The government will invest £36m into new Smart Data schemes to allow secure information sharing across a number of sectors, including property.
As part of its 10-year Industrial Strategy released today, which complements its Infrastructure Strategy published last week, it said it wanted to explore the potential of Smart Data in transport, digital markets and property.
The government will also progress proposals for Smart Data schemes in energy and financial services. It said Smart Data could have a “significant impact on growth due to the competition and productivity benefits of data mobility”, adding that the success of this could be seen with open banking, where 82 firms have raised more than £2bn in private funding since 2018 and created 4,800 jobs.
It said the development of a Smart Data programme for the property sector would “improve data sharing across the real estate industry to spur innovative product and services development”.
Joe Pepper, UK CEO of Pexa, said: “For too long, property transactions have been slowed and overcomplicated by the patchwork approach taken across the sector to data collection and sharing, given both the complex process and the number of stakeholders involved.
“We know there is appetite across our industry to move this forward, and it is highly encouraging to see the government recognise this too.”
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He added: “It takes an average of 22 weeks to complete on a property purchase across the UK and more than 30% of property purchases fall through, putting pressure on homebuyers, lenders, conveyancers and, importantly, the economy. Simply put, those numbers are too big.
“Standardising and improving data through the introduction of a Smart Data framework is not a magic bullet by any means. But it marks an important step forward to speeding and easing this process for all parties, adding to the positive innovation that is taking place elsewhere in the market.”
Cleaner, cheaper energy
The Industrial Strategy also includes plans to reduce the cost of electricity by reducing the country’s reliance on fossil fuel imports, as well as potential reforms to the energy market, such as zonal pricing.
Additionally, the government wants to transition to homegrown clean energy, with business investment in clean energy industries set to at least double to more than £30m.
Energy Secretary Ed Miliband said: “This government is doubling down on Britain’s clean power strengths as we build this new era of clean energy abundance, helping deliver good jobs, energy security and lower household bills.
“The UK’s pitch is clear – build it in Britain. Power the world.”
Justin Young, CEO of the Royal Institution of Chartered Surveyors (RICS), said: “It is nice to see that the government intends to reduce industrial electricity costs. With UK electricity prices among the highest in Europe, this move will be vital to scale up both traditional industries like steel and glass and future sectors such as battery production and AI data centres.”
Young said the focus on clean energy would be “fundamentally important”, considering the government’s proposal to have all newly built homes fitted with solar panels.
Reformed planning system and a ‘technologically advanced’ financial services sector
Further, there are plans to drive forward reforms to the planning system in England to help meet the goal of one-and-a-half million new homes.
This will be done through more fast tracking, as well as shorter average pre-application periods, improving the responsiveness of local planning authorities, and introducing a Nature Restoration Fund so developers can make a single payment to identify and meet environmental obligations.
The government also wants the UK to be the “location of choice” for financial services firms to invest and grow, and will publish its Financial Services Sector Plan on 15 July. This will be supported by the Bank of England’s Financial Policy Committee (FPC) and includes its existing work to streamline regulation in the sector.
It said it wanted to make the UK the “most technologically advanced global financial centre with fully digitalised markets”.