Homebuyers will be able to ‘live’ in a virtual version of a home before they purchase as digital innovations continue to transform the industry.
The use of virtual reality technology could put an end to the rise of 15-minute property viewings and help to cut the homebuying process to a matter of days, according to a HSBC study entitled Beyond the Bricks: The Future of Home Buying.
An analysis of more than 9,000 people in nine countries found UK homebuyers were the most digitally active when it came to researching finance options online, with 88 per cent doing this and 85 per cent identifying what they could afford online.
In a survey of 1,000 UK residents, more than half (51 per cent) of recent home buyers said they started talking to an estate agent online during their initial conversations.
Property Technology expert James Dearsley, founder of the Digital Marketing Bureau, said: “Property websites will become considerably more sophisticated, using big data to bring more and better properties in front of prospective buyers and taking over much of the traditional estate agent’s role.
“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.”
But a separate global study for the bank, entitled Trust in Technology, revealed a reluctance to fully digitise the home buying experience, particularly when it comes to finance.
It found mortgage brokers remained the most trusted source of advice for millennials, Generation X and Baby Boomers.
Daniel Hegarty, CEO of online mortgage broker Habito, said further digital transformation of the mortgage market was inevitable.
He added: “A new breed of digital mortgage brokers is using technology to scan all lenders and products on the market as well as using human mortgage experts to give free, personalised advice.
“By doing this they make sure the consumer's interests come first and they get the best mortgage for them. Importantly this is all done online, the process is completely transparent and the advice is accessible 24/7 from any connected device.
“With the vast majority of people now starting their property search online, it is inevitable they will also increasingly look for more convenient, better value services from all elements in the property buying chain - and their mortgage is no exception."
simon.allin@ft.com
