A property sector initiative to introduce a digital identity scheme is being scrapped due to concerns over UK government policy and a lack of consumer benefits.
Organisers of the scheme have informed Whitehall departments backing the plan, along with regulators and industry bodies, that they are withdrawing support for the implementation of a standard digital ID into the property sector.
The MyIdentity initiative aimed to allow home buyers and sellers to prove their identity once, instead of having to do so multiple times. This information would then be shared with other parties, such as estate agents, mortgage providers, solicitors and conveyancers, within a government-approved digital identity trust framework.
A pilot in 2021/2022 was backed by funding from Innovate UK and supported at the time by ministers. However, after what organisers described as “repeated delays and false starts in progressing a coherent identity strategy”, MyIdentity and backers at the Home Builders Federation have advised more than 250 companies in the sector to reconsider any further investment of time and money into digital identity systems “until the government sets out clear regulation and legislation, a failure on their part”.
“We are putting all activity on digital ID in the property sector on hold. We’re not convinced that it will work, as it provides no consumer benefit and, by default, no real sector benefit,” said Stuart Young, managing director of Etive, the company leading the MyIdentity scheme.
“This is not a decision that has been made lightly. Following extensive work over the last year or so, it is clear that the people who work on the coalface of property are not convinced of what government is trying to do. In fact, confidence has dropped dramatically. Plus, the business case just doesn’t seem to be there.”
The government has encouraged industry sectors to set up digital ID schemes as part of its Digital Verification Services Trust Framework, established by the Department for Science, Innovation and Technology (DSIT). The withdrawal of one of the leading schemes will come as a blow to the wider policy to introduce a government-backed digital identity programme across the UK.
Young cited long-term, continued uncertainty over government policy, as far back as Tony Blair’s physical ID card scheme, through the failed Gov.uk Verify programme, and up to the mixed messaging and confusion caused by Keir Starmer’s announcement of a mandatory national digital ID scheme and his subsequent U-turn.
“All the same mistakes are being made,” said Young. “We have told DSIT, the Ministry of Housing, etc about this over the years but they just aren’t interested. I think it is wrong to mislead companies and it was clear to me that [companies] are fed up with more failed initiatives or ’not another initiative’. Fatigued is probably the best word to describe how people feel.
“For the government to try to introduce digital identity, which is only guidance and voluntary, makes it a tough sell for companies that have other shifting business priorities to deal with.”
Currently, home buyers and sellers must complete multiple identity checks during a single transaction, paying repeated fees. Rather than reducing friction, Young says such digital identity processes are increasing both costs and delays.
In a letter to government representatives in April, MyIdentity said: “The current landscape for customer identity is characterised by significant ambiguity. Divergent and, at times, conflicting perspectives across government and industry have resulted in a lack of clear direction regarding policy, regulatory intent and the permissible scope of private sector activity. This uncertainty is compounded by the absence of definitive guidance on the government’s long-term strategy and mandates in this area.”
A report by MPs on the Home Affairs Committee last month described the government’s launch of its digital ID policy as “nothing short of a fiasco” that “undermined what existing public support” there was for digital ID.
Young added: “We remain hopeful that, over time, the digital identity challenge can be resolved and contribute positively to improving the home buying and selling process. What the industry needs is demonstrable progress, clear leadership and tangible outcomes capable of building market and consumer confidence.”
