Fisher German magazine issue 3 Summer 2009

Summer 2009 | Issue 03

Building for the future A mushrooming market

Renewable energy and eco homes

Treasure island Luxurious Tresco

Estate of independence

Eastnor – a castle with a difference

rural • residential • commercial

www.fishergerman.co.uk

Welcome to the Fisher German magazine A change in season has arrived and it is wonderful to observe the evolving landscape and enjoy the longer days at this time of year. While this feel-good factor might seem at odds with the current economic climate, there are some indications that small changes are afoot. The banks are beginning to lend again and at more attractive rates thanks to the interest rate cuts earlier this year, giving some encouragement. Although no-one relishes these challenging conditions, they are a true test of a company’s tenacity and professionalism.

At Fisher German we believe it is vital to meet the recession head on and this belief is intrinsic to our business philosophy and strategy. Our dedicated teams have the ability and resources to adapt to these testing times and develop innovative ideas that bring solutions to the challenges we and our clients face.

Renewable energy is one of the hot topics of the moment and has long been a key area of Fisher German’s expertise. The importance of this future source of power cannot be underestimated and our team is expert in advising property owners and developers in this area. In this, our third issue of the magazine, we are delighted to introduce Dr Tony White, the eminent renewable energy expert, as a guest author and consultant to Fisher German. On the subject of consultants, a very warm welcome to Barry Gamble, Colin Bond, James Hervey-Bathhurst and Richard Mumford.

Our service is all about personalisation not uniformity and we try to demonstrate this through the different articles we include. If you would like to see a specific topic covered in the magazine or indeed have an interesting article to submit yourself, please do get in contact. It would be lovely to hear from you.

news & views l Wind farm replacement l Composite Energy project l Willows Farm Village’s success l The Mulberry venture l Developing lorry parks l Farm rent revisions l Woodland management

Property showcase 08 auctions The benefits of buying and selling at auction

09 canalside properties Waterside property is increasingly popular, offering a unique alternative to city life

10 equestrian What to be aware of when purchasing or selling an equestrian estate

12 rural residential Things are beginning to look up for the residential property market

Henry Sale & Andrew Jackson, Managing partners

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features 16 energising the housing market Plans for the new generation of zero carbon homes

18 treasures in tresco The gaming potential in Tresco and Glenmuick

20 estate of independence The challenges of running Eastnor Castle as a profitable business

22 eastern promises Do the rewards outweigh the risks when investing in Eastern European farmland?

24 the dangers of diversification Farm diversification can be profitable but farmers must consider the potential hazards

26 The heat is on The benefits of renewable energy to the rural economy

14 agricultural

28 waste not, want not

The agricultural property market looks steady for 2009

Methane gas is an exciting source of new energy

news&views

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

Fisher German magazine is published by Abstract Associates. www.abstractassociates.co.uk

wind power

Repowering wind farms Spotlight on services A complete range of services for all our clients’ needs: 31 equestrian 32 commercial 32 utilities 33 planning and

development 34-35 estate business

Increasing efficiency by “replanting” early wind farms Early wind farms built in the 1990s used much smaller wind turbines than those used today. They were typically between just 400-600 KW compared to new on shore turbines which can be anywhere between 2-3MW. Wind farm companies are looking to obtain planning permission to take down existing turbines and “replant” using larger, more efficient turbines which can often more than double the output of the site.

In some cases the companies aim to extend the site onto adjoining land, For further information, please contact Mark Newton on 01858 411215

sometimes on third party land, and access issues can arise under which the original landowner can charge a “ransom payment” for access.

Usually, a wind farm company looks for a new 25-year lease and, as the new turbines are not likely to be on the same footprint as the old lease, this gives the owner the opportunity to renegotiate a new lease with much better financial and other terms.

Mark Newton has dealt with some cases where the rents were originally for a fixed sum per turbine. However, under the new arrangement, they are increasing by more than 10 times the original rent.

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news&views sustainable energy

Composite Energy Fisher German’s expertise is being harnessed for a new project on coal bed methane extraction Coal bed methane extraction is already present in a number of countries, including the USA and Australia. Fisher German has recently been appointed by Composite Energy to provide land agency services in connection with proposals to develop appraisal sites for the process in two licence areas: Chester and Wrexham.

Due to the depletion of conventional energy sources, Composite Energy hopes to be able to utilise a valuable existing natural energy source. As opposed to extracting gas from working mines, coal bed methane specifically exploits natural gases from unworked coal seams. Often called “virgin coal bed methane”, the process involves drilling directly into the unworked coal.

UK Government figures indicate that the best virgin coal bed methane prospects lie in coal seams thicker than 0.4m at depths of between 200m and 1,200m. The lifecycle of a coal bed methane project is similar to that of oil and gas – starting with appraisal wells and finishing with production wells.

Appraisal wells typically take around a month from start to finish, and Composite Energy will be drilling a number of them throughout its licence areas which were awarded by the Department for Business, Enterprise & Regulatory Reform in May 2008, to better understand the coal and methane.

Fisher German is one of four firms selected to undertake work for Composite Energy and is delighted to be involved in this scheme. The contract will be managed by the Ashby de la Zouch office.

For further information, contact Adrian Webb or Amy McSorley on 01530 412821 or email adrian.webb@ fishergerman.co.uk. For information on coal bed methane extraction, visit www.composite-energy.co.uk

Fisher GERMAN Magazine

news&views

diversification

A leading attraction Willows Farm Village in Hertfordshire continues to build on its success Willows Farm Village in Hertfordshire, was set up by tenant farmer, Andrew Wolfe, nearly a decade ago. As part of a 1,500 acre working farm estate, Willows is now a very successful example of farm diversification, attracting 500,000 visitors a year.

The farm is aimed mainly at families with small children and school groups. A farm shop with a master butcher, a number of independent specialist retailers and a day-ticket fishery with 35 acres of water are also on site, and Willows hosts a number of corporate events each year.

The business has doubled in size in the last two years since enlisting the help of Henry Sale.

In 2007 Henry, of Fisher German, helped Andrew and his co-shareholders set up a joint venture (JV) company. With Andrew as chief executive and Henry as a director, Willows Farm Village has For more details, contact Henry Sale on 01858 411217 or email henry.sale@fishergerman.co.uk

undertaken a major development programme and is now the largest open farm in the UK. The farm nestles in 500 acres of countryside and has a fantastic location just 18 miles from Marble Arch. Although the estate has five farm units and for much of the last century has been focused on farming, the close proximity to London allowed an obvious opportunity to diversify. The JV approach between landlord and tenant has enabled the business to invest and expand and now includes indoor and outdoor child and adult friendly attractions.

Willows Farm is currently thriving in a competitive market. However, Andrew is always looking to the future. With this in mind in February, Andrew managed to coincide the birth of 150 lambs with schools’ half term holiday resulting in 21,000 visitors during the week. This just goes to show that far from being bad for business, working with animals and children can be a recipe for success.

professional services

The Mulberry venture Ensure competitive commercial property insurance with M2 Landlords do not, necessarily, offer the best rates for commercial property insurance.

In order to challenge landlord premiums Mulberry Insurance Services, in conjunction with Fisher German, is launching M2, a unique service, which will: l undertake a review of your landlord’s current insurance arrangements on a “no win, no fee” basis; l negotiate reduced premiums with landlords and/ or managing agents on behalf of the lessee;

l obtain benchmark

premiums from major A-rated insurers; and l monitor premiums for three years to ensure continued competitiveness.

Allow M2 to demonstrate whether your landlord is offering you a competitive premium by contacting Ian Jepson at: M2 Insurance Limited, Mulberry House, Lamport Drive, Daventry, NN11 8YH.

Email: ian.jepson@mulberry.uk.net Website: www.m2insurance.co.uk Tel: 01327 879111

Fisher GERMAN Magazine

news&views Planning and development

A driving force Landowners close to motorway junctions should consider developing potentially lucrative secure lorry parks Secure lorry parks could prove to be a highly profitable diversification prospect for landowners located near trunk roads or motorway junctions.

This unusual proposition could be worth up to £50,000 per annum in rents with a potential £500,000 in income available if the land owner retains involvement in the site development and management.

“As the volume of lorry freight increases, the already woefully inadequate lorry parking facilities are being put under further strain resulting in illegal or unsuitable parking in residential areas, business parks and lay-bys,” explains Andrew Ranson.

“Secure parking facilities are vital to enable drivers to meet customer delivery schedules and combat the increase in criminal activity and road hazards.”

“The call for an increase in secure parking is backed by a number of professional bodies” Northamptonshire alone has approximately 1,000 lorries per night parked on its highways, making the drivers prime targets for crime. On average, two lorries are stolen or broken into in the county every day. Some of the attacks have been so determined that they have even involved gassing sleeping drivers.

The call for an increase in secure parking is backed by a number of professional bodies including freight insurance companies, the police force and the Road Haulage Association (RHA). RHA infrastructure manager Chrys Rampley says: “This is not rocket science. As the volume of

lorry freight increases, so does the need for safe, secure parking facilities.

We need to see a long term solution, not a short term fix.”

“The scarcity of parking facilities,” explains Andrew, “means that landowners near trunk roads and motorway junctions have a valuable opportunity to obtain planning permission for such a lorry park.

“We are assisting a number of clients through the complex planning process. Once planning is obtained we can advise on the full range of options available, depending on how involved the land owner wants to be and how much time and capital is to be invested.”

professional services

working for a fair settlement Rents asunder – a valuer’s view of farm rent revisions The sudden and dramatic increase in prices for corn and other farm produce in late spring 2007 boded extremely well for the impending 2007 harvest.

Landlords who had experienced difficulty justifying rent increases in previous years began serving 12-month rent notices, particularly on Agricultural Holdings Act tenants but also on some Farm Business tenants, with a view to increases taking effect in

Fisher GERMAN Magazine

autumn 2008 or spring 2009.

However, few landlords could have foreseen the events which followed and which have caused turmoil in the current farm rent market.

The increase in produce prices was, as usual, followed by increases in the costs of fuel, fertilizer, sprays and seed corn. However, these were far greater than anticipated, although fuel prices have now reduced somewhat.

The dilemma in forecasting a rented farm’s profitability was exacerbated by a sudden lack of confidence in prices for corn, oil seed rape etc. This gave tenants less cause for concern and, in some cases, the prospect of a reduction in rent.

Some landlords ignored their own Notices and let them expire. Other landlords stalled and applied for the appointment of an arbitrator to “buy” time until the uncertainty

about rental levels would become clearer. However, this was only possible when details of other settlements were known, or following an arbitrator’s award on rent. The result was that the Dispute Resolution Service (DRS) of the Royal Institution of Chartered Surveyors was inundated with such applications. At Michaelmas 2008, a reported 650 applications were received, up to 10 times more than the usual number in each of the previous 10 to 15 years. Unfortunately, the DRS had reduced its panel of arbitrators from 60 plus to 30 plus by examination. Fisher German has four members on this panel.

news&views KEY FACTS The logistics of secure lorry parks: l they are a secure

l have 24-hour shower

compound with security barriers, security fencing, floodlighting, CCTV and security patrols;

and toilets facilities with a bar and restaurant; and l a general shop and cash machine are on site.

For further information contact Andrew Ranson on 01295 226288 or email andrew.ranson@fishergerman.co.uk

Two further influences on landlords seeking an increase are the Mason v Boscawen case regarding VAT on rents and the values attributed to farmhouses and cottages.

Great efforts are, at last, being made by both the landlords and tenants to agree rents amicably. If a revision is thought to be appropriate, it is likely to be settled at a figure much lower than landlords anticipated. Some, but only a small number, may result in a full-scale arbitration. However,

quite a large number may be postponed pending a new Notice, possibly served by tenants seeking a reduction!

John Hopkinson comments: “In over 20 years as an arbitrator I have never received so many appointments (over 60 at present). With four panel arbitrators at Fisher German, we have great experience in such matters. We would be pleased to assist if informal advice is required by either landlords or tenants, provided that we are not conflicted out.”

For further information, contact John Hopkinson on 01949 851815 or email john.hopkinson@fishergerman.co.uk

woodland management

Purchasing woodland Over 70 years ago many landowners granted leases to the Forestry Commission for their woodlands at a peppercorn rent.

The Government has, for some time, been selling off these leases either to the original landowner or on the open market. The value of the Forestry Commission’s long lease is normally equivalent to a normal freehold value.

Fisher German believes that, due to the credit crunch, the Government may be looking over the next year or two to sell more assets which will include these Forestry Commission leases.

If landowners have woodland that is subject to these leases and wish to buy them back, they should contact Fisher German in order that they can try to include them in this year’s or next year’s round of sales by the Forestry Commission.

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

Fisher GERMAN Magazine

property showcase Buying at auction?

l ensure you have done your homework on the property; l decide on your top bid; l read the Auction Legal Pack; l check for any amendments prior to the auction; and l be sure that finances are in order to enable you to

complete the sale.

Lock Cottage, Little Bourton, was an ideal property to sell at auction

Auctions

Going, going, gone Certain properties often do better at auction.

However, don’t underestimate the skills needed to guarantee a successful sale

T

he sale of property at auction is a specialist skill and demands in-depth knowledge of both the property market and this age old art. Auctioneers need to be quick witted and able to build a rapport with their audience, which can often be less than enthusiastic. Fisher German’s well-established practice has a number of auctioneers who service local and national clients and have more than 200 years’ experience between them.

“More unusual properties tend to be suited to auction,” says Andrew Ranson, “it’s vital to draw attention to the individual points of interest in a property and engage buyers in the property’s potential. Gathering realistic vendors and buyers together identifies the true market value and auctions are seen as a way of filtering out all those slightly less realistic buyers and sellers.”

Fisher GERMAN Magazine

Public bodies, local authorities, trusts and charities tend to enjoy the benefits of auctions. They all have a duty to demonstrate that they have achieved full market value for a property in a fair and transparent manner. Some recent clients which have instructed Fisher German to auction properties include British Waterways (which manages 2,200 miles of the UK’s canals and rivers), the British Heart Foundation and Cancer Research.

“We have also acted for a large number of trustees and executors who value the openness of the process and, in the current market, the done deal on the day,” explains Andrew.

The attractions of sale by auction are also becoming increasingly apparent to the wider public and Fisher German’s skills are reaping the benefits. “We enjoyed a 74% success rate in 2008,” says Andrew, “selling 79 of the 107 properties.”

Guy Simmonds, which specialises in the sale of quality, rural, freehold and leasehold licensed businesses, is another satisfied client working with Anthony Mayell of Fisher German. Guy Simmonds has recently enlisted Fisher German to sell a number of the public houses on their books located across the country. This has certainly proved successful for the property agents, as advance marketing meant that two of the public houses went under offer prior to auction. “We revived interest in the properties, through the auction process, some of which had been on the market for some time,” explains Anthony.

Clients choose to go to auction for a variety of reasons ranging from same day sales to potentially maximising a property’s sale price.

For further guidance on sale by auction please contact Andrew Ranson on 01295 226288, Anthony Mayell on 01905 459426 or visit www.fishergerman.co.uk

property showcase Canalside properties

C

On the waterfront

Living canalside is a lifestyle choice that is attracting increasing numbers of buyers in search of a more tranquil setting

analside properties are becoming increasingly sought after in the UK – the peace and seclusion of canal life is particularly attractive to those in search of an escape from the frantic pace of everyday living. As typical canal properties are often fairly unusual in both setting and build, they tend to appeal to a certain type of purchaser, according to Stephen Rutledge of Fisher German. “Boating enthusiasts and those in search of a more alternative lifestyle are usually drawn to these types of properties,” he explains. “They see the tranquil, waterside settings and the slightly quirky nature of the cottages as major attractions.”

While the locations might seem idyllic, there can be a downside to consider. “Potential purchasers need to understand that everyday conveniences such as vehicle access, decent sized gardens and mains services are not always available, although some purchasers consider the lack of facilities a positive advantage as it reinforces the alternative lifestyle,” Andrew Ranson of Fisher German adds.

While the lack of access and parking facilities can be inconvenient, the canal network usually has good transport links close by. Canals are often built parallel to railway lines and motorways, making canalside properties ideal for weekend and holiday retreats.

Stephen agrees that waterside properties really offer something different. “They’re one step up from a canal boat, can offer great seclusion and are highly individual. One property we sold recently had its own mooring and the buyer used to head the boat down canal for the weekly supermarket shop.”

Fisher German has recently sold three properties located on canals; the last was a detached lock cottage near Watford, Northamptonshire, which sold at auction in March for £150,000. Unusually, the Grade II listed property had fair sized gardens. But the realistic price tag reflected the fact that parking is not adjacent to the cottage and that certain refurbishment was needed. A similar lock cottage is planned to come on to the market shortly – speak to Stephen Rutledge for further information.

For further guidance on canalside properties, contact Andrew Ranson on 01295 226288, Stephen Rutledge on 01295 226292 or visit: www.fishergerman.co.uk

Watford Bottom Lock Cottage (above) was sold in March this year

Fisher GERMAN Magazine 9

property showcase

Many homes in the equine category do not ‘tick all the boxes’ so purchasers will have to compromise on some aspects” Robert Russell, Fisher German

Pastures new When purchasing or selling an equestrian property, there are important issues which should be considered

Equestrian property

D

espite the challenging market conditions of 2009, there are indications that the equestrian property market will fare better than some of its counterparts. A limited supply of property is the key factor in this. The demand has certainly dropped since its height in the autumn of 2007, but it still exists. Purchasers are more selective, more cautious and want value for money.

In respect of the larger equestrian establishments such as racing yards and riding schools, there is a trend towards buying a blank canvas rather than an established unit. Robert Russell of the Equestrian Department confirms that: “the saleability of existing yards with facilities such as a horse walker, school, pool

10 Fisher GERMAN Magazine

and gallop which were installed 10 or 20 years ago is certainly manor farm, gaydon not as high as a farm with house and agricultural buildings Sustrud min henis delenim dunt la faci tin velesse with consent for equestrian use.” buyers nissenis nulputat, Previously quamet wisi.

Eliminwanted henis the finished article, which they would then but nownulputat, they delenim dunt la faci tin modify, velesse nissenis are in a more patient mood, taking a measured approach and quamet wisi. are prepared to invest timeReception and moneyhall; to achieve features: drawingtheir room;goal. morning Obtaining planning permission can billiard be a lengthy expensive room; dining room; room; and family kitchen; process but, if successful, then theoffices; owner superb gets exactly what they cellars; domestic master suite; 5 (2 with want rather thanfurther takingbedrooms on someone else’sbathrooms); designs. first floor reception room;homes 2 further bathrooms; delightful The amount of quality rural with equine facilities formal and informal gardens. currently on the market is thinner than it has been for years, leaving several purchasers, that are ready to move, sitting in £2,200,000 rented accommodation.

If the perfect home became available Contact: Banbury office there would definitely be competition.

Many homes in the equine Telephone: 01295 271 555 category do not “tick all the boxes” so purchasers will have to Email: banbury@fishergerman.co.uk

property showcase

The Gables and Gable Cottage, Great Everdon, Northamptonshire. Guide price of £875,000

Sycamore Farm – house with buildings and 18 acres. Guided at £925,000

compromise on some aspects. This is not usually the location, the land element or the style of the dwelling, but can be the state of repair of the house or the lack of buildings or stables.

The Gables at Everdon in mid-Northamptonshire was offered to the market after Christmas. This is a quality village house with a pretty brick coach house, small cottage and three paddocks a short walk away and was given a guide price of £935,000 as a whole. If the land had been adjacent to the house the demand and price would have been greater. It is sold subject to contract.

Demand for paddocks and small blocks of pasture land remains high, especially if there are small buildings on the land.

Those with equestrian interest are naturally well represented but there is competition from a variety of other users too, which has helped to keep the price per acre high. The Banbury office

has sold several blocks by auction and private treaty. Prices range from £6,000 per acre for bare pasture near Banbury, Oxfordshire to £10,000 per acre for 31.5 acres with buildings near Towcester, Northamptonshire.

In the rental sector, there has been a greater choice of small and larger establishments across the Midlands as the credit crunch has deepened. Rents are generally falling back to reflect the over-supply. Thus there is a great opportunity for starting up a riding school, racing yard or DIY yard, to acquire premises at a reasonable rent, and on favourable terms. A yard with 13 loose boxes in a stone fronted yard, a further four stables, horse walker and 13 acres, is on the market with a three bedroom cottage at Adstone, in the heart of the Grafton Hunt country. There is excellent hacking locally and it is well located for the M1 and M40 motorways. The landlords can also offer use of an indoor school and 4.5 furlong gallop which provides flexibility to the tenants.

When selling, our team finds that many owners have developed their equestrian property on an ad-hoc basis and do not always obtain planning consent for all the changes and the new structures. This creates real problems during the marketing, manor farm, gaydon often holding it up for months until retrospective consent is Sustrud min henis delenim dunt la faci tin velesse gained. Alternatively, the buyers withdraw at worst nissenis nulputat,may quamet wisi. Elimin henisor renegotiate the price at best.dunt It islatherefore vitallynissenis important for delenim faci tin velesse nulputat, those consideringquamet a sale inwisi. the next couple of years to put their house in order. features: Reception hall; drawing room; morning There are many other aspects that will assist and room; dining room; billiard room; saleability family kitchen; maximise the value, and domestic the equestrian department at Fisher cellars; offices; superb master suite; 5 further bedrooms (2 with bathrooms); firsta floor German continually visits properties, a year or so before sale, to reception room;onto 2 further bathrooms; ensure that property is launched the market in itsdelightful best light. formal and informal gardens.

£2,200,000 For futher information contact Robert Russell on 01295 226284 Contact: Banbury office Alternatively visit or email robert.russell@fishergerman.co.uk.

Telephone: 01295 271 555 the website www.fishergerman.co.uk Email: banbury@fishergerman.co.uk

Fisher GERMAN Magazine 11

property showcase

Halse, Northamptonshire.

Guided at £635,000

Gaydon, Warwickshire. Guide price £850,000

Rural residential

Residential opportunities With a growing lack in buyer confidence, the residential market has reached a stalemate situation. But things are beginning to look up, says Richard Clowes

T

he year started with some encouraging signs. Fisher German, as a whole, saw enquiries and viewings substantially ahead of 2008. However, there seem to be two small matters that are preventing purchasers committing themselves: confidence and a lack of funding.

In many cases buyers are keen to move, especially those in rented accommodation. They often have a large sum that can be used as a deposit, which at one stage was earning decent interest in the bank.

This paid the rent and often more but now earns next to nothing.

With prices dropping some 25% for certain properties, those renting may now see value in buying.

Sellers are falling into two main categories, those who find themselves having to sell and those who see opportunities in the market and believe that it is a once in a lifetime chance to upgrade.

The residential market is currently fairly stagnant. However, as the year goes on there are signs of offers being made and deals being reached. It is however unlikely that the market will start trading until there is a meeting of seller’s expectations and buyer’s offers, which is dependent on their ability to raise finance and confidence.

There are signs this is beginning to happen.

For more information contact Richard Clowes on 01858 411209 or visit the website www.fishergerman.co.uk

12 Fisher GERMAN Magazine

As the year goes on there are signs of offers being made and deals being reached” Richard Clowes, Fisher German

Mercaston, near Ashbourne, Derbyshire.

Under offer

manor farm, gaydon

Sustrud min henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. Elimin henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. features: Reception hall; drawing room; morning room; dining room; billiard room; family kitchen; cellars; domestic offices; superb master suite; 5 further bedrooms (2 with bathrooms); first floor reception room; 2 further bathrooms; delightful formal and informal gardens.

£2,200,000 Contact: Banbury office Telephone: 01295 271 555 Email: banbury@fishergerman.co.uk

property showcase Overseal, Derbyshire.

Guide price £425,000

A rental jewel

A very rare opportunity has arisen to rent The Old Hall, a fantastic historical Elizabethan hall. The property is suitable for residential use, with offices if required. Set in private parkland, the residence benefits from a very active local village life. Close to all major road and rail links including the M1, The Old Hall is just a one hour train journey to London St Pancras. The property is available to let through Fisher German.

The Old Hall is both historically and architecturally of interest. The structure of the original Norman building was supported by wooden ‘crucks’ (a wooden scaffold set into the ground providing support to walls and roof), one of which can be seen in the cupboard off the main entrance hall.

The fireplace of this early building is also still on show in the passage leading from the sunroom to the hall.

Further evidence of the old Norman house is the wattle and daub in the cupboard in the panelled landing room on the first floor. There are also other features still visible, including original Elizabethan stained-glass windows in the upstairs rooms and downstairs small sitting room, next to the sunroom. There is a particularly attractive window featuring Aesops Fables.

The Old Hall has belonged to the same family since 1632 and still holds evidence of a priest hole where catholic priests hid in the reign of Henry VIII. The property is set in lovely gardens and parkland with ample parking. There are three reception rooms downstairs and nine rooms upstairs, six of which are classed as

bedrooms. These rooms are versatile and can be adapted to suit tenant requirements. A modern kitchen with oil-fired Aga and three bathrooms complete the property. Locally in the village there are good amenities including a post office/shop, village pub and three churches.

The property is available to let for around £2,000 per month and further information can be obtained from the Fisher German Market Harborough office on 01858 410200.

Alternatively, why not take a tour around the house by visiting: www.countryhome.propertypixonline.com.

manor farm, gaydon

Sustrud min henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. Elimin henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. features: Reception hall; drawing room; morning room; dining room; billiard room; family kitchen; cellars; domestic offices; superb master suite; 5 further bedrooms (2 with bathrooms); first floor reception room; 2 further bathrooms; delightful formal and informal gardens.

£2,200,000

Contact: Banbury office The Old Hall, Leicestershire

Telephone: 01295 271 555 Email: banbury@fishergerman.co.uk

Fisher GERMAN Magazine 13

property showcase Agricultural property

A steady market?

The best guess for 2009 is for a fairly stable agricultural property market, says Charles Haselwood

T

he market rose very rapidly in the first three months of 2008 and then spent the following nine months settling back down. However, last year still saw values rise by nearly 20% and in a year during which some big high street banks and housebuilders were virtually wiped out, this was an impressive performance.

In an attempt to illustrate the market’s performance the following figures have been put together, taking average figures for bare commercial arable land (although such figures should always be treated with care): l spring 2008: £6,000 to £7,000 per acre; l autumn 2008: £5,000 to £6,000 per acre; l early 2009: £4,500 to £5,500 per acre.

Having settled through the latter part of 2008, the market now looks fairly stable and is neither likely to see a significant fall nor an increase in price.

The reasoning for not expecting a further fall in price is that the general view in the market is that supply will fall back to a level lower than that in 2008; then the frothy values that were discussed encouraged an increase in supply. “Although demand may be thinner than a year ago, there remains more than enough to prop up prices from a number of different sources,” says Charles Haselwood.

Even after the credit crunch, some of the very rich, are still very rich, and therefore, the best estates and farms will still be in demand. Similarly, some development money is still available for reinvestment, although this will tend to peter out over the next year or so, with very few new cheques being written by developers. Another source is from foreign buyers, which had melted away slightly as prices rose in early 2008. However, a few are now reappearing. Lower prices and the dramatic fall in the

Demand may be thinner than a year ago but there remains enough to prop up prices” Charles Haselwood, Fisher German

value of sterling, particularly against the euro, has made British land look relatively cheap again. In addition, adjoining owners will always be keen to secure land when the rare chance of doing so arises and money can now be borrowed for farmland purchases at rates which are looking historically very low.

“We are not expecting prices to rise much either,” explains Charles. “Firstly, because agricultural profitability has returned to its normal, relatively unexciting, level. And secondly, the residential farm buyer, the lifestyle buyer, or the city bonus buyer has been well and truly kicked into touch by the credit crunch.

“Taking all the above into consideration, perhaps we can expect a fairly stable market. After two years of the most extreme volatility in the price of agricultural commodities, the price of oilbased inputs and in the financial markets, perhaps it is unwise to try to forecast anything. However, if our hope of a stable market is right, it will be something of a relief,” he finishes. l A few years ago, if a block of land, say over 200 acres, was for sale, limited demand might be a concern. This was usually because the total sum of money involved might be too much for

14 Fisher GERMAN Magazine

The Dunston Estate in Staffordshire is currently under offer

what would be mostly local buyers in the market. However, these days there seems to be as strong a demand for parcels of 200 to 500 acres as there is for 100 to 200 acres and, in some locations, perhaps an even stronger demand. This current interest is often a reflection of a wider range of buyers, including investment funds. manor farm, gaydon l Paddocks and other small areas of land have held up in value Sustrud min henis delenim dunt la faci tin velesse during the last year rathernulputat, more than mightwisi. haveElimin beenhenis expected. nissenis quamet In better times thedelenim purchases were often additional dunt la faci tinfunded velesseby nissenis nulputat, borrowings secured on residential property, which is now almost quamet wisi. impossible to achieve.

However, while the market is aroom; little quieter, features: Reception hall; drawing morning so far it has not fallen asdining far as room; could have been expected.

Perhaps room; billiard room; family kitchen; this just confirms cellars; the verydomestic short supply. offices; superb master suite; 5 further bedrooms (2awith bathrooms); floor l A good example of how the market in particular localityfirst can reception 2 further bathrooms; be influenced is illustrated byroom; the decision to hurry forwarddelightful the formal and for informal gardens. of the A46 compulsory acquisition of land the improvement Leicester to Newark road. The Fisher German Newark office believes £2,200,000 that this will take sizeable areas of land from a number of large Contact: Banbury office progressive farmers, all of whom are likely to be in the market with Telephone: 01295 271 555 cash funds competing for any land in the area which becomes available.

Email: banbury@fishergerman.co.uk

property showcase

Neals Farm

Neals Farm, a well-located and attractive residential farm, has recently come on the market. Located in Buckinghamshire, Neals Farm incorporates a four bedroom farmhouse with fine views, well-established gardens, orchard, livestock and general purpose buildings together with pasture and amenity land.

The property extends to over 76 acres and is being sold either as a whole or in two lots. Lot one comprises the house, gardens, modern farm buildings and 73.15 acres of land. And lot two includes a small permanent pasture paddock with an existing field shelter and 3.6 acres of land.

Guide price is ÂŁ1,250,000 as a whole or is available as two lots.

For more information about Neals Farm contact Matthew Allen on 01295 226287. For further information about agricultural property contact Charles Haselwood on 01295 226289

manor farm, gaydon

Sustrud min henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. Elimin henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. features: Reception hall; drawing room; morning room; dining room; billiard room; family kitchen; cellars; domestic offices; superb master suite; 5 further bedrooms (2 with bathrooms); first floor reception room; 2 further bathrooms; delightful formal and informal gardens.

ÂŁ2,200,000 Contact: Banbury office Telephone: 01295 271 555 Email: banbury@fishergerman.co.uk

Fisher GERMAN Magazine 15

feature | planning and development

F

isher German helped Robin Hamilton win planning consent for The Dumble, a revolutionary, rotating new eco house in Derbyshire just two years ago.

The Dumble was permitted under National Guidance PPS7 which allows dwellings in rural areas that can demonstrate: ‘a truly outstanding and ground breaking design of exceptional quality and an innovative nature.’ This criteria has set the bar very high in terms of design for new builds and the environmentally friendly aspects of the houses are also intensely scrutinised.

Since designing The Dumble, engineer and entrepeneur Robin Hamilton and Fisher German have established Home Revolution, a subsidiary company, to review and help with a number of schemes for other eco home projects.

The inevitable question when looking at such new projects is how can these schemes continue to demonstrate innovation and individuality, particularly in terms of environmental design?

It is likely that this will become progressively more difficult, but as these ground-breaking projects are completed and start to demonstrate their efficiency, planning authorities are more likely to appreciate and accept the eco homes’ features and they will become more the rule than the exception.

Eco friendly features such as solar panels, wind turbines and grey water systems are becoming the norm in standard housing projects. Building regulations demand increasingly higher insulation requirements and numerous local authorities are seeking 10% renewable energy as standard in all new homes built.

The most famous example of this was Merton Council (the Merton Rule) which, in 2003, implemented a planning policy requiring all new developments to generate at least 10% of their energy from onsite renewable energy equipment.

The Dumble attempts to establish new concepts for design and build to further enhance the standards mentioned above. This is not achieved

16 Fisher GERMAN Magazine

energising the housing market The standard for eco friendly builds has been raised since Fisher German helped The Dumble gain planning consent. Kay Davies of Fisher German and Robin Hamilton of Home Revolution look at its impact on the eco home market

the market

feature | planning and development

The Dumble

A revolutionary energy self sufficient house, based in Derbyshire: l is 13,250 sq ft, set on 10.3 acres of land; l rotates at around 2 inches per minute but is capable of moving 50 times faster; l has between five and seven bedrooms, depending on its configuration; and l traps twice as much sunlight as a conventional house.

by just increasing insulation and energy efficiency, but also by making the structure of the building itself work as an interactive energy store. Heat energy can be stored within the house (cooling the interior) or withdrawn (warming the interior), as required.

This concept, if adopted on a wider scale, will also provide huge benefits in reducing the peak demands for power and smoothing out the varying load on electricity generation. Emissions and the national carbon footprint will therefore be further reduced.

The Government’s review in The Housing Green Paper has also resulted in other initiatives, including: l all new homes to be zero carbon from 2016; l tax relief for new zero carbon homes; l energy performance certificates on the sale of homes; and l permitted development rights for installation of renewable energy systems on dwellings, eg, solar panels.

The identification of mechanisms through policy and mandatory requirements clearly shows that mass market housing is moving towards the higher level set by revolutionary eco homes. However, the gap between standard practice and the homes built under the Exceptions Policy remains wide. Indeed, it is questionable whether the Government’s objective for all new homes to be zero carbon rated by 2016, only seven years away, will be achieved within the next 10 years. The economic climate and the near collapse of the housing market has compounded

the issue making developers even more resistant to higher costs of environmentally friendly design.

Comments from the NHBC to a current Government consultation document on Zero Carbon Homes and achieving 44% renewable energy on housing sites by 2013 states: “Setting a higher carbon compliance level would seriously compromise the ability of the house building industry to assist the Government in achieving its objective of building three million homes by 2020.”

It would appear therefore that it may be some time before the standard four bedroom detached ticks the boxes to benefit from the tax relief of zero carbon homes. Up to last year there were less than 10 new homes that were able to benefit from the zero tax relief, demonstrating the high standards that have been set and the void that has to be filled to achieve the zero carbon target.

The Dumble is a leading example of eco home design and innovation, but there is definitely some way to go before a revolving zero carbon home is on every new housing estate!

However, even if only some of its features are incorporated in future buildings, both domestic and commercial, everyone will benefit. l For more information on planning and development please contact Kay Davies on 01530 410824 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine 17

feature | sporting

treasures in tresco

The most westerly shoot in the UK with first class facilities and luxurious accommodation is now available to Fisher German clients

A

n exhilarating driven shoot with a difference is now available on Tresco, one of the beautiful subtropical Isles of Scilly, 28 miles off the Cornish coast. Home to the Dorrien-Smith family which has leased the island from the Duchy of Cornwall since the 1830s, Tresco has a varied terrain that provides the perfect setting for those in search of a small, quality driven shoot in a stunning location.

Henry Gurney, of Fisher German’s Sporting Agency, explains: “While Tresco has been established as the Dorrien-Smith family shoot for

18 Fisher GERMAN Magazine

generations, it only became available as a driven shoot last year due to a chance meeting with Richard Hutcheon, at the 2008 Game Fair.

When the conversation turned to the possibility of Fisher German organising a driven shoot on Tresco, Richard was so intrigued and excited by the possibility that he visited the island just 10 days later.”

“I instantly fell in love with Tresco,” Richard recalls. “The 800 acres of stunning and varied landscape make it perfect for the type of driven shoot that Fisher German specialises in.”

Henry adds: “We like to focus on

a group of friends enjoying sporting days out, or roving syndicates offering quality but affordable shoots.”

At an average of 150 birds a day, the changing landscape of Tresco shows quality birds including pheasant, partridge and woodcock, guaranteeing a fast-moving and exciting shoot.

The weekend in Tresco, reached by air from Penzance isn’t just about great sport. Partners, family and friends are just as likely to enjoy the idyllic stay on the island with tropical greenery which flourishes in the mild, Gulf Stream-warmed climate. There is

feature | sporting

The 800 acres of stunning and varied landscape make it perfect for the type of shoot Fisher German specialises in”

gaming in glenmuick The sporting service

With Fisher German sporting comes access to renowned managed estates across the country. The Sporting Agency will tailor bespoke and affordable packages to suit the seasoned game shot and novice alike: l driven and walked-up pheasant,

partridge and grouse shooting; l salmon and sea trout fishing; l lowland and upland stalking; l tailored hospitality packages; l shoot design, management and consultancy; and l Game Conservancy Trust Members.

For more information on estate business contact Henry Gurney on 01530 410866 email henry.gurney@ fishergerman.co.uk or visit the website www.fishergerman.co.uk

also four miles of glistening white sand coastline, subtropical flora and translucent turquoise water to relish and a number of fascinating local landmarks including the world famous and spectacular 17 acre Abbey Gardens.

When it comes to relaxation the well appointed facilities for guns’ partners, friends and families are hard to beat, with imaginatively designed accommodation based at the newly built Flying Boat Club. The 12 three bedroom beachside cottages are all en-suite and creatively styled with the master suite enjoying a stunning waterfront view.

The Clubhouse includes a fine restaurant with Members’ Bar and Dining Room made over to the shoot.

Those looking to unwind after a day’s shooting or sightseeing can also take advantage of the indoor swimming pool, gym, steam room, sauna and jacuzzi.

Now employed as the sole shooting agent for Tresco, Henry believes it will be hugely popular with guns and their friends and families alike. And who could disagree? An exhilarating shoot with good quality birds on a sub-tropical island and accommodation in such a tranquil waterside setting is surely hard to beat. For further information contact Henry Gurney. l

Achieving a ‘Macnab’ is a well-known expression in the world of Scottish field sports, used when someone manages to kill a red deer stag, catch a salmon and shoot a brace of grouse in one day – a rare feat that John Macnab accomplished in John Buchan’s novel and one that was achieved for real this year on three consecutive days on the Glenmuick Estate.

Just five years ago the Glenmuick Estate, which sits on the banks of the River Dee, was making a substantial loss and facing an uncertain future.

A change was essential, and in 2003 Neil Hogbin, of Fisher German, took over the estate’s management.

Neil worked closely with its owners to creatively transform its various enterprises and assets into positive income streams. The turnaround in the Glenmuick Estate’s fortunes has meant that its future is now safeguarded and holidaymakers and sporting enthusiasts can take advantage of its unique and impressive facilities.

Set in 14,000 acres the estate offers the complete Scottish sporting package. The elegant Glenmuick House can comfortably sleep 20 guests, making it the perfect place for a special occasion, family gathering or sporting week. It is available to let by the week or long weekend, along with two cottages which are also let out to holidaymakers and smaller sporting parties.

For further information, contact Neil Hogbin on 01530 410841 or email neil. hogbin@fishergerman.co.uk

Fisher GERMAN Magazine 19

feature | estate business

Estate of independence James Hervey-Bathurst, owner of Eastnor Castle, discusses the challenges of running a country estate as a profitable business

L

iving in a castle forms the foundations of many a fairy tale. But while story books would have us believe that everyone in the castle lives happily ever after, real life among the turrets is rather more challenging, as James HerveyBathurst, owner of Eastnor Castle in Herefordshire, knows only too well.

The Hervey-Bathurst family and their Somers Cocks ancestors have been the proud owners of Eastnor for nearly 200 years. Set in the Malvern Hills, it is now established as one of Herefordshire’s leading venues for both corporate and private events (including weddings and the Big Chill Festival) and provides a healthy stream of income that contributes towards the costs of running the 5,000 acre estate and its 97-roomed castle.

Establishing Eastnor as a successful business has been an extremely challenging, but essential, factor in helping the HerveyBathursts maintain Eastnor’s heritage and beauty. “If your house is big enough, and you haven’t got huge wealth, you have to consider commercialising,” explains James.

The house is too big for a normal family to live in, so we have a family section and a public and business section. We’re fortunate, it has been a white elephant for a long time but now, because we have been able to use the big rooms again, it’s beginning to pay for itself.”

However, James is all too aware that the current economic climate means that the estate’s future profitability cannot be taken for granted. “The number of day visitors 20 Fisher GERMAN Magazine

has dropped over the last few years,” he says, “people have tended to holiday abroad a lot more recently so we have had to think of new ways to increase visitors to Eastnor and consider alternative uses for the park.”

James’ background as a lawyer, banker and headhunter undoubtedly set him in good stead to meet the challenges of running the estate.

Although when he inherited Eastnor, nearly 20 years ago, James’ parents had set the foundations for the castle’s future as a profit-making venture, he was very aware that it would be far from plain sailing.

“My parents had undertaken some renovation and restoration work, and it was up to me to carry on with it.

English Heritage and the Country Houses Foundation very kindly provided some grants, and I could fund some of the work thanks to my career as a headhunter,” he recalls.

The costs of running Eastnor are vast and it was vital that James found additional ways to expand the estate’s fledgling events business. “I’d love to say I had a grand plan when I inherited Eastnor,” says James, “but the castle’s various revenue streams have all happened in stages over the years.

“My father started a business in the 1970s with Land Rover, which uses some of the estate as a demonstration and test circuit. The company has been, and still is, incredibly supportive of Eastnor and that was a fantastic rock to start building alternative businesses on.” The opening of the M42, which brought Eastnor to within an hour’s drive of Solihull, particularly helped with Land Rover.

Eastnor’s fairy-tale setting,

in beautiful parkland with an arboretum and lake, make it the ideal location for weddings. And at an all-in cost of between £12,000 to £20,000 per ceremony, James says that these are a major contributor to the castle’s business. “Just the basic annual maintenance of Eastnor is in the region of £30,000 to £40,000,” he explains. “However, we’ve had the roofing done in seven phases over 20 years – the last job cost about £300,000 – so, inevitably, the profitability of Eastnor depends on the amount of exceptional repair work that has to be undertaken.”

Caring for and preserving the heritage of an estate like Eastnor Castle doesn’t just take significant

feature | estate business

amounts of money, it also involves a huge amount of emotional investment and, inevitably, has a significant impact on family life. “It can be difficult combining the business side of Eastnor with its role as our family home,” James acknowledges, “you lose a large amount of privacy. But we also have a wonderful quality of life – the children love Eastnor and we do get the chance to host house parties ourselves a couple of times a year.”

James is a man on a mission when it comes to the future of Eastnor. “We need to find new ways to diversify Eastnor’s business and better utilise its assets,” he says. And although the diary for 2009 is looking good James is intent on filling any gaps with new ventures and making more of Eastnor’s beautiful parkland. “It will be harder in the current economic climate,” he concedes, “but we owe it to Eastnor to ensure its future.” l

Eastnor Castle l is spread across 5,000 acres; l has 97 rooms; l was built by Robert Smirke,

architect of the British Museum; l was the venue of television presenter Davina McCall’s wedding; l employs 24 full-time staff plus parttime guides and a contractor; and l is open 62 days a year, receives around 40,000 visitors, accounting for about 10% of the estate’s income.

For more information on estate business contact David Merton on 01530 410806 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine 21

feature | agri-consultancy services

Eastern promises

Investing in international markets can be a precarious business.

David Kinnersley offers expert advice on what to look for in the potentially lucrative Eastern European agricultural sector

I

nvesting in direct farming operations can involve considerable risk as well as reward, particularly if the investment opportunity is based overseas. However, the rapidly growing world population and the increasing GDP in developing nations is driving demand for food production. Added to the demand for bio-fuels (bioenergy is estimated to be the fourth largest energy resource after coal, oil and natural gas), concerns over climate change, water availability and the sustainability of existing soil resources, it is no wonder that agriculture is, once again, an exciting sector in global investment markets.

22 Fisher GERMAN Magazine

While choosing a suitable investment prospect can be challenging, particularly in the current economic climate, Fisher German has identified Eastern Europe as a region with good potential. The implementation of land reform policies has meant significant progress has been achieved in the agricultural sector and, as a result, many Eastern European countries offer expanding opportunities for foreign direct investments.

In Western Europe the major capital element of agriculture is land.

While in Russia, for example, the cost of land is low (£110-£150/Ha) in many areas substantial capital is

required to bring land out of fallow and provide infrastructure which can add another £1,000/Ha of capital expenditure. Operational costs such as fuel, machinery, sprays and fertilisers are similar to Western European operations with only labour being considerably cheaper, meaning that operational overheads are in the region of £110/Ha. However there are considerable risks, particularly in those countries not within the EU. Not least of these is political risk in the former CIS countries where land tenure, food and energy prices are still challenging issues.

It is therefore important to gain an

feature | agri-consultancy services

Key facts

The Fisher German team has a wealth of experience advising farm businesses in the UK and Eastern Europe. From helping investment fund start-ups to established businesses improve their performance, our farm management professionals advise in a range of ways including: l identifying land-based opportunities; l planning and implementation of

operation management structures; l strategic financial and operational reviews of existing businesses; l marketing and risk management strategies; l management, staff and contractor recruitment and selection; l valuing and acquiring leases and freeholds; l on-going strategic and management services; l capital expenditure planning; and l logistics planning.

If you would like further information contact David Kinnersley on 01295 226294 or email david.kinnersley@ fishergerman.co.uk

It is important to gain an understanding of local, regional and global politics, markets and policies”

farm investment and management service advises that investors should consider the available commodity markets and the potential to integrate David Kinnersley, Fisher German agri-consultancy services supply chains where appropriate. understanding of local, regional and global To be profitable, businesses have politics, markets and policies. Selecting to pay close attention to their cost strategically important productive land structure, operational management and infrastructure is also vital as is and technical performance. David effective price risk management: as explains: “Economies of scale and global markets and trade grow, price efficient production alone will not be volatility will increase. David Kinnersley sufficient to generate above average of Fisher German’s Eastern European returns and create a sustainable

competitive advantage. Investors need to understand how to manage logistics, marketing, and prioritise investments carefully to be successful.”

However, David says that there are great opportunities in the long term if the risks are managed. “Our experience in Eastern Europe helps investors identify where suitable opportunities lie and how to take advantage of them. We can provide operational management on the ground in Bulgaria, Romania, Poland, Russia and the Ukraine and have a track record in setting up incentivised management contracts for farm managers,” he adds. l

Fisher GERMAN Magazine 23

feature | focus on farming

The dangers of diversification

Most farms now engage in some form of diversification venture in search of alternative revenue streams. However, James Goodson warns that farmers must be aware of the investment implications and the potential health and safety hazards

24 Fisher GERMAN Magazine

feature | focus on farming

D

iversification can be hugely beneficial for farms of all sizes. However, farmers need to ensure that their existing business is profitable, as this will need to underwrite the costs of change.

Diversification can include anything from a machinery sale and subsequent contract farming agreement, which usually releases money, to a large-scale conversion of redundant buildings, which can require a substantial loan. Whatever the venture, careful planning should be undertaken and the financial requirements assessed before, during and after the scheme.

It is important to be aware that it can take many years for the benefits of diversification to impact a farm’s accounts. Also, it must be understood that the new source of income will take longer to come fully on stream than most people would expect.

James Goodson of Fisher German says he would advise farmers who are considering livery or commercial ventures to spend a lot of time looking at and investigating the local competition before even considering the next stage of the project, especially in the current financial climate. There are a number of grant funding opportunities available though regional development agencies.

However, some of these agencies currently seem concerned that if they fund a particular

I have seen … some tenants using equipment such as forklifts and welders” project it might lead to displacement with others and give an unfair advantage over similar projects. Fisher German can help clients tackle this issue in their business plan when applying for a grant.

As far as livery ventures are concerned, the issue of business rates is always a problem. Some livery yards are rated while others are not, leading to an unfair advantage for some.

Some 36% of farms currently let out buildings for non-farming use, making it the most popular form of farm diversification. The business generates 68% of total diversified income and 47% of total diversified output.

Rural lettings offer a number of benefits to tenants including cheaper rents, lower rates and more space. However, James worries that some farmers may diversify the use of their buildings without ensuring they are covered by the correct regulations, procedures and licences. He warns: “I have seen farmers loading and unloading lorries of stock for tenants and some tenants using equipment such as forklifts and welders. The tenants appreciate this and it adds to the

‘perks’ of being on a farm, but what would happen if something went wrong?”

There are various regulations and procedures that farmers need to adhere to if they intend to engage in farm diversification. Farmers must have a Portable Appliance Test (PAT) on their equipment, and forklifts need to be LOLER98 tested, whether for personal use or for hire. Staff also need to be trained on the machines and health and safety plans must be in place, as should correct fire fighting equipment.

Failure to comply with regulations can leave a farmer open to prosecution and an accident (however minor) could invalidate insurances due to faulty equipment.

Diversification has huge benefits as the statistics in the box (below) show. But careful research should be undertaken, including: looking at if there is a local need and whether the venture will produce a return on investment. Once the project is up and running farmers must ensure that the equipment is certified, correct records are kept and that staff are trained. l

Diversification statistics l 51% of farms have diversified activity; l total income from diversification is

£400 million; l diversified enterprises generate 15% of the total income of farm businesses; l for 22% of farms with diversified activity, the income from their diversification exceeds the farm business income; l the dominant form of diversified enterprise is letting out buildings for non farming uses. Sport and recreation is also popular; l for the 23,000 farms that let out their buildings, the £312 million income they obtain is nearly 40% of their total farm income (£830 million); l 56% of diversified enterprises have an annual output of less than £10,000; and l 11% of diversified enterprises have an annual output of £50,000 or more.

For further information contact James Goodson on 01858 411250 or visit the Fisher German website www.fishergerman.co.uk Source DEFRA statistics 2007/8

Fisher GERMAN Magazine 25

The heat is on

Can the rural economy benefit from renewable energy? Not without the Government getting much more directly involved, argues Tony White

feature | renewable energy

T

o avoid the risks associated with global warming, the European Union (EU) has decided to “green” its economy and adopt the 20:20:20 targets for 2020 (see right).

Last year all EU countries adopted their own targets. The UK, for example, agreed that renewable sources would provide 15% of all energy consumed. This target is extremely aggressive as only 1.5% of the UK’s energy supply is currently renewable. The UK set itself a legally binding goal of achieving an 80% reduction in greenhouse gas emissions by 2050, which the Climate Change Committee identified would imply “decarbonising” power generation by 2030.

The incentives, penalties and regulations that governments introduce will determine whether we reduce our reliance on fossil fuels enough – particularly in the rural economy.

The measures introduced in the UK to reduce greenhouse gas emissions in the main, favour marketbased mechanisms. For example, the Renewables Obligation (RO) and the European Emissions Trading Scheme aim to influence electricity generation.

However, neither has encouraged investment in clean forms of generation at a rate high enough to meet the 2020 target. While Germany and Spain have 23.9GW and 16.7GW of wind capacity respectively, the UK had only installed 3.2GW by the end of 2008.

The design of the RO is part of the reason for the UK’s sluggishness.

A renewable generator receives the

the 20: 20: 20

targets for 2020

20% reduction in greenhouse gas emissions from 1990 levels; 20% improvement in energy efficiency; 20% of all energy consumed to come from renewable technologies

Higher ROC values have not encouraged the development of the more expensive options, such as offshore wind” standard fossil price (currently around £50/MWh) and a ‘Renewable Obligation Certificate (ROC)’ for each MWh of electricity produced. ROCs have to be purchased by electricity suppliers, such as Centrica and SSE, to show they have bought a certain target proportion of their power from renewable resources.

If they have bought less than the target (this year’s is 9% and increases by 1% each year), then they must pay a penalty for the shortfall, which is currently £37/MWh. The revenues collected from all these penalties

are then shared between those who have surrendered ROCs. But the consequence of this rather complicated arrangement is that the value of ROCs increases if less renewable power is built. ROCs are currently trading at £51. It was hoped that this would be a “self correcting” mechanism – the slower the rate of renewable growth, the higher the price – which would encourage new forms of green power.

Unfortunately, the designers did not account for the nature of finance.

The additional revenues are not easily predictable. Investors do not willingly pay upfront for revenues that might be received in the future and, as a consequence, higher ROC values have not encouraged the development of the more expensive options, such as offshore wind.

In an attempt to encourage faster deployment, the UK Government has increased incentives for “green” power production by “banding” the Renewable Obligation. Since 1 April 2008, the number of ROCs received for each MWh generated by a new plant will depend on the technology employed (see table below). While this banding will make some biomass technologies extremely attractive, it will also push up the cost.

Alternatively, the Government could consider removing some of the risk from the market and arrange for long-term contracts to be offered to green power developers, as in Germany and Spain. The costs to customers of buying green power in this way would be considerably lower. l

ROC Banding: the grass is always greener Technology ROCs/MWhe Technology ROCs/MWhe Hydro-electric Onshore wind Offshore wind Wave Tidal Solar PV Geothermal Geopressure Landfill gas Sewage gas Energy from waste with CHP

1 Gasification/pyrolysis 1 Anaerobic digestion 1.5 Co-firing biomass 2 Co-firing energy crops 2 Co-firing biomass with CHP 2 Co-firing energy crop with CHP 1 Dedicated biomass 1 Dedicated energy crops 0.25 Dedicated biomass with CHP 0.5 Dedicated energy crops with CHP 1

2 2 0.5 1 1 1.5 1.5 2 2 2

Dr Tony White MBE is an expert in renewable energy research and advises companies, governments and investors on the design and impact of legislation intended to reduce greenhouse emissions through his company Ytilitu Limited. He is also a NonExecutive Director of the New and Renewable Energy Centre at Blyth and a member of the Advisory Boards of the UK Energy Research Centre, Sussex University Energy Group, Jacob Securities and Climate Change Capital’s clean technology fund.

Fisher GERMAN Magazine 27

feature | renewable energy

Waste not, want not The race is on to harness methane gas from waste material, made possible by collaborations between farmers, landowners and Fisher German’s renewable energy division

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he renewable energy division has been advising farmers and landowners on all aspects relating to the generation of renewable energy from waste agricultural products or crops grown specifically for fuel. Livestock farmers and dairy producers have been forced to reconsider their processes for the disposal of farmyard manure and liquid slurries, due to strict new regulations relating to Nitrate Vulnerable Zones (NVZs).

The new rules make it far more difficult to dispose of waste material on land, and many farmers will be forced to invest in expensive storage solutions in order to comply with the regulations.

But there is an alternative. Rather than investing in storage facilities which are a costly overhead, farmers could consider an Anaerobic Digestion (AD) plant that would convert the

28 Fisher GERMAN Magazine

waste slurries and manure into methane gas, which could, in turn, be used to generate heat and power.

A more controversial solution would be for the dairy farmer to consider selling the cows, retaining the land and producing grass or maize silage to feed the AD plant. Gas yields from silage are six times higher than those from slurries and manure.

It is not just livestock farmers, however, that generate waste products to be utilised by AD plants. Vegetable and fruit growers in the UK generate hundreds and thousands of tonnes of waste plant material every year, yet very few producers realise that this plant material is a highly valuable source of fuel for an AD plant, and could be generating hundreds of thousands in revenue. In some cases, the material can produce millions of pounds worth of electricity that could be sold into the National Grid.

Fisher German’s renewable energy division is working with several renewables companies seeking sites for AD and gasification plants in the UK, based on the utilisation of waste agricultural produce.

They have already identified a number of potential sites that would utilise waste vegetable trimmings, and are currently assessing the

investment viability of these proposals.

Fisher German is therefore extremely interested in speaking to producers who are generating such waste material. This could range from cabbage, cauliflower and other root crop trimmings, through to poultry waste, fruit pulp and the usual slurries and manures.

Suitable sites should be able to provide sufficient fuel to generate in excess of 1MW of electricity per annum. This equates to 20,000-40,000 tonnes of either crop waste or crops grown specifically for fuel. Although the capital cost of developing such a

feature | renewable energy

If you think you have a potential site contact Henry Sale on 01858 411217 or Stephen Rice on 01295 226297 or visit the website www.fishergerman.co.uk

Fruit pulp can be a source of electricity that can be sold into the National Grid

plant is substantial, the renewables companies working with Fisher German has sufficient capital funds to develop sites, and is keen to discuss Joint Venture arrangements with potentially interested producers.

The production of electricity from an AD plant is significantly less controversial than a wind farm.

However, Fisher German predicts that there will be a similar race to secure these sources of fuel, not dissimilar to the demand for appropriate wind farm sites.

Central Government is encouraging farmers and landowners to embrace

An AD plant would convert waste slurries and manure into methane gas, which could be used to generate heat and power� renewable energy production and AD technology in particular. Minister for Farming and the Environment, Jane Kennedy, recently announced the formation of a DEFRA-based Task Group which has been asked to assess how farmers can exploit AD to get rid

of waste and make a significant contribution to the generation of renewable energy. The NFU has also pledged to deliver 1,000 farmbased AD plants and 100 larger scale AD plants by 2020.

The renewables sector is a fastmoving industry, which is not affected by the current economic downturn, and Fisher German looks forward to speaking to producers and growers who are interested in investigating these exciting possibilities. l Fisher GERMAN Magazine 29

Spotlight on services

about us Fisher German is a firm of chartered surveyors and specialist property consultants serving clients countrywide through their UK office network. The firm is a leader in pipelines, utilities, telecommunications and renewable energy. Although Fisher German’s roots are traditionally in the rural property sector where they have a large team of specialists, the firm now offers a range of services to the residential sector, commercial sector and beyond.

l Fisher German employees enjoy the CLA Game Fair

30 Fisher GERMAN Magazine

The full range of services includes ➔

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A complete range of services for all our clients’ needs

equestrian

Matthew Allen explains why diversifying land for commercial equestrian uses is a smart move for farmers

Despite the recession, equine activities continue to become more popular. Pony paddock sales and levels of interest from potential purchasers remain strong. However, some purchasers are unaware that they may need planning permission for their chosen uses of the land.

Farmers are always looking into ways to diversify their activities and commercial equestrian uses such as livery or riding schools are common. They may sell or let farm buildings or land to purchasers but ‘horsiculture’ uses generally require permission. Careful thought should go into the application to make it acceptable to planners.

There are exceptions to the rule. For example, erecting a stable within the curtilage of a house may not, in some circumstances, require planning permission – depending on the size and whether the horses are kept as pets. Most mobile field shelters will not necessarily require planning permission depending on

Some purchasers are unaware that they may need planning permission”

size, construction, physical attachment to the ground and intended degree of permanence.

Utilising existing agricultural buildings will necessitate a change of use permission for conversion to stables or tack rooms, for example. It will also be necessary for car parking and other outdoor activities such as manèges, floodlights and horse walkers. The grazing of horses is however permitted under the use ‘agricultural’.

On sites where equine facilities have been established for many years

some parts of the country, horse training and breeding businesses play an important economic role. Local planning authorities should set out in their Local Development Documents their policies for supporting equine enterprises that maintain environment quality and countryside character.

“These policies should provide for a range of suitably located recreational and leisure facilities and, where appropriate, for the needs of training and breeding businesses. They should also facilitate the re-use of farm buildings for small-scale horse enterprises (enterprises involving up to 10 horses) that provide a useful form of farm diversification.”

This support for equestrian diversification encourages many alternative uses. However, these must be carefully thought out to conform with planning guidance.

a Certificate of Lawfulness (CLEUD) could be submitted.

Once granted, the use of the buildings or land would become lawful and prevent enforcement action from the local authority.

Paragraph 32 of the Government’s Planning Policy Statement 7 (PPS7) states: “Horse riding and other equestrian activities are popular forms of recreation in the countryside that can fit in Equestrian well with farming Matthew Allen activities and help telephone 01295 226287 to diversify rural mathew.allen@fishergerman.co.uk economies. In

Fisher GERMAN Magazine 31

Spotlight on services

Commercial rent Creative thinking is key to managing challenging current market conditions

fees or even a rent reduction may have to be considered. If remaining tenants are still being charged premium rents, how will they view reductions for their neighbours?

There is also the spectre of business rates payable on vacant property and overheads such as property insurance and service charges, which landlords will still have to fund. Business rates will not now be paid for 2009/10 on properties with a rateable value of under £15,000, and landlords must also consider the revaluation of rateable values that comes into effect in April 2010.

There is no single solution and landlords will need to learn how to deal with issues on an individual basis. Fisher German surveyors and agents are ready to work with property owners to meet these challenges.

Experience, advice and creative thinking are prerequisites to helping landlords manage their way through the current market conditions.

Industrial and commercial clients are increasingly experiencing extreme downturns in business, with many organisations failing.

The question is, what is the potential impact on commercial rents? The pressure on rent reviews will probably continue.

Rents are unlikely to rise at the next review or at a lease renewal date for the next few years. It could be argued at the next review that the rent is protected under the lease terms and cannot be reduced. But is this going to help a struggling tenant? The fact is that many tenants are asking landlords to reduce rents reserved under the lease by 20% or more.

If a landlord owns a multioccupied office building it is important to consider what will happen when office space becomes available.

Commercial Options to tempt John Royle new tenants such telephone 01744 458841 as rent-free periods, john.royle@fishergerman.co.uk payment of legal

utilities

Linesearch is proving to be a vital online utility resource With huge demands now being placed on existing energy networks, there are requirements for new networks that have to be routed through built up or environmentally sensitive areas. Security and safety form an integral part of the efficient network management.

Fisher German launched www.linesearch.org, a

premier online utility search website, in 2003.

The site now receives more than 60,000 enquiries per month and has 22 members’ apparatus detailed.

“Linesearch fulfils a number of requirements, from the provision of an immediate free response through to providing an environmentally friendly solution to utility data relating to Utilities safe working,” Andrew Bridge says Andrew telephone 01530 410828 Bridge, andrew.bridge@fishergerman.co.uk specialist

32 Fisher GERMAN Magazine

in pipeline and utility management. “Safety is of paramount importance when managing clients’ networks while innovation is integral to the service they have come to expect.”

Fisher German’s utility team has extensive knowledge and experience of working for all major sectors of the industry, with more than 40 people

involved in national projects across the UK. These include new gas pipeline schemes, oil pipeline diversions, new electricity cable routing and consenting, connections to the main grid and numerous schemes associated with methane extraction, energy from waste and other renewable projects throughout the UK.

“Innovation is integral to the service our clients have come to expect” Andrew Bridge, Fisher German

planning and development Objections to planning permission can be difficult to overcome. Kay Davies, head of planning, reports on how her team help clients to win approval

A seal of approval for Hallmark Tractors

Planning has been granted for an extension to Hallmark Tractors site at Cubley in the Derbyshire Dales.

The application involved large extensions to the workshop areas, a new wash area and change of use of the land for storage. Although a number of objections were received, through negotiations with the council the application was approved.

To the Manor born

Planning and Development

Kay Davies telephone 01530 410824 kay.davies@fishergerman.co.uk

Site: Land at farm, Nuthall Client: Pig farmer Project: Use of land for open storage with 48 containers, builder’s yard, scaffolding storage, caravan storage and coach parking. The site was operational without planning consent and enforcement action was threatened.

Issues: The site lay in the Greenbelt where there is a presumption against this type of development. Without the storage business the farmer could not continue to run the agricultural business. It would fold with the loss of six jobs and a valuable training facility for student vets and young adults.

Strategy: A retrospective application was submitted and, although council members were supportive of the farmer’s case, they would

The appeal was allowed and permission granted with no restrictions” not accept that the need for diversification overrode Greenbelt policy. Members were also concerned about the precedent it would set.

The application was refused, however, a Certificate of Lawfulness for one third of the site which had just reached the required

operational period of 10 years, was then submitted.

This was approved.

An appeal was then lodged for the remainder of the site on the grounds that it was essential farm diversification as the business would fold and six jobs would be lost if the storage use did not continue.

The appeal Key factors which helped was allowed achieve this success were: and permission l letters of support; granted with l including financial details to prove the no restrictions severity of the case; and on additional l photomontages showing how storage screening would improve the site containers being brought on site.

The Derbyshire Dales planning committee granted permission for a semi-permanent marquee at the Osmaston Manor site.

The grand marquee will be erected for nine months of the year and will be hired out for weddings and private functions. The proposals help support restoration of the estate and local businesses.

Concerns were raised by the planning officers regarding the sustainability of the proposal and its potential impact in relation to traffic generation, noise and wildlife. However, the submission of technical reports and letters of support from the community helped convince councillors that the proposals were of significant benefit to the community.

Turbine breezes through planning

Fisher German’s planning department has gained planning consent for a wind turbine in the Peak District National Park.

The 20KW turbine will stand approximately 18 metres from ground level to blade tip next to agricultural buildings on a farm in the Peak District. It has been designed to meet 80% of the farm’s future power requirements. The application took 18 months in planning and was approved by committee members after gaining local support, despite the council officers’ recommendation for refusal.

This has paved the way for further turbines in the Park.

For advice on the planning merits of wind turbines, please contact the Fisher German planning department on 01530 412821.

Fisher GERMAN Magazine 33

Spotlight on services

Estate business

Anthony Mayell explains why advice from seasoned professionals is vital to buying and selling rural estates in today’s competitive market sold for in excess of the guide price and included an airfield producing £32,000 per annum in addition to the core rental income of this traditional let estate.

In similar vein, the substantial stewardship and Single Farm Payment income, along with impressive equestrian facilities, contributed to the marketability of the 964 acre Allexton Hall in Leicestershire.

In this uncharted market, well honed buying skills are needed to counter vendors’ ingenuity. William Young of Fisher German’s Market Harborough office points out: “With our experience comes an understanding of estate management. Lotting an estate can help build a portfolio to suit buyers’ needs.”

Getting to grips with the mechanics of a sale or purchase is equally important. In recent purchases, our team of estate A rapidly changing market unfolded in 2008 and the estate market developed a split personality.

Above the £10 million threshold a market of up to 300 buyers worldwide still competed for prime houses in property hotspots. Easton in Norfolk, Tetworth Hall in Cambridgeshire and the Compton Castle Estate on the Somerset/Dorset borders all achieved sales above £15 million. Below £10 million, the market became fickle.

While residential estate buyers invariably focus on location and amenity, corporate and institutional purchasers favour development opportunities.

Whatever the economic outlook, the key attributes for

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Whatever the economic outlook, the key attributes for estates seem to stay the same” estates seem to stay the same.

Elegance and tranquillity take some beating as Fisher German’s Anthony Mayell discovered in the sale of the Dixton Manor Estate – a Cotswold manor house set in quintessentially English gardens with Elizabethan origins.

Business and pleasure can, however, mix and the prospect of finding an estate with diverse income is equally appealing to buyers.

The 2,210 acre Conington Estate in Cambridgeshire,

buyers have identified major deficiencies in property titles, tenancies that are not as they seem, previously overlooked subsidy entitlements and stewardship income.

Planning history can play an important part in buyers’ future plans for an estate, just as public access can impact on privacy, and ideas for diversification. Interest has grown for larger blocks of vacant land for commercial farming, so the residential element no longer forms a major part of the value.

Market knowledge, as well as strong negotiating skills, provide the wisdom of knowing when to play a waiting game and how to bring about a quick purchase. But it counts for nothing if the buying team lacks experience of the strong markets of the 1980s, and the unpredictability of the 1990s.

Buying prospects are encouraging, particularly where guide prices are set realistically. Even in 2008, of the flagship estate sales in the UK almost 40% were above the guide price. As Anthony Mayell concludes: “That’s when specialist buying advice pays real dividends.”

Estate business

Anthony Mayell telephone 01905 459426 anthony.mayell@fishergerman.co.uk

“On many occasions a tenant’s only regret is eventually having to move on” Yan Gittins, Fisher German

A prime example of a property for rent near Broadway

Estate house lettings Renting a house on a country estate has never been more attractive. Yan Gittins offers expert advice Rural life in a spacious house in a picturesque setting is something that many city-dwellers aspire to. But while leaving behind the frustrations and hazards of city life and decamping to a rural community might seem like a fantasy too far, it really is within the grasp of increasing numbers of urbanites.

Country estates are renting out a tempting array of houses to suit a variety of tenants and these are now more attractive than ever before. The selection of property on offer varies from dower and farm houses, perfect for growing families, to smaller, but perfectly formed, cottages for retiring couples or young professionals.

Living on an estate opens up a whole new world to many tenants” “The houses are just part of the attraction of renting in the country,” says Yan Gittins of Fisher German.

“Living on a country estate opens up a whole new world to many tenants. They can enjoy country sports, the general outdoor life and also become involved in the local community, whether it’s through the local school or village social events.”

The number of country houses available to rent is on the increase for a number of reasons. Landowners

are usually keen to hold on to their property as, strategically, it doesn’t make good business sense to sell off houses in the middle of an estate and, emotionally, the houses are often part of a family’s heritage. For tenants considering immersing themselves in country life, renting a property on an estate is an ideal introduction to rural living.

Some tenants like to familiarise themselves with the area prior to

committing (especially while property prices continue to fall) and many find themselves still renting years later.

Yan Gittins, who has extensive experience in rural estate management and works with landlords to maximise the potential revenue from their properties, says a long-term let of more than three years is usually advisable for tenant and landowner. “Both parties benefit from the stability afforded by a mediumterm rental, whether for personal reasons or business obligations,” he explains. “From the tenant’s perspective children can be enrolled at local schools, the main income earner can adjust to the sometimes challenging life of a commuter and spare capital can be invested in a variety of markets. The landlord retains control of the property and benefits from a regular income which can contribute to the running of the estate.”

Yan Gittins goes on to say that former tenants comment how life in the countryside is an amazing experience. One lady moved into a beautiful, spacious cottage that she could never have afforded to buy. The lady stabled a horse on the estate yard and had access to hundreds of acres of countryside that she and her husband enjoyed from both the saddle and on foot. Some landlords host amazing tenants’ parties and tenants really feel part of a supportive and caring community. In fact, some love estate life so much that a temporary residence can turn into a much longer than planned stay. On many occasions a tenant’s only regret is eventually having to move on for reasons beyond his or her control.

Estate management

Yan Gittins telephone 01905 459422 yan.gittins@fishergerman.co.uk

Fisher GERMAN Magazine 35

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