Blockchain is an undeniably ingenious technology that has evolved into reshaping the cogs that turn within the thriving UK property market. Rocking the property market, it has encouraged one of the most dramatic shifts in the financial industry and is set to revolutionise the way global property is transacted online.
Previously used to as an alternative format for trade and currency in relation to Bitcoin, Blockchain has the facility to transfer a range of assets from one owner to another. Due to its pioneering technology, the UK property sector is tapping into its versatility and utilising it to help progress the current market.
Blockchain has been suggested to ultimately become as transformative as the internet, as the immutable online ledger simplifies the trading of assets, including real estate. National land registries have begun to utilise Blockchain technology, kick starting the speculation as to how the innovative technology can influence buyer behaviour and pricing in the current UK property market.
A key movement towards revolutionising the property market is the role of liquidity as real estate runs at a relative discount to stocks and bonds because it is less ‘liquid’. However, Blockchain can be used to hypothetically bridge the gap by reducing transaction times as a multitude of legal processes that aim to become paperless as they progress on to the Blockchain.
Comprising of a digital ledger capable of recording and sharing data and transactions, Blockchain runs on a constantly updated database, spanning across several locations. Previously, legal contracts took two days of paperwork and signatures to finalise, whereas due to the technological progressions in electronic systems, this has become a smart, paperless and speed efficient process.
RW Invest, property specialists based in Liverpool, are progressively seeing the advantages brought by paperless transactions as seamless purchases are increasingly more prevalent across their multiple development sites.
Transforming the property market and the way in which it does business means there are fewer requirements for a number of roles including solicitors, adding to a reduced cost of employing extra mediators. This is one of the most prominent reasons as to why Blockchain has become a more trusted method of handling transactions in property as customer security has not been compromised.
Fraud regulations have been intensified to conjure a virtually incorruptible technology as thorough checks performed by the software far accelerate past traditional security methods helping to tackle fraud.
United Arab Emirates, Honduras, and the UK are amongst the countries analysing Blockchain technology for use in property transactions as it remains an emerging technology predicted to grow over the forthcoming years. As the ‘prop-tech’ industry is still finding its feet, it is still vying for acceptance across the real estate industry through a rising number of corporations tapping into the trend.
Overall, with affordability, safety mechanisms, and haste central to Blockchain, the rise in technology will serve as more of an incentive to entrust money into UK property. Taking a bold, determined leap into a paperless property future, the property industry is becoming a more attractive place for investors to reap the potential benefits of residential and student opportunities.