Blockchain is the newest innovative technology to rock the property market. Encouraging one of the most drastic financial shifts ever, the revolutionary software could be as transformative as the internet and will change the way global property works forever.
Formerly used as a type of trade and currency in relation to Bitcoin, Blockchain has the means to transfer any asset from one owner to another. Because of its versatility, it is now being introduced to different industries, and the UK property sector is no excuse.
The pioneering technology comprises a digital, distributed ledger which is capable of recording and sharing data and transactions. Information is consistent and constantly updated in an extensive database which spans numerous locations. Legal contracts that previously took days of paperwork and signatures to complete are now finalised within an instant through this smart and speed-efficient electronic system.
Companies employing Blockchain are making online property transactions easy and simple for buyers. Many purchasers of property relate the out-dated, complex and lengthy transaction style to divorce and even death! Blockchain relieves these anxieties and could encourage more people to buy property in the modern and super-efficient process.
There is less need for mediators, with Blockchain reducing the roles and parties involved in property transactions, including solicitors. This questions the need for departments of the HM Land Registry and also reduces the added costs and fees of employing extra participants.
This is one of the reasons why Blockchain is a more trusted way of handling transactions. Despite the legal process becoming paperless, customer security has not been compromised – and the lack of stakeholders decrease risks of meddling.
The proof of ownership of property remains the same, with sellers of property able to show buyers their reliable record and portfolio. Fake ownership claims are blown out with the virtually incorruptible technology implementing digital fingerprints to ensure total transparency.
The extensive checks performed by the software instantaneously outperform traditional security methods which are helping to avoid fraud, which amounts to around £1 billion a year.
Blockchain enabling buyers to trade units electronically may have several effects on the behaviour of buyers and may even influence the property prices. Currently, alternative industries such as stocks and shares are viewed as more ‘liquid’ assets, but Blockchain is helping to narrow the divide as it transports property to an online platform.
It’s all still relatively new, but with PropTech technologies gaining acceptance in the real estate market, an increasing number of corporations are tapping into the Blockchain trend. It won’t be long before the entire property sector utilises the decentralised database.
Investors will have even more of an incentive to put money into UK properties, with speed, simplicity, affordability and safety at the forefront of Blockchain’s radical ethos. The first Blockchain property purchase in the UK went ahead in March in Manchester, highlighting the city’s leading role in the property market. The second city of Britain is already considered the place for property investments in
2018, and its confident step into a paperless property future makes it an even more attractive destination for residential and student ventures. For more information on buy to let investment opportunities in 2018, contact RWinvest on Tel: +44 (0)151 808 1250, via Email: email@example.com or visit the website at: https://www.rw-invest.com.