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tmgroup, the leading provider of property searches and data, will soon be able to support their clients in meeting HM Land Registry’s Digital ID Standard (Safe Harbour) – thanks to their partnership with Thirdfort, who have been working with HM Land Registry to raise the compliance level of their ID check.  

Available via tmconvey and tmconnect from June 2021, the 'Digital ID Standard (Safe Harbour) Check' will incorporate Government-grade security to meet HM Land Registry’s Digital ID Standard (Safe Harbour).

What’s changed? 

HM Land Registry’s Digital ID Standards were announced 12th March 2021. If followed, these standards mean HM Land Registry will not pursue any conveyancer in any recourse claim resulting from the registration of a fraudulent transaction on the grounds that identity checks were inadequate. 

The standards are set to benefit conveyancers and consumers alike by encouraging the digitalising of the conveyancing process and providing much needed clarity by driving the industry towards a clear set of standards. 

How will Thirdfort help meet these new requirements? 

You can find more information about how the 'Digital ID Standard (Safe Harbour) Check' from Thirdfort will meet HM Land Registry’s new requirements below. 

Requirement 1: Obtain evidence from the client 

This requirement is about finding out if the person you are representing is who they say they are.

To meet this requirement, conveyancers must obtain from the client a form of evidence that includes security features, like a Near Field Communication (NFC) chip, that can be interrogated to extract information. These security features must also include an electronically held photo of the identity against which biometric facial recognition checks may be made. This can be a biometric passport, identity card or UK biometric residence permit.  

How Thirdfort are meeting this requirement

In the new 'Digital ID Standard (Safe Harbour) Check', that meets the HM Land Registry Digital ID Standard, Thirdfort will request use of a Passport as evidence of ID. To make sure the client’s passport is capable of meeting this requirement, the information contained in the MRZ code of the passport will be checked to determine its status as to whether it is a biometric passport.

Requirement 2: Check that this evidence is genuine 

Conveyancers must verify that the evidence they obtain from a client is current and isn’t forged. This can be done by using a Digital Identity Check provider like Thirdfort – this will check that the security features of the evidence are genuine.  

Now, here's the important part: the identity check provider's system must read the chip within the evidence using Near Field Communication (the tech that reads your passport at an airport gate) by providing any required cryptographic (coded) keys. By scanning an NFC chip, the provider will be able to match a digital signature to the organisation that issued the ID (e.g the Government) and extract biometric information from the evidence supplied by the client. When scanned, the NFC chip will also check that a ‘signing key’ belongs to the organisation that issued the ID, and hasn’t been tampered with.

How Thirdfort are meeting this requirement

As mentioned in Requirement #1, Thirdfort’s coming ID offering will, like their current product, verify documentary and cryptographic security features in ID documents to make sure they’re genuine. 

They won’t stop there, though. The 'Digital ID Standard (Safe Harbour) Check' will include Near Field Communication (NFC) chip reading to scan a chip in a user’s ePassport. A key point to emphasise here also is that Thirdfort, unlike other NFC products in the legal space currently, will check the digital signature AND signing key attached to a document to make sure it is a government-issued ID. They have partnered with the leading NFC-based document verification provider InnoValor to integrate their technology ReadID in the Thirdfort offering. ReadID read and verify the information in the electronic identity document in a secure and user friendly way, and even checks if the document was copied. The same technology is used by the UK Home Office as well as many banks and digital signature providers.

Requirement 3) Make sure the evidence matches the client 

Conveyancers must make sure the person presenting the evidence matches the photo on the documents gathered. This must be done using a Digital Identity Check provider, so that the biometric information gathered using the NFC chip can be matched with a ‘liveness test’.

What exactly is a ‘liveness test’? A ‘liveness test’ uses photographs or video (captured live during the ID checking process) to verify that the person taking the check is real. For this to meet the ‘Digital ID Standard’, the Digital Identity Check provider needs to also ensure this image/video is captured under controlled quality conditions (i.e., controlled light/noise). The ID provider also must have a false match rate of below 0.01% and use a biometric algorithm that’s proven to be effective against a recognised benchmark, like the National Institute of Standard and Technology’s (NIST’s) face recognition vendor test guidance. The ID provider must, in addition, meet a maximum non false match rate (where the system has incorrectly rejected the individual- also known as False Reject Rate (FRR) of 1% (one in on hundred).

How Thirdfort are meeting this requirement

Thirdfort have partnered with Digital ID Provider iProov (who have use cases including the NHS and UK Home Office) to use their Genuine Presence Assurance (GPA) capability to perform the enhanced ‘liveness’ test. iProov’s GPA technology will be embedded within our NFC-enabled app journey to assure the Genuine Presence of the individual. This includes face matching (to assure that the person matches the evidence provided), liveness (to be assured that they are a real person, and not presented imagery such as a mask, photo, or video), and assurance that the person is present in real-time (and not a digital replay attack or ‘deepfake’). 

iProov’s methodology for capturing users’ biometrics is optimised for accessibility, applicability, and usability. To achieve the high performance rates that iProov experiences, the capture of high-quality imagery, in the form of the ‘flashmark’ video, is crucial. iProov monitors the conditions of the user video and provides feedback to the user to maximise the chances of success, also allowing multiple attempts for the user as standard. iProov is also fully accredited by the National Institute of Standard and Technology, and meets the required false and non-false match rates.

Requirement 4) Obtain evidence to ensure the transferor, borrower or lessor is the same person as the owner

This requirement needs to be met by a conveyancer representing a transferor, borrower or lessor.

The conveyancer must connect the client to the property by obtaining two examples from the following list of evidence types and checking that the name and address of the person claiming the identity match those on the evidence provided:

> Utility bill, bank or building society statement, dated within the last three months
> Local authority council tax bill for the current financial year
> Original mortgage statement from a recognised lender for the last full year
> Current UK or EEA photocard driving licence
> HMRC self-assessment letters or tax demands dated within the current financial year
> Insurance policy schedule for the property
> Current firearm or shotgun certificate
> Credit card bearing the Mastercard or Visa logo, an American Express or Diners Club card, or a debit or multi-function card bearing the Maestro or Visa logo which was issued in the United Kingdom and is supported by an account statement less than three months old.
> Copy of the agreement for purchase of the property
> Lettings agent agreement on headed paper
> Local authority buildings regulations sign off for works undertaken to the property addressed to the client
> Management company service charge demands for the property addressed to the client
> Confirmation of tenancy deposit scheme registration

The statements referred to in the list above can be postal or online statements. Reliance can be placed on an online statement provided that it has been received or downloaded by the client and refers to the subject property. Screenshots of online statements will not satisfy the Digital ID Standard.

How Thirdfort are meeting this requirement

Thirdfort’s document upload feature enables a conveyancer's clients to quickly and easily upload evidence of ownership via Thirdfort's user-friendly app. 

Thirdfort have been working with HM Land Registry to raise the compliance level of their ID check. Available on tmconvey and tmconnect from June 2021, Thirdfort's most secure ID check will incorporate Government-grade security to not only set the quality bar even higher, but also meet HM Land Registry’s Digital ID Standard (Safe Harbour).

Any questions? 

If you have any questions or would like to find out more about Thirdfort, please get in touch with your Client Relationship Manager, or our friendly Helpdesk team on 0800 840 5571 or email helpdesk@tmgroup.co.uk 

Find below the latest Groundsure webinars, including recording links, so you can watch at your convenience.

1. Groundsure Transportation

Link: https://attendee.gotowebinar.com/recording/663455625191428354

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search. 

Standard searches will not report on issues arising from transportation activities. As part of the range of searches Groundsure Transportation report will identify whether there are any specific risks relating to existing and proposed transport infrastructure. An Energy and Transportation report will highlight if the property is within the vicinity of HS2, Crossrail 1 and 2,  underground railways, active and historical railways. If a residential Avista environmental report is purchased transportation will be included as standard.  

HS2

High Speed Two (HS2) is the UK’s new high speed rail network linking London, Birmingham, Leeds and Manchester. The route is split into two phases, Phase 1 (London to Birmingham) has been given the go ahead. The preferred route for Phase 2a (Birmingham to Crewe) and Phase 2b Birmingham to Leeds and Manchester) was announced in summer 2017, with the HS2 Phase 2A Bill receiving Royal Assent in February 2021. Phase 2b of the project is still under consultation. 

The property may be in an area that is later subject to compulsory purchase to allow the railway to be built. Alternatively, it may be impacted by noise and vibration or visual intrusion from construction and operation – an indication of which is included within the report. 

Crossrail 1

Crossrail 1, which will be known as the Elizabeth Line once services begin in 2018, is a new railway linking Reading and Heathrow in the west through 42km of tunnels under London to Shenfield and Abbey Wood in the east. The majority of construction is now complete but properties above or in proximity may experience issues arising from operational noise and vibration. 

Crossrail 2

Crossrail 2 is a new proposed railway linking Surrey and Hertfordshire via an underground tunnel through London. Crossrail 2 marks the next step in the ambitions to improve rail infrastructure and join major counties to the capital. The Crossrail 2 route, safeguarding areas, worksites and headhouses are all included. This project is currently suspended. 

Railways and subways

Active, historic and abandoned railways and tunnels, the London Underground and other subway systems have the potential to cause noise and vibration to properties in close proximity as well as providing essential transport links.

2. Groundsure Energy

Link: https://attendee.gotowebinar.com/recording/8353509218884714497

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search. 

Standard searches will not report on issues arising from energy activities. A Groundsure search will provide insight on the proximity of all existing and proposed major energy infrastructure up to 10km from the property that may have an impact on value or your enjoyment of the property. These include major projects such as hydraulic fracturing (‘fracking’) sites, large scale wind farms and power stations as well as smaller scale infrastructure. In addition, to oil and gas sites, large scale transmission networks, power stations including nuclear and wind and solar farms. If a residential Avista environmental report is purchased energy will be included as standard.  

Due to changes in Trespass Law as part of the Infrastructure Act 2015, oil and gas companies will be given automatic access for gas and oil development below 300m without having to seek land and home owner’s permission and leaving them without legal recourse. 

3. Groundsure Radon

Link: https://attendee.gotowebinar.com/recording/1987749210921690881

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search. 

Standard Con29 Local Authority Searches will cover the risk of radon gas, however due to the resolution of the data used it cannot be fully relied upon to assess the risk at a property-specific level. The data used by Groundsure is far more detailed radon information than the information used in the Local Authority search which highlights the radon potential at the specific property and if any protection measures are required.

Radon is a colourless, odourless gas which has the potential to cause adverse health issues to those occupying the property.  It is the second biggest cause of lung cancer in the UK after smoking. 

As part of the Groundsure range of searches, you either can include a standalone Groundsure Radon Check. If a residential or commercial Groundsure environmental report is purchased radon will be included as standard.  

4. Groundsure Flood

Link: https://attendee.gotowebinar.com/recording/5113859780498471425

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search.  The Law Society Practice Notes state that in every transaction the issue of flood risk should be considered and further investigations undertaken if appropriate. 

As part of the Groundsure range of searches you can order a Groundsure Flood to identify whether there are any specific risks relating to the issues of contaminated land, flooding, ground stability and radon. Groundsure Flood will also include a screening on energy, transportation and planning. If a residential Homebuyers or Avista environmental report is purchased transportation will be included as standard.  

Flooding can occur from a variety of sources including surface water, and you don’t have to live near a watercourse to be affected. In England and Wales 5.9 million properties are at risk of flooding, with the average cost of flood damage being £28,000.  Home insurance in flood prone areas may be more difficult to obtain, however the introduction of Flood Re means affordable insurance should be obtainable through a registered insurer.  A Flood report will highlight the risks from river, coastal, surface water and groundwater flooding as well as any flood defences and historic flood events. 

5. Contaminated Land

Link: https://attendee.gotowebinar.com/recording/3510924659113088770

About:

Many environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and  protect the interests of both you and the lender on your proposed property purchase you should get an environmental search.

Our industrial heritage and the drive to build on brownfield (previously used) land has meant that increasing numbers of properties have been built on land that could be contaminated. This could affect the value of the property, could lead to adverse health issues and under current legislation you could be responsible for paying for the clean-up of that land. 

If the contaminated land results as Action Required, this does not indicate the purchase should not proceed. Further enquiries can be undertaken of the sellers and other parties to either amend the result, provide further information to make an informed decision or, if appropriate, consider obtaining environmental insurance. If a residential or commercial Groundsure environmental report is purchased contaminated land will be included as standard.  Specific recommendations can be found within the Groundsure report.

6. Groundsure GeoRisk/ GeoRisk +

Link: https://attendee.gotowebinar.com/recording/1869837584163960323

About:

Many geo-environmental risks can affect your property which should be investigated fully ahead of exchange of contracts. 

To provide detailed due diligence and protect the interests of both you and the lender on your proposed property purchase you should get a relevant search. Law Society guidance also states that a property should be searched to identify whether further investigation of site-specific ground instability risks is required. If risks are likely to occur, obtain a site specific report from a commercial search company. 

As part of the Groundsure range of searches you can order Groundsure GeoRisk/ GeoRisk + report to identify historic non-coal mining, ground stability issues, coal mining and the risk from former brine extraction in Cheshire. A GeoRisk report will highlight any natural and man-made subsidence risks to property. It will identify whether there are any specific risks relating to historical and other geological features.  In addition, it will identify any oil and gas extraction, natural instability, infilled land, and sinkholes in close proximity to the property. The report also utilises satellite monitoring to identify ‘real-world’ ground movement accurate to the millimetre. A GeoRisk + report will include everything that standard GeoRisk report has plus an integrated CON29M Official Coal Search and a Cheshire Salt Search where necessary.

Here are just some of the wonderful things our clients have said about us so far this year.

Joanne Green at Cooper Sons Hartley and Williams LLP:

“Easy to use and the customer service is very good, always very helpful.” [April 2021]

Daniel Farrow, Paralegal at Royds Withy King:

“Good portal and easy to use ordering system.” [April 2021]

Nicky Barson at Royds Withy King:

“Easy to use website and good customer service.” [April 2021]

Helen Smith, Legal PA at Bevan Brittan:

“Helpful friendly team always happy to do what they can to assist.” [April 2021]

Catherine Mason, Legal Secretary at Dentons UK & Middle East LLP:

“Easy and clear to understand.” [April 2021]

Andrea Greenfield, Cooper Sons Hartley & Williams LLP:

“It is easy to order searches as the instructions are clear and easy to understand.  The new build facility is also a bonus too.  Quick, easy and efficient.” [April 2021]

Heather Rowley, Practice Manager at Temple Bright LLP:

“Easy access online.” [April 2021]

Lucy Johnson, Senior Associate Knowledge Lawyer at Freeths LLP:

“Friendly account manager and regular updates.”  [April 2021]

Kennedy Hamer-Kiwacz, Paralegal at CMS:

“Easy to speak to someone.” [April 2021]

Lesley Millichamp, Legal Secretary at Shakespeare Martineau LLP:

“Friendly, helpful and quick to respond. tmgroup do a fantastic job.” [April 2021]

Kim Thurston, Conveyancing Executive at Bevirs Law:

“I like tmgroup’s swift response to queries (mainly to do with Drainage and Water Searches at present). I have never had cause to be concerned about what they do for us.” [April 2021]

Stephanie Robinson, Mishcon de Reya LLP:

“I have used the tmgroup portfolio service frequently. It's very useful when we need searches on multiple properties. This is more time efficient than doing all the orders myself on a long list of properties.  tmgroup also provide a spend report and status report, again really helpful.” [March 2021]

Kelly Pratt, Solicitor at Martyn Prowel Solicitors:

"The tmgroup team has helped us fulfil our client due diligence effectively and efficiently with AML Searches and Lawyer check etc. I also like the fact that I am dealing with people who understand the pressures that the industry is under in light of the current pandemic and are willing to give 110% to help you meet your clients needs." [March 2021]

Tracey Horrigan, Head of Residential Property at Martyn Prowel Solicitors:

"Throughout the pandemic, Helpdesk has supported if we needed it via telephone and email, and Alex has supported us with further electronic ID check information and guidance which will make a difference for ourselves and our clients. The site is also easy to use and details of costs are readily available on each account. tmgroup also recently went out of their way to help us on a matter where we had a missing land charge search result issue, which resulted in us avoiding an indemnity insurance. The date search due is useful too." [March 2021]

Daniela Volkan, Junior Legal Assistant at Porter Dodson:

“Great customer service.” [March 2021] 

Lisa Taylor at Brighouses Solicitors:

“User friendly website.” [March 2021]

Emily Jones, Conveyancing Executive - Residential Property at The Head Partnership:

“Always there instantly, best priced and always looking to work to my time frames. Competence and promptness is key, especially at the moment.” [March 2021]

Samantha Hirons, Paralegal (Residential Property) at Aplin Stockton Fairfax:

“Easy to use.” [March 2021]

Linda Sellars, Commercial Property Secretary at Coole Bevis LLP:

“The customer support team are always very helpful.” [March 2021]

Anne Smith, Senior Legal Secretary at Sintons LLP:

“Great options for searches.” [March 2021]

Annah-Mae Schilder, Real Estate LSA at Foot Anstey LLP:

“The team are very quick to respond - never have to chase which is great when we are always working to tight deadlines!” [March 2021]

Charleigh Cotton at Browne Jacobson LLP:

“Easy to get hold of and super friendly, couldn't recommend enough.” [March 2021]

Hayley Dunham, Legal Secretary at Penmans Solicitors:

“I find the staff knowledgeable and helpful, even during the extremely busy times, due to the SDLT holiday, they were always friendly and patient. It makes our jobs easier knowing we have such great support when we call up.” [March 2021]

Sandra Eccles at Farleys Solicitors LLP: 

“When you speak to an agent, they are very helpful.” [March 2021]

Christine Mapp, Senior Legal Secretary at Greenwoods GRM LLP:

“Always prompt in replying to queries.” [March 2021]

Jimmy Tiltman, Conveyancing Assistant at Stephens Scown LLP:

“The search products are easy to follow, showing clear and precise information.” [March 2021]

Sean Reeves, Associate Solicitor and Head of Residential Conveyancing at Letchers Solicitors:

"I have been working with Clare now for several years and each year not only does she surpass herself but so do TM. A casing example I had an issue with a Local Authority that kept delaying a search. I cheekily asked if there was anything either Clare or her colleagues could do and that was it they picked it up. No questions asked no promises made and before I knew it I had my search results. I was happy my clients were happy and so were the chain." [February 2021]

Marina Wickens, Legal Director at Foot Anstey LLP:

“Our team have been using TM's managed service for over 2 years now. It is a great service, quick and efficient, and the team are unfailingly helpful. Our thanks to Nigel Bishop who has always been on hand to resolve any particular issues. Overall a really good customer experience.” [February 2021]

Jane Stark, Partner at Rainbow Law:

“Easy to navigate and very simple to order. I love the choices of searches available, makes it very easy to pick the right one for the client’s needs.” [February 2021]

Holly Addison, Business Development Manager at Nowell Meller Solicitors:

“We receive incredible support from our client relationship manager Alex. We often have transactions with large complex plans which go way beyond the norm and nothing is too much trouble. We have always found Alex to be very responsive, helpful and knowledgeable with any request for help or guidance. A great team to work with” [January 2021]

Vikki Foxwell, Paralegal (Commercial Property) at Capital Law:

"Nothing is too much trouble for TM, always helpful, cheerful and professional. TM Group’s consistent updates in relation to potential delays and estimated turnaround times for search providers have been very helpful: we were able to get instant answers, rather than having to contact the support team and wait for a response. Generally a quick response to any queries, always going the extra mile. While everyone I dealt with has been helpful, I would like to give a special mention to Alex as she has been a direct point of contact for when I have needed something urgently. She always responds quickly, takes the time to explain any issues, and spontaneously provides useful updates." [January 2021]

Arash Dinari, Head of Commercial Property at Wolferstans Solicitors:

“Our commercial property team has been working with tmgroup since February 2020. Thanks to their time-saving technology, we’ve significantly reduced the admin time per transaction, and this has helped our team work far more efficiently. Not only that, but the service has been fantastic. We’ve been so impressed, we’re now rolling out across our residential property team too.” [January 2021]

Have you got some lovely feedback you'd like to share? Get in touch with your Account Manager to find out more.  

The latest tm:tv session on ‘Property Transactions and Data’ brought together a panel of experts from across the industry to discuss how data could be better utilised across the chain to make a real difference to the home buying and selling process, both now and in the future. 

The panel, led by Paul Albone, Chief Technology Officer (CTO) at tmgroup, included:

• Eddie Davies - Deputy Director of Digital Services, Land Registry

• Lee Richards - Operations Director, CDS

• Rob Hailstone - CEO, Bold Legal Group

• Sarah Sargent - Head of Residential, Lupton Fawcett

• Tom Lyes - Director of Engagement, Lawyer Checker

The panel first and foremost discussed the role of data within the transaction and how all parties must move forward together to make a real difference to the home buying and selling process, as Rob Hailstone commented: “We all know that every property transaction can only move as quickly as the slowest link in the chain. That’s why it’s paramount that any initiatives and progress in the use of property data is done in such a way as to bring everyone along on that journey, for everyone to benefit in the longer term. As a cottage industry spanning over 4,000 firms, that poses quite a challenge, particularly as many only handle a small amount of conveyancing work and are happy to do things “the way they’ve always been done.”

With so many stakeholders involved, it’s no wonder that a “one size, fits all” approach has and continues to fail in the property industry, and it quickly became clear that a strategy of incremental gains was key to longer term success, as Tom Lyes confirmed: “When we take an in-depth look at what’s been successful so far, there’s a definite trend in marginal gains. It’s not about who is creating the next “iPhone” of the property industry and shaking things up, it’s instead about the players who’ve entered the market focusing on solving a very specific problem. For example, how Thirdfort have reimagined the use of data in digital ID checks and source of funds. It’s also true of Blockchain, a word that still scares a lot of people, but when it is used in such a way as to bring data together into a single version of the truth for different parties to access, it’s suddenly not so complex (or scary) and people begin to see the immediate benefits.”

Beyond this, the pandemic has also encouraged positive change across the industry, as Lee Richards reflected: “Working with all of the various Local Authorities has always meant that we’ve had over 300 processes in place for obtaining the data our clients need from different portals. But Covid-19 has changed all that. A lot of councils have already switched to making their data available digitally, or offered up Teams or email communication in order to give us the data we need, without someone physically visiting their offices, and this in turn has helped to make our processes far more efficient.” 

There’s also success to be had in providing choice to the market, as Sarah Sargent commented: “I started in industry 20 years ago and sadly haven’t seen much progress in that time, partly as it’s been proven time and time again that one solution driven by one central provider just doesn’t work. In an industry with over 4,000 firms, we need multiple providers offering choice, letting firms make decisions on the data solutions they want to bring into their business, so we can move forward step-by-step – without expecting everyone to overhaul their entire working processes in one fell swoop. For this to be successful however, we need these systems to be able to talk to one another, as well as be certified as solutions we can trust, so as not to risk getting sued further down the line.” 

As Paul Albone continued: “Over the last over 5 years, and even more so in the last 12 months, there have been more and more digital services emerging in our space, but the challenge continues to be how you join them all up to create a seamless experience for property professional across the chain. Integration will be key to the success of such initiatives, but as an industry we have yet to realise its full potential.” 

Yet this progress must come from individual providers, as Eddie Davies said: “It’s no secret that individual businesses are far more agile and capable of innovation than Government. A key example of this is in the way DocuSign and Adobe offer digital signatures in their suite of offerings, compared to HM Land Registry only being able to offer a digital mortgage signature for a specific use. I think it would be detrimental to the industry for a centralised system to be created that curbed the ability and appetite for businesses to continue to innovate. This process would benefit from more structure however, and so moving forward, I feel the Government needs to be clearer on setting standards on what the industry needs, before it will be down to the individual providers to create and offer solutions to the market.”

What do you think about the use of data in the property transaction? Could it be improved? What are your visions for the future? Find out what else our expert panel had to say in the session recording here. 

Is your client planning to buy one? Do you know what the implications are for insurability or what really happens if their cliff-top garden collapses onto the promenade below? This and more was discussed in a tm:tv session on Coastal Hazards, as part of the Climate Change and the Property Market series; hosted by Martin Manning, Head of Account Management at tmgroup, and joined by Tom Backhouse, Geologist and CEO of Terrafirma, and Sean Reeves, Associate Solicitor and Head of Residential Conveyancing at Letchers Solicitors.

The damage and costs associated with coastal hazards are extreme 

Coastal hazard risks are largely overlooked by many parties across the property transaction, and there is currently no guidance in place to support solicitors in best practice, partly as they simply don’t affect as many properties as higher profile environmental risks such as flood and contaminated land. For example, there’s roughly 2 million properties affected by flood, compared to 625,000 deemed at risk of damage (or collapse) by coastal erosion over the next 80 years. 

Yet, whilst the number of affected properties are fewer, the risks are far greater, as there’s no escaping coastal erosion, as Tom Backhouse commented: “Many properties across the UK are at risk of flooding, yet there are measures that can be (and often are) put in place to significantly reduce the risk. Despite the best efforts of coastal defences and shoreline management plans, homes are still at risk from the inevitable march of rising sea levels, landslip and erosion. The other key difference is that there is also financial support available to support those living in high flood risk areas (for example, Flood Re). Whilst there are projects underway to help reduce the effects of coastal erosion, nothing is currently in place to financially support homeowners, leaving people with huge personal risk should the worst happen.” It's not just about the properties currently sitting on a cliff edge either, but also about those getting increasingly closer to the sea as erosion continues. 

Liability is a real “can of worms” and can leave homeowners significantly out of pocket

The sheer level damage isn’t the only concern as, with no clear guidance on liability, the results for homeowners can be catastrophic, as Sean Reeves commented: “I had a client in Eastbourne who suffered part of their garden falling off a cliff edge and onto the beach huts below. This immediately raised questions of who was liable and what financial support was available – particularly as they hadn’t even been aware the cliff was unstable. Unfortunately, many home insurance policies don’t cover coastal erosion and the situation culminated in my client being deemed personally liable for the damage to the promenade and beach huts below – and then received a further bill for £58,000 for work to try and stabilise the cliff edge again.” 

There just isn’t the support in place to consistently advise clients on these hazards

Despite these events making the headlines, and some coastal towns experiencing daily events of gardens disappearing into the sea, there just isn’t the support in the industry on these matters, and it is currently down to the best judgement of the solicitor managing the case, and even then any insight often falls on deaf ears, as Sean Reeves commented: “As much as I err on the side of caution on coastal erosion matters, I find that often homebuyers aren’t too interested as they have already fallen in love with the property and want to proceed regardless, and even when reporting to the lender, they simply aren’t set up to make use of this information, and often it passes back to me with a response such as “If you are happy to submit a clear certificate title, then please proceed”, and that’s the point I typically then push back to get a surveyor involved for a professional opinion for my own peace of mind.”

Lenders and insurers are already beginning to change their position on coastal hazards 

Why do things need to change? Coastal erosion is not a new risk, but it is becoming a more predominant issue with the current rate of climate change. For example, recent research from Terrafirma has shown that since 1900 around 3,000 properties were totally lost to the sea, however as climate change accelerates, in next 25 years, a further 6,000 properties are predicted to be lost. 

Change is afoot in the insurance community, as whilst they aren’t currently set up to underwrite properties affected by coastal hazards, there are already projects underway to help give homebuyers additional protection and support as the risk increases – similar to what we’ve seen with Flood Re in recent years. 

Lenders are also becoming increasingly aware of this too, as Tom Backhouse commented; “Coastal hazards have the potential to impact on value, insurability and future sale, so it comes as no real surprise that lenders are now being forced to look at their portfolios to understand risk of climate change, and this is going to prompt a sea change in how lenders view these properties, and cause some real problems for buyers and sellers, as well as their acting conveyancers, in the years ahead.“

Are you working with properties by the sea? Do you want to find out more? Take a look at the full tm:tv session on ‘Coastal Hazards: Is there still a market by the sea?” here. 

With all the publicity around the 'stamp duty holiday' extension and the debate around whether the tapered rates will only create a new cliff edge in Autumn, it might be possible to lose sight of another significant SDLT change coming into effect, as Joanna King, Product Manager at tmgroup explains.

From 1st April 2021, a new surcharge will apply to non-UK residents who purchase residential property in England and Northern Ireland. The measure was initially announced in the 2018 Budget and the Government was consulting on it between February and May 2019. The change will see an introduction of yet another layer of complexity on top of the rates applicable in purchases of residential properties. 

How will the surcharge work? Where the purchaser will be treated as non-UK resident for SDLT purposes, the transaction will be subject to an additional 2% surcharge in each applicable band. Fortunately, the higher nil rate thresholds recently announced, as well as the First Time Buyer relief will also benefit non-UK resident buyers. Example rates tables are shared below.

Please note, all these changes will be applied to tmgroup's Post-Completion service and SDLT calculator as and when they become applicable.

For transactions completing by 30th June 2021:

For transactions completing on or after 1st October 2021:

For first time buyers, in transactions completing on or after 1 July 2021:

From July until the end of September 2021, the nil rate band for the standard residential rates will be lowered to £250,000, however it is important to note that buyers, who have never owned an interest in a residential property before, will enjoy the higher nil rate threshold of £300,000. 

First Time Buyer Relief can be claimed in transactions where the property's purchase price does not exceed £500,000 and the purchaser intends to occupy the property as their main residence. The relief should be claimed on the SDLT return by using the relief code 32. 

On a grant of a residential lease, the surcharge will also apply to the relevant SDLT rates charged on the Net Present Value of the rent.

Individual purchasers will be treated as non-UK resident for SDLT if they have not been in the UK for at least 183 days in any continuous period of 365 days, falling within the two-year window beginning 364 days before the purchase and ending 365 days after the effective date of the transaction. The day count will include any day when the individual is in the UK at midnight.

Specific emphasis is given here on the UK residence criteria for SDLT purposes. The residence test applicable will differ from the normal UK Statutory Residence Test, which would be used for income or capital gains tax purposes. 

For joint purchasers, if any one client is non-UK resident for SDLT, the surcharge will apply to the whole purchase price, unless the transaction will be exempt from the surcharge, for example where:

• the purchaser is buying jointly with their UK-resident spouse or civil partner, and the couple is living together,

• Crown Employment Relief can be claimed.

Special rules will apply to trusts, partnerships and companies. 

For companies, the entity will be deemed non-UK resident for SDLT if:

• the company is not UK resident for UK corporation tax purposes; or

• it accounts for UK corporation tax but is a close company controlled by non-UK residents.

Broadly speaking, a close company is a company controlled by five or fewer participators or by participators who are also directors. The term is fully defined in Chapter 2 of Part 10 of the Corporation Tax Act 2010.

Law firms should be reviewing their policies, client questionnaires and SDLT advice given to clients in order to effectively implement UK residence assessments in all new purchase instructions. It will also be essential to carefully review matters already in progress and which may be completing after 31st March 2021, should the surcharge apply to any such transactions. 

Firms accredited under the Law Society’s Conveyancing Quality Scheme, in compliance with the Core Practice Management Standards, will need to keep a full audit trail of the SDLT advice given to the clients. It will also be prudent to record all information collected for the purpose of the residence test, in addition to the calculation and verification of the land tax duty amount payable. In complex matters lawyers may wish to advise their clients to seek specialist tax advice to establish their SDLT residence status correctly.

Land tax return

The introduction of the surcharge will also result in changes to the Stamp Duty Land Tax return form (SDLT1). The following three questions are being introduced:

• Are any of the purchasers non-UK resident?

• Are any of the purchasers a UK-resident close company controlled directly or indirectly by non-UK residents?

• Are you claiming Crown Employment Relief?

With the Stamp Duty Land Tax tool from tmgroup completion of the SDLT return is simple and efficient. With an easy to follow responsive workflow and with key data already pre-populated, the practitioner will only need to complete relevant fields tailored to the transaction. There is no need to navigate the complexities of all the 72 questions on the SDLT1 form and additional fields on SDLT2, SDLT3 or SDLT4, as may be applicable. The platform also makes it easy for the homebuyer client to review and approve the information that will be submitted on their behalf to HMRC with our easy to follow format of the draft land tax return data document. 

In addition, if the transaction involves multiple titles, there is no need for the conveyancer to contact HMRC to request separate SDLT5 certificates. Equally, there is no need to enclose additional SDLT forms to HM Land Registry with the registration application. tmgroup makes it easy for the practitioner to complete their work with enhanced HMRC compliant SDLT5 certificates, which will include all the required information on one document. 

And to make it even easier for the users, tm’s platform will automatically attach the transaction's SDLT5 certificate to the registration application, ready to be submitted to the Land Registry without the need to leave the platform.

If you have any questions, or would like to find out more about tmgroup's Post-Completion service, please get in touch with your Client Relationship Manager.

Available as part of their Portfolio Service, tmgroup’s innovative Portfolio Manager gives legal property professionals the information they need at their fingertips – via a real-time dashboard – so they can keep their clients updated on progress, without having to worry about information being out of date, or wasting time chasing for updates. Click here to request more information.

No project too big or too small 

Drawing on over 20 years’ experience as a leading provider of property searches, as well as related data and technology services, alongside a strong track record for delivering outstanding customer service, tmgroup’s Portfolio team can be relied upon to manage search orders on a firm’s behalf with the highest level of professionalism.

No project is too big or too small either. tmgroup’s experienced Portfolio team can handle any volume of work, whether it’s a single case or a Portfolio of 10,000 properties (or more); all of which can help property professionals to streamline their processes, work more efficiently, and save on costs. 

As Stephanie Robinson at Mishcon de Reya LLP confirmed: 

“I have used tmgroup’s Portfolio Service frequently. It's very useful when we need searches on multiple properties and is more time efficient than doing all the orders myself on a long list of properties. tmgroup also provide a spend report and status report, again really helpful.”

The extra capacity you need, anytime

With no commitment, contracts or minimum spend requirement, it’s quick and easy to engage tmgroup’s Portfolio Service at any time. Simply by instructing the team, property professionals can free up valuable hours for other priority work, safe in the knowledge that everything from preparing the plan and managing queries, to chasing the final report is all being taken care of with the utmost attention to detail. 

As Jane Towner, Client Experience Director at tmgroup commented:

“We’ve been offering our time-saving Portfolio Service to our clients for over 10 years, and have worked closely with some of the biggest names in the industry throughout this time to develop a tailored service that delivers the very highest standards of support for property teams in England and Wales. Whether you are looking to take on more work and make longer term efficiency gains, or just need a bit of overflow support to help with holiday cover, our Portfolio team can help.”

For more information about tmgroup’s Portfolio Service, please talk to your Client Relationship Manager, or request more information here.

The Water Authorities and Local Authorities have advised of their annual round of price increases – taking effect on 1st April 2021.

These changes will be automatically implemented on the tmconvey platform, and will be reflected in any new orders as the changes take effect.

Which Water Authorities and Local Authorities are changing their prices?

We’re working closely with the Water Authorities and Local Authorities to ascertain exactly which authorities are increasing their prices and what these new prices will be – and will continue to keep you updated as more information becomes available. 

The current available details are below:

Water Authorities 

Here is the latest information from the Water Authorities – taking effect on 1st April 2021. 

Anglian Water (Geodesys) : £2 increase on 1st July 2021

Northumbrian Water : TBC

Leep : No price change this year

Severn Trent Water : See price changes information below

>> CON29DW Residential

There will be a +£2 (exc. VAT) price change on a CON29DW, as of 1st April 2021. 

>> CON29DWC Commercial

There will be a +£64 (exc. VAT) price change to the CON29WC, as of 1st April 2021, as the report is being enhanced:

> The new and improved CON29DWC report will include the full features of the CON29DWC Extra report

> CON29DWCB (basic) and CON29DWCE (extra) are being withdrawn on 31st March

Southern Water : No Price change this year

South West Water (Source for Searches) : No Price change this year

Thames Water :

> Pricing for Residential and Commercial CON29DW remains unchanged.

> From 31st March, the Commercial Extra and Commercial Plus will be withdrawn from sale.

United Utilities : No Price change this year

Welsh Water : TBC 

Wessex Searches : No Price change this year

Yorkshire Water (SafeMove) : No Price change this year

Local Authorities 

The following Local Authorities have confirmed they will be changing their prices on 1st April 2021. 

Anglesey County Council

Arun District Council

Ashfield District Council

Aylesbury Vale District Council

Barnet London Borough Council

Basildon District Council

Basingstoke & Deane Borough Council

Bassetlaw District Council

Bedford Council

Birmingham City Council

Bolton Borough Council

Boston Borough Council

Bracknell Forest Borough Council

Braintree District Council

Bridgend County Borough Council

Brighton & Hove Council

Broadland District Council

Bromsgrove District Council

Broxbourne Borough Council

Cardiff County Council

Cambridge City Council

Camden London Borough Council

Chelmsford City Council

Cherwell District Council

Colchester Borough Council

Copeland Borough Council

Craven District Council

Crawley Borough Council

Dartford Borough Council

Daventry District Council

Ealing London Borough Council

East Cambridgeshire District Council

East Hampshire District Council

East Staffordshire Borough Council

East Suffolk Council

Enfield London Borough Council

Epsom & Ewell Borough Council

Exeter City Council

Fareham Borough Council

Fenland District Council

Forest of Dean District Council

Gloucester City Council

Greenwich London Borough Council

Guildford Borough Council

Gwynedd Council

Hammersmith & Fulham London Borough Council

Haringey London Borough Council

Harlow District Council

Harrogate Borough Council

Harrow London Borough Council

Hart District Council

Hastings Borough Council

Havant Borough Council

Havering London Borough Council

Hounslow London Borough Council

Huntingdonshire District Council

King's Lynn & West Norfolk Borough Council

Kensington & Chelsea Royal London Borough Council

Knowsley Metropolitan Borough Council

Leicester City Council

Lewisham London Borough Council

Lincoln City Council

Maldon District Council

Malvern Hills District Council

Mansfield District Council

Medway Council

Melton Borough Council

Merthyr Tydfil County Borough Council

Merton London Borough Council

Mid Sussex District Council

Mole Valley District Council

Newcastle-Under-Lyme Borough Council 

North Kesteven District Council

North Somerset District Council

North Warwickshire Borough Council

Powys County Council

Redditch Borough Council

Reigate & Banstead Borough Council

Rhondda Cynon Taff County Borough Council

Ribble Valley Borough Council

Richmond Upon Thames London Borough Council

Rother District Council

Rotherham Metropolitan Borough Council

Rugby Borough Council

Rushcliffe Borough Council

Rutland County Council

Ryedale District Council

Scarborough Borough Council

Sevenoaks District Council

Sheffield City Council

Shepway District Council

South Bucks District Council

Solihull Met Borough Council

Somerset West & Taunton Council

South Cambridgeshire District Council

South Gloucestershire Council

South Hams District Council *price change in May

Southampton City Council

Southend-On-Sea Borough Council

South Northamptonshire Council

South Oxfordshire District Council

Spelthorne Borough Council

Stevenage Borough Council

Swindon Borough Council

Tandridge District Council

Teignbridge District Council

Test Valley Borough Council

Thanet  District Council

Three Rivers District Council

Tower Hamlets London Borough Council

Vale of White Horse District Council

Watford Borough Council

Welwyn Hatfield District Council

West Devon Borough Council *price changes in May

West Lindsey District Council

Wigan Borough Council

Winchester City Council

Windsor & Maidenhead Royal Borough

Woking Borough Council

Worcester City Council

Worcestershire County Council

Wychavon District Council

Wycombe District Council

Wyre Forest District Council

If you have any questions, please contact our Helpdesk on 0800 840 5571 or email helpdesk@tmgroup.co.uk

Did you know subsidence is the most costly ground hazard in the UK? Around 64 million pounds of subsidence claims were made in the last year – and it’s only going to get worse as climate change wreaks havoc in the hotter and drier summers ahead, yet the full extent of the risk isn’t widely understood.

That’s why, as part of our tm:tv series on climate change, in partnership with Terrafirma, Dr Tim Farewell – one of the UKs leading academics on geohazards and the interaction between the natural and built environment – shared the top 5 questions every legal professional and homeowner should ask to better understand the future of subsidence.  

1. Can the soil shrink as it dries?

Soil is complex, but one of the key questions we need to ask is “can it shrink?”. This is because the expansion and contraction of the soil, as it gets wet and dries out again, creates movement and inevitably damages brickwork. 

It’s not the only soil factor to consider – as sandy soil types can also cause problems (for example, a consistent dripping of water can lead to the formation of a hole beneath the property) – but, by mapping which parts of the UK have a prevalence of shrinkable soil types, it’s possible to build an accurate picture of the properties most likely to be affected by subsidence as the climate changes. 

2. How’s the weather? 

Brits love to talk about the weather! However, it’s more than just small talk when it comes to subsidence risks, as in areas with a prevalence of shrinkable soils, the increasing shift towards hotter and drier summers – brought on by climate change – is a big problem.

This is expected to cause the most disruption in the next 20 years, as the depth the soil will dry out to will increasingly align with the 2-metre depth of foundations. 

3. Are there trees nearby?

Trees are another risk factor in areas with a prevalence of shrinkable soil. 

Whilst nearby trees are unlikely to directly cause subsidence issues, their presence can accelerate damage by sucking additional moisture out of the soil and contributing the depth the soil dries out to. 

4. When was the house built? Is there an extension? 

Certain types of construction also make properties more vulnerable to subsidence. For example, older houses tend to have quite shallow foundations, whilst newer ones are regulated to be substantially deeper.  

This may not cause too much of problem for properties kept in their original condition, but the addition of a new extension could complicate things; as differing foundation depths could result in one part of the house moving more than the other, leading to cracking between the original house and the extension. 

5. Are you looking backwards AND forwards in time?

Typically, conveyancers look at historical data (such a coal mining sites and areas of contaminated land) to understand the ground and perform their due diligence against their clients’ intended purchases. 

However, as the climate changes, and the ground also changes in response, the industry needs to be increasingly looking forwards and modelling against the anticipated impact of subsidence, if we are to take a more consistent approach in advising clients on the risks of climate change, and the likelihood of them needing to make a subsidence claim in future. 

It’s not just about modelling either, it’s about taking steps to future proof against the anticipated risk. For example, moving towards a point where developers are building New Build properties with “green” foundations and less concrete to help mitigate the risk of subsidence in the longer term. 

Do you want to know more? Take a look at the subsidence session on tm:tv here.

As part of a tm:tv series on climate change, in partnership with Terrafirma, the ‘Mining our way to a greener future’ episode brought together an expert panel to discuss how the property industry need to start making changes today, to prepare for the sustainability challenges of tomorrow. 

Hosted by Martin Manning, Head of Account Management at tmgroup, the panel included:

• Kate Charrington, Chartered Residential Surveyor & Valuer

• Megan Jenkins, Professional Support Lawyer - Real Estate, Shakespeare Martineau

• Tom Backhouse, Geologist and CEO of Terrafirma

Whilst it was immediately clear this is a complex issue, with no magic wand, there are many changes the industry can collectively make to move things in the right direction. 

Here are just some of the suggestions…

#1: More lender guidance and data to help make informed decisions 

The property industry is currently lacking the clear guidance it needs for professionals to advise consistently on sustainability matters, as Martin Manning commented: “Right now, so much comes down to the best judgement of the surveyor and solicitor involved in the transaction. We simply don’t have the steer from the likes of RICS, The Bank of England, The Law Society, and so on, of what exactly needs to be looked at across the breadth of the transaction.”

This current lack of direction creates challenges, as Kate Charrington commented: “To complete a survey or valuation, surveyors look at lots of different things, including capital value and who the average market participant is, but they won’t look at sustainability issues, as there’s simply not enough data or lender guidance out there to help them make informed decisions. Moving forward, we need to be integrating more systems to see what the flood, green, and radon risks are (and more!). As it currently stands, the industry doesn’t have enough insight to make valuations based on sustainability matters, and therefore homeowners don’t see the value either.”

Solicitors are in the same boat, as Megan Jenkins commented: “Like surveyors, solicitors also rely on guidance from lenders and governing bodies to manage the risk of the transaction, and so if the lender hasn’t yet taken onboard the impact of sustainability on property value, this isn’t going to be feeding into conveyancing practices. Energy Performance Certificates (EPCs) are a great example of this, as we’ve had them available on every property since 2008, but not needed to report on them. However, there’s now a call for lenders to report on EPCs, and while it’s only in the consultation period, it’s clear to see how factoring poor EPC ratings into lending risk assessments could help to reshape the conversation on sustainability and give solicitors and surveyors some much-needed guidance.” 

#2: Homebuyers need to be investing in sustainability measures in the same way as they currently think about adding an extension or downstairs toilet 

All homeowners know that if they want to increase the value of their property, they can look at making home improvements such as adding an extension, new driveway or downstairs toilet, but this narrative needs to change, as Martin Manning said: “I think we need to see more drive both from lenders and the media to make it clear to homeowners that they should expect a return on investment with sustainability measures too. We also need to start talking about how properties will be LESS valuable in the future without a ground source heat pump (for example), as changing the language we use can be very powerful.”

Such messages could be reinforced by the introduction of new incentive schemes or taxation measures, pushing the general public to make greener choices (similar to what we’ve seen more recently with car taxation). However, more needs to be done to make sure such schemes actually make a difference, as Kate Charrington added: “We regularly see new incentives pop up in the market, but they often don’t have the desired impact – especially in cases where the maths just doesn’t add up. When you only have a £5k grant for a £15k ground heating pump, it’s not surprising many homeowners choose to spend their money elsewhere.” 

Such negative experiences create additional barriers in moving towards a more sustainable future as well, as people are less likely to take up new initiatives if they’ve been “burnt” before – particularly when you think of the less scrupulous businesses that benefitted from the rollout of solar panels in recent years. 

#3: Everyone needs to better understand the implications of increased mining activity in the UK 

The mining of additional minerals in the UK is really important for the long term sustainability of our shores, but more education is needed to help homeowners and property professionals alike better understand this, as Tom Backhouse commented: “The challenge we have with mining is that living memory is all coal-related mining, as it was a massive industry and supported livelihoods across the UK. But this conversation needs to change. As we move towards a future of electric vehicles, more copper and critical minerals need to be extracted from the earth than have ever been mined in human history. Whilst a lot of this activity is taking place offshore, there’s a renewed interest in mining across the UK (for example, looking at mining parts of Cornwall for tin and lithium) in order to make us more resilient in mining commodities and meet the needs we will have in developing electric vehicles and solar farms, etc… We’re at a point where we should be reconsidering our day-to-day work processes within the scope of the property transaction to help the country prepare for a greener future, as well as better understand the impact increased mining activity will have on the value of nearby properties.”

…And that’s just the tip of the iceberg! Watch the full ‘Mining our way to a greener future’ tm:tv session for more on how the property industry can become sustainable.