Refusal of access to property records 'breaks law'

OneSearch Direct Holdings Ltd, which sells search reports to potential property buyers, says the refusal by York City Council is preventing fair competition with the authority, which also sells property information.

In an action with important general implications, the company is seeking a test case declaration that the council is acting unlawfully.

OneSearch was founded in Scotland in 1992 and expanded its business into England a decade later.

The company says property search reports perform a vital function, strongly reinforced by the Government's introduction of home information packs (Hips), which every home being sold in England and Wales now needs.

Packs, which can cost hundreds of pounds, contain information about a property prepared by the owners for prospective buyers, including a standard searches document.

Much of the information comes from local authority records and can include searches relating to water, drainage and nearby planning proposals, as well as evidence of title documents, which prove that the seller owns the property.

York Council describes yesterday's legal action as the culmination of a concerted campaign by OneSearch to gain access to property records held by local authorities up and down the country.

Mr Justice Hickinbottom was told some authorities have agreed to the OneSearch demands, but "most have not".

Michael Fordham QC, appearing for OneSearch, said the raw material needed for conveyancing was held in the records of local authorities.

York council wished to package and sell the property information it held for an overall set price.

Companies like OneSearch wanted access to that same information in order to supply their own packages at their own price.

York was operating a blanket policy of not allowing access.

The QC said the question for the court was: "Is it lawful for a local authority to maintain a policy of not allowing access to its property records to those who wish to compile search material?"

Mr Fordham said lawyers for York council were arguing that it was not obliged to allow access "unless and until there is an express statutory duty" to do so.

The Local Authorities (England) (Charges for Property Searches) Regulations 2008 provided a new legal basis for charges to be levied for access to property records and answering inquiries about property.

The hearing continues