Homebuyers in the UK complete compliance checks an average of 5.4 times during a single property transaction, according to data from Credas Technologies, a digital identity verification provider.
The repetition occurs because buyers must verify their identity separately with estate agents, conveyancers, mortgage brokers and lenders, with each party operating in independent compliance systems. This lack of interoperability means identity verification cannot be easily shared or trusted across organisations.
Current verification process
Under existing anti-money laundering (AML) requirements, each entity in a property transaction must independently satisfy its own regulatory obligations. This creates a system where buyers submit the same documents repeatedly, often without clear explanation of how their data is being handled.
Neil Williams, CTO at Credas Technologies, notes that many buyers lack understanding of AML requirements. “Buyers often don’t understand why checks are happening, only that they are repetitive,” he said.
The repeated verification process introduces delays at multiple stages of the homebuying journey. Documents are frequently shared via email and messaging applications, which can create data security vulnerabilities in processes designed to prevent financial crime.
Digital ID framework proposal
Digital identity verification systems propose a “verify once, reuse many times” model. Under this framework, buyers would complete identity verification once, storing the results in a digital compliance wallet that can be shared with multiple parties throughout the transaction.
The system would allow buyers to control which documents are shared, with whom, and for how long. Digital wallets would also store AML, address and politically exposed persons (PEPs) and sanctions checks, removing the need for repeat verification across different organisations.
Implementation would require estate agents, conveyancers and other property professionals to adopt interoperable technology platforms that support digital IDs and data portability. Williams suggests parties should look for alignment with emerging digital ID standards and frameworks when selecting verification providers.
Industry adoption requirements
The shift to reusable compliance would require changes in how the property industry approaches identity verification, moving from organisation-centric compliance to user-centric verification systems.
Property professionals would need to explain the benefits of digital IDs and AML requirements to buyers, including how their data will be used and protected. This educational component aims to address the current lack of transparency around data handling practices.
The development comes as the property sector faces various regulatory changes, including upcoming reforms to tenancy legislation and ongoing legal challenges to leasehold reforms.
Early adoption of digital ID systems could reduce transaction fall-through rates by creating a smoother buyer journey with less repetition and fewer delays, according to the technology provider. However, widespread implementation would depend on industry-wide acceptance of common standards and collaborative frameworks between agents, conveyancers and lenders.
