Landlords may start to hear more about “digital ID” in the property sector—but recent developments suggest it’s not something you need to worry about just yet.

A parliamentary report has heavily criticised the Government’s plans for digital identity, raising concerns about how it would be used in areas like property transactions and tenant referencing. The report found the plans were rushed and unclear, which has already damaged confidence.

Because of this, an industry body called MyIdentity has advised around 250 companies to pause any further investment in digital ID systems until there is more clarity.

Why this matters to you

Digital ID was expected to streamline processes like:

• Right to Rent checks

• Tenant verification

• Property transactions

However, with different Government departments and regulators not aligned, there is currently no clear or reliable system in place. This could leave letting agents and landlords exposed if they rely on a solution that isn’t fully supported or legally robust.

What you should do now

For the time being:

• Stick with existing ID and referencing processes – these remain the safest and most compliant option

• Don’t invest in new digital ID systems yet unless they are fully established and widely accepted

• Rely on your letting agent or property manager to ensure all checks meet current legal requirements

The bigger picture

Digital ID is still likely to play a role in the future of renting and property transactions, but the timeline is now uncertain. Until the Government provides a clearer plan that the industry supports, progress is effectively on hold.