The mortgage and property sectors have been warned they risk creating only the “appearance of progress” unless future Smart Data reforms genuinely improve interoperability across transactions.
The warning follows the Department for Science, Innovation and Technology’s (DSIT) response to its call for evidence on Smart Data in digital markets, which found widespread concern over how poorly data portability currently works across digital services.
Stakeholders told government that data portability requests under UK GDPR are often slow, inconsistent and delivered in unusable formats, while firms also raised concerns around fraud risks and difficulties verifying requests.
The government said respondents broadly agreed a Smart Data scheme could improve competition, innovation and growth by enabling more effective sharing of customer data between firms and authorised third parties.
SMART DATA DEVELOPMENT
The findings are particularly relevant for the mortgage, conveyancing and property sectors, where delays caused by fragmented systems, duplicated checks and siloed data remain major barriers to faster transactions.
The government’s wider Smart Data Strategy, published earlier this year, identified property as one of the priority sectors for future Smart Data development, alongside banking, energy and digital markets.
DSIT said respondents highlighted opportunities for Smart Data to support AI-powered contextual services, data monetisation and more efficient digital interactions, but acknowledged there was less agreement around how any scheme should operate in practice.
The consultation also revealed concerns around inconsistent API access and the risk of firms technically complying with portability rules while making practical data sharing difficult.
GOVERNANCE AND STANDARDS
Claire Van der Zant (main picture), CEO of Novus Strategy, said the findings reflected long-standing problems already visible throughout the mortgage and property transaction process.
She said: “This response confirms something we’ve been arguing for over a year, which is that the barriers to data portability are not technology.
“They’re about governance, standards, and the way organisations are configured to hold onto data rather than share it. That’s true in digital markets, which are well represented in the home buying industry, and it’s exactly what we see every day in mortgage and property transactions.”
PROGRESS WITHOUT SUBSTANCE
Van der Zant said the strongest consensus emerging from the consultation was that governance and interoperability, rather than technology itself, would determine whether Smart Data reforms succeeded.
She added: “The respondents also warned against what they called ‘compliance theatre,’ where firms technically meet their obligations while making portability unusable in practice.
“That’s a warning the mortgage industry needs to hear. Digital maturity without interoperability is the appearance of progress without the substance.”
The government has confirmed it will consult further on the design and scope of future Smart Data schemes.
