Talk:Ether
HM Land Registry: Registration Services fees
As of 2023, the average house price in the UK has seen various changes throughout the year. In September 2023, the average house price was reported to be £291,000. [1]
All house purchases in the UK have to be filed at the HM Land Registry, non-ministerial department of the UK government responsible for maintaining a register of land ownership in England and Wales.
For a house purchase in the UK valued at £291,000, the fee to the HM Land Registry varies depending on the method of application. The fees are as follows:
- If you apply by post, the fee is £330.
- If you apply using the portal or Business Gateway for transfers or surrenders which affect the whole of a registered title, the fee is £150.
- For registration of all leases and transfers or surrenders which affect part of a registered title, the fee is also £330 if done via the portal or Business Gateway.[2]
An alternative to maintaining a register of land ownership in England and Wales via HM Land Registry is via a blockchain-based system, such as Ethereum.
Estimating the exact fees for a blockchain-based land registry system like Ethereum is challenging due to the variability and complexity of blockchain transactions. However, a rough estimate based on typical Ethereum transaction costs is provided below:
- Gas Fees: Ethereum transactions require gas fees, which can vary widely. As of my last update in April 2023, average gas fees could range from a few dollars to tens of dollars per transaction, depending on network congestion and transaction complexity.
- Smart Contract Operations: Property transactions on Ethereum would likely involve smart contracts. The cost for executing these could be higher than simple transfers due to their complexity.
- Additional Costs: There could be additional costs for services like smart contract deployment, legal compliance checks, or integration with existing systems.
In summary, while a blockchain system might reduce certain administrative overheads, the variability of gas fees and the complexity of smart contract operations make it difficult to provide a precise figure. A rough estimate could range from a few dollars to over a hundred dollars per transaction, but this is highly speculative and would depend on the specific design and implementation of the system.
| Criteria | HM Land Registry (For a £291,000 Property) | Blockchain-Based System (Ethereum) |
|---|---|---|
| Application Fee | £330 (if applied by post). £150 (if using the portal or Business Gateway) | Variable (depending on Ethereum gas fees and complexity of the transaction) |
| Transaction Complexity | Standard procedure for all transactions | Could vary greatly; more complex transactions (like those involving smart contracts) could incur higher fees |
| Additional Costs | Not typically applicable | Potential costs for smart contract deployment, legal compliance, system integration, etc. |
| Variability | Fixed based on property value | Highly variable, depends on network congestion and specific transaction requirements |
This table is a rough comparison and should be taken as an estimate. The actual costs, especially for the blockchain-based system, would depend on various dynamic factors, including the state of the Ethereum network at the time of the transaction.
Other costs to consider include the potential risks associated with the central authority of a traditional land registry system, such as HM Land Registry, acting improperly or recording incorrect transactions. Although this might seem improbable, especially in a well-regulated environment like the UK, the possibility exists. For instance, errors could arise from internal mismanagement or external manipulation, leading to inaccurate or fraudulent property records. In contrast, a blockchain-based system aims to mitigate such risks through its decentralized and tamper-evident nature, providing an additional layer of security against unauthorized alterations or errors in the registry.
The search fee at HM Land Registry varies depending on the type of search being conducted. Common searches include title register searches, title plan searches, and property ownership searches. As of my last update, these fees were relatively low, often ranging from a few pounds to around £15 or more for more comprehensive searches.
Finding a real-world example where the Land Registry or another central entity acted improperly can be challenging due to the nature of these institutions. However, there are documented cases of difficulties and inefficiencies within such systems. For example:
- Correction of Mistakes: There have been instances where it was difficult to correct mistakes made by the Land Registry. Even when the Land Registry acknowledged a mistake, they couldn't always rectify it without the agreement of the affected property owners. This could lead to complex situations requiring formal applications for register alteration and potential legal disputes.
- Response to Complaints and Access Issues: Complaints have been raised about the Land Registry's response to delays, access issues for non-professionals to its online services, and handling inquiries from customers with disabilities.[3]
- Discretionary Powers and Delays: In some cases, the Land Registry's discretionary powers have been used in ways that have led to prolonged and expensive application processes. This includes instances where the Land Registry's discretion has been used to favor objectors to an application, potentially leading to unnecessary delays and expenses.[4]
These examples illustrate some of the challenges and inefficiencies that can arise in a centrally managed land registry system, highlighting areas where improvements could be made.
As of the financial year 2022-2023, HM Land Registry reported a total revenue of £318.9 million. This figure represents the income generated from various services offered by the Land Registry, such as registration fees, search fees, and other related services.
| £'000 | 2021-2022 | 2020-2021 |
|---|---|---|
| Fees and charges revenue | ||
| Registration of title | 307,023 | 226,042 |
| Land charges and agricultural credits | 7,279 | 6,269 |
| Local land charges | 408 | 225 |
| Total fees and charges revenue | 314,710 | 235,536 |
| Commercial income | ||
| Income from commercial activities | 4,219 | 3,857 |
| Total commercial income | 4,219 | 3,857 |
| Total revenue and other income | 318,929 | 236,393 |
As of 2023, HM Land Registry completed a significant number of applications to change or query the Land Register each month. For instance, in January 2023, there were more than 1,777,640 applications, in March 2023, the number was 2,026,527, in July 2023, over 1,822,170 applications, and in September 2023, over 1,730,760 applications were completed.
However, I was unable to find a consolidated annual total for 2023. These monthly figures suggest that the annual total is likely to be in the millions, but without the complete data for each month, it's challenging to provide an exact annual figure. For a precise total number of registrations for the year, the complete set of monthly data or an annual summary report from HM Land Registry would be required.
Here's a comparison of the fees for the UK Land Registry and a blockchain-based platform like Ethereum as of 2023:
UK Land Registry Fees (2023):
- Scale 1 Fees (for transfers or surrenders affecting the whole of a registered title)
- £0 - £80,000: £45 (by post), £20 (using the portal or Business Gateway)
- £80,001 - £100,000: £95 (by post), £40 (using the portal or Business Gateway)
- £100,001 - £200,000: £230 (by post), £100 (using the portal or Business Gateway)
- £200,001 - £500,000: £330 (by post), £150 (using the portal or Business Gateway)
- £500,001 - £1,000,000: £655 (by post), £295 (using the portal or Business Gateway)
- £1,000,001 and over: £1,105 (by post), £500 (using the portal or Business Gateway)
- Scale 2 Fees (for transfers of whole, charges of whole, etc.)
- £0 - £100,000: £45 (by post), £20 (using the portal or Business Gateway)
- £100,001 - £200,000: £70 (by post), £30 (using the portal or Business Gateway)
- £200,001 - £500,000: £100 (by post), £45 (using the portal or Business Gateway)
- £500,001 - £1,000,000: £145 (by post), £65 (using the portal or Business Gateway)
- £1,000,001 and over: £305 (by post), £140 (using the portal or Business Gateway).
Ethereum Blockchain Fees (2023):
- Transaction Fees: Approximately $1.15 per transaction (regardless of the transaction value).[5]
Key Observations:
- Variability: UK Land Registry fees vary significantly based on the value or amount of the transaction and the method of application (by post or using the portal/Business Gateway). In contrast, Ethereum's fees are flat per transaction.
- Cost Efficiency for Higher Values: For higher-value transactions, Ethereum's flat fee could be significantly more cost-effective than the tiered structure of the UK Land Registry.
- Simplicity and Predictability: Ethereum's flat fee structure offers simplicity and predictability, as users know the exact cost upfront for any transaction, regardless of its size.
This comparison highlights the differences in fee structures between traditional government-run services and blockchain-based platforms, underscoring the potential cost efficiencies offered by blockchain technology, especially for larger transactions.
For a property value of £291,000, the fees would be as follows:
| Service | Transaction Value | Fee (UK Land Registry) | Fee (Ethereum Blockchain) |
|---|---|---|---|
| UK Land Registry (Scale 1) | £291,000 | £330 (by post), £150 (using the portal) | $1.15 per transaction |
| UK Land Registry (Scale 2) | £291,000 | £100 (by post), £45 (using the portal) | $1.15 per transaction |
In this scenario, the UK Land Registry fees vary depending on the service scale and method of application, while the Ethereum blockchain maintains a consistent fee of $1.15 per transaction.
Finding specific yearly data for UK Land Registry Scale 1 transactions is challenging as the information is not directly available online. The available data generally focuses on overall property transactions, like the UK monthly property transactions data, which includes statistics for both non-seasonally adjusted and seasonally adjusted residential transactions. For instance, from April to October in the financial year 2023 to 2024, there were 600,120 non-seasonally adjusted and 589,470 seasonally adjusted transactions.
The annualized figure for non-seasonally adjusted residential transactions in the UK for the financial year 2023 to 2024 is approximately 1,028,777 transactions. The annualized figure for seasonally adjusted transactions is approximately 1,010,520 transactions.
The table below provides a comparative analysis of fees associated with transferring ownership of an average-priced property in the UK after a sale, as charged by the HM Land Registry and Ethereum. This comparison specifically focuses on transactions following property sales, excluding those related to inheritances.
| HM Land Registry (online service) | Blockchain-Based System (Ethereum) | |
|---|---|---|
| Number of Transactions | 1,000,000 | 1,000,000 |
| Individual Transaction Fee | £150 | £1 |
| Total annual cost | £150,000,000 | £1,000,000 |
161.12.100.241 10:46, 1 December 2023 (GMT)
References and notes
- ↑ https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/latest#:~:text=The%20average%20UK%20house%20price,house%20prices%20over%20the%2012
- ↑ https://www.gov.uk/guidance/hm-land-registry-registration-services-fees
- ↑ https://todaysconveyancer.co.uk/land-registry-complaints-whats-point/
- ↑ https://todaysconveyancer.co.uk/land-registry-complaints-whats-point/#:~:text=Other%20complaints%20raised%20issues%20such,enquiries%20from%20customers%20with%20disabilities
- ↑ https://ambcrypto.com/whats-behind-ethereums-wilting-transaction-fees/#:~:text=The%20average%20network%20fee%20paid,15%20per%20transaction