Code:
    # stored as a text file, but here for clarity

    list_of_lines = """
    <RECORD>
      <TITLE>MISS</TITLE>
      <NAME>ELIZABETH</NAME>
      <SURNAME>II</SURNAME>
      <ADDRESS1>1 BUCKINGHAM PALACE</ADDRESS1>
      <ADDRESS2>LONDON</ADDRESS2>
      <ADDRESS3>GREATER LONDON</ADDRESS3>
      <POST_CODE>W1 11A</POST_CODE>
      <CASE_NUM>Q1QQ1234</CASE_NUM>
      <ID>32145698</ID>
      <LAST_UPDATE_DATE>2016-12-12</LAST_UPDATE_DATE>
     </RECORD>
     <RECORD>
      <TITLE>MR</TITLE>
      <NAME>PRINCE</NAME>
      <SURNAME>PHILLIP</SURNAME>
      <ADDRESS1>1 BUCKINGHAM PALACE</ADDRESS1>
      <ADDRESS2>LONDON</ADDRESS2>
      <ADDRESS3>GREATER LONDON</ADDRESS3>
      <POST_CODE>W1 11A</POST_CODE>
      <CASE_NUM>K5KK4321</CASE_NUM>
      <ID>56987412</ID>
      <LAST_UPDATE_DATE>2017-01-16</LAST_UPDATE_DATE>
     </RECORD>
     <RECORD>
    """

class recordManager:

    def __init__(self):
        self.r_location = "list_of_lines.txt"

    def record_splitter(self, beg):

        re_beg_spl = re.compile(".*<RECORD>")
        re_end_spl = re.compile(".*(<\/RECORD>)")

        end = None

        for count, line in enumerate( open(self.r_location) ):
            if count > beg:
                if re_end_spl.match(line):
                    end = count

                    if not re_end_spl.match(line):
                        if re_beg_spl.match(line):
                            beg = count
                    else:
                        break

                    recordManager.dic_factory(self, beg, end)


    def dic_factory(self, beg, end):

        re_casenum = re.compile(".*<CASE_NUM>(.*)<\/CASE_NUM>")
        re_tag_val = re.compile(".*<(\w*)>(.*)<.*")

        id_ = None
        tags = []
        vals = []

        for count, line in enumerate( open(self.r_location) ):

            if beg < count < end:
                if re_casenum.match(line):
                    m = re_casenum.match(line)
                    id_ = m.group(1)

                if re_tag_val.match(line):
                    m = re_tag_val.match(line)
                    tags.append( m.group(1) )
                    vals.append( m.group(2) )

        beg = end +1
        print {id_ : dict(zip(tags, vals)) }
        # {32145698 : {'POST_CODE': 'W1 11A', 'SURNAME': 'II', 'NAME': 'ELIZABETH', 'TITLE': 'MISS', 'ADDRESS1': '1 BUCKINGHAM PALACE', 'ADDRESS2': 'LONDON', 'ADDRESS3': 'GREATER LONDON', 'RECORD_TYPE': '1', 'CASE_NUM': 'Q1QQ1234', 'LAST_UPDATE_DATE': '2016-12-12', 'ID': '32145698'}}

        self.record_splitter(beg)


if __name__ == '__main__':
    inst_fol = record_manager(file)
    recordManager.record_splitter(inst_folder, 0)

if __name__ == '__main__':
    inst_fol = record_manager(file)
    beg, end = recordManager.record_splitter(inst_folder, 0)

def __init__(self):
    self.r_location = "list_of_lines.txt"
    self.beg = 0

for count, line in enumerate( open(self.r_location) ):
        if count > self.beg:
            if re_end_spl.match(line):
                end = count

                if not re_end_spl.match(line):
                    if re_beg_spl.match(line):
                        self.beg = count
                else:
                    break

                recordManager.dic_factory(self, self.beg, end)