Land Registry customers to benefit from lower fees

Efficiency savings made in the last year by Land Registry, the government department responsible for registering land in England and Wales, mean customers will soon benefit from lower fees. The new Land Registration Fee Order also supports the Government’s Digital by Default strategy by giving a significant financial incentive to customers to submit their applications electronically.

The Order was laid in Parliament yesterday, Monday 16 December 2013 and is due to come into force on Monday 17 March 2014.

The main changes include

Combining the two lowest Scale 1 fee bands making the Land Registry fee for registering properties worth up to £80,000 just £40.
Scale 1 fee reduced from £120 to £80 for properties valued between £80,001 and £100,000.
A 50 per cent reduction for many Scale 1 and Scale 2 applications when lodged electronically. For example, the fee for an average-priced property in England and Wales (£165,515 in October 2013*) falls from £190 to £95, and from £910 to £455 for properties valued over £1m.
Introducing a flat fee per document (£3 electronically/£7 paper application) for inspection and official copies of documents.

New fees from 17 March 2014

Fee Band – Scale 1	Current Fee	New Fee	New Fee (electonic lodgement)
£0 to £50,000	40	40	20
£50,001 to £80,000	70	40	20
£80,001 to £100,000	120	80	40
£100,001 to £200,000	190	190	95
£200,001 to £500,000	270	270	135
£500,001 to £1 million	540	540	270
Over £1 million	910	910	455

Ed Lester, Land Registry’s Chief Executive said:

"Last year, our efficiency savings allowed us to reduce fees and in 2013 we reduced our operating costs by a further four per cent. I am delighted today, to announce that we are in the fortunate position of being able to share the benefits of this reduction by again lowering our fees (according to Land Registry's House Price Index).

“Our research shows that many first time buyers purchasing properties in the £50 to £100,000 range, which includes a significant proportion of shared ownership or Right to Buy sales in London and the South East, will benefit from the lower fees.

“This is a great example of the benefits of delivering public services digitally to our professional customers. By incentivising e-lodgement, we want to encourage them to get on board and reap the full range of benefits of lodging by electronic means – lower costs, speed and convenience.”

As a government agency with trading fund status, Land Registry is obliged to cover its operating costs from fee income. Land Registry fees are based on the volume of applications received, the value of property and internal overheads. Although fees have been reduced, the current volume of applications is still well below the level of the years preceding the property market crash.

ENDS

Notes to editors

The Land Registration Fee Order 2013 was laid in Parliament on 16 December and will come into force on 17 March 2014. It replaces the 2012 Order which came into effect on 22 October 2012.
For a full schedule of the fees visit http://www.landregistry.gov.uk/professional/fees
Land Registry’s fee income for 2012/13 is £347.2million compared with £359.3million in 2011/12. As a trading fund, Land Registry is required to cover its costs and provide a dividend on capital to HM Treasury.
Land Registry received 22.6 million applications in 2012/13 compared with 36.3million in 2007/08.
For more information about the new Fee order 2013, see http://www.landregistry.gov.uk/professional/fees or email the Customer Service & Handling Team.
With the largest transactional database of its kind detailing over 23 million titles, Land Registry underpins the economy by safeguarding ownership of many billions of pounds worth of property.
As a government department established in 1862, executive agency and trading fund responsible to the Secretary of State for Business, Innovation and Skills, Land Registry keeps and maintains the Land Register for England and Wales. The Land Register has been an open document since 1990.
For further information about Land Registry visit www.landregistry.gov.uk.

Contacts

Marion Shelley 0300 0067543, 07790 690297
marion.shelley@landregistry.gsi.gov.uk