The Land Registry may increase its fees in order to counteract the loss in revenues it has suffered as a result of the property market downturn.
Some of the charges involved with buying a property in England and Wales could be set to increase following an announcement by the Land Registry.
The non-ministerial government department - which is responsible for registering and recording of land titles and deals in England and Wales - has proposed an increase to the fees it charges. The Land Registry's revenues have been hard hit by the financial crisis as the number of transactions taking place has fallen significantly.
Property deals have dried up as house prices have fallen, mortgage availability has deteriorated and consumers have become more cautious with spending, given the threat of redundancy. Without property deals taking place, the Land Registry receives little income.
As a result, it proposes an increase which would see property registration for a home worth £100,000 increasing from £100 to £130, while for a £1 million home the change would be from £420 to £550. Fees for other services - such as information provision - would also rise if the proposals are accepted.
However, finance director Heather Foster said the changes will not be "a deterrent to market recovery", given the historically low interest rates and relatively cheap house prices in the current market. She added that a number of cost cutting measures have taken place at the body, "including a voluntary redundancy scheme and an accelerated plan to merge offices".
