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HM Land Registry: Review of Performance

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HM Land Registry: Review of Performance Report by the Comptroller and Auditor General NATIONAL AUDIT SICE HM Land Registry: Review of Performance Ordered by the House of Commons to be printed 28 March 1991 London: HMSO E5.50 net 350 HM LAND REGISTRY: REVIEW OF PERFORMANCE This report has been prepared under Section 6 of the National Audit Act, 1983 for presentation to the House of Commons in accordance with Section 9 of the Act. John Bourn Comptroller and Auditor General National Audit Office 21 March 1991 The Comptroller and Auditor General is the he<d of the National Audit Office employing some 900 staff. He, and the NAO, are totally independent of Government. He certifies the accounts of all Government departments and a wide range of other public sector bodies; and he has statutory authority to report to Parliament on the economy, efficiency and effectiveness with which departments and other bodies use their resources. i HM LAND REGISTRY: REVIEW OF PERFORMANCE Contents Pages Summary and conclusions 1 Part 1: Introduction 4 Part 2: Manpower, productivity and standards of service 6 Part 3: Computerisation 11 Part 4: Funding and charging 13 Part 5: Planning and management 15 Annexes 1. Workload and productivity data 17 2. Productivity data 18 3. Transfers of work from Registries serving the south-east 19 4. Extracts from the Registry’s framework document 20 5. Extracts from current performance targets 22 HM LAND REGISTRY: REVIEW OF PERFORMANCE Summary and conclusions 1. This report examines action taken by the Land Registry to deal with the issues raised in the 1987 National Audit Office report on the Registry’s operations. A large backlog of work had built up and the time taken to process substantive applications from the public had become unacceptable. During this period the Registry had given high priority to processing the time sensitive preliminary applications. There had been a heavy upsurge of work in the preceding years as a result of the boom in the housing market, and the Registry had not been able to recruit or train sufficient staff to meet this workload. Though productivity had increased, this had not been sufficient to handle the increased demand. 2. Following the National Audit Office report and the recommendations of the Committee of Public Accounts in their Thirty- second Report of Session 1987-88, it was accepted that the key areas for action were: . to reduce the backlog and improve standards of service (Part z of this report); l to computerise systems (Part 3); . to review the fee structure and funding arrangements (Part 4); . to strengthen planning and management (Part 5). 3. The National Audit Office’s main findings and conclusions are as follows: Reducing the backlog and improving standards of service (a) In 1988-89 and 1989-90 the Registry recruited 4,500 staff to tackle the backlog of work and to cope with normal staff turnover and the continuing rise in demand (paragraph 2.3). (b) The Registry set demanding annual targets for each district office. It tackled productivity by computerising records and procedures, by opening new offices in areas where good quality staff are more easily recruited and retained, and by improving staff training, management and working procedures (paragraph 2.7 and 2.9-2.21). (c) Over the four years to 1989-90 overall productivity increased by 7.1 per cent-slightly ahead of target - athough performance varied significantly between one District Registry and another (paragraph 2.8 and 2.14). (d) As a result of the record output and productivity levels, and also because of the substantial downturn in the housing market since 1988-89, the backlog of outstanding cases was reduced from a peak of 1,192,133 registrations in November 1988 to 712,231 1 registrations at 31 March 1990 and to an estimated 500,900 at 31 March 1991 (paragraph 2.4). (a) Service to customers has been substantially improved: the turn-round time for completing registrations has been reduced from twenty weeks to just under eight weeks: and 97 per cent of preliminary services are processed within four working days (paragraph 2.24). (f) The error rates recorded by the Registry are very low-about two per cent for registrations and only 0.05 per cent for preliminary services. However, these rates are based on errors returned by customers rather than statistical analysis of the Registry’s output (paragraphs ~~-223). Computerising the system (g) The Registry has met its timetable for computerising the recording and processing of title. By the end of 1989 nine District Registries were running the system (paragraphs 3.2 and 3.3). The Registry remains on target to have all Registries computerised by the end of 1993. (h) Computerisation has significantly improved productivity and improved the level of service. The Registry has monitored productivity gains through its annual target setting exercise, rather than by monitoring performance against the expectations contained in the original investment appraisal. The project is now estimated to cost E43 million (paragraphs 3.4-3.7). (i) The Registry is continuing to give high priority to exploiting Information Technology to the full. It has recently been able to assign a Grade 5 full-time to this end. This will aid the Registry in its objective of basing its computer systems around a comprehensive, integrated database (paragraphs 3.8-3.11). Fees and funding (j) The Registry has significantly reduced the time taken to introduce new fee orders. But other changesit would like to make, including the removal of the legal requirement to set fees based on the purchase price of property, must await enabling legislation (paragraphs 4.2 and 4.4). (k) The change to Agency status has not so far affected the financial and funding regime within which the Registry is required to operate; such changes must await its inauguration as a Trading Fund. Meanwhile it is still required to surrender any surplus income at the end of a financial year [paragraphs 4.5 to 4.8). (1) Some cross subsidies within the fee structure have been removed or reduced, but others remain. The Registry’s ad valorem fee structure means that some cross subsidisation still exists, but the Registry consider that alternative fee structures would generate other inequalities of at least as great a nature (paragraphs 4.9 to 4.12). 2 HM LAND REGISTRY: REVIEW OF PERFORMANCE Planning and management (m) The principal aims of the Land Registry have been confirmed in a framework document and specific targets agreed with the Treasury against which the Registry’s performance will be measured (paragraphs 5.2-5.4). (n) Management has been strengthened by organisational changes and two senior posts now provide strategic direction in the development of financial policy and the use of information technology (paragraphs 5.5-5.9). Overall conclusions 4. Despite heavy pressures, the Land Registry has achieved a number and recommendations of important successes since the previous report by the National Audit Office; and overall it has responded positively and effectively to the recommendations made by the Public Accounts Committee. 6. There remain, however, a number of management and organisational problems. These arise essentially from the nature of the Registry’s workload, which is demand led and largely unpredictable. The measures introduced by the Registry since 1987 enabled it to cope with the rapid increase in work when the property market was buoyant; but further flexibilities of approach will be necessary if the Registry is to respond successfully to the downturn in business. While it is important to retain a core of permanent staff, the Registry may, for example, need to employ a higher proportion of short-term and casual staff if it is to adjust quickly to significant peaks and troughs of work. It should continue to examine the scope for streamlining working procedures by more flexible staffing, greater delegation to managers and a reduction in the level of repetitive checking. Such action would also strengthen job satisfaction. And the performance and workload of the less efficient District Registries will need to be kept under regular review. 6. On a wider front, the Registry’s new status as a “Next Steps” Agency provides the opportunity to press ahead with further initiatives. It has already responded to the need to review its work by appointing consultants to examine and to report on its structure and organisation, Changes to the Registry’s financial and funding environment will be necessary if it is to operate more fully along commercial lines and to respond effectively to the needs of the market; and the Registry is a candidate to operate as a Trading Fund. The aim is to enhance the efficiency of its operations and to benefit the public through improved quality of service. In the meantime, the Registry may seek Treasury authority to carry forward operating surpluses from one year to another. This would allow it to manage is finances better and to avoid having to make frequent changes in the level of its fees. 3 HM LAND REGISTRY: REVIEW OF PERFORMANCE Part 1: Introduction 1.1 This report examines the progress made by the transactions. Applications for registration are not Land Registry in implementing the generally time sensitive because further dealings on recommendations made by the Public Accounts the title are unlikely in the imminent future. It is Committee in their Thirty-Second Report of Session necessary, however, not only for the internal 1987-88, following the National Audit Office report operational efficieny of the Registry but also for on the operations of the Land Registry published in customers awaiting the return of the new 1987 (Hc 39/1987-88). certificates of title, that the volume held at the Registry is kept to a realistic working minimum.
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