Chancel Repair Liability

Nia Griffith Excerpts

Wednesday 17th October 2012 Westminster Hall

[Nia Griffith (Llanelli) (Lab)]

The hon. Gentleman has explained clearly the problems faced by householders. Given that back in 1982, the General Synod of the Church of England overwhelmingly supported a motion proposing that chancel repair liability be phased out and that the Law Commission’s 1985 report recommended that chancel repair liability arising from the ownership of land should be abolished after 10 years, does he agree that the Government should now consider implementing that recommendation or, at the very least, agreeing to set up a parliamentary committee of inquiry shortly after October 2013? It is outrageous that people should be facing the unfairness of chancel repair liability. A few householders are facing enormous bills.

[Peter Luff]

I agree with the spirit of what the hon. Lady says, but happily, I think I have a rather simpler solution. Let us see.

As I was saying, the sum would be payable pretty much on demand and would be unpredictable in both amount and frequency. A house in such a situation would be either unsaleable or substantially reduced in value. Some wrongly say that insurance is the answer, but it is not. When someone buys a house, the solicitor should do a search to establish whether the liability exists on the property. Such searches are complex and often difficult to conduct, so after a brief search, many solicitors instead offer purchasers chancel repair liability insurance.

Such insurance is available only where it appears that no liability is registered. Where liability is registered, insurance is not available. Where there is no awareness of the possibility that the liability might be claimed, no insurance is purchased; I doubt whether many of us here today have such insurance. For most property owners, the registration of the liability means that they will have to pay large sums at regular intervals for ever, passing on the liability to anyone foolish enough to buy their property.

--- Later in debate ---

[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.