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The Rural Report 2010 THE RURAL REPORT A UNIQUE GUIDE TO THE ISSUES THAT MATTER TO LANDOWNERS SUMMER 2010 election focus What the coalition means for the countryside RURAL PROPERTY MARKETS Agricultural land prices treble in a decade Renewable energy Why feed-in tariffs are set to boost your income Welcome to the first issue of The Rural Report, Knight Frank’s focus on the issues that matter to ITS rural clients and their advisOrs contributors Launching a new magazine is always Energy team is a good example of how exciting, but never more so than during Knight Frank can help its clients cope with ANDREW SHIRLEY times of profound change. Barely six weeks the changing economic, environmental and Andrew is head of rural research at Knight into the new era of political partnership at political landscape. Frank. Previously he was property and Westminster and we are already seeing Planning policy is another area where the FLEXIBILITY business editor at Farmers Weekly 06 early signs of what it means to be countryside and its inhabitants are set to ANTHONY ELLIS represented by a coalition government experience fundamental change, both at a Anthony is a freelance photographer recently battling to cut a huge national deficit. local and national level. The government back from assignment in Afghanistan. His work Some of what we have seen is wants to devolve more decision making to has been published in The Independent 08 unwelcome, the increase in Capital Gains local communities and has already IS KEY CHRISTOPHER SMITH Tax being a particularly pertinent example announced that it plans to scrap the Christopher is Knight Frank’s renewable energy for many rural property owners. But where Infrastructure Planning Commission and expert. He advises some of the UK’s largest there are challenges there are also get rid of Regional Spatial Strategies. We landowners including the Crown Estate 10 opportunities. The Rural Report’s wide have specialist teams ready to advise on JAMES DEL MAR variety of articles and contributors capture what all this could mean for your business. James heads Knight Frank Rural Consultancy. some of that spirit of optimism. Our special focus on page 4 looks at Specialising in strategic investment and Landowners are well placed to help the other areas where the new government’s management issues, he advises rural property new coalition deliver on its promise to policies will impact on rural communities landowners - from charities to funds to increase the generation of energy from and asks key lobby groups and business private clients 12 renewable sources and increase the leaders what the coalition’s priorities provision of affordable rural housing. But should be. Ultimately, however, as one of THE RURAL REPORT as CLA president William Worsley points our contributors - The Crown Estate’s Editor - Andrew Shirley out in our interview with him on page 12, Christopher Bourchier - explains, whatever [email protected] Marketing - Caroline Styles the challenge is to persuade government to politicians do to facilitate change the [email protected] work in partnership with those who can help. responsibility for achievement lies with us. Design & art direction - GraphicDialog Renewable energy in particular offers I do hope you enjoy reading The Rural [email protected] landowners huge potential to boost the Report and please get in touch with me or Photography - Anthony Ellis income from their farms or estates, and we any of my colleagues if we can help you Comprehensive accounts & property software flexibly [email protected] Printing - 4 Print Ltd look at the opportunities available in more achieve your goals. You can find all our designed for ease of use. Published by Knight Frank LLP detail on page 10. Our new Renewables and contacts at the back of the magazine. Take control of your strategy, financial and diary records with our KEY management software tools for farms, estates Sandy Douglas Knight Frank Rural Consultancy and rural business. contents Landmark is delighted to support Knight Frank and its clients. 04 News review 08 Client case study 12 The Big Interview What the Westminster coalition Managing Enfield’s Green Belt The CLA’s William Worsley talks to means for the countryside The Rural Report www.landmarksystems.co.uk 06 Market analysis 10 Business opportunities 14 Final Word The continuing rise of farmland values Making the most of renewable Plan long term to protect the capital energy value of your estate For further details please call: Published by Knight Frank LLP. ©Knight Frank LLP. This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to 01798 877100 particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank to the form and content within which it appears. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. Landmark Systems Ltd., Swan Court, Station Rd, Pulborough, West Sussex RH20 1RL KnightFrank.co.uk/rural THE RURAL REPORT 03 News Review: What the election means for the countryside Renewable energy Institutional landowners Birds and wildlife in the countryside 3 Oliver Harwood - CLA chief surveyor 4 Christopher Bourchier - Director of 5 Mark Avery - and renewables advisor the rural estate, The Crown Estate policy director RSPB Both coalition parties damned the outgoing The rural land management priorities of the Budget cuts may have bigger impacts on Well hung administration for poor performance on the coalition have now been confirmed, with a wildlife than on the people who are making delivery of renewables (the UK lags second strong focus on sustainability - in a broad them. The likelihood of environmental from bottom of the European league table with context. In practical terms, key priorities for payments to landowners being reduced marginally more renewable capacity per head landowners include increasing food alongside the budgets of Natural England and at Westminster than Malta). The initial coalition agreement production, while reducing environmental the Environment Agency could easily feed contained significant indications of the way impacts; ensuring new property developments through to falling wildlife numbers. Will there the agenda may develop, but it was by no are energy efficient, carbon efficient and be a sell-off of public land? What future for the The Rural Report looks at what the Conservative Liberal Democrat pact means for decisions to local communities seems means comprehensive. The parties have so far designed with quality of life as a priority; Forestry Commission? We live in interesting the rural property owner and asks lobby groups and businesses what impact the sensible, but there is a danger that it could end agreed to implement the full establishment of increasing renewable energy output, matching times. coalition will have on their sectors and where its priorities should lie up being a charter for NIMBYism. The provision feed-in tariff systems in electricity, as well as production technologies to appropriate Farmland birds are still suffering and the of affordable housing is high on both parties’ the maintenance of banded ROCs, and locations. These priorities signal opportunities success of the Campaign for the Farmed Unusually for the new coalition, the to take charge of DEFRA, finds himself instead agendas. Involving landowners profitably in measures to promote a huge increase in for rural businesses, subject to achieving Environment depends on farmers’ access to Department for Environment, Food and Rural in charge of policing at the Home Office. The the process could prove very beneficial. energy from waste through anaerobic commercial competitiveness in a highly environmentally friendly grants. A White Paper Affairs is an entirely blue affair, with all the efforts of rural lobby groups to earn Mr Of course, the real impact for most of us will digestion. They also agreed to increase the volatile global marketplace. The greatest on wildlife is promised - we hope it kick-starts ministers drawn from Conservative ranks. Herbert’s ear might not be in vain, however, come from the Treasury as it battles to cut the target for energy from renewable sources, benefits will accrue to those able to work the restoration of UK habitats. Wetlands, Looking at the new recruits’ CVs (see right) if he addresses the serious dearth of rural UK’s national deficit, not just through the subject to the advice of the Climate Change successfully in partnership, whether heaths and woods store carbon, provide there appears to be some genuine agricultural policing. inevitable tax rises - landowners should Committee. From the CLA’s perspective, this addressing food production, property recreational opportunities, alleviate flood interest - as one of our contributors points out Renewable energy will be a key income already be taking advice on the potential looks welcome, but, as always, the devil will
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