Farmers face risks from old laws

Pepperells Solicitors has raised concerns over a century-old feature in land law that is significantly affecting English farmers. Simon Rounding, Head of Rural at Pepperells, highlighted how the issue has led to "massive legal delays" as large portions of the land remain unregistered, subjecting farmers to unexpected costs during transactions. According to current estimates, up to 15% of land in England and Wales is still unregistered with HM Land Registry, predominantly impacting rural and agricultural areas.

Rounding explained that modern property law mandates digital registration; however, many inherited farms evade registration because inheriting land through a Will is classified as a "transmission," not a "transfer for value." Rounding elaborated on the problem: “The issue often only comes to light at the worst possible moment, when a farm is being sold, refinanced or used as security." This situation can lead to delays while historic documents are examined, ultimately complicating the transaction process.

He also pointed out that many farming families cling to physical deeds, some dating back to the Victorian era. While this was once considered sufficient proof of ownership, today’s buyers and lenders prefer the certainty provided by registered titles before proceeding with any transactions. Despite 8.8 million hectares of England being employed for agriculture, a large segment of these ancient estates remains unrecorded, posing serious risks down the line.

Adding to the urgency, Rounding encouraged landowners to consider voluntary registration now rather than waiting for a transaction to force the issue. As of 2026, the Land Registry will implement a tiered fee structure, which means voluntarily registering now could save farmers 25% on fees, illustrated by a potential fee reduction from £1,100 to £830 for farms valued over £1 million.

“The risks of remaining unregistered are becoming harder to ignore," warned Rounding, who has been working with multi-generational farming families for decades. He asserted that late identification of unregistered land during sales could result in significant delays and increased costs. "Identifying these gaps late in the day during a sale or mortgage can lead to significant delays, renegotiations and additional costs,” he stated.

The firm has emphasised that while the current registration system allows families to avoid costs in the short term, it fosters a “legal fog” that can hinder the next generation. “A family business depends on the certainty of the ground beneath it,” Rounding remarked, explaining that deferred registration can expose estates to administrative complications and unforeseen legal challenges.

Pepperells is therefore encouraging all landowners, trustees, and farming families to proactively review their deeds and contemplated voluntary first registration, especially before any major transaction events. This approach ensures that titles are current and protects estates from unnecessary delays and costs, reinforcing the importance of taking these steps now to avoid future complications.