Long delays in registering properties with the Land Registry throughout Great Britain are causing frustration among homeowners and buyers, resulting in financial losses. Recent data from the His Majesty’s Land Registry indicates that some applications to make changes to the register are taking nearly two years to complete.
The land registration system was initially implemented to streamline property transfers and enhance efficiency. Currently, over 26 million titles, representing ownership of more than 88% of the land in England and Wales, are registered.
However, professionals assisting individuals in purchasing properties or securing new mortgage deals during the rising interest rates have shared shocking stories of significant delays. Emma Jones, the managing director of mortgage brokers When The Bank Says No, revealed that one of her clients who purchased a property under the right to buy scheme in December 2021 still hasn’t been registered as the owner.
Jones also shared another instance where a client attempted to add his wife’s name to the mortgage deeds at the beginning of this year, only to realize after six months that the request had not been completed. This delayed the mortgage approval process, hindering the client’s ability to secure a new rate before the Bank of England raised interest rates to 5%.
Gary Boakes, a mortgage planning consultant and owner of Verve Financial, recounted a similar story where his client’s purchase of a Help to Buy property wasn’t registered. Consequently, they were unable to switch from a sub-prime lender to Natwest for a better rate, resulting in them being stuck with a high standard variable rate for an additional ten months.
Recent data from HMLR discloses that some first-time registration applications take over 15 months to complete, while applications to divide existing titles or register new leases can take more than 22 months. Unregistered leases can impede homeowners from selling their properties.
The Property Litigation Association reported that parties are often forced to invest time and money in dealing with property issues long after selling them due to the presence of numerous pending Land Registry applications. The association highlighted that the delays are primarily due to operational challenges and the Land Registry being understaffed.
Caroline Nokes, a Conservative MP, previously criticized the Land Registry in parliament for its failure to tackle identity fraud. Expressing her concerns about the delays, she stated that there is an evident problem with the Land Registry reflected in the extensive delays faced by constituents when seeking information.
In response, HMLR claimed that over 98% of service requests are handled immediately or within a matter of weeks. They explained that the remaining 2% of complex applications take longer to process due to various reasons. To address these delays, HMLR has employed more than 1,500 caseworkers since 2020 and established specialized teams to prioritize older cases.
Meanwhile, Scotland’s land registration system is also facing delays, with cases from 2017 still pending completion, according to data from the Registers of Scotland. Andy Wightman, a former Member of the Scottish Parliament and land law analyst, attributed these delays to a combination of COVID-19 and the complexity of the applications, along with a shortage of manpower.
Registers of Scotland confirmed that their casework was affected by the COVID-19 pandemic but expressed optimism about clearing the backlog during their current corporate plan.
Overall, the significant delays in property registration with the Land Registry pose significant challenges to homeowners and buyers, impacting their financial stability and ability to pursue favorable mortgage deals. Stakeholders must address these operational issues and allocate adequate resources to ensure a more efficient and timely registration process.
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