Digitisation already has the power to slash the time it takes to buy a home in the UK with mortgage transactions potentially completing in less than half the current timeframe, according to a major new industry report led by PEXA.
The Future of Residential Property Transactions report, published today by the Future Property Transaction Group (FPT Group), concludes that collaborative digital adoption could cut the average mortgage completion timeline from 126 days to just 59 days without waiting for large-scale regulatory reform.
The findings are based on a 12-month regional pilot in West Yorkshire, described as a “regional proof point for a national problem”, which analysed more than 40,000 lines of anonymised data drawn from lenders, conveyancers and property technology providers.
The report identifies deep-rooted fragmentation and systemic inefficiencies across the homebuying process that cost the UK economy an estimated £1.5bn each year in failed transactions. It argues that many of the tools needed to fix these problems already exist, but are not being adopted consistently across the market.
HALVE MOVING TIME
While the total “time to move” currently averages more than 200 days, the FPT Group found that if the wider market could operate at the speed of the top-performing 50% of transactions, the average time taken to buy a home would be halved.
Among the most striking findings is the impact of digitisation on mortgage processing. The report shows that moving from manual to digital workflows can reduce the application-to-completion period by 53%.
Digitising source of funds checks delivers even greater gains, cutting processing times from two to three weeks of manual back-and-forth to just two or three days – an efficiency improvement of up to 90%.
Leasehold transactions remain a major drag on timelines, with the report finding they take an average of 34 days longer than freehold purchases, largely due to late access to management company and lease information.
ROADMAP FOR REFORM
The FPT Group sets out a roadmap for reform across three areas. Immediate practical steps include encouraging earlier legal instruction at the point a property is listed and wider adoption of digital onboarding to reduce post-offer delays.
Future pilot opportunities focus on integrated digital transaction models and improved upfront leasehold information.
Longer-term strategic shifts include the creation of a unified digital identity, support for moving AML supervision to the FCA, and investment in interoperable infrastructure to enable secure data sharing across the transaction chain.
CONSUMER OUTCOMES
Joe Pepper, UK CEO of PEXA, said: “The market is under immense pressure with consumers increasingly expecting faster progress and clearer updates, so anything we can do to ease the burden for conveyancers who are trying to deliver good consumer outcomes should be a top priority.
“There are clearly steps that we can take to drive progress in the short-term. Longer-term, the Government is quite rightly looking holistically at what positive reforms can support our industry and improve the home buying process.
“This shared endeavour shows the ability and willingness of the sector to come together and drive positive change. What is critical now, for both the industry, and Government, is to act on this insight.”
TOP PAIN POINTS
And he added: “It is clear that the priorities for the sector include digitising processes to address the top pain points, such as AML checks, creating a system that is more transparent and upfront with data, and setting far more realistic expectations with consumers for what is a significant legal undertaking.
“The stats around the time saving for digitising checks and the transfer of funds simply cannot be ignored.”
STAKEHOLDER COALITION
Established in September 2024 by PEXA, the FPT Group is a multi-stakeholder coalition including Arch Law, Armalytix, Credas, Finova, HM Land Registry, Leeds Building Society, PEXA, OPDA, Skipton Group, Mortgage Advice Bureau, MPowerred Mortgages, MQube and West Yorkshire Combined Authority.
Facilitated by Whitecap Consulting, the group aims to create evidence-based models to shape national housing policy and improve consumer outcomes.
Read the full report HERE.
