Winter Land Business 2014/15 Farming Estate management Sales

CLA Game Fair debate: Green houses: boost Scotland says No, would our countryside be the energy rating of but what now for better off out of the EU? your rental property landowners?

A bright future How this Suffolk estate turned its fortunes around

Rural services Land Management We manage two million acres of land across the UK, ensuring that our clients’ farms and estates perform in a way that meets their business and personal aspirations.

Farming Our team of more than 30 experts offers a complete farming service, advising on a huge variety of issues and helping farmers to make the most of their farming businesses.

Estate & Farm Agency We handle the sale and purchase of some 50,000 acres of farmland, residential and commercial farms, and sporting estates every year.

Please contact your local office to find out more about our rural services. struttandparker.com

LB11_p01-40_Cover_desREPRO2.indd All Pages 15/10/2014 11:14 02 Contents 03

Spring / Summer 2014 Land Business Contents Farming Estate management Sales 04 News & views The latest news for landowners and farmers

09 Green light for barn conversions

Welcome John McLarty on permitted development rules Most people will have breathed a huge sigh of relief when they 10 Back to basics awoke on 19 September. The No vote in the Scottish How dynamic management revitalised the independence referendum means that the UK remains intact, Bawdsey Estate in Suffolk and the myriad uncertainties that a Yes would have brought have 15 Entitled to an explanation been avoided. However, this isn’t the end of the matter for George Chichester on CAP reform complications those living in Scotland. The SNP government still intends to 16 What does No mean for landowners? introduce sweeping reforms to land ownership and agricultural There are testing times ahead despite the holdings, which are set to have a huge impact on landowners referendum result, says Robin Maitland north of the border. Robin Maitland, Land Management Partner 18 Performance review in Strutt & Parker’s Banchory office, shares his thoughts on this Why now is the time for landlords to improve the vital issue on page 16. energy rating of rental properties Independence of another sort was on the agenda at this year’s CLA Game Fair. Strutt & Parker hosted the CLA Game 22 It’s over to you now... The dos and don’ts of making a succession plan Fair Theatre over a sweltering July weekend, and it was a full house for our debate on the British countryside’s role in the EU. 24 Stay in or get out? What followed was a discussion as heated as the weather – see The EU debate at the CLA Game Fair what our illustrious panellists had to say on page 24. 27 Can the growth in farmland values last? Elsewhere in this issue, we visit the Bawdsey Estate in Mark McAndrew on farmland investors’ fears Suffolk to show how a ‘back to basics’ approach to estate 28 How the land lies management has paid dividends over the years (page 10), The latest facts and figures explain how landlords can enhance the energy efficiency of their cottage portfolios and why now is the time to do it (page 30 Regional update 18), and tackle the thorny topic of succession (page 22). Bulletins from our offices around the UK We hope you enjoy reading Land Business, and we value 36 Sales highlights your feedback – please visit struttandparker.com/land- A selection of farms and estates on the market business-survey to tell us what you think of this issue. 38 Q&A Peter Kendall, Chair of the Agriculture and Horticulture Development Board

Published by Sunday, 207 Union Street, London SE1 0LN. 020 7871 6760 sundaypublishing.com

The views expressed in this publication are PAGE 24 not necessarily those of Strutt & Parker.

The big picture James Farrell Mark McAndrew Ross Murray, Deputy President of Head of Head of Estate & Consultancy Farm Agency the CLA, enjoys a pint with UKIP Leader Nigel Farage following their feisty debate over the pros and cons of the EU for the British countryside at this year’s CLA Game Fair, held We’d like to hear what you think of this issue of Land Business – please share your at Blenheim Palace in July. Photograph: Philip Hollis/CLA thoughts via our online survey at struttandparker.com/land-business-survey

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p02-03_Welcome/Contents_desREPRO.indd 2 09/10/2014 14:20 LB11_p02-03_Welcome/Contents_desREPRO.indd 3 13/10/2014 11:02 04 News & views 05

FARMING COMMUNITY WADES IN

SCOTTISH TENANT FARMERS’ RENT FEARS

A recent rent review the tenanted sector – the decision by the Scottish National Farmers Union of Land Court to award a rise Scotland, Scottish Land & on a Borders arable farm Estates and the Scottish of around £34 per acre Tenant Farmers Association has caused concern in – have agreed to peg rent the tenanted sector. increases to the rise in the The case of Capital Consumer Prices Index, Investment Corporation as well as to form an of Montreal Ltd v Elliot Agricultural Review Panel was the first rent review to ‘sense check’ any The Addington Fund, a farming charity supported by decision since the proposed rent changes. Strutt & Parker, came to the rescue of farmers on the landmark ‘Moonzie Case’ This initiative is voluntary, Somerset Levels following the flooding there last winter. in 2012, which set out new with no legal status, and rules for the first time since should the AHLRG decide The seasonal flooding of the Levels was unprecedented in both the Agricultural Holdings to leave unchanged the the volume of rainfall and the long period of inundation. With (Scotland) Act 2003 came review system, it may farmland submerged, cattle yards flooded and fodder and straw into force. As many have a short shelf life. stocks ruined, there was an urgent need for supplies of the latter. reviews were being held Andrew Hamilton, The response of the agricultural industry was exemplary, back pending the outcome Land Management with offers of silage, hay and straw, as well as haulage and the of these cases, tenants use of buildings to house evacuated cattle – and even a supply now fear large rises. TOP TIP of waders. The Addington Fund helped with the costs of The basis of the rent PROPERTY transporting donations to the fodder bank and its onward review procedure is Code of practice for the haulage and distribution to recipient farmers. being examined by the private rented sector David Canty, from Strutt & Parker’s St Albans office, teamed Agricultural Holdings Coming into immediate up with Al Brooks, Farm Manager at Waddesdon Farms and an Legislation Review Group effect, the Private Rented Addington Trustee, to organise the transportation of straw from (AHLRG). But it is not due Sector Code of Practice Buckinghamshire to Bridgwater. ‘Driving a lorry onto the Levels to report until December outlines recommended and and seeing everything first-hand was an experience,’ said Al, ‘but 2014 and there is no mandatory best practices for the response from the farmers we helped was something else.’ guarantee it will change landlords and letting agents. The work will continue into next winter. ‘We are currently the current system, which It has been developed at the revisiting farms to assess the level of need,’ said Ian Bell, Director is based on open-market request of the Department of the Addington Fund. ‘We still have pledges of fodder and rental comparables. for Communities and Local straw and we have a need, so it is up to us, with the support During this interim Government in order to such as that from Strutt & Parker, to bring it all together.’ period, the three principal improve the stock of privately Will Gemmill, Head of Farming representative bodies of rented homes in the UK.

Strutt & Parker Land Business Strutt & Parker Land Business

Published onLB11_p04-09_News_Opinion behalf of Strutt & Parker by Sunday GPDO_des4.indd 4 01/10/2014 15:47 LB11_p04-09_News_Opinion GPDO_desREPRO1.indd 5 13/10/2014 11:08 sundaypublishing.com 06 News & views 07

WOODLAND BURIALS SURGE TOP TIP EMPLOYMENT A new property There are now more than 130 woodland burial Workplace pensions tax to dwell on grounds in the UK, with many leased to burial companies by private landowners. Such sites While the auto-enrolment of can offer plots for full or ash burials, and often employees into workplace The Annual Tax on Enveloped Dwellings (ATED) pension schemes won’t aims to further discourage individuals from using prohibit fi xed structures such as headstones in order to preserve the surrounding environment. happen until May 2015 for companies or other envelopes to own UK companies with fewer than Rents are often based on the turnover of residential property not used in a genuine 50 staff, employers should royalties, and we have seen agreements at 10% commercial business. consider remuneration for plot sales and 5% on all useable items, The ATED is charged on ‘non-natural’ packages before then. It which includes the use of any on-site buildings. persons – the company or collective investment may be beneficial to make vehicle – with holdings in UK residential Site extensions are often sought by tenants, who contributions to employees’ dwellings. It is based on the property value, are responsible for all planning and professional pensions rather than with Capital Gains Tax charged at 28%. fees, with a one-off payment to the landlord. rewarding them through Currently, the ATED relates to residential On expiry of a lease, it is often considered that simple bonus structures, in property valued at £2 million and above, but there will be no future income generated from order to successfully manage from 1 April 2015, the charge will also be the site, other than the lasting amenity value. this unavoidable pressure levied on those valued above £1 million; from Russell de Beer, Land Management on employment costs. 1 April 2016, this will be extended to those over £500,000. Also, Stamp Duty Land Tax of 15% previously applied to property purchases of £2 million and above, but as of 20 March 2014, this threshold is now £500,000. Chargeable property needs to be revalued every five years, with the first date being 1 April 2017. The deadline for filing ATED returns and making payments is 30 April each year. Charlotte Kershaw, Land Management

Corporate members of LLPs to be outlawed?

The government is considering banning corporate members of LLPs, having already proposed to outlaw corporations acting as company directors. Unlike limited companies, LLPs make no distinction between directors and shareholders, CLARITY ON LISTED and are instead made up of only ‘members’. YIELD BOOST FOR FARMERS Corporate LLPs, which include one or more For most farms, the harvest of 2014 agronomists will be to deliver similarly companies among their members, are often set has been a signifi cant improvement strong yields while coping with CAP BUILDING CONSENT up for valid commercial reasons, particularly on that of 2013, providing some reform, greening and the problem weed within the rural sector. much-needed relief following a black-grass, but we are confi dent that Strutt & Parker’s planning team is often building, for example, or perhaps to a TOP TIP Some professional bodies have objected to structure forming part of its curtilage, fl at-line trend in yields in recent years. we have the strategy to achieve that. asked to advise on cases where the sale of TAXATION the proposal, arguing that there is no case for a Listed property is jeopardised following will require consent. Early results indicate that winter With a fair wind assisting commodity Principal Private Residence Relief including LLPs within the prohibition and asking the discovery of works that have been New regulations introduced last year wheat yields are up by 18% on last prices next year, we are planning for the government to look at other ways to achieve undertaken without the appropriate allow someone contemplating works to Principal Private Residence Relief year, oilseed rape is up 14% and winter a prosperous 2015 harvest. its transparency and accountability goals. Listed building consent. a Listed building to apply for a certificate (PPRR) can exempt from Capital Gains and spring barley is up 12%. Against Richard Means, Farming The government announced the proposal of lawfulness. The principle is similar to Tax any profit made on disposal of a the backdrop of falling commodity in its response to its discussion paper With no immunity period after which such those employed for planning uses and property that has been an individual’s 12 Crop yields (t/ha) Transparency and Trust: Enhancing the prices, this should help farms get near works become lawful as there is for works developments, although there is no provision main residence. Owners of more than to or achieve budget – in particular, 10 2013 Transparency of UK Company Ownership and 10.03 2014 requiring planning permission, the problem to apply it retrospectively. Nevertheless, it one property can choose which one Increasing Trust in UK Business. The original where quality wheat was being 8 8.51 can be difficult to resolve. seems possible to apply for a certificate of is their main residence and, therefore, consultation included no mention of the idea, grown, as this crop has unusually 6 Breaching Listed building control is a lawfulness as if the works have not been qualifies for PPRR. However, HMRC is and there is no indication, at this time, as to high premiums given the poor quality 4 criminal offence punishable by fine or undertaken and require the local authority proposing the removal of this choice. It 3.82 how such organisations will be affected. of harvests elsewhere in Europe. 2 3.36 imprisonment. In many cases, it can be to make a determination on that basis. This is unlikely that this would be introduced Jonathan Smith, Head of Tax The next challenge for Strutt & far from clear whether works that are may be useful for potential purchasers. before April 2015, but in the meantime, Parker’s farm consultancy and our Winter wheat Oilseed rape proposed to the interior of a Listed Craig Noel, Planning PPRR strategies should be reviewed.

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p04-09_News_Opinion GPDO_desREPRO.indd 6 09/10/2014 10:05 LB11_p04-09_News_Opinion GPDO_des4.indd 7 01/10/2014 15:47 08 LandOpinion usage 09 13

ADDITIONAL RELIEF ON PLANT EXPENDITURE Green light for barn conversions

By John McLarty, Planning Department

Landowners and farmers who invest more than £250,000 in plant and Although they are complicated, the of these applications across the As with the earlier permitted machinery should consider their new permitted development rules country. Although many owners development changes for replacement policy in light of the on the conversion of agricultural are still getting to grips with the employment, the most interesting second temporary extension to the buildings to residential use provide new regulations, the number of aspect of the new residential rules BUILD-TO-LET Annual Investment Allowance (AIA). a fantastic opportunity. conversions undertaken since is that local authority planners This allows businesses to claim 100% April nevertheless allows us now take a more positive stance OFFERS GOOD LONG- tax relief on plant and machinery In April, the government to draw some conclusions. towards rural development and costs up to £500,000 a year until introduced the latest changes While the legislation change of use in general. Whether TERM RETURNS 31 December 2015, after which the to its rules for permitted applies across all of England, it is a barn that doesn’t meet all allowance will drop to £25,000. development for the conversion implementation varies according of the criteria for prior approval, This extension came into force of agricultural buildings as part to local interpretation. Even so, a Listed building or a proposal As the residential property market has This trend has created an opportunity on 1 April 2014 for corporation tax of its ongoing plan to create it remains important to comply involving more substantial started to recover, the press has been for the well-informed landowner with good and 6 April 2014 for income tax. The a three-tier planning system. with all relevant criteria of the building works, council planners full of comment about problems with relations with his local planning authority, Treasury estimates that 99.8% of Under this system, only the prior approval process to ensure are now guided by the clear especially in areas with higher property affordability for fi rst-time buyers. businesses will receive 100% upfront largest-scale proposals will require a successful outcome. In practice, support for conversion and values. Through sensitive negotiation based tax relief on qualifying expenditure. full planning permission, and many of these are not dissimilar reuse of rural buildings set out A fundamental lack of supply – combined on an estate’s track record in the private In order to qualify for the AIA, the developers of smaller proposals to those required for planning by government policy. Such with recent changes to the mortgage market rental sector, it may be possible to secure item of plant or machinery must be need only notify the council permission. It is important, for conversion proposals can now that make fi nance even harder to secure – consents to build new properties for in use when the claim is made. So example, to ensure accurate has inevitably contributed to upward retention and letting without the need to before the new use commences. be discussed with planning pressure on house prices. As a result, go down the affordable housing route. the timing of expenditure is key, The remaining medium-scale definition of the curtilage for the officers on a more positive more households are renting for longer. Provided that rental demand is identifi ed particularly with machinery used on proposals will require prior converted building and that the footing to ensure the necessary Home ownership in the UK peaked in in advance and the houses built are tailored a seasonal basis, such as combine approval. In such circumstances, dimensions of the proposed planning permission can be 2001 at 70%, with 9% of households to local requirements, the returns from or potato harvesters. Consideration councils consider a limited range building do not exceed those successfully obtained. renting property from the private rental building-to-let can be signifi cant, as the land should be given to bringing forward of issues, which are defined by allowed under the regulations. So Although in such cases a sector. By 2011, 16.5% of households is already owned and the cost of building planned acquisitions to take national regulations. it is worth noting that the upper planning application will still were renting privately, and the number remains sensible if properly managed. advantage of the extra allowance. The prior approval rules limit for residential conversions be required, local planning is projected to increase to 37% by 2025. Nick Watson, Land Management Jeremy Dawson, Land Management introduced in 2013 relate qualifying for prior authorities are now more open to flexible commercial or approval is 450 sq m to discussion and may be able employment use for agricultural – 50 sq m less than to provide a route to overcome TOP TIPTOP TIP buildings. This process has been flexible commercial the status quo that, in many cases, COOKING UP A STORM EMPLOYMENTEMPLOYMENT used frequently since then, and or employment use. has seen barns standing empty AutumnAutumn 2014 changes2014 changes councils have taken the view Unfortunately, these or underused for many years. Food With Heart is a really special cookbook. Published in employmentin employment law law that this can be treated as a valid rigid criteria will leave When it comes to the conversion by Strutt & Parker in aid of Great Ormond Street Hospital consideration € for application many owners outside of agricultural buildings or, A numberA number of changes of changes in € Children’s Charity, it features 52 recipes by some very for full planning permission. the rules and looking indeed, other rural development, employmentin employment law came law into famous names, including David Cameron, Elizabeth However, the highest-profile for other options the opportunity for a positive force oncame 1 October. into force Among on Hurley, Joanna Lumley and Jeremy Clarkson. If you them were1 October. the introduction Among them changes – which represent an to deliver new discussion with local authorities want to fi nd out what the Prime Minister cooks up of antenatalwere therights introduction for fathers exciting opportunity in terms of development. On a has rarely been so good. LB in Downing Street or the secret of Simon Cowell’s and partnersof antenatal to take rights time for off value for many farm owners – are ‘local authority positive note, however, perfect cottage pie, now is your chance. work, andfathers the and increase partners in the the new rules introduced in April planners now take it has become clear [email protected] Even the cover is special – it features nationalto minimumtake time wageoff work, for this year regarding the conversion a more positive in recent months wonderful artwork by David Hockney. employeesand the over increase 21, from in of agricultural buildings to stance to rural that councils have £6.31 theto £6.50 national per minimum hour. residential use. These changes development significantly changed Food With Heart is exclusively available wage for employees have received a high degree of and change of the way in which from Strutt & Parker offi ces for a minimum over 21, from £6.31 interest from landowners, and use in general’ they consider rural donation of £10. to £6.50 per hour. there have been a large number planning applications.

Strutt & Parker Land Business StruttStrutt & &Parker Parker Land Land Business Business

LB11_p04-09_News_Opinion GPDO_desREPRO1.indd 8 09/10/2014 15:52 LB11_p04-09_News_Opinion GPDO_desREPRO.indd 9 09/10/2014 10:06 10 Case study 11

As part of the Bawdsey Estate, the Ramsholt Arms on the River Deben has been renovated and is now being Back to basics leased to a tenant Having suffered from inadequate infrastructure and constrained financial arrangements, the diverse Bawdsey Estate on the Suffolk coast is now thriving thanks to Strutt & Parker’s estate management team

he Ramsholt Arms sits in an idyllic spot estate with a lot of separate interests,’ says on the banks of the River Deben close to Loyd. ‘As a starting point, we needed to the Suffolk coast, with magnificent views make sure that each element was running from the wide terrace over the river and as efficiently as possible and was able to the dozens of boats moored there. Once reach its maximum income potential. What a hunting lodge, the pub is part of the was needed was to go back to the basics of Bawdsey Estate, which covers 3,200 acres estate management and do them brilliantly.’ of farmland, grassland and woodland that stretch along the north bank of the river RESIDENTIAL REFURBISHMENT south of Woodbridge. The estate’s residential properties needed an Today, the pub is thriving and the estate overhaul. Several were uninhabitable, all is profitable. But when Strutt & Parker needed some degree of refurbishment and was asked to take over the management in only six were being let on commercial terms. 1997, there were some serious problems Loyd believes that in order to get the to address. The Ramsholt, despite its most out of residential property, a firm favourable location, was losing money grasp of detail is important. ‘You need to and the estate cottages were deteriorating, be familiar with tenancy legislation and T with rents significantly less than market focus on the risks involved in the business,’ rates. Also, the farming infrastructure he explains. ‘An awareness of term dates was inadequate, and the arrangements and tenants’ liabilities will help to maximise with the farm contractor were weighted income. For instance, ensuring that term against the estate, bringing in only a small dates fall due in the spring, rather than percentage of the profit in a good year. autumn or winter, will reduce cash flow The estate was acquired by Sir Robert risks, and knowing that the meaning of “to Adeane in the 1950s. The current keep and leave decorations in good repair” beneficiary is James Adeane, who asked also includes an implied covenant to “put Charles Loyd, Partner and head of Strutt them in good repair” will help during & Parker’s Land Management team for discussions at the end of the tenancy. the Eastern region, to become a trustee of ‘Offering quality accommodation in a the estate as well as to manage it 17 years good state of repair will attract the right ago. ‘Bawdsey is a wonderfully diversified tenants at competitive rents and ensure a Words: Cherry Maslen Photography: Amy Shore Words:

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p10-14_Case study_CAPreformopinion_desREPRO.indd 10 09/10/2014 10:25 LB11_p10-14_Case study_CAPreformopinion_desREPRO.indd 11 09/10/2014 15:13 12 Case study 13

high retention rate, which reduces as temporary accommodation for who is Bawdsey’s Contract Farm owners and estate managers, they wall, demolishing some sections rental voids, letting costs and wear harvest workers. Manager. ‘The estate is about a now grow a wide range of root and flooding the grassland, and tear on the property,’ he adds. third heavy marsh clay; the rest, on crops, which can thrive in sandy normally let to a cattle grazier. ‘Providing a good management FARMING POTENTIAL the higher ground, is light, loamy soil if they have enough water. ‘We The estate is investing in service to tenants – which means Bawdsey’s main source of income sand. It’s like running two farms, have been able to take a long-term rebuilding the damaged sections. answering calls at the weekend in is the 2,200 acres of farmland. but it means that we can grow view and risk adding new crops,’ ‘Instead of bringing in clay to emergencies – is important, too.’ But with a lack of effective a wide range of crops, provided says Rankin. ‘We grow carrots rebuild the wall, which would be The Ramsholt Arms has been infrastructure, especially an we have enough irrigation.’ and parsnips and have recently hugely expensive, we’re digging refurbished and is being run by inadequate irrigation system, the Bawdsey’s farm would never be introduced onions, which in these the clay from the old dykes,’ says an energetic new landlord as a farm was nowhere near reaching profitable without a reliable water conditions we can harvest early.’ Matthew Hague, Land Agent at tenant, paying an annual rent supply, and the existing irrigation Further investment followed Strutt & Parker’s Ipswich office, of £40,000 and eliminating any system badly needed improving. with the erection of a 2,000-tonne who is responsible for the risk to the estate. Acknowledging The trustees financed an extension grain store, which enabled a more day-to-day management of the that neither the trustees nor the ‘quality accommodation to the irrigation main and replaced varied selling policy for the cereal estate. ‘We’ve been working with beneficiary are experts in the pub in a good state of repair the two ineffective diesel pumps, crop that has proved beneficial Defra as there are limitations as trade, Loyd says: ‘From an estate will attract the right which used a large amount of fuel, with recent fluctuations in grain to what is allowed, and a good investment point of view, offering tenants at competitive with two modern electric pumps. prices. ‘If one has more confidence working relationship with all a quality asset in full working rents and ensure a high Two reservoirs were also built in the asset, it is sensible to explore environmental bodies is a must. order on commercial terms to retention rate, which to supplement the natural water one’s attitude to risk,’ says Loyd. ‘Rebuilding the wall is a someone experienced in that reduces letting costs’ supply and to ensure maximum ‘At Bawdsey, with a good considerable investment of more business is the least risky way of use of the abstraction licences. contractor farming a well-equipped than £40,000, but there are a profiting from ownership of that ‘Water security is of paramount Clockwise from top: one unit, the trustees decided to take number of possible sources of asset. That principle must apply its income potential when Strutt importance, not only from an of the cottages in the on more of the risks of farming in grant funding. Knowledge of to all situations which involve & Parker took up the reins. income point of view, but also estate’s residential portfolio; order to benefit from the upgraded these is essential in managing third-party arrangements.’ A new contractor was found in from a capital perspective,’ says Bawdsey’s varied soils assets. That has proved more than environmental assets.’ Elsewhere on the estate, several Westrope Farming – locally based Loyd. ‘Good estate management have allowed the farm to successful, with some excellent Bawdsey’s management team barns have been refurbished and and with a proven track record. means constantly looking at where diversify; investment in returns over the past five years.’ has capitalised on the protection let. While office space is not on The contract farming agreement the next threat might come from irrigation has reaped rewards; given to the region’s natural assets. the agenda given Bawdsey’s is reviewed every three years, and devising ways to counter it.’ Gamekeeper Paul Neal (left) NATURAL ASSETS The estate itself falls inside the with Strutt & Parker’s Land location, obtaining some form of providing an incentive for the Initially, the contractors grew Bawdsey’s 300 acres of grassland Suffolk Coast and Heaths Area Agent Matthew Hague. income from an unused asset was contractor to invest in machinery cereals and sugar beet, but with Below: fluctuating grain prices alongside the River Deben is not of Outstanding Natural Beauty, a must, given the costs of insurance and look after the land. ‘There is the investment in the irrigation have vindicated the estate’s included in the farming contract. and its salt marshes lie within the and repairs. Even the former farm a big diversity of soil here,’ says system and the good relationship varied selling policy for its Last winter’s floods did serious Deben Estuary, which has been office has been converted for use Westrope Director Andy Rankin, built up between contractors, cereal crops damage to stretches of the sea designated a Special Protection

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p10-14_Case study_CAPreformopinion_des8.indd 12 01/10/2014 15:51 LB11_p10-14_Case study_CAPreformopinion_desREPRO.indd 13 09/10/2014 10:26 14 LandOpinion usag15 153

Area for vulnerable bird species, a Site of Special Scientific Interest and a Ramsar site for the habitat Entitled to an explanation it provides wintering birds. Thus the estate was eligible to enter By George Chichester, Higher Level Stewardship (HLS), Farming Department involving management obligations beyond normal farming practice. The Entry Level Stewardship payment for Bawdsey is £31,000 a year. The HLS brings in another £25,000, of which £16,000 is for Despite the best intentions, the latest be appropriate for a new entrant is exacerbated by the fact that the the management of the grassland. Common Agricultural Policy (CAP) into agriculture, who may not yet new rules allow certain cropping The estate also claims the Single reforms relating to basic payments qualify as an active farmer. – such as nitrogen-fixing crops, Farm Payment for the grassland, and land transfers bring complications The third problem is that under green cover crops or fallow – to plus there is the fee from the for farming businesses and a raft of the new rules, surplus entitlements count towards an EFA obligation, grazier. When you add all these potential pitfalls for land transactions. will be lost. Under the present as these are likely to represent full payments together, the grassland regime, the entire holding of fields or even blocked areas of a becomes a valuable asset, with total The first issue is a pause in the entitlements would usually be farm and are unlikely to be spread income at around £175 per acre. processing of applications to transferred to the buyer in a whole- evenly across different lots. transfer payment entitlements. farm sale. However, many farmers A similar issue is likely to arise WOODLAND FOCUS Single Payment (SP) entitlements hold a few more entitlements than in cases where a farm receives Bawdsey has recently begun a will be reallocated as Basic the area on which they claim. Environmental Stewardship woodland management plan to Payment (BP) entitlements on With the new rules in mind, funding, particularly if Entry encourage biodiversity and create 1 January 2015. At present, SP buyers should purchase only Level Stewardship (ELS) or a habitat for wildlife and birds, entitlements can be transferred to sufficient entitlements for the area Higher Level Stewardship (HLS) which will have multiple benefits an incoming farmer subject to a that qualifies for payments and points count towards the EFA for the estate. The 200 acres of six-week processing period. The should avoid surplus entitlements obligation. There are occasions woodland, largely sycamore, had on the estate. ‘We rear partridge Clockwise from right roles and making sure they deadline for such applications that will trigger a capital loss next when a landowner is claiming ELS been neglected over the years and and pheasant for the shoot but top left: Colin are happy to support one another was 21 October 2014. spring. Buyers of small areas or HLS payments and a farming never properly thinned, creating we’re also trying to build up Sheppard, is key,’ says Loyd. Applications for transferring BP should also beware that the tenant is claiming SP – referred to dense thickets where nothing the wild duck population by Bawdsey Estate’s Part of the teamwork is making entitlements, once these have been minimum claim area will rise to as a dual claim. This may apply, woodsman; would grow to support wildlife. maintaining the wetlands,’ he sure everyone understands the allocated, will not be accepted until 5ha next year, so they should not for example, where the landowner clearing some of plan and what Loyd refers to as The management team found explains. ‘That’s part of the the estate’s 200 mid-January 2015. Therefore, for a purchase entitlements if their wants to claim on woodland or woodsman Colin Sheppard to HLS scheme, but it also has a acres of woodland; ‘the numbers’. ‘Good financial Michaelmas completion, unless the claim area will be less than 5ha. parkland that is not let to the thin the woods and leave brash positive effect for the shoot.’ the sea wall is discipline and clarity is extremely transfer form was submitted before The next potential problem tenant. Such landowners should for habitat, which has already Hague adds: ‘The woodland being rebuilt after important to the success of any or promptly after completion, relates to the new ‘greening’ rules. beware that their payments may proved effective in attracting management policy required being damaged estate,’ he says. ‘You need to confirmation may not arrive until These are complicated, decline next year because Defra birdlife. Not only does the estate creative thinking in order to get by recent flooding; know the course you are following the following spring. This is a but it is worth noting will assume that the tenant could receive a £3,950 annual grant what we wanted, which was a Sheppard with at all times, and that can only long time to wait and is perilously that farmers with make use of the ELS land to meet towards costs, but the creation qualified, conscientious woodsman Strutt & Parker’s come about if you have a detailed close to the 2015 claim period if, arable land more than his new greening obligations, even of habitat for birdlife will have to work alongside the keepers. Matthew Hague grasp of day-to-day figures and a for some reason, the application a certain size will have though in practice he may not do considerable benefits for Bawdsey’s That involved the trustees team which understands the is deemed invalid and the buyer to grow three different so or be in a position to do so. shoot, which is an important part financing the purchase of impact of its decisions. needs to source entitlements from crops and to put 5% Finally, larger businesses should of the estate calendar. appropriate woodland machinery. ‘A major part of my role is to the open market instead. In such of the land into an consider the implications of the € € ‘Shoots and conservation ‘As part of the arrangement, ensure financial sustainability cases, the buyer would be advised Ecological Focus anti-avoidance rules relating to go hand in hand,’ says James Colin is tied to working on the for the family, while ensuring to ensure a substantial retention. Area (EFA). A further ‘degressivity’ if they expand Adeane, who oversees the shoot. estate for at least six months a year. nothing prevents them from The second issue is that BP complication arises beyond the €150,000 threshold ‘I’m delighted we are finally able He also rents one of the refurbished enjoying what they have,’ Loyd entitlements will be transferred when land is divided for this new measure. to improve our woodlands. We barns where he has a firewood adds. ‘It is a privilege to help an only to an ‘active’ farmer, whereas ‘under the new into lots. In such cases, We will enjoy working with will retain some of the cleared business, so everyone benefits.’ owner manage their estate, and SP entitlements can be transferred regulations, only buyers will either have our clients and colleagues in other glades but we’ll also be able At Bawdsey, everyone involved to play a central part in ensuring to any farmer. Ideally, buyers “active” farmers to show that each lot professions in helping to avoid to plant more diverse species, works as a team, whether they’re that the journey of ownership should have submitted a transfer will qualify for has its own greening these and lesser pitfalls in the including native trees, which in the Strutt & Parker office and stewardship is a success.’ LB application before 21 October the transfer of measures or that the coming months. LB sycamores are not.’ sorting out budgets and leases or to avoid any risk of their being basic payment new land dovetails Gamekeeper Paul Neal looks on the ground at the estate itself. [email protected] deemed not to be an active farmer entitlements’ with an existing george.chichester@ after the shoot from his cottage ‘Getting the right people in the [email protected] at the point of transfer. This may holding. The problem struttandparker.com

Strutt & Parker Land Business StruttStrutt & &Parker Parker Land Land Business Business

LB11_p10-14_Case study_CAPreformopinion_desREPRO.indd 14 09/10/2014 10:26 LB11_p10-14_Case study_CAPreformopinion_desREPRO.indd 15 09/10/2014 10:28 16 Scottish referendum 17

WHAT DOES A number of threats come from the Land Reform Review Review Group (AHRG), whose fi nal report is expected Group (LRRG), which has been given a wide remit to in December. The AHRG has considered wide-ranging examine Scotland’s system of land ownership. In prefacing matters concerning farm tenancies, from rent reviews its recommendations for change in its report ‘The Land of to improvements and retirement. It has also explored the Scotland and the Common Good’, the LRRG stated that extension of the right to buy, inevitably focusing minds. ‘the purpose of such change should be to promote the The AHRG is likely to concentrate more on a conditional common good of the people of Scotland’, which gives right to buy that is limited to groups such as tenants with an indication of the socialist direction of landlords who persistently fail to fulfi l the proposals. It also says that ‘signifi cant their obligations. It acknowledges that changes are required to make Scotland’s it would need to robustly justify that the system of land ownership a more effi cient threats come from policy is in the public interest, in relation and effective system for delivering the the land reform to human rights legislation. Notably, public interest’. Accordingly, its proposals review group, which the AHRG has not referred to the are indeed radical. has been given a wide wider issue of fairness, stating that For example, the LRRG recommends remit to examine it is essentially a political matter. that there should be a limit on the acreage scotland’s system of Therein lies the issue relating to an held by any private landowner (no limit land ownership... the absolute right to buy. The political is proposed, raising the question of how ultimate aim is to vision is for a dynamic tenanted sector, one equates 50,000 acres of west-coast transfer one million providing opportunities for new entrants. moorland with 2,000 acres of Angus acres into community In practical terms, few will see how an MEAN FOR arable); that no legal entity outwith the ownership by 2020 absolute right to buy is consistent with EU can register title to land; that Crown encouraging landowners to let land in Estate involvement in Scotland should end and be devolved order to create such opportunities. It is therefore essential LANDOWNERS? to the Scottish parliament (in effect nationalising Crown that politicians understand this, if they genuinely wish to estates); and that compulsory purchase powers should be achieve a tenanted sector ‘forming part of the sustainable future for Scottish farming’. While the idea of Scottish independence has – for now – been extended, for instance over vacant land. The ultimate aim is to transfer one million acres into Scotland has voted No to independence, but the banished at the ballot box, potential reforms mean that there community ownership by 2020. However, there has been challenges remain. Legislation on land reform and are still challenging times ahead for landowners north of the little assessment of the economic implications to support agricultural holdings is due before Scotland’s 2016 election. border. Robin Maitland, Partner in Land Management at Strutt the LRRG proposals, and affordability may limit some We don’t know what tax changes will be introduced, and & Parker’s Banchory offi ce, looks beyond the No vote of the more radical suggestions. the extent to which these affect landowners will depend Meanwhile, the SNP’s independence manifesto White on what further fi scal powers are devolved to Holyrood. t is tempting to think that we go back to where we were. Paper, ‘Scotland’s Future’, stated that ‘taxation powers In confronting these challenges, there is one important With a remarkable turnout of 84.6% of the electorate, are needed to… address wider land reform’. The proposed lesson from the independence debate. The Better Together Scotland decided to stay a part of the United Kingdom transfer of further fi scal powers to Holyrood, under campaign was diminished by the pro-independence lobby as 55.3% of those who voted said No to independence the Scotland Act 2012 and through pledges made by for being negative. In arguing against change, it is hard in the referendum. So, it’s business as usual, then? the Westminster parties in the run-up to the vote, could not to appear negative. So landowning interests must But landowners in Scotland were already in a challenging pose major challenges to landowners. The LRRG makes engage with politicians to demonstrate the positives, place prior to 18 September, with most issues affecting the rural sector proposals about Land Value Taxation, reintroducing because ultimately it is the politicians who will frame Inorth of the border already devolved to Holyrood. Had the outcome sporting rates, removing exemptions for agriculture the legislation that landowners will have to live with. been a Yes, it could be argued that the political pressures facing Scottish and forestry from business rates, and removing reliefs To this end, the lead provided by the landowners’ landowners would have been reduced, because the politicians would for farmland in capital taxation. The LRRG was, representative body, Scottish Land & Estates, is welcomed. suddenly have other priorities in matters that are not presently devolved. of course, making recommendations to a possible In the week of the referendum, it launched the Landowners’ Throughout the referendum campaign, rural issues were rarely independent Scottish parliament with full tax powers; Commitment, refl ecting its desire to express the positive on the agenda. The televised debates focused on arguments about we wait to see what a Scottish parliament with greater story of landowners in Scotland. This is to be welcomed, currency, the NHS, pensions, Trident and oil, with no questions about devolved tax powers is able to do. because the message is indeed overwhelmingly positive. LB rural matters. However, landowners should not be lulled into a false Agricultural holdings legislation is also on the agenda.

sense of security, because the challenges are already out there. iStock Photography: Getty, The SNP government has set up the Agricultural Holdings [email protected]

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p16-17_Scottish Indepen_desREPRO.indd 16 09/10/2014 10:29 LB11_p16-17_Scottish Indepen_des6.indd 17 01/10/2014 15:53 18 Energy efficiency 19

LED LIGHTING MONITORS 10 WAYS TO Cost: £10–£15 per bulb Cost: £20 Annual saving: £60 Annual saving: varies SAVE ENERGY The latest eco-bulbs are long- Electricity monitors that tell (Cost and saving figures adapted from lasting, cheap-to-run LEDs. you how much energy you are the Energy Saving Trust, Which? and the Their light quality has improved, using are an effective way to Carbon Trust, based on using heating oil) and they now come in all shapes monitor your usage. They and sizes. They cut lighting bills encourage people to switch HOT-WATER TANK by 90 per cent and pay for off lights, turn off TVs, DVD INSULATION Cost: £15 themselves in less than two years. players and computers at the Annual saving: £30–£55 wall, and avoid waste. A well-fitted hot-water-tank jacket Performance is essential and should be at least 74mm thick. To save even more, albeit with a slower payback, you review can spend £500 on a new hot-water LOFT INSULATION tank with a built-in layer of insulation. Cost: £395 With minimum energy efficiency standards required Annual saving: up to £350 for rental properties by April 2018, landlords should DOUBLE GLAZING In a badly insulated home, a investigate the range of initiatives available to owners Cost: £2,500–£5,500 quarter of heat escapes through to help upgrade their properties Annual saving: up to £260 the roof. Houses need at least Double glazing is expensive to 270mm of loft insulation, yet fit and has a long payback time, many have just 100mm or none. hen it comes to energy consumption, often more than 15 years. But it Just topping up insulation can British homes are some of the most will reduce noise as well as save save £25 a year. W inefficient in the world. More energy on fuel. If you live in a conservation is used in our housing than in our industry or area, there may be restrictions; if road transport, and our stock of mostly 20th- you live in a Listed building, you may century buildings simply leak heat like sieves. only be allowed secondary glazing. NEW BOILER To combat this waste and help the UK meet Cost: £2,500 its tough greenhouse-gas emissions targets, the ROOM THERMOSTATS Annual saving: up to £700 government is encouraging homeowners to AND THERMOSTATIC It’s worth considering a new slash their fuel bills. For owner-occupiers, that RADIATOR VALVES condensing boiler if yours was means incentives – subsidised insulation, grants (TRV) Cost: £300–£400 installed before 2006 – the year and home-improvement loans under the Green Annual saving: £100–£230 energy-efficient condensing Deal scheme. For landlords, too, there are Many homes have a thermostat in boilers became mandatory. New incentives – but there is also a hefty stick to the hall next to a draughty front door, boilers can pay for themselves go alongside the carrot. making it useless at controlling the in less than 10 years. The Energy Act 2011 states that by April temperature in living areas. Room 2018, landlords will be able to let only those thermostats should be in the living properties with a minimum standard of energy room and master bedroom. TRVs efficiency, or that have been upgraded with all can be fitted cheaply to radiators. the works specified under the Green Deal and other subsidy initiatives. Rental properties must already have an Energy DRAUGHT PROOFING Performance Certificate (EPC). These estimate Cost: £100 the amount of energy needed to heat and light Annual saving: £15–£75 a home and assign it a band, from A (for the Usually the cheapest and most most efficient) to G (for the least). They are effective investment. Draught-free valid for 10 years and, if dated after 1 April houses are more comfortable CAVITY WALL 2012, there is no need to get a new one to at lower temperatures, so INSULATION SOLID WALL INSULATION as each is around 10cm thick, qualify for Green Deal funding. occupants can turn down the Cost: £720 Cost: £4,000–£26,000 it makes rooms smaller. External Although the standard needed by 2018 has thermostat. You need to block Annual saving: £380 Annual saving: up to £700 cladding can improve the not yet been established, the consensus is that draughts around doors, windows, Houses built after 1920 usually past 10 years should have cavity Solid walls let through twice appearance of ugly homes it should be Band E. Landlords will only be suspended floors and unused have cavity walls that can be filled wall insulation already. If you are as much heat as cavity walls. and protect brickwork, but is allowed a rating below this if they can show chimneys, but take care to with insulated foam, beads or installing it from scratch, it usually Internal walls can be clad more costly and may require that they have done everything they can under leave some form of ventilation. mineral wool. Those built in the pays for itself in four years. with insulating boards, but planning permission. Words: David Derbyshire Illustrations: Tobatron Words:

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p18-21_Cottage_portfolio_desREPRO1.indd 18 15/10/2014 12:04 LB11_p18-21_Cottage_portfolio_desREPRO.indd 19 09/10/2014 10:30 20 Energy efficiency 21

HOME SOLAR PHOTOVOLTAIC (PV) ENERGY Cost: £7,000 Annual savings and income: UPGRADES £785, including Feed-In Tariff These technologies income generate carbon-neutral Solar PV panels convert sunlight ‘on a typical rural power and heating – as into domestic electricity. They can estate, 30–40% of fit almost any size of roof and, once rental properties well as a return on your installed, need little maintenance. will fail the 2018 investment through The best performance comes from minimum energy government incentives south-facing pitched roofs. efficiency standard’

the Green Deal and other subsidy schemes with the loan being repaid via savings to bring the property up to an E or higher. on bills. However, the scheme is complex According to Alexander Creed, Strutt & and its interest rates uncompetitive. Only Parker’s Head of Resources & Energy, a 3,898 households had taken up the offer SOLAR WATER HEATING shocking number of properties on rural by the end of July. Cost: £4,800 estates fail to meet that target. ‘I know There is also the Renewable Heat Incentive Annual savings and income: of one estate where 57 properties were (RHI), designed to encourage carbon neutral from £360, including RHI GROUND-SOURCE HEAT PUMP assessed for EPCs and 56 failed,’ he says. heating in homes and businesses. The domestic income Cost: £9,000–£17,000 ‘That’s an extreme case, but on a typical RHI, launched in April, pays a guaranteed These are panels on your roof Annual savings and income: rural estate, around 30–40% will fail to tariff for every unit of heat generated for that heat up water for your bath, from £1,800, including RHI income meet the 2018 standard. seven years. For a ground-source heat shower and central heating. A ground-source heat pump draws heat ‘As the price of energy continues to pump, the tariff is 18.8p per kW/h; for a On average, it can provide up to from the ground and is perfect for well- increase, it will be harder to find tenants biomass boiler, it is 12.2p per kW/h. The half your hot water over a year. insulated homes. They work best with who can afford energy bills in houses that scheme also covers air- and water-source They need 2–4 sq m of roof underfloor heating and need electricity haven’t been made more energy efficient. heat pumps and solar thermal panels. space and a roof within 90˚ to run, but are more efficient at turning Fewer people will want to rent them, there If landowners have several properties of a south-facing aspect. electricity to heat than anything else. will be less rental income and they will be clustered together, they could be eligible much harder to market.’ It is not just under the non-domestic RHI initiative domestic rental either – it affects for a district-heating scheme, where, for commercial units too, he adds. example, a biomass burner would heat a Although this represents a potential handful of homes. Landlords can also get problem, says Kieran Crowe, of Strutt & assistance through the Feed-In Tariff BIOMASS GENERATOR Parker’s Resources & Energy team, there is scheme, under which energy companies pay Cost: £4,300–£13,000 also a range of incentives that owners can for each unit of electricity generated. This Annual savings and income: use to help them prepare for 2018. Indeed, scheme covers solar photovoltaic, wind, £1,700–£2,000, including one of the most useful – the Green Deal hydroelectricity, anaerobic digesters and RHI income AIR-SOURCE HEAT PUMP Home Improvement Fund, launched in micro combined heat and power schemes. Particularly good for homes Cost: £6,000–£10,000 June – appears to have been too successful. Strutt & Parker can offer specialist without mains gas, biomass Annual savings and income: from £550, This £120-million cashback scheme offered advice to landowners, whether they have generators work best including RHI income £7,600 for home-efficiency improvements one or 100 properties to upgrade, points in district schemes These absorb heat from the outside air and – with landlords of multiple properties out Creed. ‘We can provide strategy to shared between either release it inside the house as hot air eligible for up to £160,000 – but ran out mitigate the risk,’ he says. ‘It’s good to start several properties. or use it to warm up the water supply and of cash by the last week of July and was now as there is ample time ahead – and if Wood pellets or radiators. They are harder to maintain than suddenly closed. It is possible that it will you have no cash on the estate, there is a chips should be ground-source systems, and some reopen with smaller grants. range of support payments to assist.’ LB cheaper than oil can have just a 12-year lifespan. Remaining initiatives include the Green and a similar cost Savings are higher – up to £1,000 Deal loan scheme, which homeowners and [email protected] to natural gas. – if you switch from oil or gas. occupiers can access to fund insulation [email protected]

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p18-21_Cottage_portfolio_desREPRO.indd 20 09/10/2014 10:30 LB11_p18-21_Cottage_portfolio_desREPRO.indd 21 09/10/2014 10:30 22 Succession 23

It’s over to you now... Succession is one of the biggest challenges facing landowners – but it is one that is definitely best tackled head on to avoid further problems down the line

t is said that only two things in life are certain: the emotion out of what can be a stressful discussion. death and taxes. And although never truer Working with other professionals and accountants can than when it comes to rural estates, many also help, although it is important not to let tax drive landowners, while accepting the inevitability your decisions, says Crathorne. WHAT IS THE SUCCESSORS’ CLUB? of the latter, try to avoid or procrastinate ‘One of the most common difficulties that the older addressing the former. But as land generation has is how to treat all their children equally. A joint venture with the CLA, developing strategic goals to management spans generations and most Sometimes an estate cannot support the whole family, the Successors’ Club meets three maximise an heir’s enjoyment of landowners wish to preserve their estates for their heirs, so how can they preserve the business without treating times a year in London, and is the estate, and business structures they must broach the sensitive subject of their own some of their children unfairly?’ Often, assets can be aimed at those who are five years to facilitate succession. Imortality in order to plan ahead to pass on their assets divided into farming assets and non-farming assets, either side of a succession. Each The next meeting will be held in the most suitable and tax-efficient manner possible. and handed on in that way. But where this is not meeting revolves around a key in the new year at Strutt & Having worked with the same clients for many possible, having a frank discussion with the whole issue chosen by the group, and Parker’s head office at 13 Hill generations, Strutt & Parker has developed a deep family present can really help. includes technical detail as well Street, London W1J 5LQ. understanding of the common ‘Explain the reasons behind your as the opportunity to mix with Meetings are free to join – to succession issues that affect decision, and make sure your chosen like-minded people in an informal express your interest, please landowners. Now, in partnership with heir actually wants to take over the after-work atmosphere. Recent contact Ralph Crathorne on the CLA, Strutt & Parker is running ‘the worst thing in business,’ says Crathorne. ‘Don’t make topics have included how to 01227 473716 or email ralph. a series of meetings designed to help any inheritance is a assumptions about what other people appproach succession discussions, [email protected] landowners draw up their succession nasty surprise – if want. Often, they may surprise you. The plans and prepare the younger people know what to worst thing in any inheritance is a nasty generation to take on the mantle. expect, they can come surprise – if people know what to expect, The first meeting – ‘Successful to terms with it’ they can come to terms with it and avoid succession: it’s good to talk’ – explored family disagreements down the line.’ REAL-LIFE SUCCESSION PLAN the best ways to broach the subject and work within Another common mistake is not allowing the younger FAILURES TO AVOID the family to find the most suitable option for each generation to have an active, decision-making role in individual business. the business, he adds. ‘Giving up control can be • A father became incapacitated, and • Overzealous tax planning by parents ‘Every family and business is different, so there is extremely hard, but if your heir feels that they aren’t his heir and business partner discovered led to very wealthy grandchildren but no “one size fits all” when it comes to succession trusted, he or she may become frustrated and could huge hidden debt in a private bank an impoverished son. planning,’ says Ralph Crathorne, Strutt & Parker even leave the business rather than continuing to work account that he was due to inherit. • Fifteen years after the death of their Partner in Land Management. ‘However, there are within the family.’ • A son and partner in the business didn’t father, siblings wanted to swap the realise that his father hadn’t allocated any properties left to them, but by that many common concerns and mistakes that people Of course, the older generation must also provide for profit to him over the years. His personal time the Capital Gains Tax liabilities encounter, so it can help to draw on other landowners’ themselves during their retirement. They should take drawings had therefore left him hugely in prevented them from doing so. experiences and to bring in an independent expert to care that for tax purposes, they don’t hand everything debt to his father. Despite a family fall- • The younger generation were so facilitate the discussions.’ over to their heirs, thus leaving themselves out, he could not leave the business. confident of their succession that they There are three vital questions that must be confronted. financially dependent on them in the process. • The pressure of being heir-in-waiting never took on gainful employment, When are you going to hand over your assets? Who is ‘There is always a huge amount to consider for decades, with all the responsibilities only to find that the estate could not going to inherit them? How are you going to approach when it comes to succession planning – but but no authority, led to the heir having support their lifestyles. and structure the handover? ‘One of the most important the alternative could, at worst, break up a breakdown. • Siblings became crippled by envy aspects to successful succession planning is transparency both your family and your estate,’ says • Excessively complex tax planning when the eldest son and heir sold the and managing peoples’ expectations,’ says Crathorne. Crathorne. ‘It may be difficult, but it is resulted in land being owned in multiple estate following their father’s death, ‘That is why it is so important to talk – but we understand good to talk, so get on and take the trusts with multiple beneficiaries, who resulting in a family breakdown. that it is not always easy to do so.’ first step.’ LB had conflicting objectives – leading to • A father was pre-deceased by four Often, families find it helpful to bring in an independent a very unhappy estate. of his heirs over a 30-year period.

facilitator to navigate the potential pitfalls and take [email protected] Olivia Cooper Photography: Corbis Words:

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p22-23_Successors_desREPRO.indd 22 09/10/2014 10:31 LB11_p22-23_Successors_desREPRO.indd 23 09/10/2014 10:31 24 Game Fair debate 25

NIGEL FARAGE IAN COGHILL Leader, UK Independence Party Chairman, Game and Wildlife Conservation Trust

For over 40 years, British agriculture has been under The world we find ourselves in is complicated, slippery, the control of our friends in Brussels. But there is a contradictory and unfair. Any system that has 60 million fundamental change taking place in British politics or 600 million people run by 150 or 200 is going to suffer STAY IN OR because the penny has dropped: 75% of our laws are from compromises and bad decisions. The jury is out as made somewhere else. to whether you can make better decisions in the parish UKIP is for maintaining the single farm payment, albeit council at Chipping Norton or in Brussels. with a taper on the larger land blocks – so in the short So it’s not entirely clear that where the governance GET OUT? term, the effect on British comes from is the critical agriculture of us leaving issue. Is the EU good or bad ‘a change is taking would be negligible. for the countryside? Yes! My ‘the eu does do daft place as the penny The endless series of view is that if you substitute things, but our has dropped: 75% of regulations drives farmers the EU with any other splendid parliament our laws are made bonkers. I’m sure many of administrative body, you hasn’t got a good somewhere else’ you have incurred a huge get the same answer. track record either’ cost removing white The EU does do daft things. asbestos. From what I can Recently, they wanted to work out, it isn’t much more dangerous than talcum protect all of Europe’s permanent pasture after 2015. powder. What about food labelling? The Red Tractor is a They made the mistake of telling everybody who owned con, because many things that are labelled with that have permanent pasture that if it hadn’t been ploughed by actually been part-produced or processed inside the EU. 2015, they’d protect it. So everybody ploughed it up. To those landowners who have benefited from wind Would it be better if we got out and left everything to turbine subsidies, UKIP is not the party for you. We our splendid parliament? Well, it’s got a good track record, will not transfer taxpayers’ money to rich people for a hasn’t it? The Dangerous Dogs Act, [banning] beef on the technology that blights our countryside, brings no benefit bone, badgers, and finally, hunting with dogs. There was

in CO2 emissions and will put up energy prices by 20% more time spent in the parliament that banned hunting Photography: Strutt & Parker, Ben Evans, Nick David Photography: Strutt & Parker, by 2020. But for those who believe we should run our with dogs than on the Iraq war, education and social own country and our own agriculture, we will have a services combined, and it produced a piece of legislation Would the British countryside be eld on a sweltering July weekend the shackles of European legislation. referendum, you will have a voice – and in the long term, which is both disgusting and incompetent. better off if we left the EU? In a fi ery in the grounds of Blenheim Ian Coghill, Chairman of the Game being back in charge of our own land management will My view is simple: there is no perfect method of debate at this year’s CLA Game H Palace in Oxfordshire, this year’s and Wildlife Conservation Trust, was bring benefits for the British countryside. government, so let’s make the best of what we’ve got.

CLA Game Fair attracted huge crowds, sanguine about the EU, asserting that Marc Grainger Words: Fair, four panellists presented many of whom fl ocked to a packed legislation from Brussels is no worse forthright views on whether leaving CLA Game Fair Theatre – sponsored than that of our own government. Europe would be good or bad for by Strutt & Parker – for the debate on Daily Telegraph columnist Robin Page nigel farage i feel that two words our rural economy the impact of the European Union on stridently claimed that rural Britain was What the is to be the eu tends – values and the British countryside. The star turn being ‘trashed’ due to overpopulation, congratulated... to interfere tradition – on the four-person panel was Nigel and Ross Murray, Deputy President audience he’s upset the with most i think may apple cart things we try be diluted Farage, Leader of the UK Independence of the CLA, proposed that it’s better said brilliantly to do in the eu Party (UKIP), who elaborated on his for the UK to attempt to reform the party’s vision of a Britain freed from EU from within.

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p24-26_Game Fair debate_Opinion Farmland Market_desREPRO.indd 24 09/10/2014 10:33 LB11_p24-26_Game Fair debate_Opinion Farmland Market_desREPRO.indd 25 09/10/2014 10:33 26 LandOpinion usage 27 13

Can the growth in farmland values last?

By Mark McAndrew, Estate & Farm Agency Department

The performance of farmland values in when capital growth becomes So what does the future hold? recent years has been phenomenal, but the principal source of returns. We expect that returns will concerns have begun to surface about However, the key point is the moderate somewhat in the years ROBIN PAGE ROSS MURRAY a potential bubble. So it is a good time degree to which gross rents are to come. Agricultural commodity Countryside correspondent for the Daily Telegraph Deputy President, CLA to compare farmland’s investment able to drive capital growth. Rents prices fell marginally in 2013 and performance with other assets and look from farmland grew at 8.8% in have fallen significantly in 2014. at what might be in store in the future. the past five years and at 3.8% But investor demand remains I’m seeing the countryside that I love trashed before my Why should we remain in the EU? Well, €25 billion over 20 years (see ‘Drivers of strong, helped by the sector’s very eyes. The population is out of control, and population over the next seven years for starters, not just in direct The UK farmland market is seeing rural returns’ graph, page 28). In diversification and tax attributes. and the environment should not be considered separately. payments for farming but also through the Rural ever-increasing interest from comparison, commercial property Consequently a capital value shock The EU’s freedom of movement means that we’re back Development Programme. In England alone, with the investors ranging from private rents grew at just 1.8% per annum feels unlikely, even against a to a Europe in which people cross the whole continent to value of farming at £7.5 billion, CAP support in 2012 individuals and family offices to between 1993 and 2013. background of moderating rents. come here, and we can do nothing about it. This is not was just over £2 billion, or 27%. Agricultural subsidy is charities, universities and financial But deciding whether to invest In the longer term, rises in a racial problem, it is an environmental problem. Our as much as 60% in Norway and over half in Switzerland, institutions. This interest stems in farmland isn’t just about taking agricultural commodity prices population is already 64 million; it’s going to be 71.4 so the argument that we can survive and compete against from our transparent legal system, a view on likely absolute returns. are likely to come from future million by 2030. The population in the southeast is going others who will still receive public funds is a complete political stability and established A number of other factors population growth, the effects of to rise by 23% by 2035. fallacy. Would a UK markets, among other factors. complicate the matter. climate change, the use of land for By 2050, the rivers in the government support Farmland has been seen as a Rents and expected future rents biofuels, and an increasing demand driest parts of the UK will homegrown farming to this ‘safe’ investment in the recent from farmland are linked to for meat among the growing middle ‘whether we leave be flowing at 35% less than extent? I doubt it very much. ‘would a uk unsettled economic times. Most expectations of commodity and class in the developing world. or stay in the eu, they are now. If you want to moan government support importantly, during the past 20 food prices. Commercial property Conversely, improvements in the countryside is We are building at an about EU legislation, bear homegrown farming years, tenanted farmland has rents, on the other hand, correlate farmland yields from technological knackered and our absurd rate. There is already in mind that it is often to the extent that consistently generated double-digit more directly with UK economic innovation will prove the key farms and wildlife a demand for seven million gold plating by our own the eu does? i doubt returns both in the short and the growth. With this independence counterweight to such pressures. are doomed’ hectares of land that we politicians that causes it very much’ longer terms (see ‘Rural return from GDP performance, tenanted Falling demand for food could also haven’t got. That demand the problem. The EU is benchmarking: total returns’ graph, farmland can help to diversify reduce prices, although that seems is for the multiple needs of 70 million people: more food, exasperated by our inability to rid this island of bovine TB. page 28), achieving average annual investment portfolios, potentially unlikely considering the projected more space, more energy – we are now growing biofuels I understand that immigration is a contentious issue. returns of 12.7%, compared with performing relatively poorly during growth in the global population. as our self-sufficiency in food disappears. But be under no doubt that fruit and vegetable farming is 7.4% for the equities market and a boom in the equity Thomas Malthus was famously We are on a downward slope and we have to change totally dependent on a willing source of seasonal labour. 8.4% for the commercial property and wider property proved wrong about the ability of people’s perceptions, but we cannot if we’re not given What UKIP proposes is isolation dressed up as market. However, over a 33-year markets, but helping the Earth to support an increasing an opportunity – most of our MPs and our media are independence in a highly interdependent world. We’d be period, it has been outperformed to provide balance population. However, the likely urban. So whether we come out of or stay in Europe, the mad to bolt now. Stick with it, seek marriage guidance by these sectors – with annualised during leaner periods. demand for food suggests that countryside is knackered, our farms are doomed, and our counselling and reform our ways of operation. We returns of 8.6%, compared with A strong driver for he could yet be proved right. wildlife is doomed as well. We need to get back on the countrymen have to look after ourselves, even if it means 12.1% for equities and 9% for private investors are Technological improvements may € € streets like we did 12 years ago to fight for our countryside. welcoming the support that EU membership brings. LB commercial property. the tax advantages head off his forecasts of doom, but Over the long term, the main of owning land. These even if we see weak food pricing source of returns on investment in benefits do not appear for a period, you wouldn’t blame farmland has been capital growth in the total returns investors for hedging their bets and a rise in gross rents. In recent I referred to at the and including enough farmland it should be what’s i don’t know you can talk years, income returns have fallen ‘a strong driver outset, but they have in their portfolio to ensure that up to the uk to appropriate all the pros the talk about determine what for us may not and cons, but subsidies, but to such an extent that capital for private a big impact on the he is not laughing at them from we do, not the be appropriate i think we’d our national growth has contributed the lion’s investors are the ultimate net financial beyond the grave. LB eu’s faceless for other be better sovereignty is share of total returns. This has tax advantages returns to a private bureaucrats countries off out at stake led to murmurs of a price bubble of owning land’ investor or family mark.mcandrew@

The investment performance figures, including capital growth, quoted in this article are based on the IPD UK Annual Rural Property Index. This is a valuation-based index and in contrast to the transaction-based Strutt & Parker Farmland – investors always get nervous nonetheless. struttandparker.com

Strutt & Parker Land Business StruttStrutt & &Parker Parker Land Land Business Business

LB11_p24-26_Game Fair debate_Opinion Farmland Market_desREPRO.indd 26 16/10/2014 10:20 LB11_p24-26_Game Fair debate_Opinion Farmland Market_desREPRO.indd 27 10/10/2014 09:51 28 Facts & figures 29

How the land lies Key statistics and research from Strutt & Parker LAND COMMODITIES RESIDENTIAL PROPERTY

500 How land performs against other Arable crops (per tonne) Median house prices by region, July 2014 types of investment Gold 400 Milling wheat Beans Feed Wheat 300 Index £140 Oct 2014 £164 Oct 2014 North East £121,000

£164 Oct 2013 £222 Oct 2013 North West £132,500 200 S&P Land Index Wales £132,500 Feed wheat Feed barley Prime London Yorkshire & Humber £134,000 100 Index £101 Oct 2014 £100 Oct 2014 Scotland £135,000** FTSE 100 Index East Midlands £143,000 Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 £154 Oct 2013 £132 Oct 2013 West Midlands £150,000

Oilseed rape South West £194,000

East £205,500 Buyer type by acres Rural return benchmarking: £228 Oct 2014 purchased in 2014* total returns (% per annum) South East £240,000 Private 5% investor £294 Oct 2013 Greater London £350,000 25 Institutional FTSE All Share 5% investor IPD All Property **Data for Scotland for June 2014 65% 21% Conservation 20 Index Farmer Lifestyle 2% body Livestock (per kg) IPD Rural 2% Other Property Index 15 Beef cattle Housebuilding starts in England (R4L steers) June 2014 June 2013 Average arable 10 (seasonally adjusted) (seasonally adjusted) and pasture land Scotland values per acre Arable £7,280 5 £4.05 by region in 2014* Pasture £2,767 £3.59 Oct 2013 248% Oct 2014 Increase in average 36,230 30,770 arable land prices in 2013 3 yrs 5 yrs 10 yrs 20 yrs 64,126 North England from 2004 to 2014 (to date) Lambs (R3L) acres Arable £7,775 Drivers of rural returns The amount of land Pasture £3,401 (% per annum) Capital growth entering the market £9,184 Income return Housebuilding Housebuilding in England in 2014 Average arable land Gross rent values in England 14 £3.57 completions in England (to date) passing Oct 2014 £3.89 in 2014 (to date), a Oct 2013 June 2014 6.2% increase on 12 137,780 (seasonally adjusted) the same period in 2013 (£8,648) annual housing starts in West Midlands and 10 the 12 months to June Pigs (DAPP – Central England East Milk (per litre) EU spec) 2014, an increase of 22% Arable £9,189 Arable £9,784 8 compared with the previous Pasture £7,603 Pasture £5,800 155.10p 12 months 29,540 Oct 2014 6 June 2013 (seasonally adjusted) 4 114,440 31.27p 32.00p annual housing completions South East Aug 2013 Aug 2014 170.71p in England in the 12 months to South West South 2 Arable £8,450 Oct 2013 June 2014, an increase of 7% Arable £7,333 Arable £9,581 Pasture £7,550 Pasture £6,750 Pasture £7,725 compared with the previous 27,490 2013 3 yrs 5 yrs 10 yrs 20 yrs 12 months *Data accurate to 31 August 2014 unless otherwise noted

Sources: Strutt & Parker Farmland Database, Property Database, DCLG, Savills Property Index, Yahoo Finance, IPD, Financial Times, Defra, Land Registry, ONS, Farmers Weekly

LB11_p28-29_Facts&Figures_desREPRO1.indd 28 10/10/2014 09:47 LB11_p28-29_Facts&Figures_desREPRO.indd 29 09/10/2014 10:34

30 Regional update 31 Regional update / Scotland North East Central

The Cragg Estate: agricultural and sporting estate in the Derbyshire, Nottinghamshire, Lincolnshire, lack of arable acres in 2014 has continued to drive up the value of Rede Valley. Under offer. Guide price over £3,750,000 Leicestershire, Rutland, Huntingdon and prime land. There was a slow start to the year, with fewer than 10 Farmland launched in Scotland, 2013–14 Peterborough, Northamptonshire, Warwickshire A farms coming to the market before June, and the total area of land acres offered for sale was down by about 4,500 acres compared with this time last The East Midlands saw a increasing number of farmers 6,000 year. Livestock farms and small blocks of bare arable land have dominated, year-on-year decline in land wishing to sell in order to move and a lack of commercial arable farms accounts for the variance. 5,000 availability of about 15% at to a larger unit, often further No prime commercial arable farms have come to the open market in 2014 the end of Q2. This follows north where land prices are – compared with six in 2013, all of which sold competitively and at closing an increase in land coming more appealing. 4,000 dates. Such units are sought after by buyers from outside Scotland, particularly available in 2013; however, The decrease in commodity those from southern England who can often double their acreage by buying in there are signs that a larger prices has reduced farmers’ 3,000 Scotland. Demand for these units is also fuelled by the fact that they make acreage may be brought to confidence. Consequently, up less than 5% of the whole of Scotland’s landmass. the market in the autumn. there is slightly less competition Correctly priced stock farms continue to fi nd buyers, although the CAP 2,000 The price rumours from open- for smaller blocks of land, reform is causing some uncertainty due to the sector’s reliance on Single Farm market sales mask a significant particularly those with a high Payments . With average arable values continuing to rise since the turn of the 1,000 number of off-market deals, guide price. However, large year and grassland values remaining constant, the price differential is widening. and this has resulted in a blocks of land remain The uncertainty in the run-up to the referendum over whether Scotland 0 year-on-year increase in land attractive to institutional North Central Lothian & Borders South West would vote for independence did cause the market to stagnate. But with values of more than 13% in buyers and individuals looking Scotland electing to remain in the UK, we have already seen an increased H1 2013 H1 2014 Northumberland, Cumbria, Durham, the first two quarters. to make use of potential tax Yorkshire, Lancashire number of enquiries and offers for farms on the market, together with We have begun to see advantages. This continues to opportunities to win new instructions. The North of England has seen region in 2014, the low landowners selling for drive values upwards, albeit little change in land prices over commodity price is having an commercial reasons. Often, more cautiously. the past 12 months. Postcode impact on the extent to which this is to release capital to The autumn will be differentiation in land prices farmers are prepared to go to invest elsewhere while significant in determining the has undoubtedly become more secure blocks of land in the continuing to farm on either transactions that will evolve into James Butler, Edinburgh pronounced, but where vicinity. Where vendors and a contract-farming basis or 2015, and it will be interesting 0131 718 4591 realistic guide prices have been their agents have been realistic, on a long-term farm business to see if black-grass starts to [email protected] set, successful sales have been the sales of farms and estates tenancy. There are also an have an effect on land values. agreed ahead of expectation. across the region have Neighbouring farmers produced pleasing results. have remained the strongest We remain optimistic about purchasers over the past six land values. While huge price months, with sale prices from rises seem unlikely in the short Sam Holt, London 10% to 25% over the guide term, continued interest in land 020 7318 5172 prices being achieved in some from a diverse spectrum of [email protected] instances. Where land has been purchasers supports the overvalued, vendors have seen already strong land market. slow interest, leaving some With a growing world blocks of land unsold this year population, the need to provide – a rare occurrence in the land food and the desire to be market over the past five years. involved in food production is

The investor buyer has only going to intensify, which become more savvy as they are will no doubt mean demand distracted by other investment will remain strong and thus opportunities. While we have support capital growth over seen excellent yields across the the medium to long term.

A portfolio of arable farms – Rewlach Farmhouse: around Orwell, Hattonburn and 177 acres, part of a compact dairy farm with modern facilities Tarhill: 387 acres with a inthe average annual increase land values in the East Midlands and traditional buildings, near superb house site overlooking Claire Whitfield, Morpeth Loch Leven in Kinross-shire. Buxton in Derbyshire. Guide price over £2,450,000 01670 500870 Guide price £1,550,000 [email protected] 13%

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p30-35_Regional_desREPRO.indd 30 09/10/2014 10:34 LB11_p30-35_Regional_desREPRO.indd 31 16/10/2014 11:05 32 Regional update 33 West Midlands East Anglia Central

Worcestershire, Herefordshire, Shropshire, Bedfordshire, Berkshire, Buckinghamshire, Staffordshire, Cheshire, Wales Oxfordshire, Gloucestershire

The West Midlands has out of the market. One example The market has never been so Berkshire. There was continued to see strong is a 143-acre dairy unit near quiet. Land prices in these five a smattering of sales in demand, particularly for Chester that sold for more counties are underpinned to a Gloucestershire and signifi cant blocks of versatile than £12,000 per acre – 16% degree by non-farming money, Oxfordshire but little land. The bulk of demand over its guide. but at the time of writing, the or nothing in Berkshire comes from existing farming Average prices in the region prices of feed wheat, oilseed or Buckinghamshire. businesses: Cheshire’s dairy have increased marginally from rape and finished cattle are Statistics become fairly farmers have had an appetite 2013 to around £9,000 per at an all-time low, with only meaningless when the sample for expansion as pressure on acre for arable land and £7,500 finished lambs just above size is so small, but the lowest their bottom line has eased. per acre for pasture. As you their early 2012 low. Farmers price paid for arable land was This has resulted in a slight move into Wales, there is a appear to have gone into £7,750 per acre and highest Hertfordshire, Norfolk, Suffolk, Essex, Cambridge reduction in the level of greater demand for lowland hiding and are reluctant to more than £10,000 per acre. supply to the market, which pasture, tightening the gap The East Anglian farmland market was buoyant throughout the winter be either buyers or sellers. Like last year, pasture had a has sustained current prices. between pasture and arable of 2013–14, and prices have continued to rise during the fi rst half of At the beginning of 2013, similarly wide range – £5,500 Most of the land and farms prices. The sale of 24 acres 2014. The year began with the sale of Nordelph Farm, near Downham there were 3,700 acres on the to £10,000 per acre – the we have sold since January of pasture in North Wales Market, an outstanding 1,618-acre block of Grade 1 commercial market, and a year later that latter figure being influenced have exceeded their guide attracted fi ve competitive farmland. A sale was agreed quickly for a sum that was considerably amount had shrunk to 3,200 by amenity value. price, with particular bids, all of them above the more than its guide price of £15,750,000. We subsequently experienced acres. The only farm of any There appears to be little premiums paid by farmers guide price of £9,000 per a buoyant market throughout the region, with the sale of several size that we marketed in the change on the horizon, but who want to ensure that acre. It was eventually blocks of bare land in west Essex (where we broke price records) and first six months of 2014 was there is still a good number of holdings remain in one bought by an institutional also in Cambridgeshire, Suffolk, Hertfordshire and Norfolk, where the Lands of Sparsholt, an investors and other non-farming block. This has pushed purchaser, who paid more farms and farmland sold quickly and well. 855-acre property on the buyers out there, so it might the non-agricultural buyers than £16,500 per acre. As we predicted last year, the average price of the region’s arable land border of Oxfordshire and be a good time to sell. rose by about 17% to £10,697 per acre in the fi rst half of 2014, well above the national average of £9,184. As farmland values tend to correlate with wheat prices (which are down) and interest rates (which may rise, albeit slightly), the market may plateau in the second half of 2014. However, Mark Wiggin, Ludlow supply remains scarce and for every farm sold, there are generally a Will Whittaker, London 07966 401488 good number of under bidders who remain keen to secure a deal. 020 7318 5166 [email protected] [email protected]

Tim Fagan, Ipswich 01245 258201 [email protected]

£/acre Strutt & Parker average land prices per acre in 2013–14 11,000 10,500 10,000 £16,500 9,500 per acre achieved 9,000 8,500 for lowland pasture 8,000 per acre achieved for arableper acre land in the Central region in North Wales 7,500 Green Farm: 143-acre 7,000 Nordelph: an irrigated Grade 1 farm The Lands of Sparsholt: dairy farm in Cheshire. 6,500 capable of growing a variety of cereal, 855-acre commercial arable Sold for in excess of the 6,000 root and vegetable crops. Sold for farm. Sold for in excess of guide price of £1,500,000 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 well in excess of guide price the guide price of £8,000,000

England East Anglia £10,000+

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p30-35_Regional_desREPRO.indd 32 16/10/2014 11:05 LB11_p30-35_Regional_desREPRO.indd 33 16/10/2014 11:45 34 Regional update 35 South East South West South

Sussex, Surrey, Kent Holt Manor: 93-acre Very little new land has become Bottom, which is around estate near Bath. Guide price £6,500,000 available in the South East 730 acres of arable land during the fi rst half of 2014, and woodland. and there has been a drop of There appears to be an 30% compared to the fi rst half increasing sense of optimism of 2013. This is partly why among buyers in the residential land prices have held strong. farm and estate market. We The average price of arable have several farms that are land for the six-month period either under offer or about to is £8,450 per acre, a healthy complete, all of which have increase of £1,000 per acre been the result of competitive from Q4 of 2013. The largest bidding. The key here remains block that we sold at the to get the pricing right in the beginning of the year, to an fi rst instance in order to attract institutional buyer, is Langley the initial interest.

£7,250+

Matthew Sudlow, London The average price 020 7318 4668 per acre of arable Trelonk Estate: 330-acre [email protected] arable farm and fi ne land in the Georgian house in Cornwall. South West Guide price over £4,750,000

Cornwall, Devon, Somerset

The land market in the South farms. These tend to follow the West continues to be one of two country house market which, halves. Grade 3 and 4 pasture although starting to pick up, is that doesn’t adjoin the land still below the peak of 2007. of farmers looking to expand Commercial farms are selling Dorset, Wiltshire, Hampshire is proving diffi cult to sell and well, as shown with the recently pricing needs to be sensitive. agreed sale of the Trelonk Estate The land market in the South of England has followed the On the other hand, good-quality in Cornwall, where we had national trend, with large-scale commercial arable farms Charlie Evans, Salisbury arable land and pasture, to ask buyers to submit best attracting the most interest and commanding the highest 01722 344010 especially Grade 1 and 2 land, is and fi nal offers due to the prices. Average arable land prices reached £9,581 per acre [email protected] selling very well, with many large volume of interest. at the beginning of the third quarter of 2014 – fractionally blocks of land achieving more However, this year’s highlight up from the previous year. Average grassland values are than £10,000 per acre. The sale is the Bantham Estate in around £7,725 per acre. acres Land entering the market in the South average price of arable land is South Devon. This 700-acre In the first half of 2014, only 6,490 acres came to the 10,000 still well above £7,250 per acre, estate attracted signifi cant global market, which represents a drop of more than 30% on 9,000 with pasture fi gures rising. interest, prompting a sale by best the previous year. However, this is partly due to a single 8,000 The same can be said for and fi nal offers that exceeded the large property that was sold last year, creating an artificial 7,000 commercial versus residential guide price of £11,500,000. picture. Nevertheless, the drop in supply is likely to mean 6,000 that land values remain strong for the coming 12 months. 5,000 One highlight instruction that is currently on the market 4,000

increase in price per acre of arable in price per acre increase land between Q4 2013 and H1 2014 is the outstanding Holt Manor, near Bath – a fine Grade II 3,000 Langley Bottom Farm: Listed manor house standing in almost 100 acres of land. 2,000 730-acre farm in Epsom. Sold at the James Baker, Exeter Following the successful sales of two other small estates, in 1,000 guide price £7,000,000 01392 229418 Dorset – East Blagdon Farm and Thornhill Park – we expect 0 £1,000 £1,000 [email protected] that Holt Manor will attract a significant level of interest. H1 2012 H1 2013 H1 2014

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p30-35_Regional_desREPRO.indd 34 16/10/2014 11:45 LB11_p30-35_Regional_desREPRO.indd 35 09/10/2014 10:35 36 Sales highlights 37 Sales highlights

Bantham Estate Devon 716-acre coastal estate | 3 farms | 21 properties | Golf course Guide: in excess of £11,500,000 | Sold September 2014 [email protected] / 01392 229418

East Blagdon Farm Wiltshire 232-acre residential farm | 8-bedroom farmhouse 4 cottages | Farm buildings | Guide: £5,000,000 Under offer [email protected] / 01722 344010

Eastlands Estate West Sussex 588 acres | 6-bedroom main house | Additional 5 properties Equestrian facilities | Guide: £11,000,000 | Sold July 2014 matthew.sudlow@ struttandparker.com 020 7318 4668

Valuations Blackburn Farm The Grange Our specialist rural valuers Berwickshire East Yorkshire work closely with our 650-acre arable farm | Farmhouse and 5 cottages 682-acre arable farm | Farmhouse team of Estate & Farm Pheasant shoot | Guide: £4,750,000 and 4 holiday cottages | Planning agents to ensure they Sold December 2013 permission for 4 further cottages [email protected] Guide: £6,500,000 have up-to-the-minute 0131 718 4593 Sold August 2014 information and an [email protected] accurate feel for the 01670 500870 latest trends in the market. If you are considering selling, please get in touch for a free, no-obligation market appraisal: mark.mcandrew@ struttandparker.com Manton Estate Poslingford Hall Farm 020 7318 5171 Wiltshire Suffolk 2,155-acre quintessential country estate | Substantial 830-acre commercial farm | 6-bedroom period farmhouse | Cottage equestrian facilities | Principal house | Staff accommodation and farm buildings | Guide: £8,600,000 | Sold September 2014 Guide: £26,000,000 | Under offer [email protected] / 01473 214841 [email protected] / 020 7318 5171

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p36-37_Regional Sales_des3.indd 36 01/10/2014 16:15 LB11_p36-37_Regional Sales_desREPRO.indd 37 09/10/2014 14:44 38 Contacts 39

Key contacts Land Management London Residential Valuations Research James Farrell 01423 706770 Andrew Scott 020 7318 4639 Stephen Wolfe 020 7318 5081 Stephanie McMahon 020 7318 4673 [email protected] [email protected] [email protected] [email protected]

Farming Residential Development Building Surveying Private Property Search Q&AFollowing his successful eight-year tenure as President of Will Gemmill 01223 459471 Simon Kibblewhite 020 7318 5177 Jane Henshaw 01273 407024 Jessica Simpson 01256 242938 the National Farmers’ Union, Peter Kendall was appointed [email protected] [email protected] [email protected] [email protected] Chair of the levy-funded Agriculture and Horticulture Estate & Farm Agency Taxation Property Wealth Management Development Board in April this year. Here he discusses the Mark McAndrew 020 7318 5171 Jonathan Smith 01273 407038 Andrew Yeandle 020 7318 5016 role of research and development in the agricultural industry [email protected] [email protected] [email protected] Interview: Dave Flanagan Commercial Accounting Scottish Sporting Damian Cronk 020 7318 5065 Shaun Spalding 01245 254661 Michael Laing 01738 783353 [email protected] [email protected] [email protected] Why has there been a lack of good think about how the UK can How does the Agriculture and independent agricultural research remain globally competitive, Horticulture Development Board Estate Agency Planning Resources & Energy Guy Robinson 020 7318 5175 John McLarty 01245 254603 Alexander Creed 020 7318 5022 in the past couple of decades? with all the constraints we have (AHDB) plan to attract new [email protected] [email protected] [email protected] The 1990s were seen as a period of being a small, crowded island investment for this vital research of overproduction, with food and taking into account people’s and development? mountains and concerns over demands for recreation and I’m trying to ensure the AHDB environmental damage. There was enjoyment of the countryside. works collaboratively to access banbury farnham market harborough sevenoaks T 01732 459900 also an exodus of government It’s certainly an enormous research funding. In the UK, we T 01295 273592 T 01252 821102 T 01858 433123 E [email protected] E [email protected] E marketharborough@ E [email protected] investment from agricultural challenge, but if we can employ have £160 million of agri-tech struttandparker.com science, which was seen as the good science and precision- strategy money going through banchory guildford shrewsbury responsibility of the private sector. targeted agriculture, it actually tendering. And with the last CAP T 01330 824888 T 01483 306565 moreton-in-marsh T 01743 284204 At one point, the UK had 17 represents a fantastic opportunity reform, there’s 4.5 billion put E [email protected] E [email protected] T 01608 650502 E [email protected] € E [email protected] world-renowned agricultural for the UK. aside for the Horizon 2020 brighton and hove harpenden st albans institutes, but that has been scaled initiative [the EU’s research and T 01273 779649 T 01582 764343 morpeth T 01727 840285 back to around four or five. Can the UK regain its status as innovation programme]. I want E [email protected] E harpenden@ T 01670 516123 E [email protected] However, the global food price a global centre of excellence for to see the levy boards working struttandparker.com E [email protected] stamford spikes of 2008, combined with agricultural research? together so that we can provide cambridge T 01223 459500 harrogate newbury T 01780 484040 concerns over climate change I want to see UK agricultural farmers with the tools they need E [email protected] T 01423 706786 T 01635 521707 E [email protected] and the growth of the global science playing a vital role in to develop UK agriculture. E [email protected] E [email protected] population – expected to reach other countries’ research around canterbury winchester more than nine billion by 2050 the world. We talk a lot about Do you feel there’s a need to T 01227 451123 haslemere northallerton T 01962 869999 E [email protected] T 01428 661077 T 01609 780306 E [email protected] – have prompted the government the UK being a knowledge-based improve understanding of the E [email protected] E [email protected] to make a U-turn on agricultural economy. The City importance of agricultural chelmsford *For full details of our London science, with investment in the of London and our research within the wider, T 01245 258201 horsham norwich Residential offi ces, please sector now increasing. world-leading non-farming community? E [email protected] T 01403 246790 T 01603 617431 visit struttandparker.com/offi ces E [email protected] E [email protected] pharmaceutical The media often exaggerates the chester How much can research and industry are negative aspects of what I’d call T 01244 354888 inverness odiham development help the industry championed by exciting, innovative farming. E [email protected] T 01463 719171 T 01256 702892 to boost food production? government, and Although the farming industry has E [email protected] E [email protected] The role that research and I think at last made mistakes in the past, we have chichester T 01243 832605 ipswich oxford development has to play can’t agricultural and to tell a more complete story to the E [email protected] T 01473 214841 T 01865 366660 be underestimated. The challenge biosciences are also media and to consumers. We need E [email protected] E [email protected] we face is not just about how being seen as a real the people who are excited by their cirencester we feed nine billion people selling point for iPhones, GM insulin or the vaccines T 01285 659661 lewes pangbourne Strutt & Parker has raised over globally, but also about how UK plc. If we can used to protect their children from E cirencester.landagents@ T 01273 475411 T 01189 845757 £160,000 for Great Ormond ‘i think struttandparker.com E [email protected] E [email protected] Street Hospital this year we cope with a projected four- agricultural demonstrate that diseases to think the same way and-a-half million increase in and biosciences we are driving about food and to recognise the edinburgh london head offi ce* perth the UK’s population over the our own industry increasing role science will play T 0131 226 2500 T 020 7629 7282 T 01738 567892 are finally being E [email protected] E headoffi [email protected] E [email protected] next eight or nine years. How seen as a real forward, that’ll help in feeding the planet. This is do we provide genuine food us to sell agriculture an enormous challenge and it’s selling point exeter ludlow salisbury Strutt & Parker is a proud supporter security in as sustainable a way for uk plc’ solutions to the vital that we have the best tools T 01392 215631 T 01584 873711 T 01722 328741 of The Addington Fund as possible? We also have to rest of the world. available to help us meet it. LB E [email protected] E [email protected] E [email protected]

Strutt & Parker Land Business Strutt & Parker Land Business

LB11_p38-39_Q&A_Contacts_des3.indd 38 01/10/2014 16:19 LB11_p38-39_Q&A_Contacts_desREPRO.indd 39 09/10/2014 10:36 Winter Land Business 2014/15 Farming Estate management Sales

CLA Game Fair debate: Green houses: boost Scotland says No, would our countryside be the energy rating of but what now for better off out of the EU? your rental property landowners?

A bright future How this Suffolk estate turned its fortunes around

Rural services Land Management We manage two million acres of land across the UK, ensuring that our clients’ farms and estates perform in a way that meets their business and personal aspirations.

Farming Our team of more than 30 experts offers a complete farming service, advising on a huge variety of issues and helping farmers to make the most of their farming businesses.

Estate & Farm Agency We handle the sale and purchase of some 50,000 acres of farmland, residential and commercial farms, and sporting estates every year.

Please contact your local office to find out more about our rural services.

struttandparker.com

LB11_p01-40_Cover_desREPRO2.indd All Pages 15/10/2014 11:14