The property
market and ownership is and always has been a key area in the economy of the
nation at different levels. The one that
obsesses us at present is its prominence in financial services which in turn
have become so important. This can lead
us to forget that if affects all our lives and in many ways.
One of the
basic services and perhaps the key asset in how we manage and record property
in the UK are The Land Registries.
Wikipedia has a page on Land Registration that briefly sets out what it
is and what it does and The Land Registry for England and Wales is described.
We take it
very much for granted, often just regarding it as one of those bureaucratic
fees that have to paid when buying and selling.
But a basic efficient, low cost, reliable and accessible Registry is
crucial to getting the business done and keeping a record of who owns what land
where.
Without this,
as in the past, property ownership, claims to it and buying and selling could
become a legal nightmare. The reason for
its existence after 1925 as compulsory as opposed to the late 19th Century
voluntary system was the number of court cases, often costly, and the length of time it took to get
even basic decisions. Also, increasing
local taxation depending on property tax needed a reliable base.
Now our
government have decided to sell it to the biggest buyer and it is likely that
ownership of this basic national legal asset will go to a finance company based
abroad and beyond UK jurisdiction. It
will also have an effective monopoly and it is probable that the charges will
increase substantially to allow the company to cream off profits at a level for
trading purposes and to allow it high leverage.
What has not
been considered by the government, Cameron, Osborne and Sajid Javid, are the
real potential risks and the implications. Javid's background of Chase
Manhattan and Deutsche Bank, the land of lost mortgage titles in the USA and
CDO's lost in the ether, does not inspire confidence. In his time at DB it took out a lien on the company that has most of the UK's retirement properties, which is owned by a trust based in The Cayman's belonging to some interesting people, contributors to the Conservative Party.
If The Land
Registry sale were to result down the line in major problems, this will not
mean simply some administrative hiccups to be sorted or computer glitches, it
could entail a disastrous failure across the property market. Present Council Taxation needs this
information base. More important one of
the most important and key records for both government and private land and
property activity effectively could be out of use or even lost.
There may be a
reason for this and if it is a factor it should give us all alarm never mind
concern. It is all too clear in London
and to a lesser extent elsewhere that a great deal of property has become a
store of wealth for people engaged in asset stripping of nations, corruption,
embezzlement, crime, money laundering and the rest.
In short, it
has little to do with the real housing market and a lot to do with hiding the
stolen money with a little help from your friends. We do know just how friendly a number of our
leading politicians recently have been to the super rich and their
interests. If the Land Registry is
removed and cannot be accessed by the curious then neither ordinary interests
nor tax authorities can check up on property and the money movement involved.
The New Economics Foundation has a blog item from 2015 which is short and to
the point Quite why the media have taken
so little interest in this given the number of TV programmes devoted to
property and the extent of the typical coverage is a mystery. The Guardian has just had a brief and
superficial comment on the fact that it is a privatisation. Private Eye has been pursuing this and the
latest issue does have something to say.
What
next? An obvious target is The National Archive, all that expensive vellum, paper, space and people. Why not flog it off to a concrete making company
that specialises in liquidised waste paper as part of the fill? No more hard copy, just digitise the lot and
give Google the job.
The simple
question is would you really hand over the deeds to your house as a guarantee
to a door to door salesman who is selling insurance from a company based in The
Caymans funded by some unknown Russians?