An estate agent fears changes to land registration fees - set to take effect in just a few weeks’ time - will catch buyers and sellers unawares.

The changes will be good news for home-buyers at the lower end of the market, where they are set to make savings, but will also mean extra costs running into tens of thousands of pounds for major property buyers.

Mark Canty, a director of Cowley Groves, is concerned that the government has not done enough to highlight the changes, which will take effect on September 1.

Estate agents were not consulted on the changes, he said.

’It is disappointing that, as agents on the ground, we weren’t consulted,’ he said. ’At least we should have been asked what our thoughts were on whatever the plan was.

’Certainly purchasers and vendors should have been made aware of it a lot earlier.’

He said that despite the regulations being approved in May, the government could have done more to inform people.

’The moment it was passed they should have made people more aware.’

Under the new regulations the blanket fee of £5.70 per £1,000 of value of property is replaced with a tiered model, with revised rates of 1% for the first £500,000 in value, 2% for the value exceeding £500,000 but below £3 million, and 2.5% for values above this

Mr Canty he said the new rates were good news for the likes of first-time buyers and those buying homes up to £500,000, but the increase to 2% comes too soon.

’I think that the 1% cut-off needs rethinking,’ he said. ’Rather than the 2% that kicks in at £0.5 million, the 1% should be up to £1 million, just so not to alienate the second-time buyers and third-time buyers.

’I would not regard someone buying a £600,000 or £700,000 property as being at the upper end of the market, that would be in excess of £1 million, maybe £1.5 million.’

He added: ’It is a fantastic idea for people on the property ladder, the first-time buyers and up to £450,000,’ he said. ’But for the investor it has almost doubled the land registration fee.

’There are lots of positives here and the idea is a great idea. However I don’t think it has been executed correctly. Between £0.5 million and £1 million it should have carried on with the 1%’

The buyer pays the land registration fee. It is an additional cost, rather than something that can be included in the mortgage. But it could force sellers to lower their prices accordingly, in order not to put off a buyer,

Mr Canty said: ’I think the person who sells, certainly if they are selling to property investors, will potentially lose out.’

Joanne Creedon, head of property services at Quinn Legal, said: ‘This is a significant departure from the current land registration regime and will have an impact on property purchasers at both ends of the financial spectrum.’

She added: ‘Whilst Quinn Legal welcomes Tynwald’s support to those with low and middle incomes, first and second-time buyers. we are concerned with the drastic increase in land registration fees for those purchasing higher value properties, investment properties and commercial properties.’

The Douglas based law firm has released an online calculator to help interested buyers make an informed decision on property acquisition before the ‘significantly inflated’ new land registration fees come into force on September 1.

Quinn Legal says the changes are expected to hit second homeowners and owners of single residential properties over £440,000 particularly hard, whilst providing relief for those lower down the housing ladder.

Mrs Creedon added: ‘Our calculator provides a definitive cost and confirmation of the effect the changes will mean to a prospective purchaser.’

Changes to legislation will alter land registry fees considerably after September, in order to address costs relative to income.

The firm says in normal circumstances, an average conveyancing transaction takes between six and eight weeks, subject to any specific complexities.

With less than three months until the implementation of the orders, time is of the essence for those wishing to purchase a new

property.

Minister for the Treasury, Alfred Cannan has said previously: ‘This is a move to an alternative fee structure where the burden sits more equitably on those with higher value properties.

‘This is absolutely not a stamp duty or stealth tax.’