We received some unwelcome news last week, when central government announced that from 17 August, personal searches of the land charges register would be free – under the Environmental Information Regulations (EIRs).
This will particularly hit district and borough councils, which currently offer personal searches for a statutory fee of just £22.The relevant part of the Local Land Charges Rules 1977 is being revoked, together with the current fee. This change will have potential consequences for local authorities and their customers, both in terms of fees received, but also cost to local council taxpayers.
Currently, local authorities can charge £22 per search, which covers maintaining accurate information and producing this information on request. There are many – if not all – search companies which request this information, and pass on the charge to their customer – eg, during conveyancing on a house purchase.
This latest decision will mean that this work will now have the same staffing and other costs, but no fee will be paid. The costs will, therefore, fall on local council taxpayers, and may result in the reduction or loss of a local service to compensate for this loss.
Worst still, councils could have to refund fees dating back to 2005. Tandridge has already been contacted by two search companies which, no doubt, see this as an opportunity for a financial windfall as it is questionable whether they will pass this back on to their paying customers, should such a refund prove necessary.
Under the Environmental Information Regulations 2004, should refunds prove necessary, there will also be the additional administrative process of identifying and assessing claims. These additional and potentially-costly burdens do not appear to have attracted any compensatory grant from CLG.
This is similar to directing retailers that they can no longer charge for milk and may have to refund customers for their purchases dating back to 2005.
The retailers would probably stop selling milk as a result, but councils still have to maintain their records and arrange a time where people wanting a personal search can come into the offices and be supervised, while looking at the register themselves.
Stephen Weigel is chief executive at Tandridge DC
