The Land Registry’s annual report has revealed the impact of the faltering housing market on the government body, with its core business down by 75%.

The Land Registry’s annual report published today shows that its income from fees for the year 2008/09 fell to £308m, compared to £483m in the previous year. Its total expenditure was £380m, compared to £400m for 2007/8. The accounts show it made a loss during the year of £130m.

In response to the stagnation in the property market, the Land Registry reduced its staff by more than 1,000 through a process of voluntary redundancy, early retirement and transfer to other government departments, at a cost of £50.3m.

The report said it had cut back spending, raised its fees and reviewed contracts. Money-saving measures include using second-class post and closing the restaurants in all its offices.

With the expectation of a slow property market in the next financial year, the Land Registry said work on reducing its staff, estate and other overhead costs will continue.

The Registry paid out an increased amount in compensation due to errors on the register – £10m for 1,364 claims, compared with £9m for 1,072 claims in 2007/8.

It also saw an increase in the number of claims and the amount paid as a result of fraud, such as the registration of fraudulent transfers and charges. The figure rose to £5m for 62 claims, up from nearly £4m for 60 claims in 2007/8.

It said it had reviewed its anti-fraud procedures during the year and introduced new measures intended to counteract registration fraud. It also recovered £89,235 under its statutory rights of recourse, compared with £72,536 last year.

The report also noted that the number of registered titles held on the Land Registry’s database reached 22 million during the year, the first mortgage or e-charge was signed electronically, and for the first time it processed more voluntary than compulsory first registrations. Its campaign to encourage owners of unregistered property to voluntarily sign up to the Land Registry achieved its target of registering 325,000 hectares.

Peter Collis, chief land registrar and chief executive, said: ‘While it has been one of the most difficult periods in our 147 year history, we are looking forward to implementing new plans which will see Land Registry emerge as an even more customer-focused organisation.’

‘In the future we envisage a smaller, leaner, more customer-focused organisation dealing with many applications electronically and providing an expanding range of products and services to customers,’ he said.