review East Midlands
Summer 2011
Grantham 14 Finkin Street Grantham, Lincolnshire NG31 6QZ T: 01476 514514 F: 01476 571750 E: grantham@chestertonhumberts.com Lincoln 4 Eastgate, Lincoln, Lincolnshire LN2 1QA T: 01522 516830 F: 01522 510570 E: lincoln@chestertonhumberts.com Nottingham Commercial Oxford House, Oxford Street Nottingham NG1 5BN T: 0115 947 6236 Nottingham Residential 8 Oxford Street Nottingham NG1 5BH T: 01159 505444 F: 01159 411664 E: nottingham@chestertonhumberts.com Stamford 5 Ironmonger Street Stamford, Lincolnshire PE9 1PL T: 01780 762849 F: 01780 480400 E: stamford@chestertonhumberts.com
SOLD - South Lodge, Ropsley.
This Edition I hope you will enjoy our review
highlighting aspects of Commercial, Residential
and
Rural
markets.
The spring edition highlighted the
difficult market we had experienced
in 2010. The early part of 2011 appeared to bring some confidence back to the market but this has been
somewhat short lived and the sector
remains difficult as our residential report highlights.
The Commercial property sector
similarly has found the market
challenging although transactional levels have increased and to a degree some confidence has returned.
continued ....
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This Edition ... continued
The strengths we had reported in our
of trade warehouse acquisitions which
sector and farmland values particularly
acquired 20,000 sq ft of industrial space
spring edition with regard to the rural have remained with prices continuing to grow as a result of high demand and
with levels of commodity prices being enhanced and maintained.
Chesterton Humberts has acquired Nottingham based chartered surveying firm Robert Clarke as part of its ongoing expansion.
for clients on Blenheim Industrial
Estate, just off junction 26 of the M1. Former public houses continue to sell well, usually for new uses.
We are pleased to report the purchase
We continue to provide proactive and
surveying firm of Robert Clarke as
Practitioner clients, disposing of arange
of the Nottingham based chartered
commercial agency
could total 60,000 sq ft and have just
part of the Chesterton Humberts
ongoing expansion of its network and particularly its commercial property team.
The firm of Robert Clarke was formed in 1923 and is based in the centre of Nottingham. The 15 strong team operates both locally and nationally in all aspects of commercial property including investment agency, business rates, management, professional services and lease consultancy and additionally is able to give advice in the licensed property sector.
Commercial Market Overview
As the acquisition looks to establish Chesterton Humberts as a major force in the property sector in the East Midlands which follows the recent expansion in Stamford and Lincoln of their Residential and Rural teams.
The tightness of the credit market is,
“So what’s the market like?”, everybody
asks. Well, better than it was. There is
an encouraging level of activity in some sectors. There is no shortage of appetite
and the opportunities are out there. however, still a significant problem, and is a well aired debate elsewhere.
Our outlook, though, is positive. We have a raft of new properties coming to
realistic advice and support to Insolvency
of sometimes awkward or complicated
assets. Deals currently with solicitors in that sector include a 40 acre ground lease of a business park in north Nottinghamshire
and the
former
William Woodsend Ltd premises and
site, opposite The Nottingham Park Estate in Nottingham City Centre.
Following the acquisition of Robert
Clarke the East Midlands Commercial
office now has residential, rural and enhanced investment services, expertise and contacts available, in addition to the established commercial core.
Steve Holland, Nottingham Commercial
the market. We are working on a series
Dates for the Dairy burghley horse trials
ploughing match
We will be sponsoring a fence at the
We will be renewing our association with
We are pleased to announce that we will
Burghley horse trials in Stamford from
the Southwell & District Agricultural
be continuing with our sponsorship of
1st to 4th of September.
Society’s ploughing match to be held
Team Chasing. We will be supporting
this year at Kneesall in Nottinghamshire
the Cotswold Team Chase on the 30th
on the 24th September, again we look
October and the National Finals at Tur
forward to welcoming clients and
Langton, Melton Mowbray in April 2012.
1st - 4th September
24th September
friends alike to our stand on that day.
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team chase
1st April 2012
SOLD - A selection of properties recently sold across the region.
East Midlands Residential Report The property market in the East Midlands has continued to be challenging. London remains the only region where house prices have grown over the last year. The Chesterton Humberts Poll of Polls monthly house statistics show that prices in the East Midlands has seen a fallback year on year by some 4.2%. Low activity levels and confidence has kept a cap on price growth and the divergence of economic growth and employment between London and the regions has
affected the performance. Restrictive mortgage lending has also affected confidence although there remains hope that activity in the mortgage sector will improve and improved economic conditions will return. As we analysed in our spring edition there is potential for the volume of transactions to increase with a good range and number of properties being available in all sectors of the market.
Buyers continue to expect realistic values. Quality of presentation and the pricing of property to reflect correct levels of value is producing results particularly in the Period house and country property sector but the market is extremely price sensitive and over pricing continues to be a problem. Peter Mills, Area Director Residential
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equestrian sales The Rural Department in the East Midlands has concluded sales of two substantial equestrian properties. South Lodge, Ropsley which has a principal house, cottages, stabling and 60 acres of land successfully sold in the spring to a private buyer. Laughton Manor an equestrian centre at Folkingham which included a Grade II listed manor house and extensive competition livery facilities with 86 acres
of land again sold quickly in the spring of 2010 to an institutional buyer who will take forward further development of the property for competition and educational purposes. These two sales possibly are the most significant in the East Midlands in recent years in this sector of the market. Stuart Paton, Rural, Stamford
SOLD - Laughton Manor & Equestrian Centre
The Farmland Market It is pleasing to note that the farmland market in the East Midlands has continued to move forward during the early part of 2011. Demand for commercial farmland with or without houses has increased, driven partly by improving commodity prices and lack of supply. The security which land offers, the improved returns which can be achieved, level of interest rates
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and the advantages which land can offer from a tax perspective have continued to influence the market. We are seeing the possibility of an increasing supply of land coming forward as many landowners and farmers consider it to be a good time to sell to take advantage of high values particularly if they are considering retirement or downsizing.
Chesterton Humberts are able to offer our clients, national, regional and local exposure and have considerable experience in the farmland market sector. Chesterton Humberts are prepared to undertake free market appraisals to owners who are wishing to consider their options in this very buoyant market. Andrew Pearce, Rural, Lincoln
taxation & the budget The Chancellors budget in the spring did not affect or bring benefit to any major degree to the property sector. The most fundamental change this year was the increase in the lifetime limit for Capital Gains Tax, Entrepreneurs Relief from £5m to £2m and the small business relief holiday will is extended for a further year.
Expanding Rural Department Chesterton Humberts is continuing to expand its rural practice with the recent appointment of Harry Baines as a director in the Stamford office. He is a highly regarded estate and land manager with over 18 years experience at Carter Jonas’s Peterborough office and at Strutt & Parker’s Cambridge and St Albans offices. Chesterton Humberts has appointed Harry as part of its continuing strategy to strengthen and grow the rural division across this region and in the rest of the UK.
Harry grew up in Rutland and attended Oakham School and will bring extensive local knowledge and contacts to the role. With land continuing to outperform any other asset class, demand for farmland across the UK is continuing to increase. Whilst demand outstrips supply, we are expecting prices to continue to rise. With this in mind, Chesterton Humberts is expanding the rural division to service this increasing demand.
The establishment of the green investment Bank will benefit renewable energy investors and the review of Capital allowances for expenditure on plant and machinery may also rise to beneficial allowances. The budget included a provision that there will be a presumption in favour of sustainable development and a twelve month limit for considering planning applications including any appeals in future legislation. Planning consent for converting commercial property to residential use should also become more possible under measures which will be brought forward by the Government. We will closely monitor whether these initiatives filter down to the Local Planning level.
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TYPICAL SOLAR FARM
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Renewable Energy – All Hot Air? the feed-in tariff
The feed-in tariff commenced on the 1st April 2010 and provides financial support for the production of renewable electricity from renewable resources – wind, anaerobic digestion (AD), hydro and solar photovoltaic.
digestate. The Government has indicated that it does not wish to see large areas of agricultural land taken out of food production and it is difficult to secure supply contracts for food waste beyond 2 or 3 years.
When first introduced the rates payable per unit of electricity (kWh) were well in excess of 20p. From the 1st August 2011 the rates will be reduced considerably and a summary is shown below.
It is very regrettable that the Government has decided not to extend the RHI to individual houses although the Government scheme, the Green Deal, is due to commence in 2012. It is recommended that anyone considering a project of this nature delays any decisions until the details are known, probably towards the end of 2012.
The cut in the Renewable Heat Incentive (RHI), particularly for installations of over 50kw has severely limited investments in larger scale projects, particularly AD where entry level systems cost in excess of £2m. Although some Banks, including NatWest, have launched specific products for renewable energy projects they are still difficult to secure borrowing on, and often will not allow the income to count towards serviceability. .
the renewable heat incentive
Details were finally released on the 10th March 2011, however they left a lot to be desired and were short on practical detail. The incentive gave support for heat production by commercial businesses or community schemes including charities and will commence from the 1st October 2011. In the past District Heating Systems and other projects have fallen at the last financial hurdle and the RHI should provide the necessary support to clear that hurdle. Anaerobic digesters remain a very specialist area and crucially require a constant supply of material combined with disposal of
summary
Renewables will continue to evolve very quickly both in terms of the technology available and sources of funding and Government support. As with any evolving area of practice, those who decide to go quickly down one route may repent at their leisure, such as those who spent much time and money in the summer/autumn of 2010 pursuing solar farms. Our strong advice is to firstly review your energy needs, source and current cost. Secondly investigate available alternatives and their suitability to your farm/estate/residential property. Thirdly research whether the system you intend to install already exists and ensure you go and see it and find out as much information as possible. Finally ensure that whatever route you decide to take you can be sure it will perform as expected and as claimed by the suppliers. Harry Baines, Rural, Stamford
Generation tariffs anaerobic digestion
solar pv 50 – 150 kW: 150 – 250 kW: 250 kW – 5MW :
total installed capacity = 19p/kWh total installed capacity = 115p/kWh total installed capacity = 19p/kWh
Less than or equal to 250 kW: 14p/kW >250 – 500 kW : 13p/kW
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Our east midlands offices Grantham 14 Finkin Street Grantham, Lincolnshire NG31 6QZ T: 01476 514514 F: 01476 571750 E: grantham@chestertonhumberts.com
Nottingham Commercial Oxford House, Oxford Street Nottingham NG1 5BN T: 0115 947 6236
Lincoln 4 Eastgate, Lincoln, Lincolnshire LN2 1QA
Nottingham Residential 8 Oxford Street Nottingham NG1 5BH
T: 01522 516830 F: 01522 510570 E: lincoln@chestertonhumberts.com
T: 01159 505444 F: 01159 411664 E: nottingham@chestertonhumberts.com
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Stamford 5 Ironmonger Street Stamford, Lincolnshire PE9 1PL T: 01780 762849 F: 01780 480400 E: stamford@chestertonhumberts.com
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