Registers of Scotland faces £86m loss as home sales fall

Published on Monday 2 November 2009 19:28

THE Registers of Scotland is set to lose £86 million over the next five years, as it fights a steep drop in revenue caused by the downturn in house sales.

Despite projecting a profit of 4m in the year to March 2009, accounts reveal RoS lost 10.6m, compared with a profit of 10.8m in 2008.

Revised projections show the deficit will continue until 2014, with losses of 22.4m, 16m, 21m, 14m and 13m forecast for the coming years as a result of a reduction in fees and an expected drop in registering re-mortgages.

This year's loss was blamed on a significant decline in land registrations, with new transactions falling 23 per cent and total registrations down 11 per cent.

The five-year deficit is 25m higher than previously anticipated and will be covered by dipping into the organisation's reserves of 122.5m, built up using past years' profits.

An RoS spokeswoman said: "Registers of Scotland has built up and manages a reserve fund to cover market fluctuations, improvements to the registers and indemnity for the Land Register."

She added: "We are constantly monitoring the financial situation and adjusting our business plans accordingly."