Council's Attack On The Private Sector Shakes Housing Market

The illegal action of Sedgemoor District Council in Somerset is damaging the private sector and causing serious delays to the Government's Home Information Packs (HIPs) it has been claimed.

Richards Gray which provides personal searches of the local land charges register, as well as HIPs claims that the unruly council is making the private sector wait seven weeks to access vital information needed by sellers, whilst the council turns searches around for its own customers for commercial gain within seven days.

Richards Gray believes that this action is forcing the property market to grind to a halt in Sedgemoor, whilst the authority engages in discriminatory anti-competitive behaviour, which is in breach of the Competition Act.

The Law states that any person may inspect the local land charges register upon payment of the prescribed fee during reasonable office hours. Current Government guidance states that access to inspect records should be allowed within 24 hours.

Now Richards Gray fears the situation will worsen as the Government announced last month its intention to roll out HIPs on all properties from December 14th 2007. It believes the delay in gaining information will cause serious delays for those seeking to place their homes on the market.

In September 05 The Office of Fair Trading (OFT) published a report into the property search market following a markets and policy investigation. In the report the OFT made a recommendation that by 2007, local authorities make available all the unrefined information they hold that is needed to compile a property search for inclusion in a HIP to all those who ask. One of the key recommendations was that information should be made available on terms that do not advantage local authorities' own compiling activities over competing compilers, such as Richards Gray.

Mike Richards who founded Richards Gray 20 years ago and who operates 80 offices through out England and Wales carrying out more than 500,000 searches a year, said: ‘Sedgemoor District Council is the worst authority in England and Wales. This unruly Council is ignoring Government guidance, as well as advice from the Office of Fair Trading. It is openly flouting the Law.

‘The Council is causing people wanting to move to Sedgemoor unnecessary delays. The housing market is suffering enough setbacks with market slowdown without having the burden of the local authority adding to it by illegally rationing appointments to view public records.’

Local authorities have a statutory duty to hold and maintain and make available to the public all records needed to compile a property search.

He adds: ‘The Council is acting anti-competitively by restricting the private sectors access whilst carrying on with its own business activity. It is a disgrace that the Council, which has a duty to enforce the law, is turning a blind eye to this illegal activity in order for it to make unlawful profits out of its own ratepayers.’

Under the current law, local authorities are unable to make profits, or to be able to subsidise other council budgets from revenues gained such as those from Land Charges.

Since making a complaint to the Council Solicitor and Monitoring Officer on the 2nd November 2007 Richards Gray believes the situation has worsened.

Sedgemoor Council has a written Anti Fraud and Corruption Strategy and a Corporate Enforcement Policy. These policies were designed to dissuade fraudulent and corrupt practices such as offences under the Competition Act. Richards Gray is concerned that it appears that the authority is turning a blind eye to its abusive anti-competitive activity.

In March 06 Justice Forbes ruled against Burnley Council in the High Court. The Court found that Burnley Council had abused its dominant position for commercial gain by restricting personal searchers access to the local land charges register, but had failed to impose the same restrictions on its own commercial activity.

Mike Richards adds: ‘Sedgemoor Council has failed to follow the recommendations made by the OFT and it is apparent that its illegal ant-competitive activity is spiralling out of control. The problem is making a complete mockery out of the good intentions of Government to try and speed up the home buying procedure.’

Richards Gray is considering taking legal action with a view to seeking compensation from Sedgemoor Council for infringements of the Chapter II prohibition of the Competition Act 1998 and where there are reasonable grounds for suspecting infringements of Chapter 1 prohibition.

Mike Richards concludes: ‘The last thing we want to do is to go to Court to sue for our substantial losses. But with the Council choosing to ignore its own unlawful activities leaves us with little option.’

Richards Gray has written to Philip Collins, Chairman of The Office of Fair Trading complaining about the activities of Sedgemoor District Council.

Web: http://www.richardsgray.co.uk