The bank predicts that the disruptive property technology – dubbed ‘PropTech’ – will overturn traditional estate agency services and rival fintech in popularity.
The report canvassed 9,000 people in nine countries and found that 89% searched online for their ideal property and 74% researched finance options on the internet, although only 11% used ‘robo-advisers’ such as chatbots for mortgage advice.
Dealing with estate agents, solicitors and developers was the most stressful part of the process according to 37% of those questioned, followed by negotiating a price (29%), the fees (28%) and understanding legal paperwork (24%).
PropTech specialist James Dearley said: ‘There will be no more fifteen-minute windows to view a property. Virtual reality will enable homebuyers to narrow down their choice and then “live” in a virtual version for several days.
‘We can also expect to see more on-demand services provided digitally through live-chat or video, with personal information held digitally. Artificial Intelligence will analyse that personal data, assess lending criteria and narrow down options to give instant mortgage approvals.’
Peter Faulhaber, HSBC head of distribution in the Channel Islands and Isle of Man, said: ‘With Guernsey and Jersey having a strategic focus on digital innovation and making good headway in the fintech space, there is real scope to explore PropTech. The Channel Islands have vibrant housing markets domestically and in terms of high-net-worth inward relocations. This means there is a real opportunity to realise the potential and it is highly likely that the process of buying a home will change beyond recognition in the coming years.
‘Traditional estate agents will need to redefine their role to become technology providers and physically visiting an estate agent will become a thing of the past,’ he said.
