters to communicate with estate agents. In the past, a simple maintenance request often involved repeated back-and-forth conversations, whereas most real estate agents now use platforms where tenants can easily make requests and view their current status at any time.
In general, it’s fair to say that technology has been a force for good in the UK’s real estate market, and this will likely continue to be true. At the same time, the concerns that renters have are valid as some technological solutions run the risk of losing the human touch.
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