Property Boundaries

Lord Faulks Excerpts

Thursday 15th January 2015 Grand Committee

[The Minister of State, Ministry of Justice (Lord Faulks) (Con)]

My Lords, I, too, am grateful to the noble Earl for raising this important issue for debate and for the clear way in which he outlined the problem. I am grateful to him also for acknowledging the fact that he, I and Charlie Elphicke, who brought forward a Private Member’s Bill, had a number of meetings in which he helpfully outlined of the nature of the problem as he sees it, and the possible solution presented by the Bill. This has been a useful exercise informing the ministry and my officials.

Property boundary disputes relate to the legal position of a boundary between two properties and the ownership of the relevant land. There are many millions of boundaries between properties in England and Wales. This is not a hyperbola—there are 24 million registered properties. The vast majority are probably never the subject of a dispute. However, as we have correctly heard, where neighbours disagree about the line of the boundary, the disputes can be very difficult indeed to resolve.

We cannot realistically create a world in which neighbours do not from time to time fall out over the precise position of a boundary. There are all sorts of reasons for the disputes, not all to do with a precise evaluation of the boundary itself. What we can aim to do is provide effective ways to resolve the disputes that occur. A first step is to try to identify why they seem to be so difficult to resolve.

It is perhaps regrettable that boundaries are rarely precisely defined in England and Wales, and the standard of property descriptions in conveyances and the matching of plans to the situation on the ground has historically too often been poor. In addition, boundaries may be changed by the application of the principle of adverse possession, to which there has been reference in this debate. Those rules are complicated and the time periods applicable depend on whether the title to the land is registered but, basically, a person can become the owner of land by uncontested continuous use over a lengthy period of years. The noble and learned Lord, Lord Hope, correctly referred to the Latin maxim. If this happens, the line of the legal boundary will change.

The fact that adverse possession involved evaluation of the facts is one of the reasons why the Government respectfully agree with what the noble and learned Lord, Lord Hope, said about the difficulty in the otherwise initially attractive solution of having the matter determined effectively by surveyors. An undesirable side effect of this lack of precision is that, unless a certain give and take is observed between neighbours, the resultant boundary disputes are often bitter, protracted and expensive. On occasions, the costs, as the noble Lord, Lord Kennedy, rightly said, can be out of proportion to what is at issue. There are all sorts of reasons for this.

As we have heard, it was concern about the disproportionate cost and bitterness of disputes based on the experience of his constituents and others that prompted Charlie Elphicke to bring forward his Bill. It proposed—if I may condense a 17-clause Bill, which I know has been amended—that disputes relating to the exact location of a boundary between adjoining properties in England and Wales must be referred to an independent adjudicator for final determination at the earliest opportunity, subject only to a right of appeal to the county court. In the light of the concerns raised, the Government decided to carry out an initial scoping study on the issue. The result of the study was published today; it is on the Blackberry of the noble and learned Lord, Lord Hope, I think the noble Earl has received it, and if the noble Lord, Lord Kennedy, has not received it, he will do so shortly. We have placed a copy in the Library, but I will briefly summarise its content.

The study took the form of interviews with a small number of key stakeholders and the distribution of a questionnaire to 30 organisations with an interest in land law issues involving boundary disputes. Input was also received during the period of the study from a number of individuals who had themselves been involved in such disputes. The study reflects the views expressed in the responses received on the nature, frequency and causes of boundary disputes, the effectiveness of the resolution methods, the problems that arise and what could be done to address them. It discusses a number of options for legal or procedural change. Incidentally, I accept that it is difficult to calculate quite how many disputes there are because they can vary between a full-blown boundary dispute which reaches the High Court and even beyond, and an initial disagreement which may be relatively easily resolved, and there are very many steps along the way.

Boundary disputes can be mediated by a range of methods, either through the county court or the land registration division of the Property Chamber of the First-tier Tribunal, as part of legal proceedings or separately by mediation, as referred to by the noble Lord, Lord Kennedy. Independent expert determination is also used in a very small number of cases. I noted from the RICS document, which was part of the very helpful Library Note put together for this debate, that there is a RICS Neighbour Disputes Service, which provides access to a specialist panel of expert members with experience of resolving neighbourly boundary disputes. The service can involve expert determination and mediation of a dispute, and therefore there is an alternative to formal litigation if any doubt or uncertainty exists between parties on the correct boundary line. The RICS advises those who might wish to seek a slightly cheaper way to resolve their problems.

The core conclusions reached in the study are that there is merit in the Government carrying out further work to assess the feasibility of improvements as regards a number of aspects of the current system, including the use of mediation and expert determination, the spreading of best practice and the provision of better information, but that more radical reform such as that argued for by the noble Earl, Lord Lytton, would not currently be justified. The particular approach the noble Earl advocates is the introduction of a mandatory system for resolving disputes similar to that used under the Party Wall etc. Act 1996. That would involve the appointment by parties at as early a stage as possible of an independent expert, normally a surveyor, to determine the position of the boundary. In the event that either party was dissatisfied, it would be open to them to appeal against it to a court.

It will be useful if I explain why the Government do not consider that requiring everyone involved to follow such an approach would be beneficial. First, the determination of the legal position of a boundary in the absence of agreement is normally a matter for a judge, as it determines a person’s legal rights. A surveyor, no matter how expert in technical issues—I entirely agree with the noble and learned Lord, Lord Hope, although my own experience with surveyors is that they very often are extremely expert and supplement the often inadequate understanding that lawyers have of these issues—will not necessarily have the legal expertise to deal with cases that involve more complex legal issues such as adverse possession. Allied to this is the fact that, unlike party wall cases, which are essentially based on a mutual need between the owners of the adjoining properties for work to be done efficiently, boundary disputes are much more likely to produce a “winner” and a “loser”. In addition, as contributors to this debate have acknowledged, boundary disputes can generate considerable bitterness.

The combination of these factors means that in our view the likelihood of appeals being brought against decisions would be high. It would mean that in many cases the suggestion would simply add a further layer to the proceedings, which would add to the costs rather than reduce them. In some cases the early appointment of experts could itself front-load costs where the dispute might have been resolved in other ways, and, perhaps, permit stronger and legally astute parties to steal an advantage over more easygoing neighbours. That does not mean that the Government are in any way complacent about the problems that can arise in boundary disputes, or about the possibility of improving relevant civil procedures more generally.

In the course of this Parliament, we have made considerable efforts to rein in the costs of civil litigation in general so that they are more proportionate, including through a new civil procedure rule to ensure that costs which are disproportionate will not be recoverable, even when they are reasonably or necessarily incurred. We have also introduced new provisions for costs management and costs budgeting. These and other steps should help to reduce the amount of costs so that they do not become disproportionate to the issue.

We believe that rather than restricting the flexibility of the current system and the range of methods that can be used to resolve these disputes, it is preferable for us to explore the feasibility of making further improvements. As I have indicated, there are a number of approaches we wish to examine aimed at developing and encouraging the use of mediation or other methods of alternative dispute resolution, supporting robust and timely case management and improving the quality and availability of guidance and information to increase awareness of the issues and the options available. I am grateful to the noble and learned Lord, Lord Hope, for reminding us of what the Land Registry provides by way of assistance to those who wish to have boundaries clarified.

On the question of general boundaries, which was referred to in the debate, I am advised that when land registration was first introduced there was an experiment with general boundaries from 1862 to 1875, when it was abandoned because it caused so many disputes.

On the question of what we can learn from Scotland, of course, it is always useful to learn from other jurisdictions. I am advised that a local deeds registry existed in Yorkshire and Middlesex until the late 20th century. We will consider, among other things, what we can learn from practice in Scotland, and, indeed, from practice in Australia. Our core aim will be to reduce the costs without in any way impeding the proper opportunity for people to dispute boundaries where they must do so. We intend to take forward consideration of how action can best be focused in these areas in the light of the findings of the scoping study in order to reach more definite conclusions on next steps in the year ahead. I thank the noble Earl for his contribution to the debate and all those who have contributed to our enlightenment on this important issue. As I have said, we are by no means complacent about this issue and the debate has been most helpful.