Land Registry proposes increase in fees

Tuesday, 14 April 2009 11:18 AM

The Land Registry has proposed an increase in fees to come into affect from July, which is intended to reduce its current operating loss.

The government department, which is responsible for registering land in England and Wales, has said the loss caused by the reduction in the number of transactions in the property market will need to be balanced by a higher fee.

From July 6th, the Land Registry is proposing fees be increased from £100 to £130, based on the price of a property worth £100,000.

The Registry, which is dependent on fee income to cover its costs, says it has been "seriously affected by the fall in property and mortgages transactions over the past year".

Finance director, Heather Foster, said: "A range of measures has already been taken to cut costs including a voluntary redundancy scheme and an accelerated plan to merge offices.

"Whilst these measures have helped to keep increases as small as possible, an increase is unavoidable and will mean - for an average priced property of £153,000, the increase is £50.

"We do not believe this will be a deterrent to market recovery, especially in the context of interest rates at historically low levels and lower house prices."

There will also be increases in fees for providing information, including official searches and official copies. For example, the fee for a postal official search will increase from £6 to £8.

"Fee increases are rare. Since 1993, eight of the nine Fee Orders (amending the level of fees) introduced by Land Registry have reduced fees. We will, of course, keep the new fees closely under review," Ms Foster added.

Sarah Garrod

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