Driving liquidity in property 

post Covid-19 lockdown

Pre-pandemic exchanges, sales agreed and new Instructions levels were experiencing double-digit growth in the top bracket properties.

 

Government restrictions on the market since 23rd of March have led to the drop of new sales by 70%.

In the £200,000 and above price brackets the share of these instructions was disproportionately higher for the traditional high street estate agents providing much needed optimism in a category that has already been heavily impacted by the uncertainty of Brexit.

However, when the government restrictions are lifted, the market will likely become even more congested than usual. Not only will the market need to contend with the usual challenges, but the resultant increased uncertainty and new delaying factors will start affecting the rate of completion such as the need for revisiting or renegotiating previous agreements and confirming mortgage offers still stand.

 

As such a major risk in getting the property market back onto a steady footing will be the higher likelihood of selling chains being held up even more than usual and therefore a stagnation of completed transactions.  This is the last thing the category needs.  More than ever homeowners need to see a rapid recovery of movement to bolster confidence to relist their own properties and search for new homes.

At Beyond Analysis we believe the solution lies in industry collaboration and the use of advanced AI techniques to unlock congestion and stimulate the recovery of the sector through sharing of data across the industry in a pooled safe harbour and using this to identify the areas of blockage and target collective solutions where it will have the greatest impact.

Modelling

Predicted timeline scenarios, modelled view of chains.

Visualisation

Blockages and impacted chains, value and prioritisation of blockage.

Optimisation

Co-ordinated focus on blockages, People operations on the right deals.

Our approach is to bring together a sufficient number of the category leaders to create a new level of impetus and collaboration that in previous times would have been seen to be too hard. Now however is the right time for new thinking and more radical approach to prior attempts at making the property market more liquid not just for the immediate survival of so many estate agent businesses, but for the long term improvement in the entire buying and selling experience for the customer.

SHARED DATA ACROSS THE INDUSTRY (SAFE HARBOUR)

Key Companies agree to share anonymised transaction data into a Safe Harbour governed by Independent Party Beyond Analysis to include: Property ID, Agent, Date/Value/Stage of Deal, Status of Finance/Legal.

MODELED OUTCOMES AND SCENARIOS ENABLE LIQUIDITY DECISIONS

AI models deployed across the pooled industry data to drive the following:

  • Modelled view of chains to identify all interconnections across the market.

  • Estimated Timeline Scenarios for all property transactions in train to assess when, where and how blockages likely to occur

  • Value and prioritisation of blockage calculated.

  • Connections, blockages and impacted transaction value visualised into a dynamic solution that updates as transaction complete or change

ENABLE COLLECTIVE AND COLLABORATIVE ACTIONS

Using the insights and scenarios created a collaborative task force across the industry can develop and coordinate a series of initiatives that deliver liquidity into the market:

  • Coordinated focus on blockages – optimise people operations on right deals.

  • Financial solutions with justification – mortgage guarantees, property purchases, rental offers – to clear high value blockages.

  • Drive customer experience improvements and stimulate category confidence.

About Beyond Analysis

Beyond Analysis is an award-winning data science, analytics and strategic data solutions and consulting business. 

  

We help our clients use data to drive efficiency gains and business improvements through better understanding their customers and business operations. Using the latest in artificial intelligence and machine learning, we model and forecast behaviour that enables the sharing of insights so that they can take action across their business for competitive advantage. 

Beyond Analysis is a data science, analytics and strategic data solutions and consulting business.

Reach us at info@beyondanalysis.net

© 2020 Beyond Analysis Ltd