Land Registry to pursue local land charges role despite major opposition

The Land Registry has confirmed that it is to press ahead with its plans to become the sole registering authority for local land charges in England and Wales, despite widespread opposition.

It claimed to have made a number of changes following consultation on its original proposals, which attracted significant criticism from a range of organisations including the Society of Local Authority Chief Executives and the Local Land Charges Institute.

The Government indicated earlier this month that the Land Registry plans would go ahead, by including in the Queen’s Speech on 4 June an Infrastructure Bill that would introduce the necessary changes to the Land Registration Act 2002 and the Local Land Charges Act 1975. The Bill is expected to complete its passage by March next year.

The changes will specifically:

• extend the Land Registry’s current legal powers under the Land Registration Act 2002 “to enable it to engage in the provision of information and register services relating to land and other property, including the provision of consultancy and advisory services”;
• allow it to take over responsibility as the sole registering authority for local land charges “to enable it to hold and maintain a composite local land charges register for England and Wales and be the sole provider of local land charges official search results”.

However, the Land Registry has decided not to implement proposals to limit the period covered by a local land charge official search to 15 years, or to simplify the definition of an LLC in the 1975 Act.

Preparatory work for the changes will start in April next year. A phased migration of the LLC service will begin later in 2015.

The Land Registry insisted that the reform would lead to “a standardised national fee for the first time and an end to the existing ‘postcode lottery’”. It also claimed that it would improve the property-buying process.

However, in response to the question “Should Land Registry take over the Local Land Charge registration functions of Local Authorities?”, some 95% of those to give a response (520 out of 549) said ‘No’.

According to the consultation response, many felt that “it would lead to a poorer service in general” and many cited “concerns over the loss of local knowledge, fragmenting the service, job losses and local authority costs as their reasons for not supporting the proposals”.

Ed Lester, Chief Land Registrar and chief executive of the Land Registry, said: “The proposals will provide a ‘one stop shop’ digital LLC search service, which will improve and standardise the service through faster turnaround times. This is consistent with Government’s digital by default agenda and will ease the process of buying property.

“We have listened to the consultation feedback on LLC and have made a number of changes to the original proposals.”

The Government said it acknowledged areas of concern, adding that “as a result Land Registry will continue to work with key stakeholders throughout the development of policy and legislation”.

The Government response, an impact assessment and an infographic can be viewed here.

The Land Registry stressed that the measures were separate from a consultation on its future commercial model. No decision on this front had been made, it added.

A local land charges prototype was developed by the Land Registry with seven authorities: Sefton; Liverpool; Denbighshire; Newark and Sherwood; Swindon; Havant and Watford. This ran from May to November 2013.