Registers consult on applications fees rise

Fees for registration in the Land Register are set to rise under proposals in a consultation opened today by Registers of Scotland.

The £10 increase for most fees that came into effect this month, under powers given to the Keeper to protect Registers’ financial position, was the first rise since 2011, with minor exceptions.

With Registers seeking to achieve a cost neutral position, it has been hit by the impact of the coronavirus pandemic, with applications to the land Register currently predicted to be between 25% and 60% lower for the remainder of the financial year.

“The combination of increased staff costs, the investment required to develop new modern systems of registration and the downturn in the market following the Coronavirus pandemic taken together mean the time is right to ensure that statutory fees reflect RoS’ costs”, the paper states.

The proposed new fee structure assumes that intakes will return at best to 90% of pre-COVID levels in financial year 2021-22, and that Registers achieves optimal efficiency savings. The lowest fee would rise from £60 to £80, for consideration up to £50,000; other rises include from £240 to £260 for the £100,000-150,000 band, from £360 to £400 for the £150,000-200,000 band, from £530 to £600 for the £300,000-500,000 band, and from £840 to £930 for the £700,000-1,000,000 band.

There would continue to be no difference between fees on a first registration, a dealing with whole and a transfer of part. The policy aim is to protect customers from the higher costs involved in registering on the Land Register for the first time. On voluntary registrations, fees would be reduced by around a quarter.

Rejection fees would however be removed. Registers says the costs have fallen substantially following the opening of the digital submission service, thus removing costs associated with scanning, handling and posting physical deeds.

Registration fees from property transfers generate around 90% of Registers’ income.

Introducing the paper, the Keeper, Jennifer Henderson, writes: “It was clear from our financial forecasts that, at current fee levels, it was not going to be possible for our income to cover our expenses. Our aim is for RoS to operate on a self-sustaining basis, not requiring a drawdown from the Scottish Budget. As such, I believe it is fairer and more sustainable for our income to come from fees paid by those individuals and businesses who are buying and selling property rather than passing the burden to all taxpayers.”

She adds: “Since I joined RoS as Keeper in 2018 I have listened carefully to informal customer feedback on our current fees structure and I hope that the proposed changes reflect some of the key aspects of this feedback.

“This consultation on proposals to vary RoS fees is now a formal opportunity for customers to help shape our next steps. I value your input and look forward to hearing your views.”

Click here to access the consultation. The deadline for responses is 24 December 2020.