Manorial Rights - Justice Committee Contents


4  The question of abolition

Evidence for

44. In addition to the problems surrounding the process of registering manorial rights which we have considered in the previous two chapters, more fundamental objections have been raised to the very existence of such rights. Those submitting evidence in favour of the abolition of manorial rights suggested there was "no place in today's society"[85] for them, and that they were an "anachronism"[86] in the 21st century. The written evidence from The Peasants' Revolt stated that manorial rights were "a relic of a system designed over 1,000 years ago under William the Conqueror, a time when the king had absolute power and the lord of the manor could command serfs to work on his land without payment in return for using the land the rest of the time."[87] Kim Thomas could understand why 1,000 years ago the rights of the lord of the manor to hunt, shoot and fish, and to get access to minerals "no doubt made perfect sense", but she could not understand why when "almost every other property law we associate with the 11th century has gone … these bizarrely remain".[88] Mr ap Iorwerth cited a paper by Professor Bray on the case for reforming feudal land law:

The point that she makes in that is that it is inconsistent that remnants of feudal law remain in operation; largely, land law has moved on, she says, from ancient concepts and practices. It makes little sense to have partial retention of feudal land law for 21st century land holdings, she says. She says that the remnants that remain cause uncertainty to the general public, legal practitioners and the courts. One such area of uncertainty is the nature and extent of manorial rights.[89]

45. Professor Bray herself was more cautious on the question of abolition of manorial rights in her evidence to us, stating that "they should be addressed. That is a lawyer's answer." However, she did say that "the Law Commission has missed an opportunity in their 10th programme of reform when they thought of opportunities of whether to include the reform of feudal law, which would include manorial rights. If I was to be pedantic, manorial rights are outside the feudal structure, but they have missed an opportunity. It highlights that we really do lag behind other countries in allowing these remnants of a feudal world to exist."[90]

Evidence against

46. The Ministry, while acknowledging that manorial rights have their historic roots in the now "defunct manorial system", has made clear its view that they are "in principle indistinguishable from other property rights" and that it "has no plans to change the law relating to manorial rights".[91] The evidence goes on to state that "arbitrary abolition of a type of property right could undermine confidence in the security of other types of property right, which would be contrary to the interests of property owners and the wider economy".[92] When we asked Lord Faulks about abolition he affirmed that the Government was "not convinced that, in practice, the exercise of these rights is causing any injustice … leaving aside the flutter of understandable anxiety that some people felt on receiving these notices" and that it was not appropriate "simply to wave away rights, unless they are causing real problems, which the Government are not convinced that they are."[93]

47. Lord Faulks also highlighted the fact that the Law Commission did not in its work prior to the 2002 Act consider that manorial rights should be abolished.[94] Similarly, Mr Towns told us that the 2001 Law Commission report "did not consider the abolition of manorial rights feasible"[95]. However, as we noted earlier,[96] it was the 1998 consultation document that considered that abolition was not a viable strategy within the scope of the review due to the financial implications of abolition, although separate consideration of abolition in the future was not ruled out.

48. Others were particularly forceful in their defence of manorial rights, with Mr Towns' evidence stating that "the argument that property rights should be lost or abolished just because they are historic is fallacious".[97] He highlighted a court ruling in relation to easements-a separate type of right-which confirmed that a right of way unexercised for over 175 years remained extant.[98] Mr Tetlow told us that "antiquity does not mean that there is an irrelevance there"[99] and that the Country Land and Business Association was "wholly opposed to the abolition of manorial interests" which constituted "valuable property rights and their abolition would be a blatant attack on property rights".[100] Mr Troman developed these arguments further, noting:

Whilst in public perception the concept of manorial interests may appear arcane, to the owners of manorial rights the interests are as tangible as any other property interest […] To abolish manorial rights would not transfer an asset into public ownership, but would amount to transferring a property interest from one group of property owners to another. Only a relatively small proportion of registered property titles are still subject to manorial rights. It would therefore be difficult to justify that abolition would be in the interest of the public as a whole.[101]

Implications of abolition

Human rights considerations and compensation

49. Evidence from those against abolition of manorial rights indicated that abolition would be likely to result in legal challenges on human rights grounds under Article 1 of the First Protocol to the European Convention on Human Rights, which is related to deprivation of possessions and property, alongside complaints that some manorial rights holders had expended significant sums of money on researching and protecting their rights in accordance with the 2002 Act.[102] Mr Jessel also pointed out that it was "a very old principle of English law that you do not take property away without compensation, and that goes back centuries—before the civil war—so I do not think it would be possible just to abolish valuable rights without any compensation".[103] The Ministry has acknowledged that if manorial rights were to be abolished the substance of the right would in effect vest in the landowner, which would amount to the forced transfer of property from one person to another. Thus abolition would:

amount to a deprivation of property and […] engage the right to the free enjoyment of possessions under the Human Rights Act 1998. It is likely, therefore, that compensation would have to be paid to persons deprived of their rights. The amount of […] compensation would depend upon the value of the rights abolished to the person thereby deprived of them.[104]

SCALE OF COMPENSATION AND METHODS OF ABOLITION

50. Evidence received suggested that an appropriate compensation scheme could address potential human rights issues, but we were told by Mr Towns that the process of valuing manorial rights would itself be "problematic" and might lead to legal challenges.[105] While the Ministry told us that it does not have any information as to the value of manorial rights, [106] Lord Faulks believed values would often be "very theoretical" with agreement hard to achieve between the various parties.[107] Lord Faulks also made the point that there would need to be consideration of who was required to pay the compensation, the landowner or the Government,[108] while Mr Troman noted that the process of determining whether there was any value, and then calculating this value would in itself incur significant cost.[109] We received little evidence on the scale of compensation upon abolition. Written evidence from Michael Turner, Emeritus Professor of Economic History at Hull University, stated:

I have attempted a back of the envelope calculation of what 50,000 enfranchisements/compensations/ extinguishments cost from 1841 to 1951 [the period when enfranchisement of copyhold land occurred]. […] my calculation suggests that this process saw the exchange of money from former manorial tenants to lords of the manor of the order of £400 million (in real terms). I emphasise that this is not the same as abolishing manorial rights neither is it a scientifically verifiable estimate, but it might be an order of magnitude.[110]

51. Mr Jessel, while stating that it would ultimately be "very difficult to abolish" manorial rights noted that there were an "awful lot" of past experiences and precedents that could be used and adapted to calculate compensation "without too much difficulty".[111] Dr Stafford noted that the process of enfranchisement in the early 20th century included provisions for freeholders to buy out the remaining rights from the lord of the manor under a statutory compensation scheme which using this experience could be "devised again".[112] Mr Jessel developed possible procedures for abolition further in his written evidence:

    Parliament could give the landowner an option to extinguish manorial mineral and sporting rights […] based on procedures used under the Copyhold Acts and the [Law of Property Act] 1922. The compensation for minerals might be typically half the value of unworked deposits, reflecting the prospect of planning consent and the costs of working. The compensation for sporting rights would reflect the diminution in value of any adjoining land of the lord. Where a market was originally granted to a lord the law could be amended to make the rights free standing and to cease any connection with the manor.[113]

52. The Ministry's evidence also suggested that arguments "for and against the substantive abolition of individual categories of manorial rights would have to be marshalled on a subject matter basis."[114] The point of distinguishing between types and locations of manorial rights was made a number of times during the course of our inquiry, both in the context of treatment and exercise of rights under current law, as discussed in Chapter 3 of this report, and within the context of abolition. Professor Bray believed that such consideration was most relevant in the context of abolition,[115] and we pursued the suggestion further with Lord Faulks that there might be scope to abolish some categories of manorial rights, particularly those held over densely populated urban residential areas, while allowing others, for example those to mines and minerals on rural land, to remain. He said that while he understood the point:

it is quite difficult rigidly to define those that are urban and those that are not urban […] There is also the danger that if you have a classification of those rights that you can abolish and those rights that are retained, you generate a great deal of litigation between those who say, "My rights fall into category A rather than category B." These are difficult in terms of classification. To create a whole potential field of litigation, unless there is a real practical problem, seems difficult to justify.[116]

A Scottish parallel?

53. Professor Bray and others pointed to the example of the abolition of the feudal system in Scotland,[117] and suggested that while the structure and system in Scotland was not directly analogous to manorial rights in England and Wales, lessons could be learnt in terms of abolition and compensation arrangements.[118] Until its abolition in 2004 the feudal system in Scotland was the main system of land ownership-the property owner held his or her land or buildings subject to certain rights retained by the "feudal superior". In her written evidence Professor Bray suggested that the main similarity with manorial rights in England and Wales lay with the payment of feu duties and feudal burdens in Scotland, the latter of which included sporting rights in rural areas.[119]

54. The Abolition of Feudal Tenure etc (Scotland) Act 2000 ultimately abolished the feudal system in Scotland while the Land Tenure Reform (Scotland) Act 1974 had already restricted the significance of the superior's right to collect feu duty and ensured it was not possible to create new feu duties.[120] Remaining feudal burdens were largely abolished under the 2000 Act while giving the former superior a number of opportunities to seek to preserve rights to enforce sporting rights after feudal abolition, primarily to ensure the legislation was compliant with the European Convention on Human Rights (ECHR). The legislation provided for this to be adjudicated by a Land Tribunal and the superior had to convince the tribunal that he or she would suffer substantial loss or disadvantage if the feudal burden was lost.[121] Professor Bray suggested similar legislation could be introduced now which would aim to abolish the rights but provide for compensation and allow those landowners who claimed loss or disadvantage to bring a case before the Land Tribunal.[122] However, the Scottish legislation dealt primarily with the principle of feudal ownership and the removal of feu duties; and the exception of sporting rights for ECHR compliance purposes illustrates that the main issues raised by manorial rights in England and Wales are not likely to be resolvable by legislation closely based on the Scottish model.

Conclusion

55. The nature of manorial rights and the impact of the relevant changes in the Land Registration Act 2002 have inevitably led to the emergence of two opposed camps regarding whether or not such rights should be abolished. In launching this inquiry we did not intend to resolve the question of the ongoing existence of manorial rights but rather to instigate a debate on the current situation, raise the profile of the issue, and inform any possible future review of the law in this regard.

56. What is also clear to us is that, although claims to manorial rights affect only a small proportion of registered titles and thus landowners, the process instigated by the 2002 Act has brought to light issues which are of real and ongoing concern to those affected. Equally, we acknowledge that, while some manorial rights may be impossible to exercise and of no practical significance, there may be certain manorial rights, particularly those related to mines and minerals over rural land, that are of considerable and real value to the rights holders. It is understandable that following the changes in the 2002 Act those who believe they hold such rights have wished to take the necessary action in order to protect those rights.

57. While we do not express a view on abolition and note that it would almost certainly require the provision of compensation to some manorial rights holders, not least because of the human rights implications, it is important to highlight the evidence received, in particular from Mr Jessel, that such issues can be addressed and overcome if a suitable scheme is devised. More generally, we draw attention to the body of written and oral evidence from this inquiry and the suggestions in this evidence which may be considered as a basis from which to develop further thinking on the subject. We hope that this inquiry, and the submissions made to it, will serve as an evidence base for the further work recommended below to draw and proceed on.

58. For all these reasons we recommend that the Law Commission conduct a project assessing whether the law related to manorial rights should be changed, including the question of whether all o some categories should be abolished, and how legislation could appropriately address compensation and human rights issues in such an event. It may be that such a project can be carried out as part of the Law Commission's 13th Programme of Law Reform, particularly given projects related to feudal law have been planned in recent programmes but not delivered due to competing priorities. However, given the 13th programme is unlikely to be determined until 2017, we recommend that the Government refer a specific project to the Law Commission outside of the law reform programme, as is in its gift.

59. We also recommend that such a review should be preceded by some consideration of and work by the Government on the financial implications and provisions for compensation which would be associated with abolition of all, or certain types of, manorial rights, as the Law Commission has itself suggested.


85   Rhun ap Iorwerth AM (MAR0026) Back

86   Albert Owen MP (MAR0007) Back

87   The Peasants' Revolt (MAR0023) Back

88   Q 11 Back

89   Q 12. The paper Mr ap Iorwerth is referring to is: J. Bray, "Feudal Law: The Case for Reform", in M. Dixon (ed.), Modern Studies in Property Law vol.5 (Oxford: Hart, 2009), ch.4, 99-121 Back

90   Q 61 Back

91   Ministry of Justice (MAR0031) Back

92   Ibid. Back

93   Q 95 Back

94   Ibid.  Back

95   Bond Dickinson LLP (MAR0028) Back

96   Para 6. Back

97   Bond Dickinson LLP (MAR0028) Back

98   Q 40 Back

99   IbidBack

100   Country Land & Business Association (MAR0027) Back

101   Tim Troman (MAR0016) Back

102   See for example Bond Dickinson LLP (MAR0028) Back

103   Q 65 Back

104   Ministry of Justice (MAR0031) Back

105   Bond Dickinson LLP (MAR0028) Back

106   Ministry of Justice (MAR0031) Back

107   Q 97 Back

108   Q 95 Back

109   Q 37 Back

110   Michael Edward Turner (MAR0033) Back

111   Q 64 Back

112   Dr Paul Stafford (MAR0039) Back

113   Christopher Jessel (MAR0004) Back

114   Ibid.  Back

115   Q 54 Back

116   Q 96 Back

117   We are grateful to the Scottish Parliament Information Centre for providing background information on the abolition of the feudal system in Scotland. Back

118   Q 63 Back

119   Ibid. Back

120   The 1974 Act also introduced measures to allow property owners to redeem, or buy out, existing feu duties by paying a lump sum, while also provided for the compulsory redemption of feu duty on the sale of land. This meant that there was only a small number of feu duties which remained when the feudal system was abolished in 2004, and while provision was made again for compensation to be paid, these amounts were typically very small. It was calculated by reference to 2.5% Consolidated Stock. A former superior was entitled to such sum as if invested in the 2.5% Consolidated Stock would produce an annual sum equivalent to the former feu duty. For example, on 5th January 2005, the price of a unit of 2.5% Consolidated Stock was £53.55 so in relation to an annual rent of £5.00 a feudal superior would have received £53.55 by way of compensation. Back

121   Judith Bray (MAR0037) Back

122   IbidBack


 
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Prepared 22 January 2015