Housebuyers in new small-scale property developments in Surrey could be subject to an indirect taxing on their purchase, after a landmark County Hall ruling last Tuesday.

Under a new code of practice agreed by the 11 Surrey districts and Surrey County Council (SCC), developers can be charged a fee related to how many dwellings they build and how many occupiers are in them.

One per cent of a five per cent administration charge can be given to SCC, to the potential tune of £10million a year, to fund public services in the area surrounding developments.

But crucially, developers may be tempted to transfer the new costs on to the housebuyer - as demand comfortably outstrips supply at present in the small-scale Surrey house market.

Ananda Paul, CEO of Surbiton-based AP Homes, said: "I think it will almost certainly be factored in like any other cost. There is a lot of profit and competition in development, and most will think that they can sell properties regardless."

Larger-scale projects are already subject to Section 106 agreements under the Town and Country Planning Act (1990), but the new ruling means a one-bedroom house could now be subject to a charge of around £6,500, a three-bedroom house around £12,000 and a five-bedroom house around £19,000.

Andy Roberts, SCC strategic director for community services, was keen to dispel fears that housebuyers will be forced to pay over the odds and is delighted at the increased funding.

He said: "The charge would most likely be absorbed by the developer. It's only fair that those creating demand for services should contribute to the cost of providing them.

"Surrey is expected to take some 70,000 new homes under Government plans to increase supply in the region. This is a simple and realistic way of removing the burden of providing those extra services from taxpayers."