March 2018: HS Property Group, a real estate investment and development firm based in Manchester, 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, commented: “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. They specialise in developing high-yielding residential investment property secured through long-term corporate leases with established social housing organisations. 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.”
Manchester’s property market is currently thriving and proving to be the natural alternative for investors to London’s low yields and falling prices. House prices in Manchester are up 32.5 per cent in the past five years, according to Land Registry data compiled by Savills Research, with an 8.8 per cent rise last year alone. Values are predicted to continue rising by a further 22.8 per cent from 2018-2022, according to property consultants JLL, compared with 16.5 per cent for the north-west in general, and 10.3 per cent for London.
With the addition of improved transport links such as HS2, Manchester Airport and the ever-expanding Metrolink, Manchester is very attractive to investors looking for the best return on their investments.
For more information on this property and for other similar investment opportunities, visit www.hspropertygroup.co.uk
Photo: Guy Horne HS Property Group