Fisher German Magazine issue 8 summer 2012

www.fishergerman.co.uk

Summer 2012 | Issue 08

fisher german magazine Waste not want not

Viridor’s path to recycling success

Does the CAP fit?

How the latest EU reforms impact UK farmers

Farm friendly renewables Cut energy bills and earn income

Picture perfect Period properties provide the ideal setting for film and television productions and photo shoots

Welcome

This, the eighth issue, brings us into the fifth year of Fisher German magazine, and what a difficult few years it has been for businesses small, medium and large. To plot a safe path through the ongoing uncertainties, we recently introduced a leadership development programme for our senior team. This undertaking allows us to take stock of our position in the market and our vision for the coming years.

Our turnover continues to grow, enabling us to double our numbers of staff and offices. While we are very fortunate to be in this position, much of our success can be attributed to our existing clients and our entry into niche markets. We never for a moment forget that our clients are what keeps our business going: client service is a key area in our leadership development programme.

Indeed, some of our clients have been with us longer than our most senior partners, sometimes building relationships with different generations of chartered surveyors from the same family. We are very proud of this legacy and never take it for granted. Our surveyors fully understand such tradition but we also ensure our clients consider new ways of doing things. Our specialist market expertise is crucial when offering the best advice.

More challenges lie ahead in what will be a difficult year but, with the support of our clients and our dedicated team of professionals, we will deliver another year of business growth.

No wasted opportunities Viridor’s waste management and renewable energy success story

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Mid-life crisis for the CAP?

AD: FiT for purpose

The latest proposed CAP reforms are proving unpopular in the UK

More UK farmers are seeing the benefits of investing in AD plants

20 Property hotspots

Taxing situation

Fisher German’s property preview is a success with buyers and sellers

Farming families warned of consequences of failing to deal with business affairs

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News & views

The jewel in the crown

New accreditation scheme from NatWest and RBS; NFU appoints Fisher German

The stunning Diamond Wood celebrates the Queen’s Diamond Jubilee

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Taking the high road

Picture perfect

Clare Phillipson: from work experience to being the firm’s first female partner

Period properties provide the ideal setting for film and television productions

11 UK farmers’ fears for EU CAP fallout

12 Off kilter clients Some properties come with features that surprise both clients and surveyors

EU reforms are expected to hit Britain’s farmers hardest

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Behind the mast

A fine estate of affairs

Renting out your property to accommodate a telecom mast can be lucrative

A new business strategy has revitalised the fortunes of Renishaw Hall

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Sector insight

Sector directory

Fisher German’s sector heads forecast market conditions for 2012

Contact details for Fisher German’s 14 national offices

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FRONT COVER: BBC Photo Library

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NatWest and RBS have launched a £50m project fund for renewable energy

Agricultural sector already reaping benefits of NatWest/RBS scheme

NatWest and RBS have launched a new accreditation scheme that provides the banks’ agriculture managers with formal qualifications and a better understanding of their clients

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atWest and the Royal Bank of Scotland (RBS) have set up an innovative scheme to professionalise banking for agriculture and renewable energy. The banks’ specialist agricultural managers across the UK have undertaken new formal qualifications to help clients deal with the challenges and opportunities that farming faces. The 138 managers are expanding their knowledge of EU policy, tax and the key sectors that make up the UK’s agricultural market, to help them get closer to the businesses they support.

Ian Burrow, head of agriculture and renewable energy for NatWest and RBS, says that the Certificate in Agricultural Finance will help managers better understand and support both their customers and the industry. It has been accredited by the Chartered Institute of Bankers and endorsed by the National Farmers Union (NFU) and NFU in Scotland.

In addition to the Certificate in

Agricultural Finance, Mark Newton, head of renewable energy at Fisher German, has trained more than 300 NatWest and RBS managers and their support teams in renewable energy, following the launch of a £50m renewable energy fund. Ian has

Mark’s work with our managers is helping to take the stresses and strains away from our agricultural clients” Ian Burrow, NatWest and RBS worked with Mark for more than seven years and says his help has been invaluable. “Fisher German is one of our trusted technical advisers who we’re working with on renewable energy, and provides unbiased and independent analysis. Mark’s work with our managers is helping to take some of the stresses and strains away from our agricultural clients.

“A great insight into the sector”

Saffron Garratt, senior relationship manager at NatWest, says Mark’s advice was key to her gaining accreditation in renewable energy. “He continues to provide invaluable support. I recently spent two days working at the Fisher German office, which gave me a great insight into the work they do and allowed me to better understand the wider agricultural sector.” Saffron also works with other Fisher German team members on a wide range of renewable energy projects.

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“We want to fully support our clients and the accreditation is helping to give them greater peace of mind. We have chosen to work with Fisher German because of their industry experience and they have helped us develop a first class

training programme for our renewable energy specialists.”

The managers will now take part in a programme of continuous professional development.

Ian adds: “I believe the Certificate in Agricultural Finance is the most comprehensive programme of its kind in UK banking and underlines how we value our agricultural clients. It is an important step for us in our aim to become the bank of choice for agriculture and renewable energy.”

For further information contact Ian Burrow on 01246 223593 or Mark Newton on 01858 411215 or email mark.newton@fishergerman.co.uk

North west profile boosted by merger with Denton Clark New partnership will strengthen presence in the north west of England

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isher German’s merger with Chesterbased chartered surveyors Denton Clark has been welcomed as a fitting partnership. The estate agency and rural consultancy specialist was set up in 1947 and has acted as land agent to many of Cheshire’s and the north west’s leading landowners. It is well known for the sale of rural property, including farms and land. The merger sees Edward Clark and Julian Mellis become partners. Edward Clark comments: “The merger will expand the estate agency and rural consultancy aspects of the business, as Fisher German also offers inhouse planning and construction services,

Stuart Flint (centre) head of property agency sector, with new partners Edward Clark (left) and Julian Mellis (right)

We are joining forces with a well-respected firm of chartered surveyors who have an excellent knowledge of the Cheshire area” and has a large, experienced renewable energy team.”

Henry Sale, Fisher German joint managing partner, adds: “This is a fantastic step for both firms. We are joining forces with a well-respected firm with an excellent knowledge of the Cheshire area.”

For further information contact Henry Sale on 01858 411217 or email henry.sale@fishergerman.co.uk

In the greater scheme

Graduate recruitment programme attracts the best people to take the business forward

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isher German’s belief that its success depends on its people led the firm to establish a formal graduate recruitment scheme 10 years ago. Recruits have an outstanding 96 per cent qualification rate as RICS chartered surveyors and go on to enjoy successful careers at the firm. Clare Phillipson, partner, explains: “We were finding it difficult to recruit quality chartered surveyors, so we decided to grow our own. This coincided with RICS strengthening the Assessment of Professional Competence (APC) training process with a more rigorous and structured programme.”

The scheme is highly oversubscribed,

with 120 applications for the eight places available each year. “We present to three universities: Harper Adams University College, the Royal Agricultural College and Reading University,” says Clare, “but don’t rule out applications from RICS accredited postgraduate courses at other universities. We employ a fantastic calibre of graduate. They bring technical skills and fresh impetus and ideas to the firm.”

As the fantastic APC pass rate illustrates, the graduates receive expert professional training. Each recruit is assigned a mentor for the duration of the training and they have access to additional counselling and support whenever necessary.

Our graduates bring technical skills and fresh impetus and ideas to the firm”

“Excellent APC training” After her degree, Amy McSorley (pictured above) enrolled on a RICS accredited MSc in rural land and business management at Reading University.

“I had to decide where to complete my APC. Fisher German stood out as a market leader, offering a variety of work and a focus on great practical experience together with training support.”

Since joining in 2007, Amy has been working in utilities and infrastructure. “I deal with major clients on projects nationwide. My APC training experience was excellent, and networking and outside training are strongly encouraged.” Amy has recently been promoted to associate.

For further information contact Clare Phillipson on 01530 410813 or email clare.phillipson@fishergerman.co.uk

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news&views From left to right, Fisher German’s Clare Phillipson and Andrew Jackson, with PelicanCorp’s Duane Rodgers and Marcus Edwards

Merger creates Great Britain’s most comprehensive ‘safe working’ portal LinesearchbeforeUdig aims to enhance health and safety for all site personnel and the general public

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he health and safety of site works in Great Britain is to receive a massive boost through the creation of LinesearchbeforeUdig, the free to use online enquiry portal for utility infrastructure information from Fisher German, owner of Linesearch.org, and PelicanCorp, owner of beforeUdig.

LinesearchbeforeUdig is made up of members whose pipes, cables and wires run above and below ground. The merger is expected to generate more than one million annual enquiries covering some 200,000km of existing infrastructure.

Anyone who wishes to check for utility infrastructure in the immediate area of planned works can access the enquiry portal at any time and receive an instant response. Searches for electricity, gas, oil and telecom assets can be undertaken.

Failure to make advance enquiries can lead to disastrous consequences,

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from expensive damage to infrastructure to, in the worst cases, serious injuries or even fatalities.

LinesearchbeforeUdig can help to prevent these incidents.

Andrew Jackson of Fisher German and Duane Rodgers of PelicanCorp have issued the following joint statement: “Our vision is that the LinesearchbeforeUdig enquiry service becomes part of standard practice for anyone planning or performing on-site works. Enhancing health and safety for all site personnel and the general public, coupled with maintaining the integrity of members’ assets, are the key drivers for our members’ business. Our commitment to LinesearchbeforeUdig will deliver a single point of contact for all enquiries.”

To find out more visit www.LinesearchbeforeUdig.co.uk

Failure to make enquiries before undertaking work can lead to disastrous consequences”

For further information contact Andrew Jackson on 01530 410812 or email andrew.jackson@fishergerman.co.uk

NFU’s new service will advise farmers on energy opportunities The NFU’s Farm Energy Service should help boost profitability and reduce environmental impact

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armers should be able to realise an increase in profitability and a reduction in their environmental impact, thanks to the recent launch of the NFU’s Farm Energy Service. After a thorough tender process, the NFU chose Fisher German as renewable energy advisers and Farm Energy as energy audit advisers. Independent renewable energy guidance will be offered on a range of often complex issues including solar, biomass, hydropower, anaerobic digestion, single wind turbines and wind farms. The scheme will also help farmers concerned about legal and planning issues, as well as finance and insurance.

Growing interest in renewables NFU president, Peter Kendall, says that feed-in-tariffs and renewable heat incentive schemes have provoked great interest in renewable energy, which prompted the NFU to reassess the services it provides to members.

“The NFU’s recent survey of members showed that nearly one in three is involved in some kind of renewable energy activity, and 20 per cent are generating clean electricity from natural resources like the sun and wind,” he explains.

Comprehensive service “Our own government ministers are now realising the enormous potential of land-based renewables, so this is very much the right time for the NFU to provide a comprehensive energy

Mark Newton (right) of Fisher German with NFU president Peter Kendall (centre) and Chris Plackett (left), commercial director of Farm Energy

service. Farmers and growers can manage their use and production of energy to support farm profitability while impacting less on the environment,” adds Peter.

The service includes a free initial desktop survey that will be delivered by trusted partners of the NFU who already work closely with farmers. It can help farmers at any stage of a project – from planning advice to recommending a supplier.

We will be able to steer farmers towards the most financially rewarding opportunities”

Fisher German’s advisers will be on call to help with a number of practical problems, such as which type of renewable energy technology will suit a farm best and how farmers can go about finding a trustworthy supplier.

Mark Newton, renewable energy partner for the firm, says: “I am delighted that the NFU chose us out of a full tender process and that we will be able to steer farmers towards the most financially rewarding opportunities and help them to sidestep time-consuming or costly setbacks.”

For further information contact Mark Newton on 01858 411215 or email mark.newton@fishergerman.co.uk

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news&views

Developing a local solution The Localism Act has been granted Royal Assent, giving residents more influence over developmental issues

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esidents will begin to enjoy a greater say in what is being built in their area thanks to the passage of the Localism Act 2011, which paves the way for a transformation of the UK’s planning system.

While the majority of the Act is likely to be implemented in early April 2012, certain parts of it, including Section 116 on neighbourhood planning, came into effect in 2011. Section 116 allows residents to have more influence over what is being built in their area and encourages developers and the local community to work together to reach a mutually acceptable outcome. It is hoped that this will simplify the planning process and relax certain aspects of

planning laws.

Kay Davies, head of planning at Fisher German, says: “These changes are positive for local communities, enabling neighbourhoods to work together and create developments that are actually wanted and needed in their area.

“The changes will not be immediate, as developers and communities will need time to find their way around the new legislation and use it in the most efficient manner.

“We anticipate a number of ’test’ cases emerging which will give a better insight as to how localism will work going forwards.

“The Localism Act should enable change

Local councils and planning departments will take a more auxiliary role”

HS2 scheme gets green light Despite strong opposition, the £33bn High Speed 2 (HS2) scheme linking London and Birmingham has been given the go-ahead by the government

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he first phase of HS2 between London and Birmingham runs through Lichfield, Leamington Spa, Warwick, Brackley, Aylesbury, Wendover and Amersham on its way into central London, passing many villages and large tracts of farmland. HS2 is expected to be running by 2026 and will later extend to northern England. Stephen Rutledge, Fisher German partner, says that owners and occupants affected by the route should consult a professional land agent or surveyor about their options as soon as possible. Stephen

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explains: “Even though the London to Birmingham line is not planned to open until 2026, its effects can be felt already.

Properties that are on or close to the proposed route are struggling to sell as

buyers are wary of the disturbance likely to be caused by its construction and operation.”

Although properties located on or close to the route are already ‘blighted’

Properties on or close to the proposed route are struggling to sell as buyers are wary of likely disturbance”

to happen more quickly. Councils and planning departments will take a more auxiliary role and, instead, residents will make more of the decisions.

“There is, however, concern that increased public involvement in the planning process could lead to delays in the determination of planning applications and increased nimbyism.”

The almost parallel release of the National Planning Policy Framework sees further changes to the planning system, but echoes the local level of decision making with the presumption in favour of development. This automatic ‘Yes’ to new development could present conflict with the localism agenda, although savvy landowners should take the positive angles from both the Act and the NPPF and work with the community to maximise their land values.

For further information contact Kay Davies on 01530 410824 or email kay.davies@fishergerman.co.uk

by the scheme, few are likely to be purchased by the government, other than those directly in the path of the railway. It is anticipated that the existing Exceptional Hardship Scheme will be succeeded by a new scheme in autumn 2012, when a new package of compensation measures is likely to be announced.

“Businesses should ensure that they have the right ownership structure in place so that the impact of HS2 is minimised and the compensation available is maximised,” Stephen says.

“It might be advisable for property owners to crystallise any latent planning or development potential before the route is safeguarded later in 2012 to add value to their property and maximise the compensation available.”

For further information contact Stephen Rutledge on 01844 212004 or email stephen.rutledge@fishergerman.co.uk

RHI – turning on the heat The Renewable Heat Incentive scheme is great news for landowners and farmers investing in new technologies

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he £860m Renewable Heat Incentive (RHI) fund will benefit farmers and landowners looking to install renewable heat technologies.

The fund is the first of its kind in the world to provide long term support to anyone investing in such technologies. Phase 1 of the scheme, which opened for applications in November, will provide support payments over 20 years for eligible installations serving non-domestic and multiple domestic premises. Eligible technology includes biomass boilers, ground source heat pumps, deep

biomass boiler to provide the baseload heat for over 6,600m² of boiler housing should receive an annual payment of £77,000. This would be made up of a tier 1 payment of approximately £58,000 and tier 2 payment of about £19,000. The capital cost of installation would be in the region of £520,000 and the annual woodchip requirement would be around 800 tonnes. Costing about £90/tonne, this would be equal to about £72,000 per annum.

“Putting it into perspective, the equivalent cost, assuming LPG heating

Anyone with a rural business should take advantage of the opportunity to make significant savings” geothermal, solar thermal, the injection of biomethane and biogas combustion.

Rebecca Seaman of Fisher German believes that anyone with a rural business should take advantage of the opportunity to make significant savings.

She explains: “The RHI represents an excellent opportunity as the tariffs have been calculated to provide a return on the additional capital invested of around 12 per cent.”

Tariffs are set for the majority of technologies; however ‘tiered’ tariffs have been introduced for small and medium scale biomass. Installations will receive the higher tier 1 tariff for the initial proportion of generation, moving to the lower tier 2 tariff when generation exceeds the ‘tier break’.

“For example, a farmer using a 900KW

for the same requirement, would be £180,000.”

As with all funding support schemes, the RHI is a complicated area and a lot of work goes into the accreditation process. However, 245 applications have already been submitted and 15 have won accreditation for the scheme. Farmers and landowners not on the gas network and using electric, LPG or oil for heat should get in touch for advice on how the RHI can work for them.

For further information contact Rebecca Seaman on 01858 411219 or email rebecca.seaman@fishergerman.co.uk

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© Woodland Trust. Picture taken by Lawrence Griffiths

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The jewel in the crown A flagship 460 acre Diamond Wood is being created to mark the Queen’s Diamond Jubilee

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he Woodland Trust is celebrating the Queen’s Diamond Jubilee by launching the Jubilee Woods project which aims to encourage tree planting for future generations.

One final piece of land required for a flagship 460 acre Diamond Wood was recently purchased by the Trust.

Diamond Wood is located between Normanton le Heath, Ravenstone and Heather in the heart of The National Forest. The latest acquisition, close to Packington in Leicestershire, completes the jigsaw and will allow the project to go ahead. The 188.09 acre site was acquired from UK Coal, and was marketed by Fisher German and Smiths Gore.

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The land includes a large lake that provides a habitat for wading birds and wetland species, as well as 17 acres of beautiful ancient woodland; it hopes to add 300,000 trees to this to create a

we would not have assembled the site in time for the Queen’s Diamond Jubilee, if at all.”

Owen Michaelson, managing director of Harworth Estates, the property division of UK Coal, adds: “We always take pride in the restoration of our former surface mines and try to ensure that they provide a lasting legacy for the local community. “ The Diamond Wood is a fantastic legacy for this site which I hope will provide enjoyment and benefits for all

The land includes a large lake providing habitat for wading birds and wetland species, as well as 17 acres of woodland”

growing national monument.

David Smith, head of land and property at the Woodland Trust, says: “David Merton provided invaluable help in assembling the site which makes up our flagship Jubilee Wood. We needed to acquire land, off market, from three different owners, which involved delicate negotiations, land trees will create swaps, dealing with sitting a growing tenants and varying a minerals planning consent. national Without David’s help in monument brokering various deals

our descendants for many years.”

The Jubilee Woods project aims to plant six million trees across the UK in 2012, involving millions of people. This will include 60 Diamond Woods covering 60 acres each, of which the site in The National Forest is the flagship.

For further information, please visit www.jubileewoods.org.uk or contact David Merton at Fisher German on 01530 410806 or email david.merton@fishergerman.co.uk.

Partner spotlight

Taking the high road Clare Phillipson’s journey from work experience to department head

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ork experience in the in 1994 to work on the Government summer of 1984 with Andrew Pipelines and Storage System Southern Jackson in Fisher German’s Network and in 1995 were successful Ashby de la Zouch office was in winning the Northern Network.” the catalyst in Clare Phillipson’s decision Although Clare continued to work on to become a chartered surveyor, she says. estate management at Fisher German, “I really enjoyed working with Andrew pipeline management increasingly so, after the prerequisite 12 months’ work became her main focus. She has worked experience within the rural sector, I went on some cutting edge projects including to study to become a chartered surveyor new oil pipelines for Esso and TOTAL, at Cirencester.” major projects for the National Grid and Clare continued to gain experience at leading innovator Linesearch.org. Clare Fisher German’s offices during college became the first female partner at Fisher holidays and was delighted when John German in 1998 and was appointed Pitts, now senior partner, invited her to join the firm following her graduation.

“I joined Fisher German in 1988 and was very lucky to train for my professional exams under Andrew,” she recalls. “To qualify as a chartered surveyor in those days involved practical exams over four intense days. I qualified in 1990.”

As a chartered surveyor, Clare departmental head in 2011. She continued to work alongside Andrew, specialises in the management, promotion her mentor, and focused initially on and construction of linear apparatus estate management. However, pipeline and has more than 20 years’ experience management started to expand at the of surveying in the utility and pipeline firm and Clare began to undertake more industry. liaison work.

“I thoroughly enjoy working in this “I began working on my first repairs sector,” Clare says. “It’s an exhilarating project in 1989,” Clare and dynamic area. says. “This area of I’m involved in so management started many different 1990 qualified as chartered surveyor to expand as our projects within 1998 appointed partner knowledge grew – it the sector, from 2011 appointed departmental head was a very exciting costing technical time. We won a bid considerations to

I’m enjoying a fantastic career and couldn’t recommend it more highly”

The personal touch Married? Yes, to Dickie, a chartered town planner Children? Yes, two pony-mad daughters, aged 11 and 9 Pets? Yes, a Welsh Section B pony, a black labrador, a hamster and tropical fish Sports? Yes, but not as a participant!

Season ticket holder at rugby union club Leicester Tigers and a vocal supporter of my children’s sporting endeavours

tendering and drawing up contracts. It’s a constant learning curve whilst bringing new solutions to the firm.”

While Clare admits that there are the challenges of health and safety to contend with in pipeline and utilities, she enjoys the satisfaction of bringing projects to fruition in such a well-policed area.

“I’m enjoying a fantastic career and couldn’t recommend it more highly. We now employ 26 professional staff, with 20 in the field, and are expanding the department further. There are some hugely interesting projects coming up and I’m extremely excited that the team will be working on them.”

Career high points

For further information contact Clare Phillipson on 01530 410813 or email clare.phillipson@fishergerman.co.uk

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Picture perfect H

iring out your home or land for a photo shoot or as a film location might not seem an obvious way of generating additional income, but it can prove to be highly lucrative. As is shown by the recent spurt in the popularity of period dramas for film and television – just think of Great Expectations, Wuthering Heights, Downton Abbey or Lark Rise to Candleford – country houses and estates are in considerable demand for use as location sets.

The highly acclaimed BBC adaptation of Great Expectations, starring Ray Winstone and Gillian Anderson, featured Holdenby House, a historic country house in Northamptonshire, as the exterior of

Dream location

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Photo shoots in glossy magazines and the style sections of colour supplements illustrate the demand for both the grounds and rooms of stately homes as backdrops for next season’s fashions.

However incongruous the drafty hall of a country house might seem to showcase a pair of sky-high heels and a swimsuit to those unacquainted with the fashion

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viewers tuned in to the first episode of Great Expectations

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Satis House, Miss Havisham’s decaying mansion. In the 21st century Holdenby is the much loved home of James Lowther, who has experienced the highs and lows of hiring out his property for use as a location set. A highlight was the BBC’s filming of the successful miniseries The Woman in White at Holdenby in the 1980s, with the house providing the perfect backdrop for the gothic tale.

Highclere Castle, on the border of Hampshire and Berkshire, has also enjoyed success as a location set. Home to the Earl and Countess of Carnarvon, the castle is the setting for the popular ITV television series Downton Abbey.

industry, stylists and photographers love the diverse backdrops of historic mansions.

The financial rewards of opening up a property to a film crew or fashion photographer vary considerably. Usually starting at £500 a day for a photo shoot, fees can climb beyond £1,200 a day for a film. More recognisable locations often become more desirable so the benefits can grow with subsequent usage.

An impressive 6.6m viewers tuned in to the first episode of Great Expectations, providing Holdenby House with a captive audience that even the most sophisticated marketers could only ever dream of. The scene where a young Pip stands in front of Miss Havisham’s wonderfully eerie mansion will linger in many viewers’ minds long after the series finishes. And as owner James Lowther points out, Great Expectations was a co-production with the USA, so the series will help to promote Holdenby internationally.

However, financials and marketing aside, anyone considering hiring out

BBC Photo Library

Period properties provide the ideal setting for film and television productions and photo shoots

hiring period property

Holdenby House was changed from a well-kept home into Dickens’ Satis House in just four days

their property or land needs to consider the potentially negative impact of a film crew descending on their home and family, as well as the positive influence on their bank account. The disruption that a film production can cause to daily life can be enormous. For example, a film or television production can involve an army of cars and trucks, electricity

Watertight contract It is important to ensure that a watertight contract is agreed with the production company before a shoot starts to ensure that the land and property is left in the same state of repair as it was before filming started. Anything damaged must be repaired. While drawing up your own contract is not impossible, there are

A watertight contract must be agreed before a shoot starts to ensure that the land and property is left in the same state of repair as it was before filming” generators and trailers used as mobile kitchens being parked on site. The working day for a television or film shoot is likely to be at least 12 hours and will involve an entourage of up to 50 people.

Film crews can be intrusive so it might be wise to move out of the house if the crew is there for any length of time.

agents who can, usually for a 15 per cent fee, alleviate the stresses and strains of negotiation. Agents should also market the property, ensure that insurance is taken out against damage to the buildings and land, and consider the finer details of a contract – for example, a clause stating that pictures must not be nailed

into walls, or that white wine rather than red must be used to prevent damage to carpets and fabrics.

Before and after A production company may visit several times before deciding to hire your home, so someone should be on hand to help.

There are bound to be questions, such as: Where are the power points? Can the crew dismantle your garden fence?

Even when filming stops you should still get paid. Most agencies charge 50 per cent of the normal day rate for set-up and take-down days.

James had concerns about the transformation of Holdenby from picture perfect home into what Dickens’ book describes as ‘a state of depravity’.

The makeover into the derelict 19th century Satis House took the BBC props department four days and involved 80 tons of mud, weeds and creepers.

“The team worked incredibly hard and it was fascinating to see Holdenby transformed into a decaying house in such a short space of time,” says James. “The BBC did a wonderful job in putting it back together. I could not fault the crew.”

The experience of hiring your property as a location for a production can be lucrative and enjoyable and, despite his initial reservations, James says it was exciting to have the BBC back.

For further information contact Henry Sale on 01858 411217 or email henry.sale@fishergerman.co.uk

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No wasted opportunities Dan Cooke and Gareth Griffith discuss the success of waste management and renewable energy firm Viridor, one of Fisher German’s valued clients

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ransforming a small, local business into a leading national company is no mean feat but that is exactly what Viridor, a waste management specialist company, achieved in just 10 years. The keys to Viridor’s success, according to external affairs manager Dan Cooke, have been stability and consistency of management, and the ability to exploit market growth opportunities.

Since its formation in 1956, the firm has had just two managing directors. The incumbent, Mike Hellings, took over when Viridor became part of the Pennon Group 20 years ago and has led its development from a small West Country waste management business into one of the UK’s leading waste management, recycling and renewable energy companies. Viridor employs more than 3,000 staff and holds more than 90 local authority waste management contracts. The firm operates a range of sites across the UK, including 20 materials recycling facilities, three energy from waste plants and 22 landfills.

Initially established as a traditional waste management company, Viridor’s expansion strategy has focused on building a progressive resource management business, with an increasing focus on recovering the value in waste through recycling and by using waste as a source of renewable energy.

Progressive approach

Nearly 50 per cent of the firm’s profits are now the result of recovering the value in waste, compared with just 16 per cent 10 years ago. “The firm has always understood the importance of gradually refocusing its business from just the collection and disposal of waste towards encouraging resource efficiency via the capture of energy and recycling materials,” explains Dan. Viridor’s progressive attitude to renewable power and capturing energy from waste has led it to use new technologies across its operations, including advanced materials recycling facilities, anaerobic digestion, mechanical biological treatment, invessel composting and Viridor has been a client of Fisher German for 16 years. energy from waste.

The firm works with Gareth Griffith across many different As its commitment to areas, such as land management, building consultancy, renewable power and land utilities and infrastructure, including Linesearch.org, remediation shows, Viridor pipelines and telecoms. “I have always found the Fisher takes corporate and social German team to be very client orientated, efficient and responsibility extremely proactive in every project that they have worked on,” says seriously, maximising Gareth, “from managing our agricultural portfolio of over resource efficiency and 3,000 acres to the refurbishment and office conversion operating its facilities with with planning permission for Ardley Cottages.” the highest environmental and professional standards.

“Efficient and proactive”

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The firm reports annually against its own targets and the environmental performance indicators for the waste industry produced by the Environmental Services Association.

Looking to the future, Viridor will continue to invest in state-of-the-art technology and pursue its ongoing refocusing of the business away from the disposal of waste towards an everincreasing emphasis on higher levels of resource efficiency through the recovery of energy and materials.

Same town, new HQ Viridor’s success means that it has outgrown its current headquarters.

However, the firm is proud of its West Country roots and, despite the fact that there are now staff at sites across the UK from Cornwall to Perthshire, Viridor’s headquarters will not be moving from the firm’s home town of Taunton. Its 100 head office staff are due to move into new headquarters this summer at the Firepool site in the town.

Gareth Griffith, estate manager for Viridor, says this is an important step in meeting the future needs of the business.

“It is part of our programme to upgrade support facilities throughout the UK and it underlines our ambitious growth plans in recycling and waste services.”

For further information on how Fisher German has worked with Viridor contact David Merton on 01530 410806 or email david.merton@fishergerman.co.uk

client case study

50

Nearly

%

of the firm’s profits are now the result of recovering the value in waste

3,000 The firm has

employees and 90 local authority contracts

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UK farmers’ fears for EU CAP fallout Membership of the EU is becoming less attractive to UK farmers, with efficiency seemingly penalised and reforms expected to hit Britain hardest

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recent poll revealed that 49 per cent of the UK population would vote for the UK to withdraw from the European Union (EU), with 70 per cent keen for the opportunity to vote on the UK’s membership. The poll, undertaken by ICM and published in The Guardian newspaper, found that more Conservative supporters (71 per cent) support withdrawal than Labour voters (65 per cent). A bigger gap appears between generations: just 28 per cent of voters aged between 18 and 24 would vote to leave the EU, in marked contrast to the 63 per cent of those aged over 65 who would be happy to abandon membership.

If, however, the UK were to resign from EU membership, what would the impact be on farmers? As the article Mid-life crisis

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for the CAP? on page 20 illustrates, the UK’s membership has a huge impact on farming. The latest reforms, if passed by member governments and the European Parliament, will be a deciding factor on how the UK is farmed.

Uneven benefits While in some respects the Common Agricultural Policy (CAP) has been a resounding success – providing access to food for all – it undoubtedly benefits some member states more than others, and supports some less than efficient methods of farming. In a recent Eurobarometer survey of EU consumer attitudes to the CAP, conducted among 27,000 people across the 27 member states, 83 per cent of respondents believed it was important

to offer financial support to farmers, while 63 per cent of those interviewed in the UK felt that CAP support was either just adequate or insufficient.

The suitability of the CAP for UK farmers has been the subject of considerable debate since Margaret Thatcher demanded a rebate in the 1980s.

The CAP has a total budget of nearly £47bn – nearly half the EU’s total budget – and costs UK taxpayers about £107 per person each year. While successive Labour and Conservative governments have argued that it is inefficient and anti-competitive, France, Italy, Greece and other countries with large numbers of small farmers are resistant to any reduction in direct payments. Currently, the UK receives about 7 per cent of CAP payments, compared to France at about 17 per cent, Spain at 13 per cent, Germany at 12 per cent and Italy at 11 per cent. France is the biggest agricultural producer, accounting for some 18 per cent of EU farm output. Germany comes second, with about 13.4 per cent

UK farming and the EU

£107 The annual cost of the CAP to each taxpayer in the UK

and is a net contributor to the CAP budget, as France will be in the near future.

The average annual subsidy per farm in the EU is about €12,200 (£10,400).

UK farmers receive around £230 per hectare as long as they meet standards on the environment, food quality and animal welfare. Payments per hectare

their European counterparts because of their relative size. The UK is second only to the Czech Republic in this respect, with an average farm size of 78.6 hectares.

Campaign group farmsubsidy.org says there are 1,212 farm subsidy millionaires across Europe although, despite the relatively larger size of British farms, only 37 of these are from the UK.

63 per cent of those interviewed in the UK felt that CAP support was either just adequate or insufficient” range from €527 (£450) in Greece to just €89 (£75) in Latvia, because of the transitional arrangements for new member states. The latter are allowed national farm aid to compensate for lower EU subsidies.

The limits on payments that the latest reforms to CAP are expected to introduce will impact on UK farms more than on

Germany has six times as many, with Spain, France and Italy having five, four and three times as many, respectively.

The CAP has undergone regular change over the past 20 years. Having begun operating in 1962, the first attempt at significant reform came in 1992 with the MacSharry Reforms; a further reform was brought forward in 2000 but neither

made a significant difference to the level of subsidies paid to farmers. EU farm ministers agreed to further changes in 2003, which are those that have been phased in between 2005 and this year.

Farmers have not received subsidies since 2005; instead they receive the Single Farm Payment and are encouraged to produce in response to consumer demand.

And instead of payments being made to control how much farmers produce, they are now paid for their role as guardians of the countryside.

While British farmers have in many ways benefitted from the CAP, less efficient farmers have arguably profited more. A more market-oriented approach would be more appropriate to British farmers as it would be likely to help them to compete more effectively thanks to economies of scale and other efficiencies.

Please see page 20 for a more detailed article on the effects of CAP reforms.

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Off kilter clients Fisher German’s property agency professionals are reporting an increase in activity in the housing market in 2012. Some viewings and valuations, however, can take them by surprise

Q: The media seems to have quietened on the woes of the housing market; are we seeing an improvement at long last?

Alasdair Dunne, Market Harborough & Ashby de la Zouch The last few years have been very tricky indeed but for the first time for some while I can confidently say that we have tangible improvements in the market. Activity levels are greater, which suggests improving confidence levels, and we are sensing that many people now want to get on with their lives and move on, after treading water for several years. In the first quarter of 2012 our viewings rose by 65 per cent on the same period last year and our market appraisals across the firm have gone up an astonishing 140 per cent. In addition to this we are creating some really good sales, often of houses that have been around a while. Farms and land sales have remained an area to celebrate and we expect much of the same this year. All of

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An impromptu Highland fling was all part of the viewing process

this bodes well and I am delighted that doom and gloom is lifting from the press.

Q: I’m sure that you have seen some unusual sights on property inspections?

Stuart Flint, head of property agency sector My goodness yes, but I’m not sure where to start! I’ve encountered a naked lady in a swimming pool, a ‘dungeon’ converted from a wine cellar and a cage bed with mirrored ceiling, all rather mind-boggling and definitely unusual. But perhaps the most bizarre was a very eccentric client who greeted us in full Highland dress on our first inspection and insisted on performing

an impromptu Highland fling on the first open day. While the various couples viewing were greatly entertained, I would generally advise clients to save such extravagances for rather more private events.

Q: Is eccentricity commonplace among clients?

Matthew Allen, Banbury No, very rare I’m pleased to say. However, having said that I do recall one auction sale many years ago where the vendor had lived in the property for decades and barricaded himself indoors, preventing any

property tales

internal viewings. We had to communicate with him through the letter box and sell it as seen, outside only. Remarkably the property made £140,000 over its guide price.

Our reclusive client moved out on the completion date, but it would be fair to say that the purchasers were not over enamoured with his interior design capabilities.

Q: How would you describe the ‘typical’ Fisher German property?

Morgan Aps, Worcester Our target market is relatively broad and varies between offices. I think we are best described as, arguably, the strongest regional agent in Central England dealing with rural and village property, from cottages to vast country houses and from bare land to substantial farms and estates. Having said that, several of our offices have strong townhouse teams. So there is quite a variance but ‘quality’ is a consistent theme. We have one office with an average sale price in 2012 of about £450,000 and another office where the average exceeds £1m. Ten other offices are spread somewhere in between.

Q: It must be quite a healthy lifestyle inspecting rural properties?

Paul Clayson, Banbury If I had a pound for every mile I’ve trudged in boots with a clipboard I’d be a wealthy man but it’s not always on foot.

One military-mad client of mine took me around his farm on an ex-Iraq Humvee used in the filming of Black Hawk Down.

Q: Presumably some of the more remote properties take some finding?

Robert Russell, head of equestrian sales I got as close as I could to a canalside cottage I had to appraise but still had to walk over three-quarters of a mile to a home with no vehicular access, electricity generated on site and water drawn from the canal and purified. We got the instruction and the owner was kind enough to return me to my car on his narrowboat.

Q: What do you consider to be the ‘best’ Fisher German sale so far of 2012?

Katie Martin, Retford I think this would have to be the Bragborough Estate in Northamptonshire, a very fine traditional estate with listed Hall, numerous cottages, a lovely family shoot and about 700 acres. It had a guide price of £7m and sold very well indeed.

Q: What has been your strangest viewing experience?

Helena Saunderson, Stafford Having a prospective purchaser flee up the garden path shrieking that she had been confronted by a ghost was surreal, and I was once almost finished on the interior tour of a house, where I had let myself in when the owners were at work, and

Our market appraisals across the firm have gone up an astonishing

property is inextricably linked to the rural economy and rather than manage it my leaning has always been towards the transactional side, with auctioneering and sales by private treaty. For those of us in the agency sector the buzz of the deal and getting a first-class price for our clients is addictive.

Q: What is your market forecast for the remainder of the year and beyond?

Michael Harris, Chester & Knutsford While the market could not yet be described as dynamic, 2012 is far healthier than last year and vendors can expect good sale results as opposed to a lottery. I think this momentum will continue through the summer and I believe we will have a decent autumn market, which has been lacking since 2006. In the regions we operate in, prices are generally stable and I expect that to continue all the way to 2014. The major change will be transactional volume, which I believe will be on a relatively steep upward curve.

Q: Finally, what is in store for the property agency sector at Fisher German?

Stuart Flint The past two years have seen dramatic growth in the size of our agency business. While the market has been subdued we have made significant investment into the sector and expanded our agency capability from operating in six offices to having full teams in 12 offices, creating an enviable national network. This expansion continues. We continue to employ exceptional new people and our ambitious quest to increase our market share has great momentum. Much of our new work is generated by referrals, which is very rewarding as so much hard work has gone into our customer service delivery.

But, as you can see, we still enjoy ourselves.

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entered the master suite to find the owner asleep in the bath. Thankfully he had used a decent amount of bubble bath.

Q: Have you ever turned up for a valuation and felt you were out of your depth?

Stephen Rutledge, Thame I turned up at a mixed-use property in Buckinghamshire to unexpectedly find it was a pole dancing venue. With thorough due diligence requiring a number of reinspections I managed to conclude a professional valuation.

Q: Why did you become an estate agent?

Christian Sanders, Bromsgrove I followed in my father’s footsteps and became a chartered surveyor. Like many of my colleagues I was brought up surrounded by farming life and rural pursuits –

For further information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

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The EU wants to ensure that the proposed reforms apply to ‘active’ farmers

Mid-life crisis for The latest spate of proposed CAP reforms are proving unpopular with UK farmers

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he Common Agricultural Policy (CAP) had its 50th birthday in January 2012. Widely criticised by many parties, it has gone through a multitude of changes since its birth in 1962. At £51bn it is the most expensive scheme in the the European Union (EU), accounting for nearly 50 per cent of the total EU budget in 2011. It is also one of its most controversial. The current round of proposed CAP reforms has put the scheme firmly back on the agenda of the UK government and its farmers.

While the majority of participants in a survey held at the Oxford Farming Conference believe that the reforms are an opportunity to help the transition to an open market, the early indications are that

the latest reforms, proposed by EU agricultural commissioner Dacian Ciolos, will increase bureaucracy, reduce business flexibility and have a negative impact on the way that the UK farms.

The European Commission, which is

The latest reforms ... will increase bureaucracy, reduce business flexibility and have a negative impact on the way that the UK farms”

proposing that the CAP budget be frozen for 2014–20 at £47bn a year, claims that the reforms (see box, top right) will “strengthen the competitiveness, sustainability and permanence of • whether to plough up long term leys that may be caught under the permanent pasture maintenance rules; agriculture throughout the EU ...

• ensure the SPS claimant in 2011, who will have the so-called ‘golden ticket’, is still eligible to claim in 2014/15 (this is important preserve the for businesses changing their structure, or letting, buying or selling environment and land as well as new entrants); and develop rural areas”.

It also states that the • check that contract farming arrangements are being correctly structured and managed to ensure ‘active’ farmer status. reforms will encourage more sustainable

Critical areas to consider now

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farming practices as rewards will be removed from intensive farming.

The proposed reforms include: linking direct payments to greening measures; the capping of payments; the introduction of schemes to support young farmers, new

entrants and those in areas of ‘natural constraints’; a new ‘active farmer’ test; and a move away from historic payments.

While flat rates of payment are likely to be similar to the existing ones for English farmers, the move towards flat rates will have an impact on Welsh and Scottish claimants as their historicallybased payments are reduced. Farms in Wales and Scotland, particularly those with high value entitlements, are expected to be hit harder by the reforms than those in England, who have already transitioned to a flat rate. Basic Payment Scheme (BPS) entitlements will change

The sun rises on a new swathe of CAP reform

uk farming and the CAP

CAP proposals • keeping EU farm spending level until 2020, though it may be reduced by inflation; • capping the total subsidy a large farm can receive at €300,000; • levelling imbalances in payments to subsidise acreage farmed rather than production totals and bringing payments in the eastern EU up to levels in the west; • ending sugar production quotas; • and making 30% of the ‘direct payment’ income support payments received by farmers dependent on environmental criteria.

Active farmer status

the CAP? completely and be issued to a 2011 claimant on the basis of the eligible land occupied in May 2014. The BPS element of the total potential payment will be the portion that remains after the other elements of the scheme are accounted for. NFU senior CAP adviser, Gail Soutar, says the BPS could end up being worth between 43 and 58 per cent of the current Single Payment Scheme, although farmers will be able to claim further funds through the other aid ‘pots’.

Capping of payments is proposed to start at €150,000 (about £130,000) and will then be staged in bands. It is also likely that the UK regions’ payment allocation will be reduced, as funds are to be allocated to the proposed Small Farmers Scheme (up to 10 per cent), the Young Farmers Scheme (up to 2 per cent), help for areas with natural

constraints (up to 5 per cent) and possibly coupled payments in Scotland.

In addition, 30 per cent of the total payment will be subject to meeting the ‘greening’ requirements, which are proposed as 7 per cent of the farmed area being managed for ecological benefit and a minimum of a three crop rotation. The UK and other EU member states have criticised these rates as excessive.

This ‘greening’ and the proposed reduction in national modulation may force farmers to fallow land in blocks or as field margins and remove the funding for schemes such as Entry Level Stewardship (ELS). Defra has, however, indicated that farmers in ELS should be allowed to get out of their five-year contracts without penalty if the ELS cannot be funded post reform.

£51bn £130k CAP is the EU’s most expensive scheme – around half the total EU budget in 2011

Level at which capping would start before being staged in bands

The EU is keen to ensure that the proposed reforms are targeted at ‘active’ farmers. However, as defining what constitutes an ‘active’ farmer will be difficult, it will be vital to monitor the situation as it may have profound implications for those farming under contract farming agreements, larger specialised businesses, diversified businesses and landlord/tenant arrangements. Farmers and landowners need to review who should be occupying the land when the proposals are introduced and make sure that they are able to claim and secure any entitlements.

Any claimant whose subsidy income is less than 5 per cent of their total income in that year may be ineligible to claim.

Contract farming agreements will come under the spotlight in particular, and those using them may be at risk of being deemed ineligible to claim. Farmers using contractors for whole farm operations must ensure that they can prove their involvement in the management of their farm. This is important not just to prove their active farmer status but also to avoid becoming part of the contractor’s business (under the single business test), which may be caught under the capping rules.

The Commission’s plans will be subject to debate and revision over the next 10 months before they are agreed by EU governments and the European Parliament. Although the reforms, if agreed, will not come into effect until 2014 at the earliest, it is important that farmers consider their likely effect and take advice now to minimise any adverse impact.

For further information contact Richard Sanders on 01858 411234 or email richard.sanders@fishergerman.co.uk

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AD

FiT for purpose

More UK farmers are now investing in AD plants thanks to an increase in FiTs and more affordable farm-based plants. David Kinnersley looks at the latest developments in the market

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The number of AD plants in the UK producing bioenergy

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of UK-built options are becoming available. Some of the UK-built plants will be particularly beneficial to domestic farmers as they are targeted specifically at the broader range of feed stocks the UK market is interested in, such as poultry manure, grass silage, a wide variety of agricultural waste products and food waste.

Returns on investment While long term returns on investment have been favourable for large scale farmers in the UK, the cost of building a mainstream AD plant, which typically starts at ÂŁ1.5m, and the extensive land resources needed to supply it, have put them out of the reach of smaller farms.

However, the AD market is beginning to broaden and innovative systems are being developed that will make the plants more affordable.

The smaller scale AD plant options that are being developed cost several hundred thousand pounds and may be viable primarily on livestock slurries,

ÂŁ1.5m

Cost of building a mainstream AD plant

The number of plants winning planning permission in the UK is increasing

opening up diversification opportunities for smaller scale farmers. Some of the plants will have a lower profile, making planning more straightforward and finance easier to source. Fisher German advises many of the main agricultural banks and they are showing willingness to lend to feasible projects where the returns are strong.

Before deciding to invest in an AD plant there are several key issues that must be considered: assess your waste (slurry/manure/ vegetable, etc.) outputs and the timing of their availability. Gauge the potential output of the waste, the energy that will be used for heat and electricity and the

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he coalition government’s aim of increasing the use of anaerobic digestion (AD) has recently been translated into higher feed-intariffs (FiTs). This increase has sparked a renewed interest in farm-based AD plants in the UK. Over the past 12 months the number of sites winning planning permission for AD plants and the rate of plants being built and commissioned have increased significantly.

There are now 24 AD plants in the UK producing bioenergy, according to WRAP and NNFC, and this number is expected to grow rapidly over the next five years as farmers recognise that, in many circumstances, they have the ability to raise funds for a viable project that produces a significant new revenue stream for the farm. The economic advantages of rural AD energy production and improved technical, political and regulatory factors have also combined to enable the advantages of AD to be realised.

Although European suppliers dominate the UK AD market, an increasing number

anaerobic digestion

What is AD?

AD is the digestion of organic material without oxygen at 35°C or higher to produce biogas (methane and CO2) and the residual digestate that is an excellent bio fertiliser. The biogas can be used in a boiler to provide heat or to fuel a combined heat and power (CHP) unit to generate heat and electricity. Depending on the scale this may be used purely on site or, typically, exported to the grid.

AD is a highly effective way of processing livestock manures and slurries, often with energy crops such as silage, to boost the biogas output. Maize silage, for example, produces 10 times more methane than the equivalent weight of slurry. Waste plants are also operating using food waste from a variety of sources, in many cases diverting it from landfill.

Some of the UK-built plants will be particularly beneficial to domestic farmers� timing of this use. The more electricity and/or heat that an investor uses, the more viable a project will be; review what feedstocks might be grown or brought on farm to supplement the existing feed stock and, of course, check the grid connection to see what can be exported. Choosing the right technology and supplier is a minefield but a solid understanding of what material is needed to feed the plant and the budget

will help to guide an investor to the best solution; securing funding is still a challenge for would be investors. However, Fisher German is working with clients to secure funding from a range of sources: major banks, private investors, corporate investors and funds. It is key to review project feasibility, and specialist advice on how to plan and finance a plant is invaluable in this respect.

What are the current FiTs? AD tariff banding

Current tariffs

Proposed tariffs (from October 2012)

250

14.7

14.7

>250-500

13.7

13.7

>500-5000

9.9

9.0

(KWcapacity)

For further information contact David Kinnersley on 01295 226294 or email david.kinnersley@fishergerman.co.uk

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Behind the mast Renting out your property or land to accommodate a telecom mast can be a source of useful additional income

very efficient way to capitalise on any underutilised areas. As only 25m2 of land is required for a single mast, they can be placed on small areas such as a rooftop, service yard or the peripheries of a car park,” he adds.

There has been much discussion about consolidation in the market putting downwards pressure on rent, with Orange and T-Mobile merging and Vodafone and O2 sharing networks. However, mobile phone coverage is still patchy in various parts of the UK and will be a key factor in delivering internet access to many rural communities. The lack of mobile phone masts in certain areas is often attributed to difficulties in gaining planning permission for aerials in scenic spots.

We have dealt with a number of clients who have had masts on their land disguised as trees, telegraph poles and even flagpoles” Birmingham or Manchester, could achieve an annual income of between £10,000 and £13,000 on a lease of this length.

Chris Hicks, telecommunications specialist at Fisher German, points out that there is no capital outlay in telecoms lettings as the operator pays for the installation of the equipment and contributes towards the landlord’s professional and legal fees arising from negotiating terms for the deal. “It is a

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The number of years of a lease for a mobile telephone mast site

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Innovative designs However, innovative designs can overcome this problem (see box) and modern telecoms masts can be disguised to blend in with their surroundings. Chris says: “We have dealt with a number of clients who have had masts on their land disguised as trees, telegraph poles and even flagpoles.”

The Commission for Rural Communities has urged the government to shake up planning laws to make it easier to put up mobile phone masts.

Ofcom claims that 99 per cent of the country has basic mobile phone coverage.

However, as coverage is measured by how many people can get a signal, huge areas can be without coverage but the figure will remain high as long as the main towns and cities are well connected.

Some mobile phone operators are reviewing their lease agreements with landlords, following mergers and collaboration agreements, and trying to exercise break clauses and terminate lease agreements early. Anyone experiencing this problem should contact Fisher German as the firm can advise on the strengths and weaknesses of a landlord’s case, including whether or not the tenants have the right to break the lease at all, as quite often they do not. Chris firmly believes that it is still possible to achieve good rental income on existing sites and says that Fisher German recently secured a lease renewal for a commercial property in the Midlands with a 25 per cent increase on the rent.

The firm also negotiated the operator’s termination rights for the first four years of the term, giving the landlord certainty of income.

Implications of 4G The field trial of 4G, the next generation of mobile broadband, by Everything Everywhere and BT, is likely to mean

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seemingly redundant area of a field or the roof of a building can often provide a source of additional rental income for landlords. These sought-after spaces are often ideal sites for mobile telephone masts and can secure up to £13,000 a year in rent. Rental incomes do vary depending on the site’s location but, for example, rates for a single 15m greenfield mast with standard equipment rights in a rural area, used by a single operator, would range from £4,500 to £6,000 a year, depending on the quality of the site and proximity to towns, principal roads and railways. A typical lease lasts between 10 and 12 years and a rooftop site on a five-storey building, located in, say,

commercial telecoms leasing Disguising masts as trees can help to address the concerns of rural communities

Above: Mobile masts can even be hidden in clock towers to reduce environmental impact

that the demand for mobile phone station sites will increase. The 4G technology trial, also known as Long Term Evolution, is taking place in Cornwall and Bristol and offers internet access on the move much faster than existing networks. The cell area that the phones work in is restricted and more mast sites are needed to provide the required coverage. 4G could be used to deliver better broadband speed to rural areas as part of the government’s strategy.

A subsidy pot of ÂŁ530m is to be handed out between now and 2015.

If 4G is rolled out, demand for commercial sites and land is likely to be high, putting land owners in a strong position. Fisher German promotes sites across the UK to operators and agents through a telecom site database. Anyone considering renting out a space for a mobile mast should contact the firm for advice.

For further information contact Chris Hicks on 01858 411202 or email chris.hicks@fishergerman.co.uk

How masts can blend in Some settings, for example Areas of Outstanding Natural Beauty, call for mobile phone masts to have more aesthetically pleasing designs. The demand for masts that melt into the natural environment has prompted innovative design solutions to the planning dilemma.

Telecom masts are commonly disguised as trees or hidden in the clock faces of towers and the spires of churches, in an attempt to help them blend into their natural surroundings. The masts look realistic but can be expensive, with some designs costing more than ÂŁ100,000.

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A fine estate of affairs The realignment of Renishaw Hall’s property assets and a new business strategy has revitalised the fortunes of the estate

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change in the generation responsible for a country estate is often an opportune moment to review the business plan and do some strategic thinking for the years ahead.

Such an opportunity presented itself to Alexandra Sitwell when she took over the family estate following the death of her father, Sir Reresby Sitwell, the 7th Baronet, in 2009. The family seat, Renishaw Hall, sits on the 5,000 acre estate on the borders of Derbyshire and South Yorkshire and has been home to the Sitwell family for nearly 400 years.

The estate includes a stunning house with a four acre Italianate garden, a museum, an art gallery with John Piper paintings and café. It is also something of a literary shrine, thanks to the remarkable history of the Sitwell family.

Asset rich, income poor Like many landed estates, Renishaw is asset rich but income poor. Tim Shuldham, partner at Fisher German, has managed the estate for nearly 28 years and was closely involved in Alexandra’s succession. “The fact that the estate is fragmented and some of it has been owned by the family for less than 75 years meant that it was possible to stand back and look at the estate as a portfolio of assets rather than an integrated single unit,” says Shuldham. Undertaking the

client case study

Photo: Renishaw Hall / fstop press

Clockwise: Renishaw Hall; the commercial lets; formal gardens; and Alexandra Sitwell

probate valuation highlighted the poor return on capital from the tenanted farms, made worse by the dramatic rise in capital values over the last few years.

A plan was put forward to realign the family’s property assets to generate higher income levels by disposing of low yielding tenanted farmland and reinvesting in commercial property.

Converting the existing buildings on the estate to commercial use was deemed problematic due to a delay in securing the income stream, a risk in ensuring a successful development and the fact that it would probably result in an asset that would not be available for sale in the future. The decision was therefore taken to invest away from the estate in established commercial property with an instant income stream. Being remote from the estate means that the new properties can be sold and replaced should there be a change in the investment strategy in the future.

“We decided on multi-let properties

9%

The net return converted from a net yield of about one per cent

to ensure a continuous income stream without the risk of a major void,” says Shuldham. “While multi-lets are unattractive to some investors we have the necessary management expertise. As the properties are in easy reach of our offices we can react quickly to any problems.”

were taken to resolve all outstanding issues with existing tenants. The overall appearance of the site was improved through decoration and signage, with particular attention paid to the landscaped areas. Occupancy levels have since increased, previously disgruntled tenants have stayed and there is a steady flow of enquiries for units on the site. The proximity of the site to Fisher German’s Retford office has enabled Shuldham and his colleagues to make regular visits to the premises and undertake viewings at short notice. This has helped secure tenants.

A net yield of about 1 per cent on the farmland has been converted into a 9 per cent net return. While the farmland was sold in a buoyant market and well exceeded expectations, the purchase was made in a more depressed market, which facilitated a favourable negotiation.

The next purchase of another small industrial estate of 14 units is now under way, helping to secure the future of the Sitwell Estate.

It was possible to stand back and look at the estate as a portfolio of assets rather than an integrated single unit” The tenanted farmland and woodland to be sold was identified and through negotiations with the tenants sales mainly took place with vacant possession of the farmland. The search then started for re-investment opportunities. The first property to be purchased was a small industrial estate with 20 units ranging from 750 to 2,500ft2 on two plots either side of a cul-de-sac. Although there were a number of empty units, conversations with the tenants quickly identified this to be a factor of poor management and not the result of any shortcoming of the site.

Following purchase, immediate steps

For further information contact Tim Shuldham on 01777 860755 or email tim.shuldham@fishergerman.co.uk

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Property hotspots Fisher German’s property preview introduces buyers to some of the beautiful residences being marketed across the UK

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f a picture can paint a thousand words then Fisher German’s property preview encapsulates several novels.

The brochure showcases a collection of some of the stunning property that the firm has for sale across the country.

Circulated to 40,000 potential purchasers, property preview has provoked a great reaction from its recipients.

Stuart Flint, head of property agency, explains that property preview has been a major success. “Our offices have noticed a marked increase in viewings following the distribution of the brochure, which is fantastic news for sellers after a quiet winter.”

Oulton Mill Lane, Rushton, Cheshire

Valuable sales tool Property is listed by price bracket, with colour coding guiding the interested party to the correct price band. The stunning photography and concise but salient details highlight the properties’ assets and are accompanied by office contact details.

The brochure also introduces residential sales staff from Fisher German’s network of 12 residential sales offices, which stretches from Chester to Thame.

Stuart says that property preview is proving to be an extremely useful sales tool and has created a huge amount of interest from purchasers and sellers alike.

“Despite the difficult market conditions Fisher German is still achieving some exceptional sales. However, it’s never been more important to use intelligent, focused and creative marketing and we

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Many of the viewings are for people who have now considered a fresh area, attracted by the property rather than the location” are constantly striving to ensure that our clients gain an extra dimension by instructing us. Introducing property preview has further enhanced our marketing and is giving our clients’ property a valuable sales edge, as many of the viewings are for people who have now considered a fresh area, attracted by the property rather than the location. This geographic cross selling has perhaps been

the greatest benefit of property preview.”

The next issue will be published in the summer of this year.

For further information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

residential new property slug size

Lindrick Common, Worksop, Nottinghamshire

Rotherwood House, Ashby-de-la-Zouch, Leicestershire

Beech House, Snareston, Derbyshire

The brochure has proved a success, creating great interest among buyers and sellers alike

Coed y Foel, Corwen, Denbighshire

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taxing situation Gary J Markham of Grant Thornton cautions farming families to deal with their business affairs in a professional way or face the consequences

T

he increase in agricultural land values over the past few years has resulted in even modestly sized farming businesses being worth several million pounds. While this is good news for many farming families, it brings with it a possible sting in the tail – if the affairs of the family have not been dealt with efficiently and professionally, the increased values can result in family disputes and substantial amounts of capital taxes to be paid. In fact, unfortunately, it is fairly common for farming families to end up in an expensive muddle as a result of a death or divorce.

Three documents The starting point is to ensure that three documents are correct, up to date and all linked together: • the will; • partnership agreement; and • annual accounts.

The will often leaves a life interest in the property to a spouse before it passes to the next generation. So for example, if father owns the house, buildings and land, he would gift them to the next generation but allow his wife to use them and receive all

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income from them during her lifetime.

This is a very balanced and efficient method of looking after everybody while protecting the assets. In this situation the assets would be in the estate of the wife as a result of her life interest and so the capital tax reliefs will need to be continually monitored during her lifetime. We still have the provision to vary a will within two years of death if everybody agrees.

However it is not possible to give away

any will which attempted to do so would not be upheld. The way to deal with this restriction, if it is agreed, is to hold the ownership as tenants in common.

This then leads us on to the partnership agreement. The basic point that needs to be understood is that a partnership agreement takes priority over a will.

Where there is no written agreement, the Partnership Act of 1890 applies.

This states that everything is shared equally and any partner can dissolve the partnership at any time without notice. A written agreement is basically a commercial arrangement changing the original Act, therefore virtually any commercial provisions can be included. Two of the most common problems found in relatively simple agreements, prepared say 20 or 30 years ago, lie with how they deal with retirement and assets with development potential. The development value of an asset considered to be owned by an individual may have to be shared with the other partners in the trading profit sharing ratios. Equally, land held within the partnership is normally

It is fairly common for farming families to end up in an expensive muddle as a result of a death or divorce” assets that are not owned or are subject to other arrangements.

If the land or property is held by the owners as joint tenants then, on the death of one joint owner, the asset passes automatically by survivorship into the ownership of the other joint owner or owners. The property share cannot be passed under the will to anyone else and

guest article

record of profitability of the business but the balance sheet should also show a record of the assets held within the business and therefore is strongly linked to the partnership agreement which in turn has priority over a will. The accounts are signed each year by the partners and in any dispute should provide a good indication of the acceptance by the individuals of the record of ownership of assets. As businesses grow over the years by land purchases, very often the partnership agreement is not updated so the annual accounts become increasingly important and can either define ownership or increase its uncertainty.

There have been many legal cases where the annual accounts have either been dismissed as lacking clarity of ownership or used to define ownership.

Planning Property assets are often poorly addressed in old partnership agreements

subject to an option in favour of the other partners to purchase. Therefore in both of these cases any gifts of these assets in a will may not be possible and, in a worst case scenario where there are no revaluation provisions in the partnership agreement on death or retirement, then the option to purchase may be at the

historic value shown in the accounts. All of these potential problems can easily be dealt with in a modern, well written partnership agreement including the provision to withdraw land on death or retirement from the business overriding the option to purchase.

The annual accounts are not only a

Husband, wife and son in partnership

Land and property at historic cost of £2,250,000. Other partnership capital £250,000

Father

Mother

Son

Example 1 – land and other capital combined as one amount Current account in £’000

1,450

975

75

Example 2 where the partners are not separately identified Current account in £’000 - total £2,500

Example 3 where the land and current assets are shown separately Current account 100 Land capital account 1,350

75 900

75 0

Example 4 - the land is held outside the balance sheet Current account

100

75

75

Inheritance and capital gains tax planning forms an important part in all three documents and tax reliefs can either be fully available or not at all, depending upon how the assets are dealt with. For example, any assets with development potential or with any non-agricultural value used by the business and held by an individual privately outside the balance sheet will only attract 50 per cent relief, therefore are effectively exposed to 20 per cent tax. If this asset is brought into the partnership and identified on the balance sheet, 100 per cent relief should be available. However, it then becomes a partnership asset – which is when a partnership agreement becomes important to set out who has any of the potential benefits from it.

Set out in the table is a simple example of the different ways the ownership of land and property can be shown in the annual accounts, all being technically correct but each one potentially having hugely different consequences: husband, wife and son in partnership; land and property at historic cost of £2,250,000; and other partnership capital £250,000.

In conclusion, many farming families should check all three documents to see if they are compatible and, in most cases, ask somebody to review them.

For further information contact Gary J Markham, director of agriculture, Grant Thornton on 07970 794495 or email gary.j.markham@uk.gt.com

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Sector insight Improving market sentiment

Capital value of land compelling

Green issues are key

Stuart Flint, head of property agency

David Merton, head of rural consultancy

Richard Benson, head of planning & construction

It has been a long wait but at last we can start to make some positive noises about the housing market, with tangible evidence of improving market sentiment and some encouraging activity.

The first months of 2012 have shown dramatic increases in viewings compared to the same period in 2011 and, most importantly, the number of market appraisals has risen by more than 150 per cent.

At the mid and upper ends of the market I believe that the supply side will lead the way to recovery. As people start to see a decent number of new sale instructions, confidence for a more liquid market will spiral. I am sure that some of this activity is a result of Fisher German’s increasing market share but, undoubtedly, there is also a more ‘get up and go’ attitude generally.

However, while it seems certain now that transactional volume will rise in 2012, house prices in ‘middle England’ are likely to be static or see only a very marginal rise.

Whilst my optimism has an inevitable cautiousness to it, it is safe to say that the agency sector is reassuringly cheerful at the moment.

Fingers crossed that it remains so.

Warren Buffett has told investors in Berkshire Hathaway that he expects productive assets, such as farmland, to outperform unproductive assets, such as gold, over the next century. We agree.

The outlook for long-term growth in the capital value of farmland is compelling, and something which is underpinned by a broad range of demographic, economic and legislative trends.

An increasing world population and growing demand in the emerging markets is accentuating global food security concerns and driving commodity and land prices ever higher. In addition, commercial farming organisations are encouraging efficiency and profits by consolidating land holdings into ‘super farms’. In the UK specifically, significant commitments to biofuel will increase demand from the domestic market for farmland suitable for cereal crop production.

Farmland is also growing in popularity as an alternative form of investment. It has shown a remarkable resilience compared to other asset classes during the economic downturn and is seen as a solid investment. It is an attractive long term capital shelter with considerable capital gains for those who want to obtain inheritance tax relief without the risks usually associated with other business assets.

These factors point towards the market-wide expectation that demand for land in the UK will outstrip supply in 2012, meaning further upward pressure on farmland values. Some commentators expect an increase of around 5 per cent this year.

The National Planning Policy Framework was adopted on 27 March 2012 which, along with the Localism Act, requires a more proactive planning system that has grassroots public engagement at its heart. For landowners and developers this means talking to residents, local groups and the planning authority at an early stage in any project.

Recently, we have seen an increase in construction activity as home builders, despite the relatively slow property market, take the plunge and start to build out sites.

There is also a marked increase in projects where green issues are key. Property owners and developers, due to regulations and demand, are concentrating their efforts on energy efficiency and sustainability. Coupled with energy efficiency is the renewable energy agenda and, despite some uncertainty regarding feed-in-tariffs and government policy, many refurbishment, alteration, conversion and new build projects incorporate biomass boilers, ground source heat pumps, photovoltaic and wind installations.

Owners benefit from reasonable payback periods and have advantages when selling or letting residential or commercial units.

This will remain relevant. Dilapidation workloads will continue to increase as 50 per cent of commercial leases in the UK are due to terminate in the next three years. Companies seeking new premises will be drawn towards environmentally friendly buildings with low in-use costs and energy efficiency.

For further information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

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For further information contact David Merton on 01530 410806 or email david.merton@fishergerman.co.uk

For further information contact Richard Benson on 01530 410825 or email richard.benson@fishergerman.co.uk

sector spotlight

Fisher German’s sector heads look forward to what 2012 holds in store for the firm and its clients

Changes are afoot

Repairs driving expansion

FiT budget receives boost

Kevin Benson, head of commercial

Andrew Bridge, head of utilities & infrastructure

Mark Newton, head of renewable energy

As we enter the second quarter of 2012, there are definitely signs of change. Occupier enquiries are up, with supermarkets proving to be the best returning investment, and insurance companies are expected to pump millions of pounds into property via loans.

The increasing number of property enquiries has produced confidence and, although marginal in terms of its impact, it is encouraging some landlords to rein in deals which could see an end to some of the more generous incentive packages that have been offered to tenants. An upshot of this is better returns for investors.

Business rates costs mitigation will remain a market driver with the costs in particular of empty rates liability a major influence on many property deals.

The Energy Act 2011 introduced the Green Deal for commercial property, which makes it possible to retrofit energy efficiency into a building with no up front costs to the consumer, as this is financed by accredited providers with the cost recouped via energy bills. The Green Deal is an obvious benefit for owner occupiers but tenants are also expected to take this up, meaning that some buildings will be upgraded with little or no costs to the landlord.

The next few months will be challenging for all those involved in commercial property, but the challenges encountered may be very different to the ones we have already conquered.

The outlook for the utilities and infrastructure sector for 2012 is positive. The expansion of the utilities sector is mostly being driven by repairs and refurbishment to existing apparatus, as companies in the regulated sector are legally obliged to commit expenditure on repairs or face financial penalties.

Although new pipelines for the oil sector are thin on the ground, there is significant investment in extending the longevity of existing pipe networks. Originally, steel pipelines were only designed to last for up to 35 years and networks are in use that are up to 70 years old. The provision of onshore cables for offshore renewable energy projects will also be busy throughout 2012.

For projects that require planning permission, the level of consultation required by the Infrastructure Planning Commission (IPC) can cause confusion as there are insufficient guidelines to indicate the level of consultation necessary. However, developers should start consultation with both communities and local authorities on any intended project as early as possible. The IPC will not accept applications unless the quality and quantity of consultation are deemed adequate.

While the UK’s renewable energy market in 2011 was hit by reductions in the solar PV feed-in-tariff (FiT) rates in 2011, the launch of the £860m Renewable Heat Incentive (RHI) fund was positive news.

The Department of Energy and Climate Change (DECC) issued consultations in February this year on the FiT schemes.

While there were a number of reductions, with solar receiving the greatest at over 50 per cent in March, at least there is now certainty going forward. The cost of solar PV has fallen dramatically and a 50kW solar project at approximately £62,000 still has returns of 15 per cent. However, the DECC is proposing that FiT rates from 1 July will fall by another 25 per cent, reducing the returns to their target of 5-8 per cent.

Energy efficiency is also increasingly important and buildings with a new solar PV project will have to be an EPC level D, meaning only about 50 per cent of buildings will comply.

Problems in winning planning permission have meant that uptake in the wind market has been slow. However, we see wind as the main growth market under FiTs over the next few years with returns for medium scale wind still up to 20-25 per cent.

The market for anaerobic digestion plants has grown much more slowly due to cost, obtaining planning permission and feed stock availability, but the most profitable projects use outside non-agricultural feed stocks.

The RHI scheme, which promotes the installation of low carbon heating systems for commercial units, was welcome news. Farmers who install an RHI are seeing their energy bills drop by one third and are also benefitting from payments for renewable heat.

The FiT budget has now been increased to £1bn over five years – a good fund for all technologies in 2012 and beyond.

For further information contact Kevin Benson on 01777 719148 or email kevin.benson@fishergerman.co.uk

For further information contact Andrew Bridge on 01530 410828 or email andrew.bridge@fishergerman.co.uk

For further information contact Mark Newton on 01858 411215 or email mark.newton@fishergerman.co.uk

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Sector directory Contact details for Fisher German’s 14 national offices St Helens Phone 01744 451145 sthelens@fishergerman.co.uk Rainford Hall Crank Road WA11 7RP

Chester Phone 01244 409660 chester@fishergerman.co.uk 4 Vicars Lane CH1 1QU

Knutsford Phone 01565 757970 knutsford@fishergerman.co.uk 2 Royal Court Tatton Street WA16 6EN

Stafford Phone 01785 220044 stafford@fishergerman.co.uk 2 Rutherford Court ST18 0AR

Worcester rural Phone 01905 453275 worcester@fishergerman.co.uk 2 Birch Court Blackpole East WR3 8SG

Worcester agency

Bromsgrove

Phone 01905 726220 worcesteragency@fishergerman.co.uk City Wells House Sidbury WR1 2HZ

Phone 01527 575525 bromsgrove@fishergerman.co.uk 8 New Road B60 2JD

sectors and underlying services

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commercial

planning & construction

property agency

renewable energy

landlord & tenant property management sales & lettings telecommunications

applications & appeals architectural design building surveying development & promotion environmental management project management

auctions development equestrian estates farms and land residential

anaerobic digestion biomass eco friendly buildings hydro solar pv wind energy

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sector spotlight

Retford Phone 01777 709943 retford@fishergerman.co.uk 21 Exchange Street DN22 6BL

Ashby de la Zouch Phone 01530 412821 ashby@fishergerman.co.uk The Grange 80 Tamworth Road LE65 2BY

Newark Phone 01636 642500 newark@fishergerman.co.uk 12 Halifax Court Fernwood Business Park Cross Lane NG24 3JP

Market Harborough Phone 01858 410200 harborough@fishergerman.co.uk 40 High Street LE16 7NX

Hungerford Phone 01488 662750 hungerford@fishergerman.co.uk The Cuttings 120 High Street RG17 0LU

Banbury Phone 01295 271555 banbury@fishergerman.co.uk 50 South Bar OX16 9AB

rural consultancy

utilities & infrastructure

compulsory purchase estates expert witness farms rural valuations sporting

electricity fibre optics gas Linesearch.org oil & chemicals water

Thame Phone 01844 212004 thame@fishergerman.co.uk Market Offices North Street OX9 3FP

For more information visit:

www.fishergerman.co.uk

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080 0 1075522 www.fishergerman.co.uk