Fisher German magazine issue 10 Summer 2013 by fishergermanllp

www.fishergerman.co.uk

Summer 2013 | Issue 10

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Historic innovation

Capesthorne Hallâ&#x20AC;&#x2122;s diversified income and sympathetic, forward-looking development

Rural entrepreneurs

Inspiration and hard work pave the way to success

Deeper underground The hidden world of buried infrastructure

A change of planning

The opportunities and risks of changing planning legislation

Welcome

Despite ongoing uncertainty, the green shoots of economic recovery are becoming increasingly evident. The UK is also changing, from massive spending on improved transport infrastructure, to securing sustainable energy sources, a greater focus on conservation and significant changes in planning legislation. We are well-placed to assist in all of these areas and more, helping to organise mitigation measures and compensation for those affected by HS2, helping landowners unlock value in their land through solar parks and residential development. But England remains proud of its unique heritage, which continues to play a central role in the rural economy. Again, we are closely involved in safeguarding and improving this resource, helping diversify the income of landed estates with centuries of history, and providing much-needed advice to owners of country houses who may lack the time to deal with complicated day-to-day management. Our firm is also changing with the times. The sad passing of Henry Sale has been keenly felt by all here at Fisher German. Nevertheless, this unexpected tragedy has been a catalyst for putting the business on a firmer footing. With a new management team and solid plans for further expansion the future is bright for us and for our clients.

Pricing sunshine

The opportunities for landowners to develop income streams from solar photovoltaic (PV) parks need expert assistance and advice

Railroaded by HS2?

Selling in tough times

The controversy over HS2 rumbles on. Those affected need to act now

Despite a sluggish housing market, speedy sales in excess of the asking price are possible

20 Avoiding a country house crisis

An experienced manager can help put the enjoyment back into ownership of a country house

22 Well-rooted experience

A background in farming is central to Matthew Barkerâ&#x20AC;&#x2122;s varied role

The Fisher German Magazine is intended to be an informative guide. It should not be relied on as giving all the advice needed to make decisions. Fisher German LLP has tried to ensure accuracy and cannot accept liability for any errors, fact or opinion.

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Moving forward

Historic innovation

Overcoming the tragic passing of Henry Sale is putting the firm on a new course

Capesthorne Hall’s diversified income and sympathetic, forward-looking development

08 Rural entrepreneurs

Striding into reforestation

The inspiration and hard work involved in setting up artisan distillery Warner Edwards

10 Deeper underground

The National Forest is creating a new forested landscape across parts of Staffordshire, Derbyshire and Leicestershire

12 From supplier to partner

A web of buried cables and pipelines can pose problems, especially with placement, repairs and digging

Severn Trent Water’s search for land and planning services led to a relationship that has blossomed into a true partnership

Cooperation in commercial rent collection

Change of planning

A planning system shake-up offers both opportunities and potential concerns for landowners

A surveyor can help a commercial property portfolio achieve its potential

24 Sector insight

Fisher German’s sector heads forecast market conditions

Sector directory

Contact details for Fisher German’s 14 national offices

34 Please remove cover before recycling this magazine

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news&views

Moving forward Overcoming the tragic passing of Henry Sale, joint managing partner, is putting Fisher German on a new course

hen Henry and Andrew Jackson, managing partner, merged Fisher Hoggarth and Germans Chartered Surveyors, the foundations of the firm’s achievements were created: “Two people managing at an equal level is unusual and often not successful. Henry and I operated very successfully as a team,” says Andrew. “Henry’s sad and untimely death has been a tragedy for us all but, as joint partners, we set the business vision and goals together; this will be of massive benefit moving forward.” The firm grew rapidly during the 13-year partnership, says Andrew. “The business has grown to over six times its size in terms of turnover, offices and staff. Mergers have helped to build our geographical reach, but two-thirds of the increase has come from organic growth.” The current 14-office national network, with 300 personnel and over £20 million turnover, was founded in 2000. The original goal of becoming the dominant rural property consultancy in the Midlands was achieved in 2008. The subsequent vision, to be the property firm of choice for clients, staff and partners is still shared throughout the firm. Strengthening the management team has moved this objective into the next phase, helping to deliver what Henry, Andrew and the Fisher German team had worked so hard to

achieve. Andrew Bridge, Tim Shuldham, Adrian Jones and Andrew Jackson make up the new four-man management team. “This is about continuity and spreading the load,” Andrew says. “Three of us – Andrew, Tim and myself – are still client-facing surveyors, which I think is important for the business.” There will be no change in the current five-year plan, which is regularly reviewed. Over the next ten years, the plan is to double the size of the business, increasing geographic presence through the number of offices. The client offering will be improved in every office across Fisher German’s six main sectors. “With mergers, acquired businesses may have certain interests and specialisms and may not offer the full service that Fisher German offers, so we will combine our strengths – the ideal is to improve our offering across all six sectors,” says Andrew. Clients throughout the firm’s network can expect assistance in areas including rural consultancy, utility and infrastructure, property agency, commercial property, renewable energy planning and development. A stronger and larger Fisher German will offer our clients a greater range of benefits, combined with the personal partnership that has helped build our success thus far. To find out more about how we can help please contact your local office.

The business has grown to over six times its size in terms of turnover since the merger.”

Steady progress

The timeline below shows the firm’s solid expansion

2000

2003

2004

2006

2008

• Chartered

• Merger with

• Conversion to LLP

• Merger with John

surveyors Fisher Hoggarth and Germans Chartered Surveyors merge to form Fisher German

• The firm has four

offices, £3.6m turnover and 64 personnel

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Clayson Haselwood Chartered Surveyors to form the Banbury office

• Launch of

Linesearch.org, the first online enquiry system for locating underground utilities

W&O Beck to form the Knutsford office

from traditional partnership

• The firm has six

offices, £8.6m turnover and 140 personnel

Hopkinson Chartered Surveyors to form Newark office

• Merger with John

Royle Chartered Surveyors to form St Helens office

The new management team

The new management team (clockwise from top left): Andrew Bridge, Adrian Jones, Andrew Jackson and Tim Shuldham

Andrew Jackson As managing partner, Andrew is responsible for the overall management of the firm. He established the utilities and infrastructure sector and is a past chairman of the Pipeline Industries Guild onshore technical panel. Andrew is also chairman of Fisher German Priestner Ltd, and a director of Fisher German Ltd and LinesearchbeforeUdig Ltd. In addition, Andrew is experienced in a variety of professional work including rural estate management, pipeline asset safety management and property development.

Andrew Bridge

Tim Shuldham

Adrian Jones

As head of the utilities and infrastructure sector, Andrew specialises in general professional services and utility and infrastructure management. He has over 15 years’ experience in the field of utilities and focuses on linear utilities promotion, construction and management, currently managing a number of high-profile major national infrastructure networks in the UK. He is a business mentor for the Prince’s Trust, a board member of the National Forest Charitable Trust and a Leicestershire member of the Institute of Directors.

Tim’s principal professional work is providing advice on agricultural and rural property to clients throughout Nottinghamshire, Derbyshire, South Yorkshire and Lincolnshire. He is particularly involved in estate management, including financial management of clients’ business affairs. Tim holds several trustee appointments and is a fellow of both the Royal Institution of Chartered Surveyors and the Central Association of Agricultural Valuers.

As finance director, Adrian qualified as a Chartered Accountant over 20 years ago and during this time has gained experience across a diverse range of businesses and sectors. Prior to joining Fisher German in July 2012 he worked as a country finance director for Cephalon, a global pharmaceutical company listed on Nasdaq, initially in the UK and Ireland and then as finance adviser to a newly acquired Swiss company. Additionally, he held the role of finance director at Corgi Toys and has occupied other senior finance roles at consumer brands Speedo International and Next Retail.

2009 2010 • Barry Gamble

appointed as first non-executive chairman

• Southampton

Utilities office relocates to Hungerford

• Newark office

relocates to new premises

• Merger with

2011

2012

• Merger with John

• Merger with Denton

Sanders in Worcestershire, additional offices in Worcester and Bromsgrove

Clark in Chester, additional office in Chester city centre

• The firm has 14

offices, more than £20m turnover and circa 300 personnel

Shuldham Calverley in Retford

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Agencyfacts The latest property-related statistical info and market facts from Fisher German

‘Open season’ on land development A rare opportunity for landholders to increase land value

he new development surveying department, working across the firm’s network of offices, has potential benefits for a wide range of clients. New capabilities around consultancy and advice on development matters, and disposal of development sites are a positive response to the current market upturn. “For many agricultural clients there is a huge difference between the current use value of land and its development value,” says Ben Marshalsay, local partner, who has more than a decade’s experience of residential development agency work and strong relationships with national and regional developers. “There is a window of opportunity as the lack of availability of land and the low build rate since the recession has led to a shortage of new homes being built.”

£162,606 £373,207 1,669,800 T 933,420 583 % 28 % 17 Average UK House Price

Greater London average price

The residential development sector has shown signs of recovery and improvement, and this, together with the NPPF (National Planning Policy Framework), will present exciting and challenging opportunities for both house builders and landowners. Planning permissions are being fast-tracked for any development sites perceived as ‘sustainable’ so both PLC and regional private house builders are interested in suitable land. Ben says that there is no minimum or maximum size for potential development sites, although sites on the edge of existing urban settlements and in sustainable areas are best placed to take advantage of this planning situation. Sites requiring less investment in roads and other infrastructure, keeping development costs down, tend to be

To protect and conserve

Number of UK house sales 2006

Number of UK house sales 2012

Average number of Fisher German houses on market 2012

Increase in viewings Q1 2013 compared to Q1 2012

Increase in sales Q1 2013 compared to Q1 2012

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he heritage team’s ever-expanding work is helping to safeguard England’s irreplaceable architectural legacy. The work is evenly divided between professional services and projects. Services include pre-acquisition surveys for potential buyers of listed buildings, advice on potential liabilities associated with leases and commercial occupation, and identifying defects and explaining necessary repairs. “There is a strong conservation element,” says Tom Barton, associate. “You need to know where to look for problems, such as the most common places for timber frames to decay.” The heritage team is also involved in a hands-on role in architectural and project management services. “We are appointed to survey and produce a schedule of work that describes repairs in detail, which is then given to specialist craftsmen with heritage experience,” says Tom. “We will recommend who to appoint to do the work, draft a contract between the builder and the owner, and oversee work on site, addressing any issues that may come up.” Recent projects include re-roofing a Grade II* building (a job that took one year), working on a Grade II* Georgian terrace in Stamford, repairs on Grade I tearooms, and

extensions and the refurbishment of lots of listed farm buildings. Such work can be expensive but advice on grants is also available. “These buildings are often functionally redundant so owners get little or no financial or economic value from repairing them. Despite the conditions often imposed, grants can be very useful: we have been involved in two recent successful applications to English Heritage to repair buildings that were on the At Risk Register; the Grade I Muniments Room in Melbourne and a Grade II* sawmill in Osmaston.” The firm is increasingly moving into conservation management plans, and has recently worked with the East Midlands Heritage Management hub on a picturesque garden structure in Derbyshire. Tom is shortly to graduate from a postgraduate qualification in Historic Environment Management to formalise his expertise in the field.

For further information please contact Tom Barton on 01530 567469 or tom.barton@ﬁshergerman.co.uk

Make hay while the sun shines: there are two years to do a lot of work, before the next election.” preferred by developers. Nevertheless, land promotion and planning is not cheap, making the help his team offers with finding development partners very valuable should the land owner not wish to fund land development on their own. Ben stresses that appraisal is quick and easy, and urges those who might be interested to act quickly. “Make hay while the sun shines,” he advises. “There is potentially a two-year period to promote strategic potential development sites and submit

planning applications before the next election when the planning sector could be subject to changes once again. “There are two years to do a lot of work, before the next election. It is open season on land that might be suitable for development.”

For further information please contact Ben Marshalsay on 01530 567465 or ben.marshalsay@ﬁshergerman.co.uk

Fighting against the tide

looding is becoming an ever more serious issue for the UK. Assisting the ongoing measures to tackle the problem, Fisher German is working with both the Environment Agency to help with advice on flood defence schemes and liaise with owners of land affected by these anti-flooding measures. The firm is involved with several major schemes, including the Nottingham Left Bank scheme along the River Trent, the Lower Tame flood scheme around Tamworth, the Lower Dove scheme, and measures to combat flooding in residential areas of Ashbourne. John Ikin, partner, explains that the firm begins with referencing – ascertaining who owns and occupies land on which projects are planned – before working as part of an Environment Agency project team and with landowners affected by such schemes to mitigate the temporary effects of the work associated with construction. Any permanent alterations in land or property value can also potentially be compensated, he adds, and his team are involved in the negotiation process. Success with a recent tender has seen the firm’s work with the Environment

Agri facts

The latest farming-related statistical info and market facts from Fisher German

16.5m

of corn was recently planted in the US Corn Belt in one week – a record. Rainfall had kept markets on edge over how much would be planted; however, a dry period gave the opportunity for fieldwork. Rainfall is disrupting the end of the planting period, yet this is boosting soil moisture after a winter drought.

75 5

Agency expand to encompass the whole of the Midlands and East Anglia regions. “It’s an exciting challenge and is likely to include input from the majority of our offices across the region,” says John, revealing that the firm’s responsibilities have also grown. “In addition to our input on Flood Defence schemes we anticipate being involved with the management of land on ﬂood plains owned by the Environment Agency and providing sales advice for surplus property. The framework also includes the provision of building surveying services.”

For further information please contact John Ikin on 01530 410814 or john.ikin@ﬁshergerman.co.uk

p/t

is the approximate expected return from the sugar beet rebate after EU sugar processors have successfully argued that the levy charged on growers from 2002/3 to 2005/6 to enable surplus production to be exported was miscalculated. The UK share of the rebate is £13.4m divided between British Sugar and growers.

p/kWh

is the new renewable heat incentive tariff after DECC introduced a degression-based approach. The tariff will be reduced for new accreditations by 5% from 1 July. Tier one tariffs will be reduced from 5.3p/kWh to 5p/kWh, and tier two tariffs from 2.2p/kWh to 2.1p/ kWh. No other tariffs are affected.

2.54m

tonnes

is the predicted UK wheat import total, upgraded by Defra. The estimate for feed use was raised by 229,000 tonnes to 6.69m tonnes, reﬂecting the lingering impact from the poor weather last year, boosting demand besides lowering yields.

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Historic innovation

Keeping any historic house on a firm financial footing is a challenge. Capesthorne Hall, at the heart of Cheshire, is no exception. A diversified income and sympathetic, forward-looking development are the keys to success.

apesthorne Hall and a part of its 1,940ha estate was opened to the public in 1955 and is currently in the guardianship of Sir William Bromley-Davenport, the former Lord Lieutenant of Cheshire, wife Lady Elizabeth and their son, Nick, a former High Sheriff of Cheshire. “We work very much as a team,” says Nick. “I tend to think of the family unit as three legs of a tripod.” Their unofficial fourth leg is Fisher German partner Chris Henretty, who has been advising the family on the management of the estate for over three decades. “I speak to Chris daily,” says Nick. “He’s an exceptional person and integral to what we do, so much so that we consider him part of the family.” Although some 30,000 visitors pass through each year, the cost of maintaining a large amount of land and antique property is substantial. So Chris has had to consider how the estate can best

a dedicated area for 50 vans, more than half of the plots with hard standing. Providing a facilities block for the caravaners was more of a challenge. “I knew that a traditional brick building would be frowned on by planners so I was looking for something different,” says Chris. The solution was a sustainable modular building from East Sussexbased specialist manufacturer Boutique Modern. Founder Dick Shone admits that providing a bespoke building for Capesthorne, including an office, shower cubicles and facilities for the disabled, presented several issues: “Planning regulations meant that it had to be a certain size, could be delivered in no more than two parts and had to be fully finished on arrival. We also wanted it to be attractive so that it fitted in with the Capesthorne ethos.” Installed last autumn and clad in

I knew that a traditional brick building would be frowned on by planners so I was looking for something different.” generate the necessary income, without unduly disturbing the historic atmosphere that is central to its existence. Chris has over the years overseen the development of a diverse range of activities, from angling and paintballing, to craft fairs, music festivals and corporate events. The most recent update to the estate has been the renovation of its caravan park, complete with new facilities block.

Moving forward Touring caravans have been welcomed at Capesthorne since the 1970s, but the work completed in time for the start of this year’s season has seen the creation of

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European larch that will blend in with its surroundings, the building has already won plaudits for its looks from visitors. But its beauty is more than skin deep. The block is also extremely energy efficient, using recovered ventilation, underfloor heating and night-time lighting controlled by infrared sensors that avoid wasted energy and light pollution. Roof-mounted solar panels generate 3.6kW that power the block, with the remainder sold to the national grid. “In essence, it generates more electricity than it uses,” says Dick. The facilities block, screened from the main house with an established hedge that keeps the caravan area private,

helped the site win a coveted four-star rating from the AA. British summer weather permitting, a record number of caravans and motorhomes are expected this year.

Bright future Capesthorne has been innovative in other ways. “Chris was ahead of the game developing our buildings and achieving good returns,” says Nick. The estate has steadily grown in status as a wedding venue over the last 20 years. “Last year we created a beautiful area beside the lake and blessings can take place in the chapel that dates back to 1712,” says Chris. This part of the building miraculously escaped the 1861 blaze (see box). Capesthorne is now expecting to host 50 weddings each year and the extensive grounds allow space for marquees that can provide capacity for up to 500 guests. Some outbuildings are now used as light industrial workshops, while parts of the hall have been converted to offices, occupied by water management specialist Bird Industries and professional sportspeople manager Elite Welfare Management (EWM). “It’s important for us to be based at an exclusive venue that offers a beautiful tranquil environment. Capesthorne Hall is perfect for our clients and more,” says John Duncan, director of EWM. The future for Capesthorne looks bright, with further office conversions and overnight accommodation for wedding guests in the pipeline. There is certainly much to keep Chris busy. “He’s absolutely my right-hand man,” reflects Nick.

For further information contact Chris Henretty on 01565 757973 or chris.henretty@ﬁshergerman.co.uk

ESTATE DEVELOPMENT Still in the hands of the BromleyDavenport family, Capesthorne is a regional landmark

Left: The bespoke sustainable modular caravan facilities block fits with both the aesthetics and ethos of Capesthorne Below: Capesthorne is a popular wedding venue, with a dedicated area beside the lake and the capacity for up to 500 guests

A phoenix from the ashes On an otherwise unremarkable autumn evening in 1861 the night sky around Siddington, near Macclesfield in Cheshire, was eerily illuminated as ﬂames leapt from the windows and towers of Capesthorne Hall. The resulting inferno, vividly captured in a picture published on the front cover of the London Illustrated News on 12 October 1861, left the central part of the Jacobean-style mansion in ruins. But fortunately the prevailing winds had left extensive wings on either side untouched, allowing the property to be rebuilt by eminent architect Anthony Salvin. An 1861 blaze left part of the hall in ruins

Capesthorne Hall’s attractions Visitors to Capesthorne can marvel at the Grade II*-listed architecture and wander through the magnificent gardens, as well as enjoying the artwork of EB Watts (Lady Bromley-Davenport). Capesthorne also hosts pop concerts – recent performers include Sandie Shaw and Jools Holland – and is popular for corporate events. Clients include: Astra Zeneca, Centrica, the Co-

operative Group, the Conservative Party and the Prince’s Trust. Capesthorne Hall is open to the public on Sundays, Mondays and Bank Holidays from Good Friday to the end of October. For more information, wedding and corporate event bookings and details of outdoor events call 01625 861221 or go to www.capesthorne.com

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Rural entrepreneurs Building a successful business in the countryside takes inspiration and a lot of hard work, the founders of artisan distillery Warner Edwards explain.

vid viewers of BBC’s Countryfile and keen shoppers at Fortnum & Mason may already be familiar with Harrington Dry Gin from the Warner Edwards Distillery. For everyone else, becoming acquainted with the brand is only a matter of time. Since opening their distillery at the end of 2012 in a converted farm building in Northamptonshire, friends Tom Warner and Sion Edwards have seen rocketing interest in their British gin: they even picked up a silver medal at this year’s San Francisco World Spirits Competition. Pretty good going for two farm lads who, less than a year ago, were working in very different roles in the fresh produce industry.

Characterful Their hand-finished product is no ordinary gin, a world apart from

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the mass-produced spirits that are casually splashed into a G&T. Although Harrington can be mixed as a long drink or used as the basis for a sublime cocktail, it’s arguably best appreciated as a sipping beverage. Much the same as a single malt

tasting session when the pair worked their way through ten specialist gins. “That was our Eureka moment,” recalls Tom. “We realised that everything that we were tasting had a unique flavour. It dawned on us that we could create something with its own character, something truly original.” Any notions that the path to artisan gin producer was as simple as tasting a few bottles should be quickly dispelled. “It took three years to get our business plan

I can deal with the technicalities, so owners can concentrate on successfully firing up their business.” whisky, the individual notes, produced by a combination of 11 botanicals and homegrown elderflower, really come to the fore. So it comes as some surprise to learn that the clear spirit bearing the Warner Edwards label was originally destined to be vodka. But after carefully researching the market Tom and Sion began to reconsider. The clincher was an evening

together, as we were doing day jobs, and we almost pulled ourselves apart in the year leading up to the start,” says Sion.

Back to the farm Working all hours, moving back home with parents and living in a bedsit were just some of the sacrifices the pair, now in their mid-30s, were prepared to make.

BUSINESS ENTREPRENEURSHIP Eureka moment: the unique ﬂavour and character of Harrington Dry Gin has won plaudits

Finding funding The White Lady cocktail recipe Ingredients 40ml Harrington Dry Gin 20ml Cointreau 20ml lemon juice Handful of ice cubes Method Combine ingredients in a cocktail shaker, shake well and then pour into a chilled martini or coupe glass.

So why leave permanent, well-paid employment for a leap into the unknown? “We’re both farmers’ sons,” explains Tom. “We knew for a long time we wanted to get back to something involving the farm – we just didn’t know exactly what!” The duo met while studying agriculture at Harper Adams, and after graduating in 2001, worked for a decade in the perishable goods sector. That experience stood them in good stead for setting up by themselves, but they stress that they spent many hours meticulously researching their ideas.

Tom’s top tips for entrepreneurs • Add 15% to all of your cost estimates • Allow for the fact that everything will take at least twice as long as you expect it to • Don’t rely on delegation – no-one can do anything better than you • Research is imperative – know exactly what you want to do, don’t start ill-prepared • Be prepared for hard work – it’s relentless

While Warner Edwards got off to a ﬂying start without any grant funding, other ﬂedgling rural businesses might need a financial injection to get off the ground, particularly in the early, cash-hungry phases of setting up operations. “What funding there is tends to come and go very quickly,” says Fisher German associate David Kinnersley. “While there wasn’t money available in the grant ‘pot’ within their timescale, the Warner Edwards venture would have been eligible.” Savvy entrepreneurs, he suggests, will at an early stage take on an adviser who is continually monitoring what is available and can put them in pole position when an opportunity occurs. Kinnersley explains: “Grants often come with lots of small print attached – for example, many don’t permit capital expenditure to be claimed retrospectively, so the timing of a start-up that involves a major single-item purchase might need to be structured around that requirement. I can deal with the technicalities, which frees up the owners to concentrate on their key objective: successfully firing up their business.”

“Your original thoughts and projections change almost daily as you learn more about your chosen markets,” admits Sion. As well as vodka, the pair had previously considered essential oils, vegetable and fruit boxes, fruit gift boxes and even strawberry production.

Spirit of success Even once they’d settled on gin there were substantial financial hurdles to clear. The spirit still (imported from Germany), upfront stock costs, plus money spent on renovating the 200-year-old distillery building was funded largely by the pair’s own savings. Tom’s advice for those in a similar position is to make sure you’ve done your homework: “You need to be able to convince others what potential your idea has, and particularly be able to persuade financial institutions that the level of risk you’re proposing is acceptable”. The friends had some breaks along the way. Their distillery is based on Tom’s family farm in Harrington, which saved them a protracted property search. Even better, the Northamptonshire farm

has its own spring, providing a perfect source of fresh clean water, ideal for alcohol production. And while the provenance of the local ingredients was always expected to be a selling point, the heritage of the distillery’s location has provided an unexpected, but pleasant, surprise. A local spectre has proved to be a marketing hit. “Legend has it that a ghost, known as the White Lady of Harrington, roams the farm grounds,” says Sion. Spotting her may be tricky, but enjoying a White Lady cocktail, made with Harrington gin – an altogether different kind of spirit – is much easier and certainly more enjoyable. Harrington Dry Gin is available in selected retailers, including Fortnum & Mason, and online at www.warneredwards.com priced at £33 a bottle.

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

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Striding into reforestation A new long-distance trail – The National Forest Way – is set to open next year which will boost access to beautiful and diverse areas of the Midlands. The project forms part of The National Forest, which is creating a major new forested landscape for biodiversity, timber and recreation across 200 square miles of parts of Staffordshire, Derbyshire and Leicestershire.

he National Forest Way will tell the story of the Forest as walkers travel through the area’s various landscapes, says Simon Evans, director of operations at the National Forest Company (NFC). “It will connect areas of ancient forest – Needwood and Charnwood – farmland, parkland and river valley landscapes.” The trail will stretch for around 120km. Local walks of 5–16 km will loop off the main spine, with detours onto smaller local routes to explore villages and attractions along the way, offering shorter walks. The precise route is still being finalised and discussions are continuing with landowners, but the walk is planned to begin near Alrewas in Staffordshire and finish in Leicestershire’s Charnwood Forest. Simon commented that the trail is being designed to link visitor attractions like the Discovery Centre at Conkers, with heritage and wildlife sites, all adding to the experience. The trail will be officially launched in spring 2014 at the annual National Forest Walking Festival, which sees people taking part in guided walks along dozens of different routes across the area. Fisher German is the main sponsor of the National Forest Way, reflecting the importance to the firm of safeguarding environmental biodiversity and the area’s breath taking landscape, as well as bringing economic benefits to the region. Fisher German has worked with the National Forest Company since its formation in 1995. Funding towards the trail will help to install and repair stiles and provide waymarking.

Firmly planted The National Forest Company’s head of forestry Matt Brocklehurst says that there has been significant woodland

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Growing tree cover The increase in tree cover between the launch of the National Forest Company in 1995 (6% forested, top) and after the planting of 8m trees (19.5% forested, bottom)

1995

2013 expansion since the inception of the National Forest in 1995. “We’re creating a forest environment and landscape for local residents and visitors to enjoy, restoring degraded landscapes, which have been excavated for mineral extraction, helping farmers to diversify their land holdings and improving wildlife habitats.” So far 8m trees have been planted across the Forest, increasing tree cover from 6 per cent in 1995 to the current level of 19.5 per cent.

Fisher German act as retained land agents for the NFC and one of their many roles involves identifying land for sale within The National Forest. “Fisher German are our eyes and ears in helping us with land acquisition” says Simon. “When we have bought land they also advise on how best to manage it, including arranging farm tenancies and licences for grassland management.” “There is often a time lag between land purchase and creating new woodland, other habitats and new public access, and

FORESTRY AND CONSERVATION

We are proud to be supporting the work of the National Forest Company and in helping to create the National Forest Way.” landowners. These grants are only available for land falling within the National Forest boundary.

Wood from the trees

PHOTOGRAPH: CHRISTOPHER BEECH

The National Forest Way will provide a new recreational facility along its 120km route

we may phase development over a few years,” Simon explains. “We sometimes set up farm business tenancies to help manage the land until it’s ready to be planted.” The NFC is funded predominantly by DEFRA, but it also secures money for the Forest’s creation from a range of other sources including corporate sponsorship from companies wanting to fulfil their corporate social responsibility role, accepting legacy bequests, Lottery-funded projects, individual donors and support from local authorities. The NFC works with landowners, a range of different organisations and local communities to create the Forest and has three grant schemes available. The Changing Landscapes Scheme

offers 100 per cent funding to owners of more than 1ha to create new woodlands and associated habitats, including parkland, meadows, orchards, hedgerows and wetlands, and their management for ten years. The Freewoods Scheme is aimed at those with less than 1ha but are still interested in the creation of woodland to fit around continued farming activity and other land uses. And the Parkland and Wood Pasture Scheme supports planting of more scattered trees in urban or rural settings from 0.25–5ha. The implementation of these schemes is very much Matt’s responsibility, with Fisher German supporting the NFC’s work on identifying interested

The NFC is also actively promoting the management of woodlands to secure the long-term benefits of the Forest. Awareness of the ever-present reality of pests and diseases, which are currently hitting the headlines, is a vital part of this. “This is something we are monitoring and we are working with specialist organisations such as Forest Research and the Forestry Commission to provide guidance and information to landowners,” Matt says. The NFC is also supporting the development of the woodland economy in the area. A recent initiative has been the development of a new website created to promote wood products and services across the National Forest area. Landowners, local wood-related businesses and members of the public can source local services and products with the aim of stimulating the woodland economy. David Merton, partner and head of rural consultancy sector at Fisher German, recognises that The National Forest is creating a major new asset for the nation, achieving multiple environmental, economic and social objectives: “We are proud to be associated with the Forest, supporting the work of the National Forest Company and in helping to create the Forest’s flagship National Forest Way.” For more information visit www.nationalforest.org or contact Fisher German’s David Merton on 01530 410806 or david.merton@ﬁshergerman.co.uk

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Pricing sunshine As investment in renewable energy sources continues to gather momentum, there are opportunities for landowners to develop income streams from solar photovoltaic (PV) parks by either letting the land to solar developers, or developing the project themselves, but careful consideration of the options is crucial.

olar parks have the potential to deliver a 7–10 per cent yearly return on capital invested to an outside developer over a typical 20–25 year lifespan. But landowners thinking of investing or letting land for a solar park should proceed with caution. Fisher German partner Mark Newton, who is head of renewables, says that support and advice is needed to see a project through to successful completion. The firm has overseen more than 40 solar parks in the three years since the solar rush took off.

Careful consideration Owners may have been approached by a solar company, in which case Fisher German will look at the proposal put forward. This may have an exclusivity period followed by an option agreement, then a pre-agreed lease. Once planning permission has been gained, then the

lease will be completed. Mark explains: “We will check if the commercial terms are right for the landowner and whether the company itself has a good track record of being able to get planning approval and then fund the building of the solar park.” Landowners should also get the best deal as there are a lot of interested developers out there. “If landowners have from a planning point of view a well-concealed block of land with a grid connection that has spare capacity (normally a 33kV power line or 33kV/11kV substation) then it is best to put the site out to tender: we have worked with the market-leading developers,” says Mark. Rather than allow a developer to arrange planning permission on the owner’s land, taking all the risk and getting all the profit, landowners can get their own planning approval, sell the solar park with planning permission and a grid connection for up to £100,000 per MW.

A small 5MW solar park can suddenly create a windfall of £500,000, or more for larger solar parks.

Second phase

Project planning a 5MW solar park The PV project for the Drayton Estate at Thrapston, Northamptonshire involved submitting an application to comply with strict guidelines, demonstrating the benefits of the project for the area and getting planning permission in time to allow for implementation before the FiT rate was cut. Fisher German ensured that the application was prepared and submitted promptly and was delivered within a tight timescale. They worked with statutory consultees and

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local stakeholders to ensure there was full support for the scheme as well as ensuring the client was happy and was kept informed on all aspects of the project. A ground-breaking bird survey was also undertaken over a three-year period, in consultation with Natural England, an organisation devoted to protecting and improving England’s natural environment. The research documents the impact of the solar park on birds and how they use the site.

The first areas to be developed were in the southwest soon followed by the rest of the southern counties, southern Wales and East Anglia. Although most of the best sites in these regions have been put under option, interest in solar parks is now moving north and has even reached the southeast of Scotland. In the early days solar parks were highly lucrative thanks to high Feed-in Tariff (FiT) payments. However, when the government cut FiTs in August 2012 interest waned and many projects were shelved.

SOLAR PARKS

Ideally land should be flat or gently sloping and south-facing. The site should not be overlooked from public vantage points or neighbouring houses and there should be easy access for construction and maintenance. There must be no obstacles that could cast shadows and the site must not be liable to flooding. The ideal sites are in the south of England on low-grade land outside protected areas. Suitability depends on how much irradiation – hours of sun – a potential site can offer and, crucially, how close to a 33kV line or electricity substation the site is; access to the national grid is essential. Lack of grid capacity is the main constraint holding solar park development back. The search is also on for brownfield sites and many of these have been identified and already tied up under option agreements, says Mark. “The demand is usually for a minimum of 10ha on which to have generating capacity of 5MW. However now there are projects of anything up to 120ha or more.”

The UK is currently the largest growth market in Europe for solar, and

st 1

th 4

in the world

There have been

500MW M W 3,000

of solar PV installed to date this year and it is predicted that

will be installed by the end of 2013

Cooling down?

To date there have only been a few solar parks for which planning permission has been refused.” Since then however the price of PV panels has fallen sharply and renewable obligation certificate (ROC) payments are available on large-scale projects and unlike FiT projects are not capped at 5MW generating capacity. Developers typically want sites of 10–20ha but there is no upper size limit.

The falling price of PV panels has driven demand for sites of 5MW or greater; ambitious government targets for solar energy and attractive ROC payments have in turn driven demand for ever larger solar parks. But this can bring its own problems. “To date there have only been a few solar parks for which planning permission has been refused but it is going to get more difficult to get approval because as with wind turbines, once you reach a certain threshold you get more and more objections,” says Mark. “This could be the case as more and more of the countryside is converted to solar parks.” Getting in early is important if a potential site is sufficiently close to a suitable substation, he says. “It is also essential to get the best possible advice to underpin a commercial arrangement that is likely to be in place for up to 25 years, or to get your own planning approval. Our planning team got planning approval for one of the first solar parks over two years ago.”

The EU are now proposing to implement an anti-dumping tax of 11.8 per cent rising to 46.7 per cent from 6 August on imported Chinese solar panels to bring the price up to similar EU manufacturing costs for solar panels. Some developers have said that this will kill the UK solar market. To date in the UK 1.7GW of solar have been built, which is a 70 per cent increase in the last 12 months. The government potential target for solar PV by 2020 is up to 22GW out of a total UK energy capacity of 90GW, so they are looking for solar to provide up to 25 per cent of the UK energy output. For further information contact Mark Newton on 01858 411215 or mark.newton@ﬁshergerman.co.uk or Harry Edwards on 01858 411204 or harry.edwards@ﬁshergerman.co.uk

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Deeper

underground F

isher German’s utilities and infrastructure sector works with some of the UK’s biggest names in gas, water, electricity and oil, explains partner Andrew Bridge, who heads up the sector. “We’re the largest supplier of land agency services to the utility industry in the country, and look after household names such as the National Grid, E-on, Total and the government.” He adds that a key part of the firm’s

clients avoid expensive mistakes such as disturbing a carefully tended high-value crop (see box) is just one of the ways the company’s rural practice expertise is essential.

Expert knowledge Andrew says that the scale of the task can be significant. “For one client we’ve been looking after 2,500km of underground fuel pipelines for in excess of 15 years. If the client needs to get to a pipeline

There are standard procedures that we understand as rural practitioners, but that are not within the scope of an engineer’s remit.” role is maintaining the strong working relationship between landowners and contractors. The knowledge of agricultural practices, alongside the relationships built, assists in timely delivery alongside cost efficiency. The utilities and infrastructure sectors role is both to protect the physical assets of the clients – pipes, cables and other underground apparatus – as well as to minimise the financial impact of any work they need to carry out. Helping utility

m 1

underground, high-pressure oil pipes potentially lurk

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to carry out a repair we liaise with the landowner and the contractor. It may be a straightforward single location dig or alternatively it could be a 25km diversion. The number of issues that have to be dealt with are considerable, ranging from planning applications, environmental and archaeological considerations through to identifying mineral consents and potential restrictions on land from a routing perspective.” Such responsibilities draw heavily

psi 1,500

of pressure means a fractured pipe can spew 10 tonnes of oil per minute

on a century’s experience. “Our team members are predominantly rural practice surveyors who have trained on rural estates and have a thorough understanding of how farms work. We need to weigh up the feasibility and costs of carrying out particular tasks based on our knowledge of land restrictions with the clients’ needs and determination to deliver.” Balancing the needs of utilities and landowners entails careful consideration of factors such as cropping, fencing to keep livestock safe, separating top and sub soils, location of water troughs and field access. “These are standard procedures that we understand as rural practitioners, but that are not within the scope of an engineer who has a different role to play,” says Andrew. There are also environmental restrictions, for instance the presence of great crested newts and badgers, Andrew explains. “Without conducting the necessary environmental surveys and putting up newt fencing, for example, the work simply can’t take place. While an engineer will understand factors such as topography, not all will fully understand the repercussions of removing a hedge during the bird nesting season.”

m £15

in damages could result from a single incident

ILLUSTRATION: RONWILSONILLUSTRATION.COM

An unseen web of buried cables and pipelines that snakes across the country has become an essential foundation of modern life. Expert guidance is needed to ensure that lines are placed sensibly, repairs are made economically and digging is done safely.

BURIED INFRASTRUCTURE

Digging up danger

The dos and don’ts of safe digging • Do consult the pipeline operator/ representative in advance • Do tell the pipeline operator/representative if it is not clearly marked • Do arrange a site meeting in advance of the work • Do fence off the pipeline across the site • Do construct plant crossing points • Do give the pipeline operator/representative at least 3 working days’ notice to arrange supervision • Do tell all constructors and staff about the pipeline

• Do work closely with the pipeline operator/ representative to ensure that your activities can be completed in total safety • Do get in touch with Linewatch on 01488 662750 (8:30am–5:30pm Monday– Friday) or www.linewatch.co.uk/contacts.php • Don’t assume that you know the location of the line or locate it without a pipeline operator/representative • Don’t move pegs, posts or guard fences • Don’t carry out any work – even trial holes – within 3m of a pipeline without a pipeline operator’s/representative’s supervision • Don’t drive plant across the pipeline

Asparagus fears Asparagus is well known for being a deservedly expensive vegetable – but nowhere near as costly as it could have been for a utility company considering driving a pipeline through a field of the prized delicacy. The firm could have been faced with a bill of many thousands of pounds were it not for a timely intervention. “One of our utility clients wanted to install a pipeline across a field,” recalls partner Andrew Bridge, who heads the utilities and infrastructure sector. “To the layman it looked like a pretty ordinary field and therefore not a complex or controversial job. But to us as rural experts this was a potentially extremely costly business, as the field was full of asparagus crowns.” Asparagus is a very high-value crop, not least because it takes five to seven years to reach a commercial standard – the ongoing value is substantial. “The compensation the client would have had to pay the farmer would have been enormous. Instead, we suggested they put the pipe round the edge of the field – thus saving them a significant amount of money.” Other issues not immediately obvious can also potentially cause headaches. “In another case a client wanted to repair a section of pipeline in woodland. To an engineer this was a straightforward job. But the landowner told us this was the site of a high-value pheasant shoot and the disruption would have meant the client paying out a five-figure sum in compensation for lost business. Instead we advised them to wait a month until the season had finished and then carry out the work.”

Buried cables and pipelines are scattered across the country and most people are oblivious to their existence. However, ignorance is not bliss, particularly when it comes to potentially lethal high-pressure oil pipelines – the utilities and infrastructure sector manages in excess of 4,000km of these. Landowners need accurate guidance on where these pipes are buried to avoid expensive – or deadly – consequences. Lurking just a metre underground and only the thickness of a pound coin, if ruptured these can propel a highly ﬂammable jet of petrol over 30m high at 1,500 psi, spewing around 10 tonnes a minute. Aside from the safety aspects, damage from a single incident could cost as much as £15m. Though there have mercifully been no fatalities in this country, there have been deaths in the US and elsewhere in Europe. To ensure client apparatus is neither damaged nor a danger to the public, Fisher German’s free-to-use, web-based LinesearchbeforeUdig is an invaluable tool that receives around one million enquiries a year from other utilities, developers, solicitors and landowners. The site enables searchers to pinpoint the location of numerous hidden pipes under their land or land on which they plan to build. “Users of the site receive an immediate response advising whether their works or site is affected by any of the members apparatus protected by the site. Enquiries that are affecting our clients’ apparatus are received in either our Ashby or Hungerford hubs and then processed through a bespoke tailored software system with integrated GIS mapping,” says Andrew. “Innovation is key in ensuring the process from enquiry to site visit, where applicable, is as quick as possible.” Sister website Linewatch highlights best practice for the pipelines that lie underground and how works promoters/ developers should take them into account when planning work. Find out more about LinesearchbeforeUdig at www.linesearchbeforeudig.co.uk.

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

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Standing together: STW wanted its customers to see a single entity

From

supplier to partner Severn Trent Water’s search for a supplier of land and planning services to its capital programme led to a relationship that has blossomed into a true partnership.

s one of the largest water companies in the UK, Severn Trent Water (STW) is charged with providing clean and waste water services across the Midlands from Powys to the Humber estuary, and from the Peak District to the Severn estuary. STW’s suppliers of land and planning services offer comprehensive advice and management of all property and town and country planning matters on areas including construction of pipelines, reservoirs, sewage and water treatment works. Fisher German’s performance over the past three years has seen its role rapidly develop, resulting in the contract doubling in size. Now covering twothirds of STW’s Land and Planning requirements, the firm has further

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cemented its status as a major property and planning player in the water and utilities sector.

Partnership STW’s property services manager Gillian Bullimore explains that bringing in outsourced framework suppliers was a significant change to their previous ‘part in, part out’ approach. “Obviously, we needed to learn – we really came to understand over the first 18 months the importance of getting into a partnership with our suppliers and we achieved this by codesigning a supplier relationship model that helped us build our partnership with Fisher German. “Our suppliers are representing STW

in dealing directly with our customers. As a result it was essential Fisher German understood what is important to STW and why we put the customer at the heart of everything we do,” Gillian says. “We wanted everyone to be working together as a team: the customer should see just a single entity – STW undertaking investment on their behalf. You can’t get that approach if you deal with your supply chain, solely, as a supplier with a contract.” Gillian highlights the depth and closeness of the working relationship. “You need to take it much further; you need a partnership so that both understand each other’s motivations. We have connected particularly well with Fisher German in this respect.”

CLIENT PARTNERSHIP

Going with the ﬂow: understanding each other’s motivations is crucial to partnership

The fruits of partnership Among the 500-plus capital schemes Fisher German has been responsible for are:

Solid foundations George Simpson, a Fisher German partner and account manager for the STW contract, says that the success of the now fully fledged strategic partnership is down to a constant striving to be the best. He stresses the importance of the firm’s core values to the relationship with STW. George says the relationship is complex, with multiple clients and supply chain partners working in collaboration to deliver large numbers of diverse individual projects, each involving varying numbers of third party stakeholders. “We provide a fully integrated and joined up ‘in-house’ style land and planning service. This includes management of access to STW’s own operational property as well as to private property, much of which is in rural areas. Specialist planning services include

this,” says George. All these tasks involve dealing with members of the general public – landowners and occupiers – who are almost always customers of STW. “We have to carefully balance the needs of the customers affected directly by proposals against the statutory obligations on STW to deliver efficient and cost-effective solutions for its customers. We have been involved with more than 4,000 individuals over the last three years. Our people’s empathy with owners and occupiers of property is built on an almost intuitive understanding of their concerns and this really does help us find common ground.” As the relationship has matured, close teamworking alongside STW and its other suppliers has enabled the identification of potential improvements to processes and behaviours.

Specialist planning services include advice on permitted development rights and dealing with applications for planning permissions.” advice on permitted development rights and dealing with applications for planning permissions.” Projects include everything from securing the necessary planning permissions and negotiating the purchase of land for a major sewage treatment works to arranging access for the construction of replacement water pipelines. “Projects range enormously in size and complexity – we have had to develop systems that can accommodate

These fundamental changes in the relationship with STW have involved steep learning curves for both parties. But undeniable results and achievements have laid the foundations for a lasting partnership.

• Various clean water and sewage

pipelines in Staffordshire and Shropshire • New extension of in excess of

250km to the clean water network in the West Midlands • Numerous water rehabilitation

schemes throughout the region extending to over 150km to date • Diverting a public footpath in

connection with a sewage works extension in Shropshire • Dealing with the surrender of an

Agricultural Holdings Act tenancy in connection with a major sewage treatment works redevelopment • Acquiring numerous sites in

connection with sewage works extensions, sewage and water pumping stations • Negotiating compensation

associated with pipeline bursts • Negotiating rights for discharges

on third-party land • Negotiating crossing agreements

with Canal and River Trust, Network Rail and other utilities • Seeking consent for land entry from

other statutory undertakers not bound by the undertakers’ statutory powers • Obtaining consent for works in

registered commons • Numerous Environmental Impact • Assessment Screenings • Over 90 planning applications

For further information contact George Simpson on 01785 273995 or george.simpson@ﬁshergerman.co.uk

• Dealing with land entry issues

arising from sewer and lateral drain requisitions.

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Railroaded byHS2? The controversy over the ÂŁ33bn high-speed rail link HS2 rumbles on. While trains wonâ&#x20AC;&#x2122;t be running for over a decade, those affected need to act now.

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ampaigners fighting HS2 won a small victory earlier this year when a legal challenge resulted in a ruling that consultation on compensation must be reopened. The ruling may have given those who live in or own any kind of land or property close to the proposed route the impression that they still have plenty of time to make individual objections. After all, the first trains are not scheduled to be running until 2026 at the earliest. However, Fisher German senior surveyor Jonathan Perks, who advises property and landowners affected by large transport projects, points out that the legal framework for the line, including the necessary acts of parliament, is expected to be finalised in the next couple of years. Once the proposals come before parliament, something that could happen for the first phase of the line between London and Birmingham by the end of this

2026

may see trains running on HS2, although those potentially affected are advised to make representations to HS2 immediately

HS2 DEVELOPMENT

HS2 compensation cases

year, the only way to suggest changes will be to petition parliament directly. This process is potentially complex and costly.

Act now Jonathan recommends that those who might be inconvenienced by any part of HS2 – from London, to the West Midlands, Leeds and Manchester – should quickly assess the potential financial and other losses caused by the new railway line and make representations to HS2 about them while practical remedies are still easily achievable. His experience acting on behalf of landowners affected by the planned route suggests that a pragmatic approach, rather than simply objecting to the whole scheme, is likely to yield the best results. “We have found that it is more productive to make specific suggestions to HS2 and meet with the company to talk through the alterations you are proposing,” says Jonathan. “Getting the railway moved somewhere else is probably not going to happen. But there is a much greater likelihood of getting agreement for, say, a bridge that will protect access to your land. HS2 will consider any suggestion, within reason.” The engineers who laid down the draft route were largely looking at the land from a top-level perspective, considering how best to avoid flood plains, sensitive landscape areas, steep gradients and sharp curves in the line. They did not consider the effects at a very local level, for example that the railway might cut off a water supply or drainage channel. “We’ve found HS2 to be reasonably responsive when presented with individual cases,” says Jonathan. But he stresses the need to act sooner rather than later.

225

mph

trains will make HS2 Britain’s fastest railway

Fisher German has substantial experience of advising those adversely affected by large transport projects, including the West Coast upgrade and the Nottingham Tramway. The firm has already been successful in acting for property owners affected by HS2: Potential loss A farm owner was facing disruption to the operation of his 120ha mixed farm, which, in theory, was accessible by two separate routes. HS2 believed that access would still be achievable while one route was blocked for the duration of construction works. When Jonathan Perks pointed out that HS2 had failed to appreciate that the alternative access was unsuitable for agricultural vehicles, HS2 agreed to look into providing an alternative access

“You can’t start this process too early. Once you are aware that HS2 affects your land or property, particularly if it is in the first phase between London and Birmingham, you should act

We’ve found HS2 to be reasonably responsive when presented with individual cases.” immediately. You can still be against the principle of HS2, but it’s best to meet with them on your terms, rather than theirs.”

Right first time Similarly, those affected by a sudden change in circumstances (usually medical, financial or family) can apply for HS2 to purchase their property if they need to sell and it is blighted by the planned HS2 route. The government pledges to pay what would be considered the market value had HS2 not been

bn £33

estimated cost makes the project Britain’s most expensive transport infrastructure link

while construction took place. “This loss of access could have been dealt with by compensation at a later date,” Jonathan says. “But most farmers would rather not lose access to their farm for two years.” Exceptional hardship A homeowner needed to move to a new property due to a medical condition, but was struggling as no viewings had taken place for a considerable time. “We researched the market for similar large residential properties within a mile both before and after the HS2 route announcement and compared those figures with the national average,” Jonathan says. “As a result we were able to show that the lack of interest was most likely due to the proposed railway and the compensation claim was accepted.”

proposed, but, at the time of writing, the majority (73 per cent) of applications for this type of compensation have been turned down. Employing an adviser to assist can be invaluable in these cases, as there are hazards individuals may not be aware of, warns Jonathan. “For example, your claim will be rejected if you are marketing at significantly more than the value given by HS2’s appointed surveyor. Be aware that there is no appeals process, and you can only apply again if there is a further change in your circumstances.” At present properties need only be marketed for three months but the proposals for longer-term compensation would require marketing for at least 12 months. That may not sound long, but for someone with urgent health concerns, or who is about to have their property repossessed, each passing month could be critical. “It’s important to get it right first time,” says Jonathan. “A great deal of thought and presentation of the right evidence is needed to get accepted.” For further information contact Jonathan Perks on 01295 226282 or jonathan.perks@ﬁshergerman.co.uk

73%

of applications for compensation associated with a sudden change in circumstances have been turned down

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Selling in tough times The continuing tough economic climate and gloomy newspaper headlines have led to perceptions of a sluggish housing market with prices well below expectations. But speedy sales in excess of the asking price are possible.

espite the glum talk of falling sales and dwindling prices, there has been encouraging news from the Royal Institution of Chartered Surveyors (RICS): recent house sale volumes were higher than they have been in the past two-and-a-half years. A number of success stories highlight the importance of an expert with local knowledge. Advice on presentation and a focus on the correct market can make a sale as effective now as in the boom times. Matthew Allen explains the importance of honesty. “Overflowing washing baskets, badly behaved dogs – or dogs full stop – and unkempt lawns are obvious to mention but nonetheless worth pointing out. Sometimes the owner’s sense of style is at odds with those of a potential buyer and here, for the sake of a few pounds or a few hundred, we can make a lot of difference. One house we sold a while ago had a pink garage door and pink front door. We suggested they change the colour and it sold.” Knowing where to target the properties is also important. “We deal with properties right across the price spectrum, ranging from small cottages to country houses, and development plots to large landed estates, which need to be targeted far beyond the local market. By spreading the net further afield and selling the benefits of the location to those who may not otherwise have considered it, we can offer help that may not be available through other agencies.”

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Four Winds

Four Winds at Warmington achieved well over its £335,000 price tag

Four Winds Four Winds at Warmington in Oxfordshire achieved well over its asking price of £335,000 after a whirlwind three weeks that involved 55 viewings and netted six offers. Matthew Allen from the Banbury office explains that the cottage needed renovation but was in a good location and had the very rare option of an additional neighbouring 1ha field. “Because it was an executors’ sale it was sensibly priced, thus enabling the sale to be both speedy and more lucrative than had been envisaged.”

21%

of surveyors reported property price rises, the highest proportion since June 2010, according to the RICS UK Housing Market Survey. Both sales and prices are expected to rise in the 12 months ahead

PROPERTY SALES Tetchwick Farm Tetchwick Farm

Tetchwick Farm sold for more than its £4.5m guide price within a matter of weeks

Drummer House

Drummer House achieved £75,000 above its asking price

While reducing the price is generally a more usual practice in these relatively straitened times there are some properties which have actually been subject to a bidding war and sold at above the asking price – and in double-quick time. One such example is Tetchwick Farm in Kingswood, Buckinghamshire, which was sold on a ‘lock, stock and barrel’ basis through the Thame office for considerably more than its combined guide price of £4.5 million on the farm and an additional £500,000 for its live and dead stock. It took only four months from marketing to sales completion and the agency carried out multiple viewings, the majority of which resulted in offers. “Tetchwick Farm came to the market in early November 2012 with our client’s instructions being to achieve a swift and reliable sale on a lock, stock and barrel basis,” explains Stephen Rutledge, who handled the sale. “We received tremendous interest at a local, national and international level from an early stage which resulted in numerous viewings, multiple offers and a sale being agreed in late December, concluding in March 2013. “The combination of a commercial farm of this calibre becoming available in the locality, together with the property being sold on a lock, stock and barrel basis, offering purchasers a turnkey operation, made the sale of Tetchwick Farm a rare commodity in today’s market.”

Drummer House Despite being in need of updating, Drummer House, Cottesbrooke attracted 20 viewings. A popular village location, seclusion, around 0.6ha of land and parkland views helped add an extra £75,000 to the £750,000 asking price on a recent sale through the Market Harborough office. Joy Brankin-Frisby, associate at the Market Harborough office, says that despite the interior dating back to 1976, it had considerable potential. “The house was very popular due to the village itself, which contains only about five privately owned houses, and its location within the village. It’s totally private, down a long drive and has wonderful parkland views.”

Church Farmhouse Cash buyers are a seller’s dream – few agents can arrange such a purchase. But Church Farmhouse near Pershore, a beautiful late Georgian House overlooking a historical timber-framed church, sold with an asking price of £995,000 within three weeks of going on the market – to a downsizing buyer.

Church Farmhouse

A cash buyer snapped up Church Farmhouse within three weeks

For further information contact Matthew Allen on 01295 226287 or matthew.allen@ﬁshergerman.co.uk

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Cooperation in

commercial rent collection Owners managing commercial properties themselves are increasingly encountering problems with rent collection. A surveyor can help a portfolio achieve its potential.

ith bank interest at historically low rates and stock market values falling, property is an increasingly attractive income generator, whether to ensure a comfortable retirement or to provide a good start for children or grandchildren at university. Sadly, the harsh economic environment means property owners are discovering their assets are not yielding the hoped-for returns.

Getting personal Many clients try to collect rents themselves but this tends to pose problems, says Fisher German commercial surveyor Alex Mason: “People without experience tend not to understand the legal aspects. They also tend to take a very personal view as it is their own property, potentially clouding their judgement.” The alternative to personal management – employing a commercial surveyor to deal with tenants on the landlord’s behalf – is much more than a simple and effective way of avoiding the considerable stress of dealing with those who cannot or will not pay.

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“We are able to take an impersonal approach and we fully understand the relevant procedures,” says Alex. An experienced surveyor will often be able to sense early warning signals from a tenant’s behaviour. That allows them to act sooner rather than later, which invariably benefits the landlord. For those that don’t pay, a graduated response yields the best results. “Because we’ve dealt with so many clients, we

may pay dividends in the longer term – successfully maintaining income from commercial properties is about building and keeping good relationships. In cases where a tenant’s difficulties are only temporary, reducing the rent for a limited period and reclaiming the amount underpaid later on can ensure that the landlord isn’t left out of pocket and benefits from a continuing income stream.

People tend to take a very personal view as it is their own property, potentially clouding their judgement.” know the right route to take,” says Alex. “If you go in with a draconian approach, you could send the tenants under, upset them or make them leave. It’s about doing things in the right manner.” While each case is different, speaking to the tenant generally comes first, followed by a polite reminder, then a more stern warning with the threat of the use of a bailiff. Only after all other avenues are exhausted are bailiffs used to recover outstanding rents. Yet keeping an existing tenant afloat

Can’t pay, won’t pay Late or non-payment may occasionally be an attempt by the tenant to improve their position at the landlord’s expense. “I’ve come across tenants who consistently pay a month late and are effectively using it as a free loan,” Alex says. “It’s important to stop that as soon as possible. When I ask for interest, which most leases allow for after the rent is 7 or 14 days late, the delayed payment usually stops.” Alex is similarly wise to tactics that

COMMERCIAL RENT COLLECTION

Rules of the game: surveyors understand complex letting legislation

A helping hand The benefits of appointing a commercial surveyor are clearly illustrated by one of Fisher German commercial surveyor Alex Mason’s previous instructions. A portfolio of nine properties was spread out across a number of major towns, each a small shop unit in a high street location. “The landlord was a retired business owner, who had used a property agent to let the shops, but subsequently taken on managing them himself. Within two years he had discovered that this route is very stressful.” Around half of the portfolio had problems: some tenants had not paid their rents, while others were not maintaining the buildings as they were required to by their lease terms. Alex started by recovering rents that were outstanding, though only had to use a bailiff on one occasion. At a property where the tenant’s business had failed the administrator was not paying the full rent. So Alex found a new tenant who moved in six weeks later. “It’s important to remain calm and professional, even when tenants are being unreasonable. In this case all of the problems were rectified within nine months.”

change the frequency of rent payments. Most traditional commercial leases require tenants to pay rent quarterly in advance. As this can place a significant burden on a struggling business, landlords are increasingly granting tenants the option to pay monthly. “But I will want to see proof – for example, a recent set of accounts – that they really are in difficulty,” he says. “There will always be the odd tenant who asks for a concession just for the sake of it.”

Playing by the rules Experience also helps understand the complex legal rules that govern a landlord’s rights when he is owed money by a tenant. For example, the potential to use bailiffs depends on the lease, Alex explains. “If the lease says that you can’t use distress for rent, the courts are your only option, which is incredibly costly.” Also, many small shop units come with a flat above and the lease may cover both.

If the tenant defaults on their lease the landlord must follow separate procedures for each part of the building. “Changing the locks on residential properties is illegal and just chasing for payment can be deemed as harassment. If you’re not careful you can find yourself in a lot of trouble,” warns Alex. Lease re-gearing can put all the leases on the same terms, making management easier, although only professional advice can ensure such pitfalls are avoided. Despite these obvious advantages, landlords may try to manage their portfolio to reduce costs. “That may well turn out to be a false economy,” Alex points out. “We offer an initial advisory service on an hourly basis. After that our fee is normally a percentage of what the tenant pays, so we have a strong incentive to get the best deal for the landlord.”

For more information contact Kevin Benson on 01777 719148 or kevin.benson@ﬁshergerman.co.uk or Alex Mason on 01777 719148 or alex.mason@ﬁshergerman.co.uk

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Moving on: recent planning changes have eased development

Change of planning Last year the government introduced one of the biggest shake-ups to the UK planning system in decades. There are both opportunities and potential concerns for landowners with rural or semi-rural holdings. 26

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restructuring intended to stimulate development and in particular to provide more housing to meet the burgeoning demand for new homes has seen lengthy policy documents drastically cut back. Now concise guidelines are contained in a single volume, the National Planning Policy Framework (NPPF). House building is starting to happen, though not always as originally envisaged. A key requirement of the NPPF is for local authorities to demonstrate that they have at least five yearsâ&#x20AC;&#x2122; worth of housing supply. Councils who have not been meeting government targets will need to show an even longer pipeline of potential housing. Some councils have enthusiastically embraced the need to provide new homes, while others have dragged their feet. â&#x20AC;&#x153;One local authority claimed that it had a 50-year supply of housing, but when a planning inspector came to review the evidence he suggested that the council could hardly claim five years, let alone ten times that number,â&#x20AC;? says Fisher German partner Liberty Stones. This may be an extreme example, but it is by no means unique. And with a huge variance across the country, knowing the standpoint of

CHANGING PLANNING POLICY

Dealing with a new process Fisher German is advising on planning cases involving the new rules, including: • Submitting planning applications under

the five-year housing land supply argument in North West England and the Midlands for schemes ranging from 30 dwellings to 250 dwellings. • Providing advice to a landowner seeking

to object to an application for 1,000 dwellings near his land in the South East.

any particular local authority can be a challenge. “One of the things that I do is to keep tabs on councils so that I can alert landowners of any changes that might affect them,” explains Liberty. “But it is no longer only district or borough councils who are influencing planning decisions. The government’s localism agenda is encouraging local communities to suggest how they would like to see their local environment shaped by producing a formal planning document, known as a Neighbourhood Plan.”

New possibilities The advent of Neighbourhood Plans has brought new opportunities for those who own parcels of land on the edge of villages or small towns. Previously such sites were unlikely to be considered for development as they were outside the settlement’s

ha 0.5

is enough to build 10–15 dwellings

• Reviewing land portfolios in

areas where there is a five-year housing land supply shortfall. • Arranging promotion agreements

for landowners who do not want to take on the risk/expense of a planning application.

boundaries. Now there is new potential, provided that there is some level of community support. Although policy favours employment or leisure uses over residential uses in the rural areas, there are still opportunities for small-scale housing developments. This is also likely to bring the largest return to the landowner. A typical plot size of 0.5ha will provide 10–15 dwellings, with larger plots up to 6–8ha able to accommodate 180–240 homes. Liberty advises anyone considering moving forward with an unused plot of land to do so now. “Local authorities are focused on their five-year housing supply

I keep tabs on councils so I can alert landowners of any changes that might affect them.” so there is a real opportunity for sites to get going straight away, especially where an upheld appeal creates a precedent for further development in the area.” Appeals are becoming more common as many local authorities and their members are backing away from granting planning consents that they consider controversial. “If an appeal is successful, that opens the floodgate to similar applications,” says Liberty. “Then, in respect of the five-year housing land supply situation, it is a case of moving as quickly as possible in order for your site to be considered by the council, if not first, then at least at the same time as others.” Landowners can be put off with the costs associated with preparing a planning application, as assessments such as

transport, heritage, ecology, masterplan, visual impact and flood risk may be required. These can add up to £15,000 for a ten-dwelling plot and mushroom to £50,000 for a larger site of 60–70 homes. “We can help at this stage by ensuring that all the relevant angles are covered and properly presented,” says Liberty. “And it may even be possible for us to arrange for a promoter or house builder to take on the expense – and risk – of an application, and possible appeal, in return for a percentage of the final land sale value.”

Appealing property Whilst development opportunities bring significant benefits, some landowners will be in the alternative position of wanting to protect their holding from unwanted development nearby. In this case the best strategy is to formulate a clear argument, using evidence to demonstrate flaws in a proposed development. Even if it seems inevitable that planning consent will be granted, that permission can be made conditional on the developer making changes that minimise the impact on the neighbouring landowner, for example by planting screening. “Success here really depends on providing sufficient evidence,” stresses Liberty. “People are often tempted to do it all by themselves, thinking that just writing an objection letter will do the trick. In reality, it is likely to be ignored, unless it includes clearly relevant planning policy reasons. That’s an area where we are ready to assist.”

For further information contact Liberty Stones on 01530 567478 or liberty.stones@ﬁshergerman.co.uk

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Avoiding a

country house crisis Running a country house can be daunting, but an experienced country house manager can help put the enjoyment back into ownership, by maximising income, planning ahead and managing proactively.

icture the scene – you return to maximum enjoyment of a home, your country retreat after a hard especially if owners are often overseas. week, desperate for a relaxing “Owning and running a large house in dinner party with some of your the countryside can be daunting. Taking closest friends. Instead of the warm glow this responsibility off their shoulders of lights drifting across the parkland from means the owners can arrive on a Friday your dining room, you are greeted by night, enjoy their home and not have to darkness and silence. worry about all the mundane jobs they A damp chill strikes you as you click the have to do over the weekend.” light switch. Nothing. You call out for the Yan and his team spread across all of person who’d promised they’d take care of Fisher German’s offices provide country the housekeeping, pay the electricity bills house owners throughout the UK with an and handle the catering for the weekend. effective property and cost management More silence. service that takes the hassle out of It doesn’t have to be like this. A handling day-to-day duties as well as welcoming fire burning in the drawing longer-term strategic advice. room, a manicured lawn and sheep grazing peacefully the other side of the haha are perfectly possible, even if you only live occasionally at your country estate. Some of the potential pitfalls and headaches that can be Handing over the avoided by using an estate manager: management to someone who • Unpaid or excessive fuel bills can competently oversee the

Each bespoke service might include recruiting domestic staff, handling payrolls, managing household and utility bills, advising on land management, farming tenancies and contracts, letting out estate property, diversification and sourcing grants. Yan gives an example of how this works: “At one house I manage the owners, gardener, housekeeper and I sit down together every month and go through a list of jobs, discussing which have been done, which haven’t and why. We then determine next month’s action list. I’m not there on a day-today basis but I manage the staff and ensure everything is efficient and running smoothly. “Another client, who lives overseas much of the year, wanted to know about employment law, agricultural and residential tenancies. Recently he rang me to say the corner of his field had flooded • Missing out on subsidy payments on agricultural land and he thought the water was coming from his neighbour’s • Wading through dozens of CVs pond. Again, I can sort out this • Tackling personnel issues kind of situation – it needn’t • Finding your stables have become, unwittingly, an unlicensed interfere with the enjoyment of business premises their property – and relieve them • Avoiding nightmare tenancy scenarios of a headache”. • Wrestling with an out-of-control garden

Maximum enjoyment, minimum stress

many facets involved will ensure your home is a joy rather than a millstone.

Hassle free Partner Yan Gittins, just one member of Fisher German’s extensive estate management team, has been assisting owners of country houses for the past 15 years. With a background in rural estate management for trusts, charities and private families, he says his aim is to facilitate

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• Discovering your swimming pool is a health hazard • Despair as a pipeline is ploughed through your orchard • Missing out on estate-generated income • Scouring the Yellow Pages as the hot water tank empties its

contents onto your parquet ﬂoor.

Realising the benefits

Bills are not just paid but can also be checked. “We have a huge amount of experience in country house management so we can benchmark bills. If a £20,000 gas bill arrives, we are able to assess

COUNTRY HOUSE MANAGEMENT

whether this seems reasonable for the property.” Country house owners often find management most useful at the point of purchase and at the point of sale, Yan says. “Sometimes someone will spend a substantial amount of money on a place because it’s a nice house – but, oh dear, it has 25–50ha tacked onto it. What do we do with that? Ah, it’s got a cottage in the grounds? What do I do with that? They

knowledge is invaluable. But a country house manager’s expertise also comes to the fore during ownership, especially on issues surrounding what to do with farmland and outlying estate properties – and advising on ways of maximising additional income. Many country properties include a couple of cottages, which can pose a dilemma over what to do with them,

We have a huge amount of experience in country estate management so we are able to benchmark bills.” realise that they have no gardener or machinery and wonder what they’ll need, and how to source staff and equipment appropriately. That’s when I can start to help.” When owners come to sell, buying agents may wonder about how something works, or where something is – a country house manager’s on-the-ground

says Yan. “Do you want to offer them as holiday lets? You may only be able to let a holiday property for 40 weeks a year. A long-term let offers year-round income and if agreeable a tenant could stay there for years. Or you could use properties for staff. Offering accommodation tends to attract a better calibre of employee.” Farmland is another area where

several options present themselves. “You could farm the land yourself, go in with someone else and contract farm it – which would have tax implications but would enable an owner to maintain control of it – or let it with or without specific restrictions on what can be grazed or grown, although the rent will be determined by the restrictions.” Residential development is also an option, Yan adds. “Land could be used to ‘grow houses’, although people often buy rural property for the precise reason that they don’t want people on their doorstep.” Other means of income generation include sourcing grants to plant trees and installing renewable technologies – another area where Fisher German has wide-ranging experience. Building maintenance and improvements also fall within the range of expertise offered.

For further information contact Yan Gittins on 01905 459422 or yan.gittins@ﬁshergerman.co.uk

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peoplenews

Progress for Chester office I

n the 18 months since the merger with Denton Clark, benefits for the Chester office include additional resources that have allowed the expansion and improvement of services, including the recruitment of two new staff. Michael Harris has joined the residential agency team from Strutt Parker and Danny McEvoy has joined the building surveying team from a Liverpool-based commercial practice. “The merger has allowed us to take the business forward much more quickly than would otherwise have been the case,” says Edward Clark. “It has also been very important in providing management backup in terms of marketing and human resources.” Denton Clark has a history going back to 1947 so has built up a solid base of clients who now benefit from an improved quality of service, says Edward. “It’s very obvious that we have a much bigger reserve of knowledge. Whenever we have a problem there is always someone within the firm who has dealt with something very similar. We have all gotten into the habit of inviting comments and advice from elsewhere in

Danny McEvoy (left), head of building surveying, Edward Clark (middle) and Michael Harris (right), head of residential agency

the firm, which has proven to be extremely useful.” Areas in which Denton Clark has previously had limited experience in have been upgraded with assistance from other areas of the firm: development surveying has been given a boost with the involvement of Ben Marshalsay from the Ashby office; the planning team has helped provide a seamless service where previously some work involved external

companies; James Willis is expanding his renewables role, spending time with the team at the Market Harborough office; and estate agency and rural consultancy aspects of the business have also been expanded. To find out more please contact the Chester ofﬁce on 01244 409660 or chester@ﬁshergerman.co.uk

Going the extra mile M

any claim to go the distance for corporate social responsibility but recent events show that Fisher German staff take their commitment to charity very seriously. One team completed the Caledonian Challenge on 15–16 June, trudging 87km from Fort William to Loch Lomond in less than 24 hours of continuous walking and climbing, including the equivalent of two ascents of Ben Nevis. The team has so far raised more than £5,880 for the Farming Community Network (FCN). Fisher German covered all running expenses so all donations went to FCN, which provides advice and pastoral support to farmers. Another team successfully completed the Castle2Coast2Castle challenge on 6 June 2013, a 164km cycle from Lincoln Castle to Chapel St Leonards and back,

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raising money for the SSAFA – a charity that provides lifelong support for our Forces and their families – and The Royal British Legion. The trip, which took a mere 6 hours 47 minutes, has The Castle2Coast2Castle team, from left to right: Robert Hurst, Andrew so far raised more Mason, Rob Browne, Tricia Townson, Sam Skinner, Mike White than £1,000. At the time of writing, partners Andrew was close to his heart and for which he Bridge and Matthew Barker were cycling had fund raised himself. More than £1,000 the length of France for charity. The has been raised so far, but donations are 1,100km from St Malo to St Tropez still coming in. equates to a manageable 160km a day, at least until the Massif Central is added, requiring a climb to 1,500m. Find out more at www.ﬁshergerman.co.uk/about-us/csr Fundrasing in memory of Henry Sale, is for the Air Ambulance, a charity which

PARTNER SPOTLIGHT

Well-rooted experience A background in farming is central to Matthew Barker’s varied role. He explains how communication skills are crucial in a job that can see him work with a client base from all walks of life ranging from a landowner with thousands of hectares, to the owner of a single field.

s a “farming boy at heart”, he could potentially be juggling up to about Matthew Barker says his 30 different jobs, helping to keep them all background helps him connect with moving in the right direction to get them his rural clients, giving insight into over the finish line. “One of the things I the issues that matter most. His father’s love about my job is that it is so incredibly family hail from farming stock, coming from varied. There really is no typical day,” he the Cambridgeshire fens: while he never says. “It can vary from being involved in lived there himself, he spent his formative auctioning a property – which can range years in ‘God’s own county’ on the edge of from a substantial block of farm land to the Yorkshire Dales, where he worked on a dilapidated cottage – to valuing a farm mixed farms, gaining first-hand experience for probate or secured lending purposes, of beef, dairy and arable farming. “To be a or investigating options for future successful rural surveyor, an understanding development sites with national house and enjoyment of the countryside and builders. I might deal with anyone from farming is critical and I’m very lucky to be a landowner with thousands of hectares working in a diverse area of the country worth millions, to the owner of a single field doing a really interesting job, acting for clients who I enjoy the company of.” Matthew built on his rural foundations by studying at Harper Adams University, which he says is a “fantastic establishment” turning out confident, competent graduates. “Studying there is akin to learning to pass a driving test – core knowledge, about legislation, planning, that may also be worth millions.” agricultural business and taxation for Interacting with and assisting people example, is supplemented by practical and from all walks of life makes the job deeply communication skills,” he says. “Like most rewarding, he adds. “It’s so important to jobs however, the learning curve escalates be able to communicate with clients – and rapidly once you graduate and pass your with the opposition – whether face-to-face, RICS qualifications but the background around the farm table or over the phone. knowledge in a large number of matters If you can’t communicate well you’re comes in to play over the course of every immediately on the back foot and will working day”. struggle to be a successful agent.” Matthew, who has recently been Matthew joined Fisher German in promoted to equity partner, says common April 2011 following the firm’s merger sense is also hugely important, as too is with John Sanders and has since been a very good book of proud to offer clients contacts built up over an expanded range many years. The life of services. “Building Education? Harper Adams University of a rural general and maintaining client Married? Yes, with a young daughter practice surveyor is relationships is so Sports? A keen sportsman, Matt enjoys year round with no important for what I rugby, golf, cricket, shooting, skiing, particular peaks and do”. Some of Matthew’s cycling and other sports. troughs and in any clients have been with one day Matthew says him since he moved to

One of the things that I love about my job is that it is so incredibly varied.”

The personal touch

Career Based in Worcestershire for 15 years, originally as a partner of John Sanders Chartered Surveyors. Advises on a broad range of matters specialising in rural/ agricultural sales and acquisitions, taxation and court valuations, estate management, planning and development and general professional services, acting predominantly for the private client sector.

Worcestershire in 1995 and are not only valuable clients but strong friendships have been forged on the back of these working relationships which is hugely rewarding. He firmly believes that the farming community appreciate, interact and engage with an agent far more when they know he will be around for decades often covering several generations. This is reflected by the fact that Matthew from an early point in his career committed his future to land agency in Worcestershire and surrounding counties and the rural community there. Outside of work, Matthew enjoys a range of sports and is also an intrepid voyager, having recently cycled across France from St Malo to St Tropez a distance of some 1,100km in seven days for charity. He has also done the 1,600km from John O’Groats to Land’s End, a feat he hopes to repeat once his son and heir is old enough. Nevertheless, Matthew says he has to balance such feats with the demands of a busy family life, which has helped further enhance his domestic skills: “Much to my brother-in-law’s amusement I am also a dab hand in the kitchen,” he adds.

For further information contact Matthew Barker on 01905 453275 or email matthew.barker@fishergerman.co.uk

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Sector insight Signiﬁcant improvement

Rural consultancy

Move fast on opportunities

Stuart Flint, head of property agency

David Merton, head of rural consultancy

Richard Benson, head of planning & construction

Whilst our farm agency and agricultural land sale reports have remained bullish over recent years there have been rare opportunities to write positively about the residential property market. At last I am pleased to put pen to paper with some upbeat comment with a market performing significantly better than last year. There have been some first-class headline sales but the statistics across the firm tell the tale with the following 2013 performance figures compared to the first five months of 2012: viewings were up by 28 per cent, sales agreed were up by 17 per cent and website hits were up by 24 per cent. I would hesitate to announce a full-scale market recovery as well-funded buyers remain scarce in many sectors but there appears to be a unanimous public perception that we are over the worst – confidence is likely to build consistently now, albeit slowly. The Budget in March heralded government-backed mortgage guarantees and the ‘Help to Buy’ scheme. The effects of these will not be felt until next year but whilst previous centralised efforts have faltered I am confident that these measures will deliver a significant boost to mortgage reliant acquisitions.

The rural economy continues to show unpredictable returns. While arable commodity prices remain strong, returns for many will be reduced by very poor establishment of the harvest 2013 crop. The livestock sector has remained more static with a moderate decline in sheep prices and similar rise in cattle prices. Despite the continued uncertainty in the industry, there is optimism that the 2014 review of the Common Agricultural Policy will be less impacting than originally understood, certainly on the larger farming businesses, although the detail is yet to be clarified. Agricultural land values have remained strong with certain areas continuing to see substantial increases. This is substantiated by figures showing that over the last ten years capital growth on average has been in excess of 400%. We have had a successful period in rent reviews across the board. There is confidence that incomes will remain strong in the sector for the foreseeable future which will give landowners confidence of ongoing rental protection and growth. Our farm management team have continued to not only increase their area under management, but also year on year to provide results for their clients that exceed those of equivalent farms through benchmarking. We are pleased to have been appointed to a number of high-profile managements in recent months with clients welcoming our innovative and client-focused proposals. This allows us to offer, through the latest IT and management practices, service levels and opportunities not previously available within the industry. We continue to strive to be at the forefront of the sector, testing new ideas and systems to give our clients the very best in opportunities and advice.

Overall the planning system, development market and construction industry remains in a state of flux but with pockets of activity. The undersupply of housing continues to dictate development but many planning strategies at a local level are being sent back to the drawing board and the localism agenda remains in the background. The development market has shown continued buoyancy with a significant number of land promotion sites being taken forward and residential development applications being submitted. We are advising clients to actively look through their land portfolios and are helping them to identify opportunities where there is an undersupply of housing land. Where sites are suitable for development, clients can self-fund promotion or lucrative partnerships can be facilitated for those who do not wish to risk their own capital. This window remains open but it is unclear how long for. Our advice is to move quickly as those around you could snap up the shortfall and the window may close. The new relaxation of Permitted Development Rights on the conversion of buildings and residential extensions has also seen a flurry of potential development opportunities. This removal of red tape and greater flexibility, which is temporarily in place for a three-year period, could open up sites which have been suppressed by more difficult local authorities, particularly on rural barn conversions. For any construction works associated with existing or new buildings, environmental and renewable issues will remain at the fore. The goalposts seem to change daily. However, recent and potential changes to legislation should be considered at the outset.

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 567466 or email richard.benson@ﬁshergerman.co.uk

SECTOR SPOTLIGHT

Fisher German’s sector heads look forward to what the rest of 2013 holds in store for the firm and its clients

Another false dawn?

Industry resource key

Growth on target

Kevin Benson, head of commercial

Andrew Bridge, head of utilities & infrastructure

Mark Newton, head of renewable energy

As we approach the traditional summer break we find ourselves yet again in a state of uncertainty as to future market conditions. The difference this time is that, rather than the pessimistic view that has dominated such considerations for years, we find ourselves daring to think that things might be on the turn. Another false dawn? Not necessarily: we have reported previously that we are seeing an increase in occupier enquiries, and this remains the case. But what else? Across the spread of Fisher German’s offices we are seeing more options exercised, which demonstrates that developers are gearing up. We have appointed in Ben Marshalsay a wellrespected development surveyor to help deal with this increase in option negotiations and development sales. Around 150,000 sq ft of Design and Build industrial space in two buildings is being negotiated by just one of our commercial surveyors. Many occupiers are commenting that they feel more confident and that perhaps the worst is behind them. But what does this mean, as there’s nothing tangible in terms of rising rents and capital values? Confidence, albeit fragile, would appear to be returning to the market. Perhaps 2013 is the year that we will look back on and say things started to change for the better this year.

Whilst there is a significant realisation that a large proportion of the infrastructure in the UK is either nearing its end of life or alternatively is not suitable to sustain growth, value for money remains a strong driver. Within the gas and electricity industry, RIIO (Revenue = Incentives + Innovation + Output) provides focus regarding regulating energy networks, whilst significant reinforcement projects are ongoing in the water, communications and oil industries. Innovation, collaboration and efficiency feature highly on clients’ and suppliers’ agendas alike. One area, however, remains key in meeting the criteria set out – resource. Skilled resource, be it engineers, project managers, surveyors or any part of the labour supply chain, has the ability to significantly impact on the success of a scheme. Experience is vital, and the disproportionate weighting of skilled resource nearing retirement is a significant risk to the sector. Those organisations that have grown and invested in training and development of their teams should now be well-placed to meet clients’ expectations. People provide the innovation, and the challenge the industry currently faces is growing the talent pool and expertise that will be necessary to meet the ever growing demands of the industry.

With the cost of power continuing to surge, most businesses are looking at ways of mitigating this by being in control of their energy cost in future by installing a renewable project. The country has to invest £200 billion in new power plants and replace inadequate infrastructure by 2020, so this is the one part of our economy that is going to have to continue to boom, and where most people want to be investing. There is a serious chance that with a lot of coal-fired power stations closing by 2015 and the majority of nuclear power stations closing by 2020, that there is going to be an energy shortfall. Once the lights start going out, the population will embrace renewables even more as being a vital part of the energy mix. The UK is currently producing 12 per cent of its energy from renewables, and is on target to hit 20 per cent by 2020. The main growth has been from onshore and offshore wind. The biggest new growth is currently in the solar park market, built capacity has increased by 70 per cent in the last 12 months due to solar costs reducing by up to 250 per cent over the last two years. Currently 1.7GW of solar has been built; the government target is up to 22GW by 2020, which could represent 25 per cent of the UK’s energy requirement. However, this market could be stopped dead in its tracks by a proposed large EU solar tax on Chinese panels.

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 Germanâ&#x20AC;&#x2122;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 0GP

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

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 17 High Street Thame OX9 2BZ

For more information visit:

www.fishergerman.co.uk

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080 0 1075522 www.fishergerman.co.uk