Homebuyers Personal Search Fee Abolished

Following the suspension of Home Information Packs (HIPs) from the 20th May, the government has recently announced that the £22 fee for a personal search of the Local Land Charges Register will be abolished, taking effect from 17th August.

This potentially will further reduce the costs for homebuyers and increase competition in the market, said the Housing Minister, Grant Shapps. A spokeswoman for the Communities and Local Government department said that if this charge had not been in place last year, homebuyers could have saved as much as £16.2m through 736,000 property transactions.

A personal search of the Register provides local authority information about the property and any potential issues after a property transaction, such as protected areas or restrictions on planning permission.

This development comes as part of a broad Government policy on open information and more specifically as a response to European law requiring freedom of information. The Government is currently liaising with local authorities and other interested parties to provide guidance on these changes and the financial impact.

Although the law has not yet been amended, several local authorities have already stopped charging search fees, and Government advice to local authorities is that "this should be free from now". It is hoped that this may lead to a reduction in the cost of searches. However, it remains to be seen whether companies acting as personal search agents will pass on the savings, or how local authorities will compensate for any budgetary shortfall through the abolition of this fee.

For more information about these changes contact Matthew Scott-Tucker on 01392 202020 or by email matthew.scott-tucker@kitsons-solicitors.co.uk