Peter Faulhaber (pictured), Head of Distribution for HSBC in the Channel Islands and Isle of Man, believes Guernsey and Jersey could be at the forefront of the digital house buying revolution.
New technologies are transforming the way people buy a home, according to HSBC’s latest home-buying report, The future of home buying.
The report, which surveyed more than 9,000 people in nine countries, predicts that property will be the next industry to face disruption, with property websites using technologies such as artificial intelligence and virtual reality to transform each stage of the home purchase, and deliver end-to-end services, including many traditionally offered by estate agents.
Among the report’s key findings are that:
• Dealing with so many people (estate agents, solicitors, sellers and developers) was identified by 37 per cent of recent home buyers as the most stressful part of the home-buying process. This was followed by negotiating the price (29 per cent), fees (28 per cent), and understanding the legal paperwork (24 per cent)
• Finding a property is already something that is largely done online, with almost nine in 10 (89 per cent) recent home owners looking for available properties online
• When it comes to home-buying finances, almost three-quarters (74 per cent) of recent home buyers researched finance options online
• Mortgage brokers and banks are still the most trusted sources of mortgage advice (41 per cent and 35 per cent respectively), while only 11 per cent of people have embraced the idea of using robo-advisers such as chatbots and humanoids for mortgage advice, according to HSBC’s separate Trust in Technology survey.
Pointing to the report’s suggestion that Property Technology (proptech) looks set to become the new fintech, Peter Faulhaber said: “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. It’s a similar story in Jersey, where the turnover of properties the highest recorded quarterly figure since 2006.
“Combined, this means there’s a real opportunity for the islands to realise the potential offered by proptech and it’s 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.”