Land Registry

Michael Fallon Excerpts

Tuesday 25th February 2014 Westminster Hall

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

I, too, congratulate the hon. Member for Swansea East (Mrs James) on securing this debate on an important subject. I am also sorry that she is leaving us at the next election. I am sure that she is not considering retirement, and I wish her well in whatever form of public politics she continues to pursue. I thank all hon. Members who have participated in the debate. I will try to reply to a number of their points, but if I may, as there were a number of questions—not least those fired at me by the hon. Member for Hartlepool (Mr Wright)—I will reply by letter to some in the interests of time.

A well-functioning property market is critical to the UK economy. Ensuring that the market functions properly has long been one of the Land Registry’s main tasks. It recently celebrated a landmark 150th year and continues to be a cornerstone of property ownership in England and Wales. It undertakes a range of functions and responsibilities that are critical to the property market operating effectively. In the past, successive Governments have been at pains to ensure that land registration procedures keep pace with a dynamic and rapidly-changing property market. As we look to the future, it is important that the Land Registry is able to modernise successfully and move into the digital age. The Land Registry already provides a number of services through digital channels, but it is looking to become a leader in digitising land and property services, and in the management and reuse of land and property data.

Accordingly, its ambitious new business strategy is focused on a number of areas: the digitisation and re-engineering of its core registration services, which should reduce processing times, risk of error and the costs of those services; playing a wider role in the land and property market, including being able to take on other adjacent registers; and maximising the reuse of property data for the benefit of the wider economy. Reduced processing times, errors and costs, and wider services and better access to public sector data, will all bring significant benefits for customers and make it easier to register land in England and Wales.

The strategy also reflects our broader digital, efficiency and modernisation aims and as such is a key priority. The experience of other countries in modernising their property services makes a compelling case for us to realise those benefits at an early stage. A number of other countries and states have already successfully digitised their land registries, so it is important that England and Wales do not fall behind where there are useful lessons that could be learned.

Before I turn to the commercial models, I will say something about local land charges. The Land Registry is looking to become the sole registering authority for local land charges, a job that is currently undertaken separately by each of the 348 local authorities. The benefit of the Land Registry providing a single central solution is that it would result in cheaper, quicker and more standardised services, so avoiding the current postcode lottery.

Commercial models dominated the debate. The hon. Member for Swansea East fairly asked: “If it ain’t broke, why fix it?” I will reply directly to that. Of course, the Land Registry is profitable, but we have a responsibility to review continually whether the business can drive further benefits to its customers and the wider market by driving digital by default services, which could deliver lower-cost services and reduce processing time.

The proposal in the consultation to introduce a new service delivery company is aimed at supporting the business in delivering its business strategy in the best way possible. We have been working with the business to consider whether the current model is fit for purpose or whether there may be benefits in considering alternative commercial models. Following that, there should be a number of benefits through a greater focus on service delivery, greater operational flexibility and a more clearly defined relationship with Government. Central to any change in the commercial model is the guiding principle that we must continue to protect the integrity of the registry in such a way that its role in underpinning the property market by giving confidence to buyers, sellers and lenders is not compromised.

[Mr Stewart Jackson]

I am sure the Minister would like to reassure us on the comments made by the then Lord Chancellor at the time of the feasibility study in 2011. He said that

“the registry’s state guarantee of title to land and property is essential, and that it must be retained in any arrangements that we make.”—[Official Report, 29 March 2011; Vol. 526, c. 151.]

[Michael Fallon]

Indeed. The proposal being considered in the document is to introduce a new Land Registry service company that would have responsibility for the performance of the service delivery functions. There would be a separate office of the chief land registrar retained within Government primarily to perform the regulatory and fee-setting functions. It is also envisaged that the indemnity arrangements will continue to be state-backed. The new company, if we choose to go down that particular road, could focus on delivery. Its ability to carry out additional activities would no longer be narrowly constrained by legislation. It would be outside the civil service and would have greater flexibility on pay and recruitment.

I emphasise that no decision has yet been taken about the ownership of such a new company, should we move forward with the proposal to create it following the consultation. A number of models are being considered, but the oversight that will be retained by the office of the chief land registrar would ensure that Land Registry companies and the integrity of the register would be protected irrespective of ownership. Models being considered include a wholly owned Government company, a joint venture and a contracting-out model. It is Government policy to assess options for moving assets to the private sector where there is no longer a strong policy reason for continued public ownership or where there is potential for an asset to operate more sensibly and efficiently in the private sector.

I was asked what the transition period means—it means the digital transformation phase. During that phase, we see benefits in partnering with the private sector, whether the status quo is maintained or whether there is a change in model, as considered by the consultation. The form of that partnership with the private sector would be different under each scenario. Looking internationally, a range of commercial models have been adopted to deliver the digitisation of land registration, but in each case there has been partnership with the private sector to bring in the capacity and capability needed.

I was asked about data protection. I confirm that the data protection procedures that currently apply would apply to any new service delivery company, to ensure that personal information is not mishandled. I was asked about the KPMG report, which was prepared in March 2011. Many parts of it are no longer relevant, but I understand that a redacted version of the report has been supplied to one of the unions under a freedom of information request.

My hon. Friend the Member for North West Norfolk (Mr Bellingham) asked me specifically about conveyancing self-service. I make clear to him that the current customers of the Land Registry will have their views sought before any new or revised services are launched. They would certainly be consulted again before any such services were mandated by the Land Registry. I hope that that reassurance will be of use to him.

I was asked about meetings with MPs. I say to the hon. Members for City of Durham (Roberta Blackman-Woods) and for Darlington (Jenny Chapman) that I do not think it is satisfactory that the meeting was refused. I am asking the management of Land Registry to look at that again to see whether, as we come to the close of the consultation period, those meetings can now be organised with the hon. Member for Darlington and her colleagues. I hope that it offers some comfort to her that my former constituents are still at the forefront of my mind.