The UK government is planning to introduce a digital ID scheme to simplify how people prove their identity.
While it could make the process of buying a house quicker, experts warn there are risks around security and accessibility.
Industry leaders are also exploring the idea of a “property passport” linked to digital IDs, which could hold verified information about a property’s history.
What are digital IDs
Digital IDs are electronic versions of documents like passports or driving licences that can be used to prove who you are online.
The government says the scheme will be mandatory for proving your right to work and will reduce the need for repeated identity checks.
According to GOV.UK, “digital ID will make it quicker and easier for people to verify their identity for vital government services,” though it has not explicitly mentioned homes in its public announcements.
HM Land Registry has trialled a digital identity system for conveyancers to verify a buyer’s identity digitally when registering property changes.
Maria Harris, chair of the Open Property Data Association, said: “A securely verified and reusable digital identity has the potential to increase consumer confidence, reduce fraud, and make processes like home buying safer.”
How digital IDs could help home buyers
Digital IDs could reduce the time it takes to buy a home by reducing paperwork and speeding up identity checks across solicitors, mortgage lenders, and estate agents.
Beth Rudolf, director of delivery at The Conveyancing Association, said: “Digital ID could virtually eradicate seller impersonation fraud and, for those using digital anti-money laundering checks, reduce the time spent on enhanced due diligence from weeks to minutes.”
The idea of a property passport is also gaining traction. This would link a digital ID to verified data about a property, such as ownership history, renovations, and compliance with building regulations. It could help buyers make more informed decisions and provide a single source of verified information.
The risks digital IDs could bring
However, there are significant concerns regarind security amongst those in the industry.
Richard Howes, director at Paradigm Mortgage Services, warned: “If ID cards are stored on phones, they could become a prize target for criminals. The system must be designed to prevent identity theft and cyberattacks.”
Professor Alan Woodward has also cautioned that centralised databases could be vulnerable to hacking if not properly secured.
Inclusion is another challenge. Not everyone has access to smartphones or is confident using digital services. The government says inclusion is “at the heart of its design,” but experts emphasise that careful planning will be needed to make the system accessible to everyone.
Ultimately, digital IDs could make buying a home simpler and more transparent but the risks regarding safety need to be ironed considering these could be the largest purchase many people will make in their entire life.
