Proptech is probably not a word many will have heard of before now. It’s short for "property technology" and is considered by some as the next big thing.

What Is Proptech?

Billions of pounds of property are traded every year in both the commercial and residential sectors. In addition, office blocks, blocks of flats and investors' property portfolios all have to be managed. The logic behind Proptech is to harness the processes surrounding this in an innovative way to make them cheaper and quicker. The big prize would be to trade property like shares or other financial instruments are traded. The potential, if successful, is huge.

Will this happen or is it just hype?

The biggest proponents of this wish to "disrupt" the ordered state of affairs and revolutionise the future in very much the same way that Google, Microsoft and Apple have disrupted the delivery of information.

There are, however, many sceptics. They point out that when dealing with property, many aspects require a skilled human being to add a qualitative judgement. Any computer could tick a box when a search result is returned, but will it be able to tell whether it is a clear or adverse search? Will the transfer of funds be safe? Will fraudsters see this as another opportunity to steal property? Will property be purchased using Bitcoins rather than real money?

It's early days for Proptech but worth keeping an eye out for the "disrupters" to see if they really can change the way property is traded.

In the meantime, the transfer of property is more than a "trade". The property is someone's home or place of work. Dealing with it requires much more than a tick box approach. Good legal help is essential.

- David Marsden is a partner at Watford-based law firm VWV