HS Property Group has used the clicktopurchase platform to become the first UK residential property company to record the online exchange of a residential property using blockchain technology.
The transaction, which was reported in the blockchain, was for the sale of a four-bedroom HMO investment property in Oldham, Greater Manchester developed by HS Property Group and listed for sale on its website.
Heralded by many as the future of finance and real estate, blockchain technology has attracted headlines recently as cryptocurrencies like Bitcoin and Ethereum are underpinned by this mechanism, thus enabling technologies such as peer-to-peer financial transactions, without a third party mediator.
Guy Horne, director and co-founder of HS Property Group, said, “The way we currently transact property is anachronistic, protracted and unreliable. Using blockchain technology will be the future of property transactions. The speed and transparency it offers will democratise property investment worldwide.
“As a company which prides itself on innovation, we want to offer our global investor network a more straightforward and secure method to purchase residential investments without compromising any legal safeguards.”
Blockchain helps facilitate a quicker and safer method of buying and selling property, as all transactions – from making the offer through to a legally binding exchange of contracts – are recorded on an immutable ledger.
Experts say that using a blockchain makes the transaction much simpler, while delivering certainty, transparency and accountability. It enables distant buyers to transact as easily as a local purchaser and brings the huge benefits of liquidity and flexibility.
HS Property Group was founded in 2014 by Manchester-based real estate entrepreneurs Guy Horne and David Searle.
Neil Singer, CEO of clicktopurchase, added, “Some of the biggest problems the property industry faces is the length of time it takes to exchange contracts along with the lack of certainty. Real estate transactions can be complex but by using clicktopurchaseⓇ the process is significantly quicker.”