New Data Law Paves the Way for Smarter Property Transactions and Secure Digital ID Verification

The UK has taken a significant step toward modernising its data infrastructure with the royal assent of the Data (Use and Access) Act. This wide-reaching legislation establishes a legal framework for the secure sharing of property and identification data across sectors, including real estate, healthcare, utilities, and planning. It is expected to streamline processes, reduce duplication, and support more efficient service delivery.

Within the property sector, the Act is seen as a catalyst for long-overdue change. It enables data to be shared between all parties involved in a property transaction such as estate agents, conveyancers, and lenders provided the appropriate permissions are in place. Owen Rogers, Product Director at Houseful, noted that the Act could “compel the industry to share data” in a way that reduces inefficiencies and delivers better outcomes for consumers.

The legislation also lays the groundwork for the expansion of digital identity verification. Under the UK Digital Identity and Attributes Trust Framework, certified providers will be authorised to deliver trusted ID tools, allowing individuals to prove their identity securely and efficiently online. The Office for Digital Identities and Attributes (OfDIA), under the Department for Science, Innovation and Technology (DSIT), will oversee certification and issue trust marks to compliant providers beginning next year.

The government estimates the adoption of trusted digital ID systems could contribute an additional £4.3 billion to the UK economy over the next decade. These systems are expected to simplify essential tasks such as renting a property or starting employment, while also increasing trust and confidence in digital transactions.

Despite broad support for the Act, the Law Society has voiced concerns around data protection, legal safeguards, and the UK’s data adequacy status with the EU. Chief Executive Ian Jeffery emphasised the importance of maintaining robust privacy standards and legal clarity to ensure continued cross-border data flows and to preserve the UK’s standing as a global legal jurisdiction.

As implementation begins, the Data (Use and Access) Act marks a significant step forward in the UK’s digital transformation. Its success will depend on effective regulation, clear guidance, and a balanced approach that upholds both innovation and the public’s trust.