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Digital technology is revolutionising house buying, and the Channel Islands need to be at the forefront of that revolution, a property expert has said.
HSBC Head of Distribution Peter Faulhaber says that as FinTech sweeps to global popularity, so too should PropTech, which could transform the way in which people buy a home through robo-advisors and virtual reality visits.
His comments come following HSBC’s recent ‘Beyond the Bricks’ report, which combined results of more than 9,000 people across nine countries, and predicted that property will be the next big sector to be disrupted digitally.
Their survey found that the majority of homebuyers already do their research online – 90%, in fact – and that finance options tend to be researched online too.
37% of homebuyers find dealing with a variety of people the most stressful part of securing a new home, followed by price negotiations, fees (28%) and making sense of legal paperwork (24%).
Pictured: The survey found that the majority of house hunters use the internet in their searches.
While house hunts are moving online, the research showed that mortgage brokers and banks are still the most trusted sources of advice by more than a third of buyers – and that they’re not quite ready to embrace AI. Just 11% of people liked the idea of working with ‘robo-advisors’.
Following the findings, Mr Faulhaber commented:
“With Guernsey and Jersey having a strategic focus on digital innovation and with both having made good headway in the FinTech space, there is real scope to explore PropTech too. In addition, the Channel Islands have vibrant housing markets domestically and in terms of high net worth inward relocation. For instance, in the second quarter of 2017 in Guernsey there were 196 local market transactions, the second highest figure since 2015, whilst it’s a similar story in Jersey where the turnover of properties is the highest recorded quarterly figure since 2006.
“Combined, this means there is a real opportunity for the islands to realise the potential offered by PropTech and it is highly likely that the process of buying a home will change beyond recognition in the coming years. For instance, traditional estate agents will need to redefine their role to become technology providers and expert advisers and physically visiting an estate agent will become a thing of the past.”
Pictured: Peter Faulhaber, HSBC Head of Distribution, said that the Channel Islands would be the perfect place for PropTech to flourish.
PropTech expert James Dearsley, who provided insights for the report, added:
“There will be no more ‘fifteen minute windows’ to view a property. Virtual reality will allow home buyers to view more homes, narrow down their choice and then ‘live’ in a virtual version for several days to truly try before they buy.
“We can also expect to see more on-demand services, retaining the important human touch but provided digitally through live chat or video. With all of our personal information held digitally, not physically, AI will assist by analysing personal data, assessing lending criteria and narrowing down product options. This will allow instant mortgage approvals and mortgage solutions that are much more tailored to individuals’ needs.”
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