Chancel Repair Liability

Helen Grant Excerpts

Wednesday 17th October 2012 Westminster Hall

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

It is a pleasure to serve under your chairmanship again, Mrs Riordan. I congratulate my hon. Friend the Member for Mid Worcestershire (Peter Luff) on securing a debate on the subject of the approaching deadline for the registration of chancel repair liability. I am replying as the Minister with responsibility for general land law in England and Wales.

The debate has highlighted the issues that people affected by chancel repair have to address in light of the October 2013 deadline. I do not underestimate the seriousness and difficulty of those issues, and the problems that they can cause for communities; I am, however, for reasons that I will explain, not persuaded that any change in the law is necessary. I know this conclusion will be disappointing to my hon. Friend, but I will keep the matter under consideration and will monitor developments carefully.

As we have heard, chancel repair liability is an ancient, but enforceable, part of the land law of England and Wales, whereby property owners can be compelled to pay for the repair of the chancel of a church. The liability is thought to benefit about 5,200 ancient churches, and to burden a large number of properties. Liability as between owners is joint and several. However, the present owners of the properties affected by the liability are not the only people to whom chancel repair liability and the approaching deadline for registration are important. Anyone seeking to buy a property will want to know whether it may be affected by chancel repair liability. Searches will be conducted and insurance may be taken out.

On the other side of the liability, the owners of the benefit of the liability will have issues to address. In England, the benefit is usually owned by the local parochial church council. The members of the council, who are essentially charity trustees in relation to their local church, have potentially difficult decisions to make about registration and, should it be necessary, enforcement of the liability.

[Nia Griffith]

Given the difficulties the Minister has just referred to, could there not be a simpler solution by doing away with the need to have the liability in the first place? It seems very unfair, and she has just pointed out why it would be very difficult to put a halfway solution in place. Perhaps a final solution needs to be made that actually gets rid of it.

[Mrs Grant]

The main issue, though, is that it is a valid property right that has been upheld by the House of Lords. I will say a little more about the hon. Lady’s point as my speech develops.

In most situations concerning private property rights, only the parties directly involved are engaged, but with chancel repair liability, the surrounding issues may be important for the relationship of the clergy, congregation and wider community in parishes where the liability exists and may be enforced. The approach of the deadline for registration may well have given everyone in those groups pause for thought.

In the midst of all the activity that registration or the consideration of registration may have produced, however, we should not forget the essential fact that the existence of chancel repair liability over a property is long standing. No new liabilities have been created. The registration of a notice of the liability or a caution against first registration on the land register merely preserves the right to make a claim. Properties subject to a notice or a caution are therefore not subject to a new obligation. In legal terms, in relation to such properties, nothing has really changed.

Of course, if the owners did not know about the obligation before registration, they will no doubt want to be sure that the registration is correct, but the issues brought out by registration would have arisen had the owner of the liability sought to enforce it. Failure to register may make a liability unenforceable, but registration does not guarantee that the claimed liability is legally enforceable. Whether a claim is sustainable will depend on the facts of the case. Homeowners and other landowners remain as free as they are at present to contest a claim. What registration removes is the uncertainty and unpredictability—the lack of discoverability—that currently surround the possible existence of chancel repair liability.

[Peter Luff]

What registration achieves is the unsaleability of property. Where a parochial church council wishes to give up the right in perpetuity, the Government have a moral obligation to enable it to do so.

[Mrs Grant]

My hon. Friend met with officials of the Ministry of Justice yesterday and they had an opportunity to discuss that and other issues, but he might also find it helpful to meet me at some point in the near future. If he could be a little patient and let me finish what I have to say, I might cast some further light on the matter.

People should no longer be surprised to discover that their property is subject—or, rather, claimed to be subject—to chancel repair liability. It is a positive development for property owners in general that chancel repair liability will be brought on to the register or wither for want of registration.

Registration of chancel repair liability is of course distinct from actual enforcement of payment of the liability, which will only arise if the chancel needs to be repaired. The October deadline does not affect that or the type of decisions that parochial church councils and other owners of the liability will have to make when money needs to be raised. I do not deny that deciding whether to register a notice or caution is a new step for members of parochial church councils, but it is a one-off and should not be any more onerous than past decisions to do with enforcing the liability.

Such decisions may not be easy and legal advice may well be necessary, but the Church Commissioners, the diocesan authorities and the Charity Commission are available to help to some degree. For better or for worse, parochial church councils and others who own chancel repair liability have an asset entrusted to them for a specific purpose. I accept that they may not wish to enforce the liability to preserve the harmony of their local communities, but they cannot wish away their responsibilities and, in any event, the providers of public funding for the maintenance of historic buildings will almost certainly take a close look at the reasons behind any decision not to register or enforce the liability.

We need to be clear about the nature of the deadline of 13 October 2013. The date was the 10th anniversary of the coming into force of the Land Registration Act 2002, and it is worth remembering why chancel repair liability became subject to a registration requirement. The need arose with the 2003 reversal by the House of Lords of the 2001 Court of Appeal decision in the Wallbank case. The Court of Appeal appeared to have resolved all the issues to do with chancel repair liability when it decided that the liability was not enforceable, and the Land Registration Act 2002 was drafted on that basis. The House of Lords subsequently decided that the liability was enforceable. In 2003, faced with a newly resurrected chancel repair liability, the then Government responded by making a transitional provisions order under the Land Registration Act, putting chancel repair liability on the same footing as other rights that had their status as overriding interests preserved for a period of 10 years.

Overriding interests are interests in land that bind a registered owner whether or not they are on the register. One of the aims of the 2002 Act was to bring more information on to the register, so that it formed a more complete record of legal ownership. Chancel repair liability is a good example of the kind of hidden burden that the policy was designed to expose. The October 2013 deadline for registration is a deadline in the sense that the liability needs to be registered before that date to ensure that it affects those who subsequently buy the land involved. No fee is payable for applications or registrations made before that date. Registration will generally still be possible after that date.

Naturally, the approach of the deadline has brought about a number of registrations and, unsurprisingly, issues around chancel repair liability have been awoken as the owners of the burden consider what to do, and those subject to it are reminded—or perhaps learn for the first time—that their property is claimed to be subject to chancel repair liability.

No doubt property owners subject to chancel repair liability would be delighted if the liability were to cease to exist. The Law Commission recommended abolition or apportionment of the liability as long ago as 1985. Abolition, however, would probably have to be accompanied by some form of compensation for the owners of the liability, and that money would have to come from somewhere.

There is no need to invent ways to release properties from the liability. It can be done by private treaty, although there are pitfalls, or under the formal procedure provided by section 52 of the Ecclesiastical Dilapidations Measure 1923. I am not suggesting that they are easy or inexpensive options, but they are possible.

In conclusion, the requirement for registration will achieve a much better balance in the law between the interests of the owners of chancel repair liability, the interests of those who are subject to the liability and the interests of those who may at some time in the future become subject to the liability. I am grateful to my hon. Friend for bringing the matter before us today. We have had an intelligent and informed discussion. I am not persuaded that the case for a change in the law has been made, but I shall of course keep the matter under careful review.

Question put and agreed to.