Rural Matters Summer 2016 Edition One by Galbraith

Rural ISSUE 1 SUMMEr 2016

matters

Life after land reform

How new legislation will affect rural business

Welcome

A challenging life in the country Welcome to Rural Matters, a new CKD Galbraith publication that explores and explains many of the issues and challenges facing landbased and rural businesses. From the smallest farms to the largest estates, land-based businesses in Scotland are encountering an ever-growing amount of legislation and regulation. The twists and turns of CAP reform, the trials and tribulations of the Basic Payment Scheme, the increasing complexities of providing residential tenancies and the far-reaching ramifications of the Land Reform (Scotland) Act – which include farm tenancy changes, the re-introduction of non-domestic rates to sporting land and enhanced community buy-out rights – all have an impact on rural business. CKD Galbraith is a firm rooted in rural Scotland. Our people have been advising rural businesses of all shapes and sizes for more than 50 years and we are pleased to share some of our insights. We hope you enjoy Rural Matters. Iain Russell Chairman, CKD Galbraith

Living

contents

5 Don’t go off the rails in a crisis.

6 Diversification

New land reform legislation will have far-reaching effects throughout rural Scotland. Chris Addison-Scott and Calum Innes examine the challenges it presents.

on the farm.

8 Life of a lady laird.

Wild fisheries reform, and shooting prospects.

10 Scottish

estates: Selling strategies... and finding the dream.

12 Farmland values. 13 Another round of residential regulations.

14 Investing in our future leaders.

15 Hydro: A glimmer CKD Galbraith is Scotland’s leading independent property consultancy. Drawing on a century of experience in land and property management, the firm is progressive and dynamic, employing more than 250 people in offices throughout Scotland. The ﬁrm provides a full range of property consulting services across the rural, residential, forestry, commercial and energy sectors. CKD Galbraith provides a personal service, listening to clients and delivering advice to suit their particular opportunities and circumstances. The firm enjoys a strong partnership with its associate firm CKD Kennedy Macpherson.

of hope as rate relief ends.

16 Is fish farming the future?

18 Taking advantage of voluntary land registration.

Follow us on Twitter: @CKDGRural Like us on Facebook: www.facebook.com/ckdgalbraith Join us on Linkedin: www.linkedin.com/company/ckd-galbraith

Rural Matters is produced by CKD Galbraith and designed by George Gray Media & Design, St Andeux, France. © CKD Galbraith LLP.

Parts 1-9 1 – Land rights and responsibilities. The Scottish Government is to publish a statement on land rights and responsibilities and review it every five years. It will contain a set of principles to guide the development of public policy on the nature and character of land rights in Scotland. 2 – Scottish Land Commission. This will look at key land-related matters including the management and use of land and will support five appointed Land Commissioners and a Tenant Farming Commissioner. 3 – Information about persons with controlling interests in owners and tenants of land. A public register of those with a controlling

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with land reform Although the Act received Royal Assent in April, the actual starting dates for provisions within the legislation vary depending on the particular provision. The Scottish Government has made clear, and has the support of other parties at Holyrood, that land reform is an ongoing process and various aspects will be revisited.

The Land Reform (Scotland) Act 2016, passed by the Scottish Parliament in March, is a flagship piece of legislation for the Scottish Government and has wide-ranging implications for many different types of rural businesses, from family farms to large estates. The Act is in 10 different parts. We will look at the legislation in two broad categories: parts 1 to 9 cover wider land reform issues including community-based provisions, deer management and information about who owns and controls land, while part 10 covers agricultural holdings legislation.

interest in land to increase the transparency around land ownership. 4 – Engaging communities in decisions relating to land. The Scottish Government wants better collaboration and engagement between landowners and communities. Ministers will issue guidance about the circumstances in which persons with control over land should carry out community engagement. 5 – Right to buy land to further sustainable development. This enables Scottish communities to buy land to further sustainable development and where certain conditions are met. It also enables Ministers to intervene to enable such a buy-out.

There are many complexities within the new legislation and the consequences may not be appreciated fully for years to come. However, as the legislation is now a reality, land businesses need to adapt and take steps to understand how it may affect them.

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The Scottish Government wants better collaboration and engagement between landowners and communities.

6 – Non-domestic rates on sporting land. This provides for the entry on the valuation roll of all deer forests and shooting rights. The proposed re-introduction is due to take effect from April 2017. 7 - Change of use of land forming common good land. This gives local authorities the power to change the use of common good land. 8 – Deer management. Scottish Natural Heritage has been given additional powers to intervene where the management of deer by landowners and occupiers is not delivering in the public interest. 9 – Access rights. The Act has amended procedures on the progressive statutory

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Tenants anxious to retire may struggle to find ‘a new entrant’ or a ‘farmer wishing to progress’ with the resources to purchase such a tenancy.

➔ framework for improved public access over land in Scotland. There are two elements of the category above that are particularly contentious: • The power for Ministers to intervene and facilitate the sale of land to a community group to further sustainable development. This may affect all kinds of farming and estate businesses that own land and would be required to demonstrate that their ambition for that land includes sustainable development. • The re-introduction of non-domestic rates to sporting subjects has potentially significant implications. The legislation provides for all shootings and deer forests to be valued and entered in the valuation roll. Consequently they will be liable to business rates. The task of identifying and valuing all sporting subjects is considerable and the assessors who have been tasked with this work have themselves estimated that there may be more than 50,000 subjects to be valued.

Part 10 This part of the Act heralds significant changes in agricultural holdings legislation including: • Tenant right to buy: Removes the requirement for a tenant to register their interest in purchasing their holding with Registers of Scotland. • Relinquishing and assignation of 1991 tenancies: Enables a 1991 Act tenant to assign their tenancy on the open market to a new entrant or a progressing farmer, with the landlord having the pre-emptive right to buy. • Rent reviews: Provides a new rent review system moving away from a

• Modern Limited Duration Tenancies (MLDT): Creates a new tenancy type of 10 years’ duration. It also provides a break clause at five years for new entrants to farming. • Repairing tenancies: Creates a new tenancy type for a duration of at least 35 years. This tenancy makes provision for a ‘repairing period’ of at least five years. • Amnesty for tenant improvements: Creates an amnesty period for 1991 Act tenancies, allowing a tenant farmer who has not previously served a notice or has no written consent to serve new formal notice of improvements. • Improvements by landlord: Provides a right for tenant farmers to object to a proposed landlord’s improvement. There are a number of provisions within Part 10 of the Act that are particularly significant for the tenant farming sector, most notably the new right to relinquish and assign a 1991 Act tenancy, the widening of the class of people who can succeed to tenancy and a new system for rent reviews. The relinquishing and assignation of 1991 Act tenancies has understandably caused the most controversy. Agricultural landlords may well exercise their right, if they can afford it, to intervene and buy out tenants. However, the consequence may well be that land will be lost to tenant farming if the landlord does not have the confidence to re-let it on a long-term basis for fear of losing access to it in the future. Many landlords will simply be unable to aﬀord to buy out tenants by having to pay the compensation set out in the new legislation. Equally, tenants anxious to retire may struggle to find ‘a new entrant’ or a ‘farmer wishing to progress’ with the resources to purchase such a tenancy. Rent reviews, too, have been particularly contentious and there have been a number of suggestions that land agents are not carrying out rent reviews fairly. It is in everyone’s interests for there to be dialogue between landlord and tenant and when a land agent is employed on behalf of a landlord or tenant, a review should be conducted in accordance with industry guidance and the code of conduct set out by the Royal Institution of Chartered Surveyors.

predominantly ‘open market’ calculation to one based on the agricultural productivity of the holding. • Enforced sale: Enables a tenant of a secure 1991 Act agricultural tenancy to apply to the Scottish Land Court to seek an order for sale of the land where their landlord fails to meet their legal obligations under the tenancy.

The agricultural provisions of this Land Reform Act will have an effect on both tenants and landlords and in the coming years it will be more important than ever that all parties are fully appraised of their rights and responsibilities under the new legislation. Calum Innes, based at CKD Galbraith Perth, is a recognised expert on sporting rates. calum.innes@ckdgalbraith.co.uk 01738 456075

• Succession and assignation: Widens the class of people that a tenant farmer can assign their tenancy to and also who they can leave their tenancy to upon death.

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Chris Addison-Scott leads the rural team in CKD Galbraith’s Stirling office. chris.addison-scott@ckdgalbraith.co.uk 01786 434601

Helping a farmer to deal with the aftermath of this train crash is all in a day’s work. Mike Reid reports.

Making sure you don’t go off the rails in a crisis Over the many years that CKD Galbraith has advised a broad range of rural clients on a multitude of challenges, it’s fair to say that train crashes have not featured regularly. However, help was needed – and fast – by one of our farming clients when an engineering train with more than 30 wagons of ballast collided with a stationary train near Cumnock on the main line from Glasgow to Dumfries. Some of the derailed carriages came through the embankment onto the farm but, fortunately, no people or animals were injured. The farm was suddenly inundated with emergency services, Health & Safety Executive and representatives of Network Rail. The easiest access to the crash site was along the farm road between the farmhouse and farm buildings where a constant stream of people and vehicles were flowing. Network Rail needed to re-open the line quickly so the derailed wagons and engine needed to be lifted off the tracks. Access wasn’t possible along the railway line, so Network Rail wanted to agree terms with the farmer to gain access for a 1,000-ton crane and to set up a work compound. CKD Galbraith advised on an appropriate agreement and it was essential to balance shortterm essential work with the potential long-term implications for the farm. At one stage it was

suggested that in order for the crane to obtain access either part of the house or farm buildings would need to be demolished. Thankfully, that was not necessary and an alternative access solution was agreed together with terms for Network Rail to construct a three-acre compound together with an access road. Terms were agreed and signed within a couple of days, protecting the farmer’s long-term interests while enabling Network Rail to start work. The agreement included a detailed specification of the compound works, temporary fencing and gates, relocation of water supplies, protection against contamination, protection of the drainage system, reinstatement of the land at the end of the agreement, compensation for damage and protection against other losses such as subsidy payments. Health and safety considerations were a high priority for both parties.

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Terms were agreed and signed within a couple of days, protecting the farmer’s long-term interests while enabling Network Rail to start work.

Fortunately, train crashes are few and far between. However, as in every crisis, a sound short-term and long-term plan goes a long way to meeting a hugely challenging situation successfully. Mike Reid heads CKD Galbraith’s utilities department. mike.reid@ckdgalbraith.co.uk 01334 659984

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Delivering diversification Robert Taylor explains how a dynamic new business was created from modest beginnings on a family farm.

Knockraich Farm has been owned by the Rodger family since the 1950s and perfectly illustrates what can be achieved by diversification. Today the 80-acre farm at Fintry in Stirlingshire, which won the Silver Award for Family Farming Business of the Year 2015 in the British Farming Awards, is home to 60 Friesians, which for the past six months have been milked robotically. The dairy cows and young stock are managed by Robert Rodger, but the wider diversified business – which includes the Courtyard Café, a soft furnishing showroom, a wedding venue and a milk processing dairy – is very much a family affair. “Keeping the cows in the fields and maintaining the farm for future generations is the biggest inspiration for us as dairy farmers,” says Robert. “Unfortunately, falling milk prices had meant that our small dairy herd was under threat. We’ve therefore created a range of diversified ventures to increase the overall functionality and profitability of the farm. As part of this, our range of value-added dairy products is made exclusively from our own cows’ milk for which the farm is paid higher than the market value.” Nine years ago, Robert’s wife Katy opened a farm shop and café in a converted calf barn. She also runs a soft furnishings business from the farm; the two businesses working hand

in hand to attract paying customers through the farm gate. The café is now managed by Catherine, one of the couple’s two daughters, with her sister Helena overseeing all the farm’s non-agricultural ventures. Their brother, Ian, a local farm vet, is also involved in the diversified business, having planted an apple orchard five years ago to make better use of a two-acre plot which is also used as the café’s kitchen garden. A year after making their first batch of premium Scottish yogurt, the Katy Rodgers brand won its first accolade at the Scotland Food and Drink Excellence Awards. “We have since won a number of other awards, but it was that first breakthrough that made the real difference,” said Katy. “Until then our brand was relatively unknown, but overnight the phone started ringing with enquiries from some major supermarkets who wanted to stock our produce.” The business has gone from strength to strength, extending its retail network and supplying leading hotels and Michelin-starred restaurants. Despite the brand’s success, the family’s foray into food production has not cost the earth. They started on a very small scale

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Overnight the phone started ringing with enquiries from some major supermarkets who wanted to stock our produce.

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using an assortment of second-hand equipment which was operated on a shift basis, and also worked closely with their lender to make sure investment funds were available at the right times as the business developed. Most of the Rodgers’ funding for the new enterprises came from the Agricultural Mortgage Corporation (AMC), from the new calf shed – built to make way for the coffee shop – to the processing dairy and the robotic milker. Where farmers are planning significant changes to their business, lenders will usually be looking for a sound business plan that demonstrates their ability to service the debt. Operations like the Rodgers’, which combine a number of different enterprises, can find themselves subject to a variety of different lending policies because of how the activities are categorised. This is made even more complex if different parts of the business secure borrowing from different lenders, and it is why we at CKD Galbraith now work with diversified businesses as a whole, combining varying enterprises such as in-hand and let farming, commercial and residential property, processing, renewable energy, tourism, forestry and sporting activities. Where the loan application has the potential to be split across agricultural, residential, commercial and so on, it’s useful to work with a lender that can treat the entire business as one. This means there is oversight of the business as a whole and this can be used to increase flexibility. CKD Galbraith offers agricultural and rural business loans through the Agricultural Mortgage Corporation and has the most comprehensive network of AMC agents in the country. Further information is available from robert.taylor@ckdgalbraith.co.uk.

A silver lining in financial clouds The unprecedented downturn in almost all farm commodity prices last year, coupled with the significant delay in farm businesses receiving their Basic Payment subsidy income, placed a significant burden on cash-flow and many farm businesses had to make calls to their banks. Relationship managers were being asked to approve capital repayment holidays on term loans or increase overdraft facilities. Every farm business is different, but there are general principles which, if followed correctly, can help when seeking further financial assistance from banks. The first and most important is up-to-date accounts. Credit departments will always insist on accounts being provided for the last three years, and they may defer a decision if these are not up-to-date. Historical accounts may not necessarily tell the true story, especially during a downturn, such as the dairy industry is suffering at present, but other useful management information – such as projections, budgets and cash-flows – will provide a bank with the comfort that the business is being well managed under difficult trading conditions. It is worthwhile always being aware that overdrafts are short-term callable loans, and if there are core borrowings contained within an overdraft which have

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Many farmers are now looking at long-term fixed rates. accumulated over a number of years, it may be sensible to restructure these into long-term loans. There may also be merit in seeking an interest-only period while cash-flow is tight. Owner/occupiers have the added benefit of being able to offer security, but tenanted farmers may be restricted to a level of borrowing equal to their farming assets and this will have proved extremely challenging while subsidy payments were delayed during the first quarter of 2016. Most banks have openly offered facilities to compensate for the delay, and the Scottish Government has also provided a similar facility. Many farmers are now looking at long-term fixed rates, and the big question is whether to fix or not. There are some attractive options, but you must be prepared to take a long-term view of your business. If you wish to repay either part or all of a fixed loan early, significant breakage costs may be incurred. There is certainly an element of crystal ball gazing to be done. Predictions made in 2011 and 2012 that the Bank of England base rate would be 2 – 2.5% now have proved completely wrong. So the big question is what are they now predicting, and will it be accurate? The past few months certainly suggests no immediate change in the market.

Robert Taylor heads up CKD Galbraith’s team of Agricultural Mortgage Corporation agents. robert.taylor@ckdgalbraith.co.uk 0800 389 9448

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Behind the scenes with a lady laird The challenges of running a rural estate business are many, but so are the rewards, says Joanna Macpherson. The BBC documentary Lady Lairds did a spirited job in showing the changing face of estates in Scotland. The hugely enjoyable aspects of running a country estate business were screened in all their glory. However, I have a word of advice for anyone thinking of joining the ranks of Scotland’s lady lairds – lady laird does not equal lady of leisure! As one of the BBC’s Lady Lairds, I was thrilled at the prospect of showing Attadale at its best. Our estate in Wester Ross dates back to the 16th century and has been in our family since 1952. The breathtakingly beautiful hills, our gardens which 5,000 people visit every year, and the Lochcarron Highland Games were resplendent on the TV screen. But – and it is a challenging and rewarding but – there is a lot more to life on an estate than simply making it look good. I wasn’t exactly qualified for

estate management. A career in marketing in London doesn’t quite fit the bill. However, when I returned home with my husband three years ago, it was in at the deep end. Administration and bureaucracy are constant companions, as anyone running an estate will know, and stamina is required for the seemingly endless round of planning meetings. I also did not really appreciate that mending fences – literally – could be a full-time job. Taking over the day to day running of the estate was a steep learning curve. Estates such as ours, which is predominantly bare hillside, have to generate income from whatever sources they can. Old estate worker cottages have been converted into holiday cottages or are let to local families, and farmland is leased. As someone responsible for an estate, you become adaptable overnight. You learn to figure out things you couldn’t dream of – and boy do you get involved. The Christmas Fair in Lochcarron Village Hall, the Lochalsh Deer Management Group, the Lochcarron & District Business Association... you definitely need to do your bit. For us, one of the key lessons learned over the past few years is not to shy away from help and advice. So is the life of a lady laird worth it? Absolutely. The joys outstrip the difficulties by a country mile and I count our blessings. We strive to encourage more visitors which will benefit our business but, as importantly, the entire local community and its restaurants, shops, garages or accommodation providers. Joanna Macpherson runs Attadale Estate www.attadale.com and is a client of CKD Galbraith.

Fair game?

Fishing in a Fishery reform continues apace, though most anglers will notice little change this season, says Robert Rattray. The ongoing wild fisheries reform process is of critical importance to sporting estates. The review has been staged in two phases, with the first phase – conservation regulations – now in place for the 2016 season. Rivers have been categorised according to their deemed conservation status, and there is a three-year ban on mixed stock netting. Assessing rivers’ conservation status is an evolving process, with the next consultation taking place in September for the 2017 season. The second phase, the reorganisation of the management structure from District Salmon Fishery Boards into Fishery Management Areas (FMAs) managed by Fishery Management Organisations (FMOs), with a responsibility for all wild fish interests and not just salmon, has been subject to consultation. This includes the key issue of finance and the suggestion to impose a ‘management and development’ levy raised from persons who fish in wild fisheries, in addition to the current levy paid by salmon fishing proprietors. For fishermen, for the 2016 season, there is little change, athough if you fish a category three river, you will now be required to release 100%

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Trends in Shooting

What a difference a contract makes A recent industry survey showed that 60% of shooting teams taking let days never receive a contract, the basis of the deal being a conversation and a cheque paid. Fine if everything goes to plan, but painful if there is a dispute, and we would stress the importance of the correct paperwork clearly setting out what happens in the event of shooting over (or under) the agreed bag; or if the day has to be cancelled after the first drive.

swirling current of what you catch. For some angling clubs there is real concern that this will have an impact on their membership and therefore future viability. As a result, the government has already proposed a compensation package of £100,000. Whether the categorisation has any implication on the value or letting potential of fishings remains to be seen. Although it is recognised that the methodology for the categorisation of the river does need a degree of refinement, we welcome that there is now a degree of consistency and will for a Scotland-wide conservation policy. It has also highlighted the east/west divide with most west coast rivers deemed at risk with currently unsustainable salmon populations. It will be interesting to see how Marine Scotland rationalises this situation. The very positive news must be the cessation of all out-of-river mixed stock commercial netting, initially for a three-year period. We are only disappointed that sea trout, such an iconic Scottish game fish, have not been included in the current review. The resultant Wild Fisheries Bill is likely to be presented to Parliament in spring 2017. Robert Rattray heads up CKD Galbraith’s Sporting Lets department. robert.rattray@ckdgalbraith.co.uk 01738 456081

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The very positive news must be the cessation of all out-of-river mixed stock commercial netting, initially for a three-year period.

Another interesting statistic from the survey was that 52% of shoots do not charge overage, and it seems that this is where the market is going. Teams are happy to pay for a full day’s sport at an agreed level; the onus then falling on the shoot to manage the day within those parameters. Although the survey was largely aimed at pheasant and partridge shoots, demand for fixed price days from shooting teams is extending into the world of grouse shooting, with some moors, keen to get their days let, happy to oblige. Source: The Game Shooting & Fishing Census 2015.

Looking forward to this year’s grouse Grouse moor owners had a particularly challenging season in 2015, primarily due to the relentless cold and wet weather over the critical breeding period of May, June and July, which put paid to many of the high hopes after the record breaking season of 2014. It came as no surprise that many moors cancelled all or part of their programmes. In stark contrast, some moors had a bumper season and enjoyed one of the longest and fullest programmes in living memory. As in all years, the success or otherwise of the 2016 season will rest largely on the weather in the coming few months, and we all wait with fingers firmly crossed for more forgiving weather. Grouse stocks generally are looking very healthy, and given the right breeding conditions, we could be in for another record-breaking year.

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Selling a Scottish estate When the parts are greater than the whole A different approach is sometimes required to successfully market a large estate. Simon Brown examines the options. The past year has seen a marked uplift in the Scottish estate market and in 2015 CKD Galbraith’s sporting estate agency department acted in 50% of all Scottish transactions. Interest in the estates we sold was generally widespread with viewers coming from all over the world, confirming our long-held view that the Scottish estate market is truly global. So what are the options for an estate owner considering selling their property? Some estate owners may feel particularly sentimental when approached with the option of marketing their estate in lots, perhaps due to the fact that it has been passed down through their family over a number of centuries and they feel it is their duty to maintain the estate’s legacy for future generations. However, selling in packaged lots can provide benefits if the estate offerings are not jeopardised in the process. Of course, every property is different, and the decision to offer it for sale in lots must be carefully assessed at the outset. Some Scottish estates would not be viable if broken up, but there are a host of reasons why selling in lots or as individual ‘packages’ may be appropriate. Buyers may not necessarily wish to take on an estate with multiple houses. Selling in lots can help to generate higher levels of interest, and therefore a higher price, since you are pitching to a larger pool of buyers interested in parts rather than a select group who may be interested in the whole. In some cases, sellers would like the option of retaining parts for themselves or members of the family, and offering an estate in lots gives them the chance to achieve this. In the past, many estate houses/cottages were occupied by estate workers – foresters, masons,

farm workers, house staff and so on. This is no longer cost-effective for estate owners, so buyers require fewer properties. Another factor is that the age profile of buyers nowadays is such that many owners do not live on the estate full-time. People are buying in their fifties and sixties having made their money elsewhere, and are not able to oversee the maintenance of extensive land and buildings in the same way as they might if they lived there full-time or had inherited it earlier in life. A clear example of a successful sale by dividing an estate into a number of component parts and offering them as entirely separate sales is Kinpurnie Estate, Blairgowrie, Angus. The estate had been formed by the merger of the Kinpurnie estate and the Lundie Estate, so it comprised both a principal house and a castle. There were 18 further estate dwellings, eight holiday cottages, 4,228 acres of in hand farmland, 923 acres of commercial forestry, six lochs and a pheasant shoot. There were also further leisure and commercial development opportunities and a portfolio of residential properties which were available in addition to the estate. It was first brought to the market as an estate in 23 lots with an asking price in excess of £29m, but failed to sell. When CKD Galbraith became involved we took the view that the estate was more of a collection of individual properties than a genuine estate. The firm marketed the farms and houses as individual sales in their own right rather than as parts of a larger sale. This tactic allowed us to target the purchasing audience for each particular part rather than relying on buyers to find what they wanted hidden away among the details of a much larger property portfolio. Most of the land, forestry and

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Some Scottish estates would not be viable if broken up, but there are a host of reasons why selling in lots or as individual ‘packages’ may be appropriate.

In search of the rural dream Anna Henderson and Scott Hall explain the benefits of a professional buying service.

houses have now been sold and CKD Galbraith is currently working on the sale of the additional property portfolio. For a property on the scale of Kinpurnie, the original form of the sale caused confusion to the market as the assumption was that a buyer for the entire estate was being sought. Having individual brochures for smaller entities meant potential buyers knew they could negotiate for the particular part they wanted. As a firm we have taken a flexible approach with the market – if a buyer wanted to buy a slightly different package to what was being advertised this was considered and put to our client. This approach continues to pay off at Kinpurnie with a number of sales secured that did not follow the original suggested package.

Simon Brown is in charge of CKD Galbraith’s rural and residential sales teams across Scotland. simon.brown@ckdgalbraith.co.uk 07920 204096

It’s said that Scottish rural estates have a special appeal. Given the ever-changing political and economic landscape, that appeal has most certainly had to be enduring.

using professional advisers, but that is not the culture in the UK. So what are the advantages of enlisting professional help to acquire the property that will be held so dear?

During the last recession and in 2014, the number of Scottish estates sold on the market dipped significantly. However, last year there was a marked uplift with some 20 estates totalling about 120,000 acres being sold for an estimated total price of £65 million.

When you consider that buying property is the most significant personal purchase you make, it is important to get it right.

The Scottish sporting estate offers something which is unique in the world, and this extraordinary attraction led us to establish Premium Property, a department dedicated to identifying and buying estates on behalf of clients. Our Premium Property team works purely on behalf of people who see what an estate in Scotland can offer – the unspoilt landscape, peace and tranquillity, superb field sports and potential to carry out major conservation projects. All these attributes provide buyers with the incentive to invest in their estates, in turn benefitting the often fragile, local economies. In the United States about 50% of property purchases are completed

For every estate that is on the open market, it is estimated that two or three more could be bought privately. Those wishing to buy an estate tend to be exceptionally busy people, often working elsewhere, and cannot be expected to have a detailed knowledge of the market. Estates can be withdrawn from the market, but the owner may still be willing to sell if the offer is right. Furthermore, intimate knowledge of the market can help reveal important information about neighbouring estates and their activities. As the estate market activity has picked up this year we have found that there is a healthy appetite to own a Scottish estate and buyers from all over the world remain committed to finding that special part of Scotland they can call home.

Scott Hall and Anna Henderson are buying agents with CKD Galbraith’s Premium Property department. scott.hall@ckdgalbraith.co.uk 0131 240 6975

anna.henderson@ckdgalbraith.co.uk 0131 240 6988

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Making the best of the best-laid schemes

Scottish farmland continues to be an attractive purchase. Simon Brown explains.

Lucie Howatson reflects on the early stages of the new AgriEnvironment Climate Scheme. With the second round of the new AgriEnvironment Climate Scheme (AECS) applications under our belts, now is a good time to reflect on the early stages of the new scheme. While 2015 CAP reform brought huge funding changes in the agricultural sector, a strong parallel exists between the previous SRDP scheme and the new AECS, especially when focusing on environmental prescriptions. As a firm, we have seen a sharp uptake in the number of environmental applications this year compared with last year. Many clients decided to hold off from applying under the scheme until the greening requirements for the new Basic Payment Scheme were fully understood and implemented. Environmental Focus Areas, which to many farmers are an integral part of meeting their greening requirements, have the potential to conflict with AECS prescriptions, and issues of doublefunding are to be avoided at all costs. Current low commodity prices have contributed to making the AECS more appealing. The scheme also has the potential to make poorer areas of farmland more productive. Payments under the scheme can be converted into quite good annual returns while at the same time enhancing the amenity value of the land. This can often be achieved with little change to current management, especially where similar prescriptions were managed under the previous scheme. To date, meeting the new eligibility criteria, digesting changing guidance, the new online application system and the initial delay in approval of the first round of applications have all brought their own challenges. We anticipate that the 2016 round of applications will be competitive, with those who held off in the first year having had time to put together thoughtful and detailed applications, which will warrant serious consideration. We look forward to seeing the outcome of these later in the year. Lucie Howatson is a Land Agent based at CKD Galbraith’s Perth office. lucie.howatson@ckdgalbraith.co.uk 01738 456085

Why the grass can be greener on this side Demand for Scottish farmland remains strong and continues to be better value per acre than in other parts of the UK according to the latest market survey from the Royal Institution of Chartered Surveyors and the Royal Agricultural University. The average UK price per acre during the final six months of 2015 was £10,064, a record high for 11 months in a row. Scottish land prices have grown steadily over recent years, but it remains significantly cheaper to buy farm land here at an average of just £3,625 per acre. It should also be remembered that a broader range of land types have been offered for sale in Scotland. So what is the story behind these figures? Despite the uncertainty caused by the Referendum and CAP

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In general, stability is the watchword in farmland values. reform, in 2014 English buyers turned their attention to farmland north of the border, where good quality pasture land was at least 64% cheaper than in the rest of the UK. In the past year, fewer farms were sold to English buyers, and this could have been down to a number of factors – not least the sharp downturn in the value of commodities and the resultant lack of confidence in the industry. We are all acutely aware of the angst over the Basic Payment Scheme but the recent policy announcement by the Scottish Government to pay part of the Basic Payment Scheme and Less Favoured Support Scheme from government funds has helped to ease some of the financial pressure which

Page 12 | Rural Matters Summer 2016 | www.ckdgalbraith.co.uk | Twitter: @CKDGRural

has been felt in the industry during the early part of 2016. However, cash flows are still under significant pressure in most agricultural sectors. The fact that farmland prices have continued to hold up well in most areas emphasises the fact that they do not generally follow the trend of the commodity prices, reflecting the attraction of farmland as a stable investment. We have seen a number of headline sales in some of the prime farming regions of the East Coast such as Angus but, in general, stability is the watchword in farmland values. Farmland in Scotland is still available at a discount to the values in England, but potential purchasers from south of the border have been met with strong local and regional competition for farms as successful businesses have continued to expand. At the lower end of the land ladder, there has been renewed interest in the purchase of land for planting trees which has been stimulated by better grants being made available for commercial woodland creation. The result has been a marked increase in the value of some types of hill and rough grazing land which is suitable for planting. As a firm, we have marketed more than 132 farms in excess of 26,000 acres of agricultural land with a value of over £115 million across Scotland in the past 12 months. Notwithstanding the challenges that farming encounters, the purchase of land in Scotland remains attractive. Simon Brown heads CKD Galbraith’s farm sales team and specialises in the sale, purchase and valuation of farms. simon.brown@ckdgalbraith.co.uk 07920 204096

Hitting home

Another round of residential regulations Mike Thompson reports on the latest legislative changes that have an impact on landlords.

Rural landlords letting residential property in Scotland have no doubt become used to the myriad of legislative changes affecting the sector in recent years, but perhaps the most landmark change will come into force through the Private Housing (Tenancies) (Scotland) Act. The new law, passed by the Scottish Parliament in mid-March and due to come into effect in late 2017, will see a significant shift in how tenancies are structured, with the previous six-month initial tenancy period replaced by an indefinite ‘rolling contract’ agreed between landlord and tenant. If a tenant wishes to leave a property, he or she will now only have to provide 28 days’ notice to the landlord at any point during the tenancy – even within the first few months. The legislation also sees the removal of the ‘no-fault ground’ route to repossession of a property by a landlord. If a landlord wishes to take back possession of a property – against the wishes of a tenant – then the landlord will need to apply to a new Housing and Property Tribunal system and make his or her case to evict based on one or more of 17 stipulated grounds.

The EICR must be carried out by a person who is a member of the NICEIC or SELECT or an employee of a firm registered with either regulatory body.

Fire detection Smoke alarms were previously required in every circulation space of the dwelling i.e. hallways on each floor. The regulations now require smoke/heat alarms to be located in the main living area of the house, and a heat alarm in the kitchen. Alarms need to be hard wired and interlinked.

In addition to the Act as outlined above the following areas have been subject to further regulation:

HSE have clarified that residential landlords are legally bound to ensure that the risk of exposure of Legionella to tenants is properly controlled and managed. The first step is to have a risk assessment carried out on the property by a competent person. This will highlight areas which require action, such as periodic flushing of little used taps, cleaning shower heads, regulating water temperatures or removing any redundant pipework.

Carbon monoxide detection Carbon monoxide alarms are now required in every space where a combustion appliance is situated. This can include a gas cooker, oil boiler, log/ multi-fuel stove or an open fire and also where a flue pipe passes through a bedroom. CO alarms can be battery operated so long as they are sealed long-life units.

Included in the new Act are new powers on the setting of rent, including an opportunity for local authorities to implement rent caps in areas where there are deemed to be excessive increases in local markets. The Scottish Government has said the legislation was necessary to rebalance the relationship between landlords and tenants to allow tenants to feel more secure in their homes. But for landlords across the country – especially in rural areas – there may well be a feeling that the legislation does little to protect their interests and therefore even greater attention will have to be paid to the way in which their properties are let.

Legionella

Electrical testing There are now clear regulations on the requirement to have fixed electrical wiring tested at regular intervals. An Electrical Installation Condition Report (EICR) must now be carried out every five years. Since December 1 2015 all new tenancies have needed a copy of the current EICR handed over with the tenant information pack, and from December 1 this year all tenancies will be required by law to have a current EICR (i.e. not less than five years old).

CDM New Construction Design and Management (CDM) regulations apply to certain works carried out on let residential properties including boiler replacement, installing wood burners, painting, carpet fitting, electrical work and any construction work. Under the regulations an appropriate Construction Phase Plan (CPP) must be drawn up to cover various health and safety issues. The regulations are more onerous where more than one contractor is involved. These changes mean residential letting is no longer for the faint-hearted, but the nature of the Scottish property market means there is a continuing demand for properties to rent. Mike Thompson is mainly involved in estate management throughout East Lothian, the Borders and Lanarkshire. mike.thompson@ckdgalbraith.co.uk 01896 754842

www.ckdgalbraith.co.uk | Twitter: @CKDGRural | Rural Matters Summer 2016 | Page 13

2016 Event Calendar We would be delighted to see you on our stand at any of the following events.

An investment in our future farming leaders

May Beef Expo Agricultural Business Centre, Bakewell, Derbyshire May 20 Fife Show Kinloss, Cupar May 21 June

As the proud sponsor of the inaugural ‘Cultivating Leaders’ programme, run by the Scottish Association of Young Farmers Clubs (SAYFC), CKD Galbraith asked three of Scotland’s future farmers what they had learnt over the course of the programme. Cultivating Leaders is a business programme designed to support some of Scotland’s future farmers and leaders by helping them to develop leadership skills, providing training in running

a business and fostering industry contacts. Ten SAYFC members, all aged between 18 and 29, completed the six-month programme. Following the success of the first Cultivating Leaders programme, SAYFC members are being sought for the next course starting in October. CKD Galbraith is continuing its sponsorship and deadline for applications is Friday July 8. For more information, please go to www.sayfc.org/business-skills.

Johnny Hamilton, 29, from Bathgate

Royal Highland Show Ingliston June 23 to 26

Johnny’s decision to take part in the course was extremely timely as he was trying to formulate a plan for his future and that of the family farm: “We were given a presentation called ‘The Farming Ladder’ by Michael Blanche, a representative of the Nuffield Farming Scholarship. The presentation made me completely reassess my motivations and goals in farming. My growth plan was extremely ambitious, however the course made me evaluate realistic goals for our business model, and my focus is now on operational excellence and doing the very best with our resources.”

July

Gillian McMillan, 26, from Bute

GWCT Game Fair Scone, Perthshire July 1 to 3 Border Union Show Kelso July 29 and 30 August Moy Game Fair August 5 and 6 October Stirling Bull Sales United Auctions, Stirling Agricultural Centre, Stirling October 16 to 18 November Agriscot Highland Hall at The Royal Highland Centre, Ingliston November 16

Gillian urges more young women in the sector to take up the opportunity and apply for the next Cultivating Leaders course. She said: “The programme not only provided an abundance of information, practical skills and business contacts but also I learnt that personal attitude, working to your strengths and good communication skills can all have a huge impact on the success of your career. “Having completed the course I’ve changed career paths. I was a milk recorder, but now I’m pursuing a job in cattle scanning, which before the course was merely an idea. The Cultivating Leaders programme provided me with a great amount of support and advice when it came to furthering my career progression in a traditionally male-dominated industry.”

Douglas Fleming, 24, from Reston Douglas works full time on the family farm in the Scottish Borders. He said: “Having left university to pursue a career in the farming sector I realised that despite coming from a farming family there were gaps in my agricultural business knowledge. “Before taking part in Cultivating Leaders I was feeling pretty pessimistic about the future of the farming industry given the recent commodity prices and increasing input costs. However, the programme broadened my thinking and allowed me to glean vital knowledge from industry experts. It’s been an invaluable experience.”

Page 14 | Rural Matters Summer 2016 | www.ckdgalbraith.co.uk | Twitter: @CKDGRural

Renewable energy relief changes bring surprise and disappointment Renewable energy operators are beginning to receive rate demands, but, as Calum Innes explains, there may be a glimmer of hope for hydro electricity operators. Owners of hydro electricity generating schemes and other renewable energy installations are likely to have received an unwelcome, and perhaps unexpected, demand for business rates from their local authority. Earlier this year, the Scottish Government announced its intention to reform its Renewable Energy Relief Scheme from April 1, 2016 by restricting relief to schemes incorporating community ownership. The scheme previously provided for 100% relief from business rates for rateable values up to £145,000 with a sliding scale of relief for larger subjects and consequently this was a significant benefit to many renewable energy operators. The removal or revision of a fiscal relief does not constitute a Material Change in Circumstances (MCC) that would allow a valid appeal to be made to the assessor against the valuation, so there is little that can be done to seek review of the valuation upon which the rates assessment is calculated. There are very limited circumstances where a valid appeal against an entry in the roll can be made. The principal circumstances giving rise to a valid appeal are within six months of acquiring an interest in a property (either as proprietor or tenant), or where the valuation in the roll has been altered, or where there is a valid MCC. The other opportunity is following a general revaluation – and it should be noted that a revaluation is scheduled to take effect from April 2017. Rating appeals in respect of the previous revaluation are largely dealt with. However, there is a live case relating to the valuation of small hydro schemes.

The principles underlying the case are complex but in summary a number of proprietors of runof-river hydro schemes challenged the valuation methodology adopted by the assessor before the Valuation Appeal Committee for Tayside, who found in their favour. The assessor appealed against this decision to the Lands Valuation Appeal Court on the basis that the committee had erred in law in their interpretation of the statutory order relating to the valuation for rating (plant and machinery) and the court found in favour of the assessor, quashed the committee’s valuations and remitted the matter back to them for further consideration. Notwithstanding the earlier comments in respect of the ability of a ratepayer to lodge a valid appeal at this stage of the revaluation process, there may be a glimmer of hope for renewable operators within the hydro sector. If the Valuation Appeal Committee – having reviewed the court’s judgement and considered the arguments presented by the parties – continues to find in favour of the ratepayers, that would be a relevant decision allowing other ratepayers to appeal on the basis of an MCC, at least within Tayside.

“

There is little that can be done to seek review of the valuation upon which the rates assessment is calculated.

Of course, the door would be open to allow the assessor to lodge a further appeal to the Lands Valuation Appeal Court if he considers the committee has erred in law. It seems unlikely at this stage that a final decision on this matter will be forthcoming for some time. Calum Innes, head of CKD Galbraith’s energy team, acted as expert witness on behalf of the ratepayers at this appeal. calum.innes@ckdgalbraith.co.uk 01738 456075

www.ckdgalbraith.co.uk | Twitter: @CKDGRural | Rural Matters Summer 2016 | Page 15

It’s not the price – it’s the value Alistair Christie explains the importance of sound property valuations.

Fish farming is still very much in the shadow of traditional farming, but it is an industry with huge potential. Anna Zahedi considers the merits of starting a fish farm.

It was Lord Birsay, chairman of the Scottish Land Court in the 1960s and 1970s, who observed shrewdly that valuation is not a precise science. But how do you ensure that valuation is as precise as it can be? The answer, I suggest, lies in experience and expertise. Valuations of rural property, such as farms, estates and country houses, can be required for a variety of reasons, such as secured lending, inheritance tax, capital gains tax or other taxation purposes, probate, separations of partnerships as well as pre-sale assessments, development appraisals or even to aid purchase negotiations. Valuations for secured lending purposes are viewed as insurance policies by lenders to provide them with comfort to lend to a loan

“

The valuers work hand in hand with the farm sales team.

to value ratio against the property. So it is absolutely vital that valuations are carried out accurately at the date of valuation. CKD Galbraith has invested substantially in ensuring that the valuation work undertaken by the firm and carried out by our RICS Registered Valuers from our offices across Scotland is accurate and up-to-date. Through the development of a bespoke Geographical Information System-based database that collates sales information for analysis from across the country, we can ensure that the most relevant evidence is used for valuation. The valuers work hand in hand with the farm sales team and share information, market trends and commentary, all of which contribute to the accurate valuation of properties. CKD Galbraith’s valuers are panel members of all high street banks in Scotland, some of which use Central Valuation Network (CVN) to appoint valuers on their behalf. It should always be borne in mind that a valuation is an opinion of market value at a single point in time and depends on the expert knowledge of the valuer and their interpretation of the available information. Alistair Christie undertakes rural valuations and is part of the AMC finance team in our Stirling office. alistair.christie@ckdgalbraith.co.uk 01786 435047

Time For the conventional farmer, whether on Grade 1 Lincolnshire fenland or Less Favoured hillground on Harris, their main objective will be to break even and, if possible, make a profit. But rising costs of inputs and sundries, coupled with depressed grain and livestock prices, mean farmers are increasingly looking towards diversifying their income streams by adding photovoltaics with sheep grazing underneath and yurts ready to accommodate eager glampers to the usual livestock and arable mix. Of all the innovative ways to diversify a farmer’s income, aquaculture does not often – at least in the UK – enter into the mix, whether through a dislike of the scaly and slimy or a feeling that running a fish farm is too far removed from ‘dry land’ farming. We live on an island where the precipitation is considerable and the climate temperate, yet few landowners feel drawn to invest in aquaculture. For those who do, the choice of marine or terrestrial based farming is usually based on geographical location. In coastal waters, fish, crustacean and mollusc farming can be particularly challenging due to the unpredictable nature of external environmental factors such as stormy weather, predators and high disease burden, not to

Page 16 | Rural Matters Summer 2016 | www.ckdgalbraith.co.uk | Twitter: @CKDGRural

mention the additional costs of building suitable infrastructure and obtaining the necessary permissions from the Crown Estate and local governments. Even established players at the top of the aquaculture industry are not immune to these problems and have good reason to be cautious. Large-scale intensive farming raises the stakes: recent algal blooms in Chile have caused the loss of 23 million fish – equating to 100,000 tonnes – with a total cost in lost production estimated at $800 million. For terrestrial-based aquaculture, mitigating against risk is easier. Greater control of the system allows water quality to be monitored, preventing fluctuations, while predators are of little concern. However once a pathogen is present disease spreads quickly and at worst can lead to the loss of the entire stock. Many ‘traditional’ farmers have enthusiastically taken up GPS tractors, touch-screen precision sprayers, cow collars and drones, but most will tell you there is no substitute for walking the fields and regularly checking on livestock. Aquaculture technology is light years ahead and has become such an integral part of the production process that the chance of losing a whole stock is slight.

to swim with the current? The entire life cycle of a salmon from egg to harvest can be achieved in a completely closed environment using recirculation techniques, where the water is constantly being filtered, purified and re-oxygenated, to provide optimal conditions for growth while eliminating the need for pesticides. Sensors which respond to cues exhibited by the salmon but not immediately visible to the naked eye, no matter how well trained, tell the system to adjust water temperature or salinity and even mimic the lengthening days to trigger the photochemical transition from parr to smolt. This technology, deployed to minimise the risk of human error, also plays a fundamental part in traceability for the consumer. A barcode or QR code on fish packaging will tell you the origin of the fish, the number of the Pounds of feed needed to produce 1lb of body mass Exact amount depends on quality of feed, health and age of animal, environment and other factors. = 1lb of feed

6.8

2.9

1.7

Cattle

Pigs

Broiler chickens

Hereford ratio. Other breeds may vary

1.1 Fish

Salmon ratio. Other breeds slightly higher

pen it was reared in, when it was harvested and processed and often plenty of other nonmandatory information.

food, floating pods for salmon production or controlling sea lice using cleaner wrasse, a natural predator.

The benefits for the big players who can afford to invest are clear, but what is the case for smaller farmers and landowners trading in their Simmental and silage in favour of salmon? The risks are high but the rewards great, and the prospects for the smaller-scale farmer are perhaps not so murky.

How can landowners – particularly those without access to coastal waters, large ponds or empty reservoirs – fit into the picture? At CKD Galbraith we have seen increased demand from

First, there is a clear, present and growing demand. Red meat consumption is decreasing and fish consumption steadily rising – and almost half the world’s population already relies on fish as a primary source of protein. Second, as overfishing causes wild fish stocks to dwindle and food security becomes more important to governments, sustainable production has a major role to play in feeding the world’s evergrowing population. It takes 6.8lb of feed to produce 1lb of body mass in Hereford cattle; for salmon the ratio is almost one-to-one, so input costs can be reduced by choosing a more ‘energy-efficient’ animal. The aquaculture industry is based on clean technology, sustainability and novel techniques, such as carbon capture to produce a sustainable supply of fish

“

Sustainable production has a major role to play in feeding the world’s ever-growing population. aquaculture firms for sites for land-based projects such as recirculation units and research laboratories, and for access to fresh water for flushing techniques used to remove sea lice. Brownfield sites and old commercial business parks fit the bill for many of these projects, with firms often willing to replace and renew infrastructure at little or no cost to the owner. Now could be the time to think about swimming with the current.

Anna Zahedi is a rural graduate based in CKD Galbraith’s Edinburgh office. anna.zahedi@ckdgalbraith.co.uk 0131 240 2286

www.ckdgalbraith.co.uk | Twitter: @CKDGRural | Rural Matters Summer 2016 | Page 17

Do you know exactly what Charlotte Maclean outlines the benefits of volunteering to register land – sooner rather than later. Most landowners would not consider the voluntary registration of their land as top of their list of priorities. For many, it will appear to be a costly exercise for little benefit. I would, however, suggest that the question should not be “can I afford voluntary registration?”, but rather “can I afford not to voluntarily register my property?” While a cost/ benefit analysis is clearly necessary, there is growing evidence that those who commit to registration at an early stage stand to benefit later. As a firm, we have been involved in numerous voluntary registrations, from small plots and road verges, to whole farms and estates. This experience has given us a useful insight to the process – and the potential pitfalls of not registering at an early stage. We recently encountered a situation whilst concluding a sale of a farm where the main access track was included on both our client’s title and their neighbour’s title. This was due to an historic error when the two farms were split from the original estate title, some 30 years earlier. As the neighbour had voluntarily registered their title first, their claim to title of the access was deemed to be more secure. Although this could have been disputed by our client, which might have been successful, the purchaser wanted a quick conclusion and clean purchase. Therefore, our client agreed to pay a substantial sum demanded by the neighbour for the access, rather than risk losing the purchaser. This may have been avoided had our client voluntarily registered their title first. We also worked with an estate client with an historic but clear title, whose ownership borders a village. His title includes a five metre strip along the village edge. Most houses along the

the SASINE REGISTER The General Register of Sasines, which is also known as the Sasine Register, dates back to 1617 and is the oldest land register in the world. Its name comes from the old French word ‘seizer’, which means ‘to take’. The Sasine Register is a chronological list of land deeds, which contain written descriptions of properties. It is gradually being replaced by the Land Register.

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A modern land registered title is harder to dispute and affords more certainty to the holder.

village have extended their gardens across the strip for additional garden space, but without consent from the estate as the rightful owner of this land. The estate is investigating voluntary registration, with a view to challenging these proprietors to either restore the ground to the estate, or purchase the area they have taken. By holding a modern registered title, the estate’s claim to this land will be secured, and they will be in a stronger position to approach the proprietors who have taken the land. The estate’s intention is that the income generated from these transactions would help towards the cost of the registration process for the remainder of the estate. If you are a landowner considering a sale, a transfer to the next generation, new standard

Page 18 | Rural Matters Summer 2016 | www.ckdgalbraith.co.uk | Twitter: @CKDGRural

you own? the LAND REGISTER This is a map-based register established by the Land Registration (Scotland) Act 1979. It is now in operation throughout the whole of Scotland and will eventually replace the Sasine Register. It is a register of the title rather than a register of deeds. When a property is registered, a Title Sheet is created and guaranteed by the estate.

A planning process which we began with a private client in 1990 has paid off 26 years later.

Once a decision has been taken to progress with voluntary registration, there are various options available to landowners, depending on the clarity and complexity of title held. As a firm, we have invested in significant technical mapping resources and worked with Registers of Scotland to develop and improve protocol for effectively displaying mapped rights.

charlotte.maclean@ckdgalbraith.co.uk 01786 434603

Playing the long game pays off A generation-spanning development project takes stamina and vision, says Chris Addison-Scott.

security, or are aware of potential title discrepancies or have an ancient title, voluntary registration is something to be given serious consideration.

Charlotte Maclean specialises in rural estate management.

The site at Houston: work will start this summer.

The residential development of four acres of greenfield land at Houston, Renfrewshire, is the result of a lengthy process which proves that continuity of management is key in playing the long game. Back in 1990, Elderslie Estates, owners of the Newton Drive Tennis Courts in Elderslie sold the land with the agreement of the tennis club to Wimpey Homes. The club and estate then jointly developed a state of-theart facility at the nearby village of Houston. This became the Strathgryffe Tennis, Squash and Fitness Club. We chose this area specifically to be near an existing community lacking such facilities on a level greenfield site. With careful tree planting the development gave a long-term opportunity for further development by providing a new hard edge to the village. Once the club was developed, the members bought the site, merged with another local club and provided further covered courts with LTA assistance, which would not have been available had they remained as tenants. The estate had been promoting the potential development land through various house builders over the years. In 2012 they entered into an option agreement with Stewart Milne Homes, who successfully argued that the site be allocated in the Renfrewshire Local Development Plan. The

first phase of four acres has now received full planning permission for 32 detached houses, and work will start on site this summer. In 2000 we had advised the owners to acquire a house and garden in order to facilitate and secure site access and avoid third party rights. This has proved to be essential to avoid the development being held to ransom. Other issues, such as dealing with rights of servitude and drainage, were also secured with minimum costs because we dealt with them in advance. Price negotiations and resolving abnormal costs have taken almost a year but have been agreed amicably with the house builder. There have been no planning contributions or affordable housing provision. The key ingredients of this generation-spanning project have been to: • Identify opportunities early • Engage with the local community • Undertake enabling works like tree planting • Secure third-party rights • Promote sites through wellrespected house builders. Delivering this successful project has taken stamina, commitment and vision, and we look forward to seeing this new community thrive. Chris Addison-Scott has extensive experience in negotiating land deals with developers. chris.addison-scott@ ckdgalbraith.co.uk 01786 434601

www.ckdgalbraith.co.uk | Twitter: @CKDGRural | Rural Matters Summer 2016 | Page 19

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