Property prices public

A change to the information available on a land or charge certificate comes into effect from this Saturday, 1st April. The implementation of the Land Registration (No 3) Rules 1999 means that both on the first registration of land and on any subsequent change of owner the registrar is obliged, where practicable, include details of the price paid for the property. If the price paid is not easy to ascertain, because, for example, it is part of a larger deal or because the property was a gift, the value of the property will be entered instead. These details will remain on the register until there is another change in the owner.

What is not clear is in what circumstances the registrar will consider it impracticable to enter the information. The Land Registry have indicated that no entry will be made if it would be misleading (for example where the price paid represents only a half share of the value of the property). Although the Land Registry will not raise requisitions and will not look to calculate the price paid by reference to the stamp duty marked on a document they will not be bound by confidentiality clauses in a document. This cannot be used as a means to circumvent the new rules.

You may have seen this change mentioned in the press as a restoration of the price paid information. Although it is true that the price was included in the register in the past, the registers were at that time "closed" meaning that it was not available to the public. Now that anyone may apply for a copy of any register, the impact of the change is greater.

There is some inconsistency in the Registry's approach. In a leasehold title, details of the initial rent are currently included but not details of any rent following a review. Any premium payable on a change of ownership will now also be included. Details of the rental income of a property will not feature in the freehold register. So whilst the register will have basic information on the price paid for a freehold or leasehold property, it will be awkward to achieve a true comparison of similar let properties where details of the current rents are unknown.

For further information please contact Clive Newnham on 020 7367 3981 (e-mail [email protected]).