Land Registry to raise fees

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by Kay Murchie

The Land Registry is to raise some of its fees because the housing market downturn and the recession has led to a reduction in its fee income.

Since the housing market peaked in summer 2007, house prices have lost around a fifth of their value. The tightening of lending criteria, which has made it difficult for individuals to secure a mortgage, have all had a negative impact on the property market with sales across the UK just 44% of the level recorded this time two years ago.

The registry said: “Due to the downturn in the property market and the deterioration in the economy generally, our intakes of work fell heavily in 2008 and 2009 leading to an unsustainable reduction in our fee income.”

“A range of measures have already been taken to cut costs including a voluntary redundancy scheme and an accelerated plan to merge offices. Despite this the increases are, regrettably, unavoidable,” it added.

The increase in fees will make the sale and purchase of a property slightly more costly. However, the organisation does point out that, since 1993, a range of its fees have actually been reduced.

The increases mean that the fee for registering a property worth £100,000 has risen from £100 to £130 and for a property worth £1 million from £420 to £550. For an average priced home at £153,000, the increase amounts to £50.

Furthermore, charges for providing information, including official searches and official copies, are up from £6 to £8.

The Land Registry covers England and Wales and records and guarantees the ownership of domestic and commercial property.

The organisation enables anyone to find out who owns land, whether there is a mortgage or legal restriction on it, and how much was paid when it was last sold.