A blockchain trial involving some of the UK’s leading banks including Barclays and RBS has shown that the conveyancing process can be reduced from an average of three months to just three weeks, it has been claimed.
The experiment was conducted by global blockchain giant R3 whose platform helped facilitate the five-day trial to conduct multiple simulated property transactions.
Over 30 companies took part in the trial and, as well as the banks, this included the Instant Property Network (IPN), conveyancing platform Search Acumen, law firms Squire Patton Boggs and Ashurst, and Clifford Chance.
R3 is an alliance of tech companies and banks brought together on one platform to facilitate blockchain across a variety of industries.
Archaic and inefficient
“Currently, the property market is operating on an archaic paper and email-based foundation which, despite the use of technology in some aspects of the process, remains complex, slow, and inefficient,” says John Reynolds, CEO of IPN.
“On average, eight parties plus the buyer and seller are involved in each property transaction, with information shared via dozens of documents, platforms and databases. This leads to delays in transactions, errors, increased costs and uncertainty for all parties.”
Hannah Bernard, Head of Barclays Mortgages (left), says: “We are always looking for innovative ways that help to make our customer lives easier.
“We have been actively participating with the Instant Property Network and are excited with the possibility of significantly reducing the home buying process and removing much of the stress that comes with buying a new home.”