Land Registry

Debate between Chris Stephens and Jim McMahon

Thursday 30th June 2016 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

It is a pleasure to follow the hon. Member for South Dorset (Richard Drax). I speak in my capacity as chair of the Public and Commercial Services Union parliamentary group. I pay tribute to the speech by, and the motion in the name of, the right hon. Member for Tottenham (Mr Lammy).

As has been said, more than 350,000 people have signed an online petition, and objections have been raised by, among others, the Open Data Institute, which warns that the proposed privatisation will build barriers in the data infrastructure, inhibit GDP growth and reduce the tax revenue that would be received from price paid data that the publicly owned Land Registry releases.

Several hon. Members have mentioned the report and investigation by the New Economics Foundation, which has argued that it is inappropriate to privatise the Land Registry—that the privatisation is politically motivated to reduce national debt in the short term—because the Land Registry, as a trading fund, is self-financing and brings in a surplus of £100 million a year. It performs well, with a 95% customer satisfaction rating. It concerns me that 3,500 jobs are at risk as a result of the privatisation.

There is also a risk of increased property fraud if the Land Registry is privatised. Currently, Her Majesty’s Land Registry invests heavily in this area at significant cost. The Land Registry deals with a large amount of personal data and the details of borrowing, secured debt and even court orders, because they form part of the land register.

[Jim McMahon (Oldham West and Royton) (Lab)]

That is an important point. One thing that occurred to me is that although there is a great deal of value in the land that is titled and registered, there is also quite a lot of value in land that is unregistered. Of course, the Land Registry makes the assessment as to whether people have a legitimate claim on that land.

[Chris Stephens]

The hon. Gentleman makes an excellent point, and I will come on to that. The New Economics Foundation states in its research that only an in-house Land Registry can continue to deliver a quality, trusted and impartial public service while fairly bringing in new revenue. In the research, the foundation also revealed that the Government’s assurances about the service are meaningless, because no risk assessment has been undertaken; and that a private company, naturally seeking to maximise profits, would inevitably put up fees to achieve an increased profit margin. There are also risks in the proposals to all users of the system, to any future Government planned infrastructure build, to the housing market, to the wider economy and to the national interest as increasing amounts of land are sold off, all too often to unknown overseas individuals and companies, as has been said.