Bricks and mortar in a digital world: 15 years of the property market - My Home Move
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Bricks and mortar in a
digital world: 15 years
of the property market
round_graphics
example 2
My Home Move
Contents Introduction
01 Introduction
July marks 15 years since My Home Move was
02 Radical changes in the last 15 years
08 Property transactions – forecast for the future
founded, and over this time the housing market
10 Predictions from leading property experts has changed significantly.
13 My Home Move’s vision for the future
aphics
14 Contact details
This report will provide In the first part of this report, we examine We have also called on some of the
the changes that have had the biggest industry’s leaders to share their visions
an opportunity to offer a impact on consumers, from the rise of for the market’s future. Their predictions
fresh perspective on these the property portals to the competition cover a huge amount of ground, from the
rapid developments and between traditional and online estate immediate effect of the Brexit referendum
agents; and how technology is to the impact of automation and robots
to focus on our goals for overturning old assumptions about how in the workforce to new technologies like
the future. the business of bricks and mortar should virtual reality and how Big Data could
be conducted. change everything.
Over the last 15 years we have seen a huge
amount of change for My Home Move,
We then look towards the future. We have And finally, we share our views on the
as well as for the property industry as
commissioned Rob Thomas, former Bank future of the property industry and how
a whole. External forces have shaped
of England and Council of Mortgage My Home Move will be playing its part by
the shared experiences of the sector,
Lenders economist and currently Head of continuing to revolutionise the customer
with the shock of the financial crisis
Research at Instinctif Partners, to provide experience of conveyancing.
and the subsequent policy response
an econometric forecast for property
reconfiguring many aspects of the
transactions in the UK, one of the most Doug Crawford
housing and lending markets, turning
important indicators of the overall health Chief Executive Officer, My Home Move
established practice on its head. But
of the property market. As we know,
some of the most radical changes in how
property sales have still not returned
consumers buy or sell homes have also
to their pre-crisis peak. The question
been driven by internal changes and are
remains however, have we reached a new
the result of innovations by businesses
normal? Or will the number of sales return
in the sector that are busy shaping the
to and even exceed their previous highs.
future of the industry to their vision.
Bricks and mortar in a digital world: 15 years of the property market 01
My Home Move My Home Move
Radical changes
Property search Estate agents have had to adapt to hit a new high in 2015. Intermediaries
this disruption by evolving and defining have benefitted from the stringent
Over the last 15 years a revolution in their unique offering to consumers. For affordability checks ushered in by the
marketing and technology has resulted some, this has meant focusing on the Mortgage Market Review, causing
in the last 15 years
in the growth of online property portals, personal touch – the extensive network of clients to seek reassurance and support
which allow consumers to research the branches offering comfort to consumers, from brokers, and the emergence of
market directly. Rightmove pioneered the most visibly manifested by the long bars challenger banks like Aldermore that rely
trend after launching in 2000 but now of chilled water and pod style seating on intermediaries to reach consumers.
faces competition from Zoopla (founded at each Foxtons branch. But the more Improved technologies have also allowed
in 2007) and OnTheMarket.com (January radical change has been the growth of intermediaries to source products based
2014), along with many other specialist online estate agents like House Network, on their clients’ needs, with solutions
When My Home Move was founded 15 years platforms. In March 2012, the Land
Registry released its Prices Paid Data
service – enabling consumers to see what
which offer a fixed-fee service without a
substantial branch network. In its rapid
like Mortgage Brain making the process
especially efficient. Innovation continues:
ago, consumers’ experience of buying or
progression from start-up in April 2014 in the last few months we have seen brand
properties actually sold for, compared to initial public offering in December new entrants into the market who are
to the estate agent’s asking price, for 2015, Purplebricks has been the latest to set to challenge the traditional mortgage
selling a home was radically different to today transactions dating back to 1995. redefine how estate agents can operate
with its hybrid model.
broker with an online-only model.
in several key ways. The competition has fuelled new portal
innovations, including layers of data
that can provide information on local
Mortgage finance
Annual share of new UK mortgages
sold via intermediaries (CML)
Searching for a property typically market meant the self-employed could Housing market conditions were very schools or commuter routes, through to The internet has radically altered the way
involved visiting an area and taking a note effectively choose how much they different. The economy was buoyant, new delivery systems such as location- that consumers can access mortgage
68%
of estate agents’ boards. Consumers wanted to borrow, without having the labour market was strong, and based apps. These changes add up finance. Internet aggregators such as
61%
59%
58%
might have had a vague idea of what to to prove their income. access to the housing market was in to a radically new approach to house Moneysupermarket.com (established
55%
52%
hunting for consumers, who now arrive at in 1999) and comparethemarket.com
48%
expect in terms of availability and pricing, reach for the majority, whether they
47%
46%
45%
but it would only be after registering with The legal process of buying or selling a were a first-time buyer or approaching an estate agent equipped with far more (established in 2006) allow consumers at
local agents and reading local newspaper home would ordinarily involve the use of retirement. Tony Blair’s Labour information than ever before. a glance to compare a huge number of
adverts that they would start to form a a local firm of solicitors – legal generalists Government had been returned to power deals in a matter of seconds. However,
clear picture. who were unlikely to be conveyancing on a wave of consumer confidence. the increasing role played by technology
specialists. It would include multiple in the market has not undermined
Accessing mortgage finance was face-to-face meetings and paperwork Indeed, today’s consumer might not brokers’ share of mortgage lending.
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
more straightforward. The unregulated circulated by post, causing delays in recognise the property industry of 2001, Despite the internet making it easier for
mortgage industry provided easy access some instances. Legal fees were often so what have been the biggest changes borrowers to compare lenders’ products
to finance for the vast majority. For charged at an hourly rate; while the idea when it comes to buying a home? directly, brokers’ share of the market
example, the growing self-cert mortgage of ‘no move, no fee’ was still a relativity
new concept.
Average UK house prices (ONS)
National Land Information Rightmove becomes first property Deputy Prime Minister announces Housing Act 2004 introduces Right to Buy rules change to Comparethemarket.com
Service launches, helping to website to introduce charging for plans to build 200,000 additional statutory mortgage regulation require five years’ tenancy founded
speed up conveyancing via advertising of properties for sale homes in the South East of and lays the groundwork for
£205,000
online searches England to tackle the shortage compulsory Home Information
£191,000
of affordable homes Packs (HIPs)
£180,000
£156,000
£128,000
£113,000
July October May
My Home Move founded Land Registration Act 2002 Labour party win the
makes electronic conveyancing General Election
possible
2006
2005
2003
2004
2002
2001
02 Bricks and mortar in a digital world: 15 years of the property market Bricks and mortar in a digital world: 15 years of the property market 03
My Home Move My Home Move
The financial crisis ushered in a new New home-owner loans for house There has been something of a The last 15 years has seen the rise and fall Stamp Duty Number of UK property transactions
era of ultra-low mortgage rates, thanks purchase – £m (CML) reluctance to implement new, faster of Home Information Packs (HIPs). An idea (HMRC)*
to a policy response that included rock- processes. For example, there has with potential when they were included Recent reforms to Stamp Duty have had a
bottom interest rates and schemes like been very uneven adoption of personal in the 2004 Housing Act. HIPs were big impact on consumers’ wallets. After a
Funding for Lending. Average interest searches, to overcome the issue of slow then undermined by a series of changes brief Stamp Duty holiday in the wake of the
1,710,210
rates on mortgages reached their lowest local authority searches. meaning that they were ultimately seen financial crisis, the slab system for Stamp
Duty was finally reformed in November
1,473,900
156,800
recorded level in the fourth quarter of as an extra cost and bureaucratic hurdle
1,444,260
154,800
2014, reducing the transaction cost of
137,600
2015 (2.71%), and with the base rate The number of firms offering to overcome when they were finally
1,200,720
1,140,480
124,000
123,600
buying a home for the majority of buyers.
120,500
119,300
119,200
unlikely to rise anytime soon, there is conveyancing is actually declining as introduced in 2007 for larger homes.
929,780
However, not everyone has been a winner.
916,490
892,990
100,300
speculation about whether this will older conveyancing solicitors retire. They were immediately scrapped as one
876,560
94,400
792,970
Buyers of homes over £937,500 have to
81,900
decrease further. Higher PI premiums in the wake of the of the first measures of the new coalition
79,100
75,900
75,500
69,400
financial crisis pushed others out of the government in May 2010. pay more, with the result of a noticeable
However, despite falling rates there market. The number of firms offering slowdown in the premium London market.
are still concerns about affordability conveyancing has reduced from almost My Home Move has been at the forefront Added to this, the recent introduction of
the new 3% Stamp Duty surcharge for
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
for first-time buyers. This has led to 8,000 at its peak in 2010 to around 5,500 of many of the changes to conveyancing.
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
the Government implementing several in 2015. The chronic skills shortage in It was the first business licensed to operate second home-owners and buy-to-let
Help to Buy schemes, which help conveyancing has occasionally threatened in the UK as an alternative business investors has led to fears of a slowdown in
prospective homeowners access to act as a brake on the market, which is structure, through its wholly-owned areas with high concentrations of holiday
mortgage finance with deposits
Legal why My Home Move is training hundreds MHM_Background_graphics
subsidiary, Premier Property Lawyers homes and a large private-rented sector. * Financial year (April to April)
as low as 5%.
Over the past 15 years there have been
of new conveyancers through its Learning
and Development Academy.
PMS 674
in 2011. It was the first conveyancing
business to use online case-management
Recent years have seen the emergence some dramatic changes to the legal systems combined with scanning and
of new mortgage focused peer-to-peer process of buying or selling a home. Despite the slow change in some parts of attaching legal documents, setting a
lenders aiming to cut out the banks, However, many high street firms have the legal market, there have been some benchmark for incorporating innovative
including LendInvest (launched in May barely altered the way they operate, radical introductions which have paved the technology into the everyday business
2013) and Landbay (founded in August and their uptake of new technologies way for companies like My Home Move to of conveyancing, evidenced with the
that year). While the new peer-to-peer has been limited to email and electronic disrupt the traditional way of doing things. radically new version of its eWay service
lenders are currently focused on specific document transfer. The Land Registration Act of 2002 made that was launched in 2015.
product areas such as buy-to-let and electronic conveyancing possible, while
bridging finance, their impact could, the Legal Services Act passed in 2007
in the future, extend to mortgages for meant that any business with a licence
owner occupiers. could provide legal services, heralding
the age of “Tesco law”.
Average UK house prices (ONS)
June January Interest rates held at 0.5% for March Legal Services Act 2007 comes Government eases planning
First iPhone released Zoopla website launched the first time Stamp Duty holiday for first-time into force on 6th October 2011 restrictions
buyers buying up to £250,000 and the Alternative Business
introduced (ended March 2012) Structure (ABS) is ‘born’
August
Home Information Packs
£251,000
Premier Property Lawyers
£246,000
£245,000
become compulsory for larger
becomes first law firm ABS (wholly-
homes Summer
£228,000
£226,000
owned subsidiary of My Home Move)
£223,000
Property market crashed –
September number of transactions halves July
Northern Rock experiences first May The Bank of England and Treasury
bank run in 150 years, as credit A coalition Government is formed launch the Funding for Lending
September
crunch looms at the General Election scheme
Lehman Brothers collapsed
My Home Move launches eWay –
Requirement to provide a Home the first fully integrated online
October October
2009
2008
2007
Information Pack is scrapped conveyancing case management
2010
Legal Services Act receives
2012
First Android smartphone but Energy Performance service for clients
2011
Royal Assent, paving the way launched – HTC Dream Certificates (EPC) are still
for “Tesco law” services
necessary
November First iPad launched
Housing market peaks
04 Bricks and mortar in a digital world: 15 years of the property market Bricks and mortar in a digital world: 15 years of the property market 05
My Home Move My Home Move
Market conditions To help the house builders, planning Growth in buy-to-let The Conservative victory in the 2015 Conclusion: Where are
permission has been eased. Building General Election led to a policy shift in
The financial crisis that started with the volumes are improving and, as part of In 2001, few would have predicted the favour of owner-occupancy. The question we now?
run on Northern Rock in September the 2015 Autumn Statement, George enormous growth of the buy-to-let market for the future is whether the new Stamp Today’s consumers have a radically
2007 has fundamentally shaken up the Osborne pledged to create 400,000 and private rental sector. Buy-to-let was Duty surcharge and changes to tax relief different experience of buying or selling a
UK property market and its influence is new homes by 2020 and doubled the a relatively new phenomenon at the start will reverse the growth in the private home. They can do most of their research
still felt in today’s market conditions. The housing budget to £2bn. However, it is of the millennium, with lending activity rented sector, increasing instead the online and use a property portal to check
crunch in mortgage availability was one of no secret that there is still some way to kicking off in the mid-1990s. In 2001, number of first-time buyers entering prices. They can find out what mortgage
the biggest short-term impacts as house go to overcome the UK’s housing crisis, £6.9bn of gross advances were lent to the property market. rate they are likely to get via comparison
prices briefly plummeted, but lending has with leading industry experts recently buy-to-let investors, and by 2007 this sites, although the increase in regulation
recovered rapidly, as have house prices. had expanded to £45.7bn. While the
Unlike previous downturns, repossessions
expressing concern about the country’s
financial crisis put the brakes on lending,
UK changes in tenure – percentage has made it harder for some – particularly Consumers have benefited
housing situation. (CML) the self-employed and older borrowers –
by lenders remained muted. The greatest the market rebounded quickly to reach to find suitable mortgages, making them
from more options in how
impact has arguably resulted from the fall UK housebuilding – £37.9bn of gross advances in 2015 for more likely to employ a broker to help they buy or sell, including
in house building, which has combined buy-to-let mortgages.
all permanent dwellings* them find the right product. the rise of new pricing
14 9 10
69 12 8 11
17 10 8
18 10 8
19 10 8
69 10 7 14
69 11 8 12
69 11 8 11
16 9 9
68 13 8 10
16 9 8
69 10 6 14
67 14 9 9
with a growing population to create a
housing crisis with nowhere near enough The private rented sector has expanded Consumers have benefited from more
models and a technology-
led approach.
233,880
supply to meet growing demand. significantly along with the growth of
225,050
options in how they buy or sell, including
222,630
218,840
68
213,190
66
66
65
buy-to-let mortgages. In 2001, owner-
64
63
the rise of new pricing models and a
197,110
194,140
The sweeping changes brought in by occupied homes made up 69% of
183,480
technology-led approach. Like 2001,
166,900
160,800
policymakers have been as important 138,830 total housing stock in the UK, and this house prices are rising, but unlike 15
in shaping today’s house market as the 136,230 had fallen to 63% in 2013. At the same years ago access to the housing market is
127,050
124,470
118,580
crisis was. The Help to Buy schemes, first time, the private rented sector nearly uneven with first-time buyers in particular
announced in the 2013 Budget, bolstered doubled from 10% of housing stock to finding it hard to raise the deposit needed
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
demand and continued to drive house 19% over the same period. There has to move onto the property ladder.
prices upwards. The seven years that been significant debate about the role MHM_Background_graphics
have passed since the Bank of England
lowered interest rates to historic lows of
that buy-to-let has played in preventing
aspiring first-time buyers from accessing
Owner-occupied
PMS 339 Research from My Home Move found
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Private rented that one in twenty home buyers used a
0.5% have been a gift to homeowners, the market. Housing association rented gifted deposit in 2015 – illustrating many
enabling them to pay back their debt Public rented people’s reliance on friends and family.
cheaply and this has laid the groundwork * Financial year (April to April) In recent years there has been a conscious
for a gap between the housing haves and effort on the part of policymakers to assist
have-nots. aspiring homeowners, with schemes like
Help to Buy.
So what do the next 15 years have
in store?
Average UK house prices (ONS)
March April My Home Move unveils its March
George Osborne announces Mortgage Market Review (MMR) enhanced eWay service to Lifetime ISA launched to help
the launch of the Help to Buy toughens lending criteria revolutionise the customer people save for a deposit or
£277,000
Schemes experience of conveyancing for retirement
£267,000
£251,000
May Mortgage Credit Directive
November introduced
Conservative party wins a
George Osborne announces majority at the General Election
July the reform of the Stamp Duty 1 April
Mark Carney is appointed system to replace the slab system November Additional 3% Stamp Duty Land
Governor of the Bank of England
Autumn Statement sees a host Tax for additional home owners
of policy announcements in favour comes into force
2016
2015
of home ownership, including
2013
2014
3% Stamp Duty surcharge for 23 June
additional properties Brexit referendum to take place
06 Bricks and mortar in a digital world: 15 years of the property market Bricks and mortar in a digital world: 15 years of the property market 07
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2 Graphics locked together example 2
Property transactions –
This projected fall continues the trend that Of course, a wide range of other factors However, when the baby boomers reach
has been evident since 2009 when the will affect housing turnover levels over their seventies and eighties and large
average first-time buyer deposit reached the next 5 years, including the changes houses become a burden there is likely
25%. The decline we have already seen to tax and mortgage regulation that have to be a surge in downsizing. Although
forecast for the future
reflects the gradual improvement in the already been implemented. These key this could be as much as 20 or 30 years
health of the banking system and in additional influences on the market are: in the future, when it comes it is likely
particular the increased availability and to stimulate higher transaction levels
more competitive pricing of higher LTV Stamp Duty – the abolition of the slab across the market and may also aid
loans since 2009. I expect this trend system can be expected to underpin housing affordability.
towards cheaper and more readily transaction levels in the mass market
available high LTV loans to continue, but the subsequent announcement that Perhaps the greatest unknown when
In this section Rob Thomas, former Bank of allowing more first-time buyers with
modest deposits to buy, which in turn will
buy-to-let and second homes will face a
surcharge of an additional 3% will offset
estimating future rates of housing turnover
is how much pent-up demand exists
England and Council of Mortgage Lenders
help to drive more transactions through much or even all of this effect. from frustrated first-time buyers and
the rest of the housing market. how quickly this pent-up demand will be
The MMR rules, which require lenders released. I estimate that since the start of
economist, provides an econometric forecast of If first-time buyer deposits to verify borrower income in all cases and
impose tighter affordability checks, make
the financial crisis in 2007 there have been
2.2 million fewer first-time buyers than
do not recover, property
property transaction volumes, one of the most transactions are unlikely
it harder for people to obtain mortgage
finance and is therefore likely to depress
would be expected given demographic
trends. A large part of this shortfall reflects
important measures of the overall health of the to rise transaction levels. However, as the MMR the tightened lending criteria that lenders
has bedded down, lenders have been imposed over this period which included
If lending conditions do not improve better able to understand the boundaries larger minimum deposits.
UK’s housing market. and first-time buyer average % deposits
remains at their current level of 17.1%,
that it imposes, allowing them to offer
more flexibility, so the impact of MMR may It is hard to know how many of these
the increase in transactions is likely to not be as severe as lenders initially feared. households will remain permanently in
To provide a forecast of UK property The forecast predicts that by 2020, there Falling average first-time be far more muted – see the pink line rented accommodation but clearly many
transactions up to 2020, I have used will be 1.5 million transactions in the in the chart below. This shows just how Demographics play an important, though still aspire to own their own home. As the
econometric modelling techniques. housing market, 21% more than in 2015. buyer deposits expected crucial first-time buyers are for wider somewhat hidden, role in determining financial system has improved, mortgage
The model draws on the past relationship to drive higher transactions housing market activity. transaction levels because the propensity lenders have eased their lending criteria
between property transactions and three Forecast for UK housing turnover for homeowners to move is closely linked and many have moved back into the
The OBR forecasts that unemployment
variables that have, in the past, had the UK housing Annual Annual % Two scenarios for housing to age. Younger homeowners tend to higher LTV lending that they evacuated
will fall slightly to 5.0% this year before
greatest impact on turnover: average turnover increase increase transactions move more frequently than older ones. during the crisis. This has provided an
rising gently to 5.3% by 2020. It further
mortgage rates; unemployment; 2014a 1,223,280 155,670 14.6% It is quite usual for people to buy a home opportunity for more young people to
assumes that the Bank Rate will fall to
and the average first-time buyer 2015a 1,227,770 4,490 0.4% 1,486,889 in their late forties or early fifties and remain buy their first home, as have various
0.4% this year before gradually rising
percentage deposit. 2016f 1,308,900 81,130 6.6% there until they downsize in their seventies government backed schemes supporting
from early 2018 and reaching 1.0% by
2017f 1,362,298 53,399 4.1% the end of 2020. As you would expect, or eighties. As the baby boomer generation high LTV lending such as Help to Buy
I have taken Office for Budget 2018f 1,412,632 50,334 3.7% are now in their fifties, the large segment which has helped 150,000 buyers since
these modest changes have only a
Responsibility (OBR) projections for of the housing market that they own could its launch in 2013.
2019f 1,466,654 54,022 3.8% limited impact on projected transaction
unemployment and the Bank of England be mostly locked away for two decades
2020f 1,486,889 20,234 1.4% levels but I have assumed that the
Bank Rate, assumed that mortgage 1,293,374 or more, depressing transaction levels. But despite a sharp recovery in first-time
2015- average first-time buyer percentage
rates remain at their current margin over buyer numbers since 2008, the pent-up
2020 259,119 21.1% deposit falls from 17.1% currently to
Bank Rate and used my own forecast for 1,223,280 demand of frustrated potential first-time
a – actual
10% by late 2019 – back to the level
the evolution of average first-time buyer buyers continues to grow. If that pent-
f – forecast
immediately prior to the financial crisis.
percentage deposits. up demand starts to release it could be
2014
2015
2016
2017
2018
2019
2020
the single most important factor raising
housing transactions levels, pushing them
Base forecast (inc. 10% deposit) beyond that outlined in my base forecast.
Unchanged FTB% deposit
08 Bricks and mortar in a digital world: 15 years of the property market Bricks and mortar in a digital world: 15 years of the property market 09
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Predictions from leading
property experts
Peter Williams Michael Bruce James Knightley David Livesey
Executive Director, IMLA Founder and Chief Executive Officer, Purplebricks Senior Global Economist, ING Group Chief Executive, Connells
In the lending market, we are going The traditional estate agent model will User friendly interfaces that offer simple, In the short term, the EU referendum The next 15 years will inevitably see the
through a very interesting time where all come under considerable further strain supportive advice with a cost-effective will certainly shake things up for the property market slip on an unexpected
the major lenders are looking at massive in the near future. Inevitably, its share execution of services will supersede the housing market depending on the banana skin such as terrorism, political
technological changes in the way they of the £4bn estate agent market will traditional model. Technology doesn’t outcome. If we stay, the UK will remain uncertainty or global macro issues.
interact with customers. If you look at diminish due to the competitive pricing get ill, it doesn’t take a holiday, and it a key destination for foreign investment However, the shortage of homes is
how consumers now search for travel of businesses that offer an integrated doesn’t go home at 6pm. That is not and London property will continue to be the biggest problem for the industry.
and car insurance, we can expect to online and face-to-face service. People to say everyone will move to “AI”, but seen as a store for wealth. On the other A leading factor behind the chronic
experience a similar shift in the mortgage in the UK have already had the ‘lightbulb’ consumers will increasingly prefer to hand, Brexit could lead to the UK being shortage of stock for sale is the fact that
market as it follows this lead. There is moment, they have realised that they have access to a high quality online and less attractive for foreign investment due about a fifth of UK properties are owned
great potential for more of our mortgage can get excellent service for a greatly personal “hybrid” service, 24/7. Typically, to the perception of it being a less open by over-65s without a mortgage and this
sales processes to be web-based, reduced fee through new challenger people will always gravitate towards economy, the risk that it can’t trade freely group of people rarely move due to a lack
providing a major shift in the way the models introduced to the marketplace. human advice, expertise and local with the EU and the prospect that EU of suitable alternatives. Government, local
market operates. Tomorrow’s consumer will want a quick, knowledge through what is arguably the workers might have to leave to obtain planning authorities and housebuilders
efficient and transparent service at the most important transaction they make. work, freeing up rental properties and need to work together to both increase
However, a market with lots of volatility – kind of low cost that can only be provided However, unfortunately, the perception houses on the marketplace. the number of annual New Build starts,
housing booms and busts – makes it by combining on-hand local expertise of ‘estate agents’ as a whole has been and also build more retirement focused
harder to invest in new technology and with a strong technology platform, slowly eroding as bricks and mortar In the long-term, the strength of the homes which will incentivise some of
“
we are now overdue another bust. You cutting out the large expense associated businesses have driven fees skyward UK’s property market is underpinned these older homeowners to downsize,
can, however, argue that there are more high street offices. That means offering year-on-year and high street chains by the country’s strong birth rate, longer freeing up their larger property to the
mechanisms now in place to limit the an always-on, connected service that offer an opaque and removed service. life expectancy and higher immigration family market.
damage it might do. Yet with interest empowers customers to be involved Empowering estate agents through rates. The EU estimates that the UK will The advent of the
rises to come and more regulatory and when they want to be, for example the hybrid model is absolutely vital in be the most populous nation in the EU The advent of the internet has changed internet has changed
policy interventions from the government, communicating and even negotiating increasing the accessibility and quality of in the next 25 years with a population the face of the property market with nine
further uncertainty is looming for the directly with buyers, but with the flexibility customer service UK-wide. of over 80million by 2050 and these out of ten property searches now starting
the face of the property
housing market. Nonetheless, we are to tap into human expertise as and when demographic factors will put further on the internet. This sets the tone for a market with nine out of ten
working towards evermore streamlined they need it. pressure on demand for properties. One big battle for traditional estate agents to property searches now
processes through the emergence of new question mark will be the impact of more convince the consumer that by going
technologies and ‘big data’ which will automation – will greater use of robots down the traditional path they will get
starting on the internet.”
help speed up buying and selling a home lead to a shake-up of the workforce and a better deal as by advertising on the
and hopefully produce better outcomes a decline in wages with a knock-on effect internet you simply won’t get the same David Livesey
for the consumer. on house prices? price that an estate agent will. Group Chief Executive, Connells
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Predictions from leading My Home Move’s
property experts continued vision for the future
My Home Move has seen a
huge amount of change since
it was founded 15 years ago.
Robert Sinclair Miles Shipside
Chief Executive, Association of Mortgage Intermediaries Commercial Director, Rightmove The pace of change has The forecast for property transactions conveyancer to their surveyor. Since
earlier in this report shows that the launching eWay we have observed
We are shifting towards a society where Another area where we might see As the process of buying a home is
accelerated. Consumers number of home purchases could see that the majority of consumers log in
everything is rented and there is a change in the next fifteen years is constantly evolving alongside changing are more knowledgeable a dramatic improvement if access to between 19.30 and 21.30, illustrating
changing perception of how people want the intermediary market. The current consumer habits, the past 15 years and better researched home ownership for first-time buyers is how service needs to be 24/7. They no
to live their lives. This is as true in music model could easily be shaken up by an have seen two clear models emerge for nurtured. This requires a coordinated longer understand why there shouldn’t
and movies, where streaming services evolution in peer-to-peer lending through searching for a home – online and via
than ever before. They effort from across the industry: from be anything other than quick, efficient
are becoming the norm, as the property the introduction of something simple human interaction. Since people have share their knowledge and house builders to ensure the supply is communication between everyone
market where we have seen a shift to like a marketplace allowing consumers more and more access to information on experiences with each there; from lenders to provide the high involved in making sure a sale goes
renting. One school of thought suggests searching for a mortgage to input their a 24/7 basis, it is no longer acceptable loan-to-value lending that first-time through. That means the ones that
the renting culture is forced upon people personal circumstances into the system, to provide a mediocre service when
other on social media buyers depend on; and from those of us succeed in our sector will be the ones
due to economics. However I believe that with lenders able to offer their best deals supporting home movers - you have to and review sites. They no who support first-time buyers with their that work best with each other and move
part of the shift to renting is a result of to the consumer directly. be exceptional whether you are online or longer rely on traditional purchases to ensure that buying a home with the times.
consumers searching for flexibility instead face-to-face. is as easy as it can be.
of being tied down with home ownership.
sources of wisdom about The past 15 years have been challenging
which services to use.
“
The human element will always exist It couldn’t be clearer how important and exciting in equal parts for the
We might reach the stage in the near when buying a home as it is one of the They are impatient and first-time buyers are in ensuring a healthy residential property market, and there are
future where property is no longer as biggest financial commitments people future for the property market as a whole. reasons for both optimism and caution
clear cut as renting or buying and new Since people have make in their lifetimes. However, we
want a service that’s looking forwards.
models become widespread. Similar more and more access are likely to see a greater shift towards available to them when It is often said that purchasing a home is
to leasing a car, we could see people
to information on a 24/7 virtual viewing, including virtual reality, they want it and on their one of the biggest financial commitments Technology will continue to shape the
entering three or five year leases on as consumers continue to research the made by a consumer and this is truer market, and we have enjoyed driving
a property and then hand it back to basis, it is no longer market from the comfort of their home.
own terms. today than ever before as house prices change with our ground-breaking
the owner to refurbish and pass on acceptable to provide a This isn’t going to change. continue to rise. All the more reason, eWay service. My Home Move has set
to the next person. Alternatively, you The biggest threat in today’s housing then, for consumers to compare the out to revolutionise the conveyancing
might pay some capital upfront, like the
mediocre service when market is affordability and being able This is the new reality. service they get from suppliers when process, and the only way that this can
government’s Rent to Buy scheme for supporting home movers.” to provide an affordable living space This is the future. buying or selling a home to the best be achieved is through providing the
new build properties and, depending with the degree of privacy, security and available anywhere, whether it is online very highest levels of customer service
While it’s hard to know with certainty banking or internet shopping. coupled with unrivalled expertise.
on the contractual agreement, you can Miles Shipside convenience that consumers want.
where the market is going in this
purchase the home in the future with a Commercial Director, Rightmove There is a big opportunity to solve this
business of ours, one thing is for sure, it Consumer behaviour is changing At My Home Move, we are very excited
tailored mortgage plan. with technology, design and innovation.
has been getting harder, not easier, for radically with the digital age. Consumers about playing our part in shaping the
The last 15 years has seen the property
most people to buy a home. want – and deserve – a seamless service next 15 years for the property market.
industry start to collect huge amounts
of data about what consumers want. In from all the businesses they engage with,
the future, this information can be used from the portals to the agents, from Doug Crawford
by housebuilders and local authorities to their broker to their lender, from their Chief Executive Officer, My Home Move
improve their ability to provide the right
housing in the right places.
12 Bricks and mortar in a digital world: 15 years of the property market Bricks and mortar in a digital world: 15 years of the property market 13
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T: 0345 234 0230
F: 0116 281 5978
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My Home Move, through its wholly-owned subsidiary, Premier Property Lawyers,
is the leading provider of mover conveyancing services in the UK.
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