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Despite its vast size, the UK property industry lags much of the rest of the economy on technology adoption, with highly fragmented and deeply traditional ways of doing business.
Many of these businesses still rely on outdated practices rooted in manual labour and legacy systems.
While consumer expectations have shifted towards seamless, tech-enhanced experiences, the industry as a whole has struggled to keep up.
Buyers and sellers increasingly expect transparency, speed, and reliability – demands which are difficult to meet with traditional processes alone.
Government efforts
Conscious of growing consumer frustration over the clunky property market, in February 2024, the UK government produced a plan to modernise the home buying and selling process through digitalisation.
The proposals aim to reduce delays, cut costs and boost transparency, with key measures including enforcing digital ID checks and improving data sharing between estate agents.
Ministers have said the goal is to halve the average time it takes to complete a transaction, 22 weeks, and give buyers and sellers more clarity.
Peter Orr, chief executive of Intelligent Mobile, sees this as a turning point: “The traditional way of buying property is long-winded and inefficient. With 3D and AI, the process becomes intuitive and tailored. This gives house builders a competitive edge and boosts buyer confidence”.
The Department for Levelling up, Housing and Communities outlined initiatives to reduce delays, open up access to property data, and implement digital identity services.
This includes introducing a new digital platform to provide real-time access to property transaction data.
According to the housing minister Matthew Pennycook, the reforms aim to “streamline the cumbersome home buying process”, make it “fit for the 21st century.”
HM Land registry will pilot projects with local councils and consider protocols for sharing verified data between buyers, sellers, lenders, conveyancers and other stakeholders.
A key goal of the reforms is to reduce the number of fall-throughs, which affect around one in three transactions and cost UK consumers an estimated £400m per year.
Despite this direction, many of the reforms are still in early stages. Shared data standards and infrastructure across the property sector remain limited, and much of the information used in transactions – such as building control and highway data – is still held is non-digital formats
Why tech adoption has stalled
For many agency owners, sluggish adoption of technology is a question of mindset.
These businesses were built on personal relationships and local reputations, and new technologies feel like a threat to what once made them successful.
Technical expertise is another hurdle. While these owners may be property experts, they often lack the skills to evaluate or integrate complex software solutions.
The steep learning curve contributes to a cautious, if not resistant, approach.
For smaller agencies in particular, the upfront cost of digital transformation can seem prohibitive, especially without clear and immediate ROI.
Fixing the gap
According to Ben Ridgway, co-founder of proptech firm iamproperty, digitalisation offers real opportunities to reduce inefficiencies and increase speed.
“We can certainly do lots more to improve preparation”, he said, citing identity checks as one example of where duplication can be avoided through shared data systems.
However, he acknowledged the wider difficulties involved in digitalising a process that involves multiple stakeholders.
“From an individual process? Yes, absolutely… the problem comes when you tie five or six of those individual processes together in a chain. That’s where the difficulty lies with digitising right from the start to the end”, he told CityAM.
“We are under no illusion that this is a fairly ambitious goal to deliver”, Ridgway added.
He recognises the limits of relying on regulation to drive systemic change, too. “The government is making the right kind of noises”, he said. Yet, “those noises are yet to turn into action”.
‘The future is hybrid’
While digital tools can support greater efficiency, the consensus across the sector is that a fully automated process is unlikely in the short term.
Instead, a hybrid model is emerging – one that uses technology to reduce friction and improve coordination, while recognising the ongoing role of human judgement.
According to Jamie Cooke, iamproperty’s co-founder, the company’s strategy is not to replace people but to assist them. “Most agents are people-people”, he said.
“A lot of them don’t enjoy or want to do the mundane admin”, he added, “we want to help them do that side of things well so they can do the bit they enjoy better.”
Marc von Grundherr, director of London agency Benham and Reeves, acknowledged that a pivot towards a digitalised process is underway.
He told CityAM: “In recent years, we’ve seen the UK property market dramatically altered due to digitalisation. It’s improved connectivity and sped up transactions, and it’s also opened up greater mortgage product choice for buyers”.
Von Grundherr emphasised the need for balance, cautioning that “no amount of data or tech can replace an agent’s local market knowledge or their ability to negotiate or pull a deal through”.
Building tech-enabled agencies
Tasks such as property listings or legal documentation can now wholly be handled by AI or smart platforms, freeing up these resources allows agents to focus on higher-value, client-facing work where human expertise still matters.
This hybrid model, where intelligent tech supports human input, is the most realistic and effective path for the sector.
As Ridgway notes, “We can certainly do more to improve preparation, but we’re under no illusion that full digitalisation of the whole journey is a straightforward task.”
How is AI jump-starting stalled markets
In London, where property prices have stagnated throughout 2024, technology is helping to identify value in a flat market.
With the capital’s average property price frozen at £549,000, against a 4.6 per cent national increase, traditional investment models are under pressure. Companies are developing AI tools tailored to these market conditions.
Milton Rodesthenous, founder of PropMarker, said: “The stagnant London market actually creates opportunity for investors with the right analytical tools. Properties that appear similar can have vastly different potential when analysed properly.”
Integrated AI features are also making their way into the property browsing experience. New browser extensions overlay investment insights directly onto listings, giving buyers to assess to floor plans, valuations, and rental yield potential in real time.
The future of property is tech driven, and agencies or investors who fail to act risk losing relevance in a market that is evolving at a dizzying pace.
Simon Jenns, director of ANTLER, said: “The industry needs to innovate boldly. Traditional content and static marketing won’t cut it anymore. We’re moving to an age of dynamic, engaging experiences driven by AI and automation.”
“In 2025, strategic investment into AI isn’t optional – it’s essential”, said EyesiteView associate director Tony Buck.