Fisher German Magazine Issue 26 by fishergermanllp

fisher german Magazine | Issue 26

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Mapping the path to Net Zero How our Delivering Net Zero service is helping the commercial property sector p10

Planning reform

The future of farming

Levelling Up and Regeneration How the UK agricultural Bill at a glance p12 landscape has changed p14

Large space sets pace Warehouse space is in high demand p20

Welcome As a business we are always looking to evolve and we have learnt that having resilience and flexibility, particularly in times of volatility, are absolutely critical. This, teamed with really listening to our clients' needs and challenges, allows us to embrace opportunities and offer the best solutions for clients. Andrew Bridge, While the overriding focus of the past two managing partner years has been Covid-19, tackling climate change is firmly back on the agenda. We discuss the wider impacts of COP26 on different sectors as organisations around the world take action following the event last year (page 6). Similarly, with the ever-increasing drive to be sustainable and climate positive, we take a look at how Fisher German’s Delivering Net Zero service is helping the commercial property sector to achieve that target (page 10). And having launched our innovative online service, The Green Offset, we also update on how the platform is doing one year on (page 18). We explore many other topics in this issue too, such as the changing UK agricultural landscape following Brexit on page 14, as well as the opportunities and challenges facing the logistics sector as the demand for large warehouse space hits a record high (page 20). We hope you enjoy the issue and if you’d like to find out more about what we do, please follow us on our social channels. We also encourage you to get in touch if you have any thoughts on the topics we’ve covered in the magazine.

Large space sets pace

The opportunities and challenges owing to the high demand for large warehouse space

20 Partner spotlight

Fisher German partner Miles Youdan takes us through his career so far

For more information visit:

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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. If you no longer wish to receive the Fisher German magazine or any other Fisher German marketing material, please email marketing@fishergerman.co.uk.

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News & views

Accelerating climate action

Fisher German’s new podcast and the rise of the online auction

The wider impact of COP26 on Fisher German’s different sectors

Mapping the path to Net Zero

Planning reform

Levelling up and Regeneration Bill at a glance

How the Delivering Net Zero service is helping the commercial property sector

The future of farming

A platform for growth

How has the UK agricultural landscape changed since Brexit?

How a range of stakeholders is being connected for land offsetting

New lease of life

People news

Dormant building stone quarries are experiencing an unexpected revival

Sector insight

Office directory

What lies ahead for the firm and its clients

Fisher German's national offices

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Several promotions and progressions within the partnership at Fisher German

30 Publisher Andrew Rogerson Editor Tracey Gardner Art director Jennifer Cibinic Designer Gio Isnenghi Website www.gristonline.com

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news&views

Fisher German and Matthews & Goodman join forces Fisher German and Matthews & Goodman have joined forces, combining their 750 people into a single firm which will retain the Fisher German name. This merger will create one of the largest providers of multi-disciplinary property services in the UK, with a turnover approaching £60 million and 29 offices. Matthews & Goodman, established more than 160 years ago, is a multidisciplinary commercial property consultancy specialising in acquisition and disposal, building consultancy, business rates, investment, lease consultancy, property management and valuation. It employs almost 100 people across five offices in Liverpool, London, Manchester, Birmingham and Leeds, with a turnover of £8 million. Andrew Bridge, Managing Partner at Fisher German, said there were clear similarities between the firms. “Both have a long history dating back to the mid-nineteenth century, a collaborative approach to working with our colleagues and clients, and a proven track record of winning and retaining some of the UK’s biggest property portfolios. “Matthews & Goodman not only shares our vision and values, but also brings with

it a highly motivated team of commercial property experts to rival our own. Together, we can offer unrivalled property advice across urban and rural settings and maximise the return on investment to our clients through the benefit of our multidisciplinary services.” James Routledge, Head of Investment at Matthews & Goodman, said: “This merger was much more than a marriage of cultures, capabilities, client management philosophies and ambitions.

“Together, we will provide more experts, more professional services, in more markets. In addition, the prospects for existing talent in both firms and those who have yet to join us, is enormous. “Our clients’ access to a creative entrepreneurial culture, underpinned by the breadth of skills, experience and expertise, has now been increased quite significantly, and our collective offer is grounded by both companies’ proven heritage.”

Fisher German plays key role in world-first power system stability contract Fisher German has played a pivotal part in the successful deal agreed with Triton Power on behalf of Flintshire County Council for the re-use of the former 500MW Combined Cycle gas Turbine power station. The deal, overseen by the sustainable energy team and headed up by head of sustainable energy Darren Edwards, will see the two gas turbines on site, which had been mothballed for its original purpose in 2018, adapted to provide the National Grid with vital system support services. It is believed to be the first conversion of a gas turbine rotor to provide stand-alone inertia and stability services anywhere in the world.

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As a result of the deal, new employment will be brought to the region and delivery of cost savings to

energy consumers under the National Grid stability pathfinder programme.

The rise of the online auction Fisher German has been accelerating its use of online auctions as a virtual replacement for physical auctions, achieving on average 23 per cent over the guide price. One recent sale which eclipsed all expectations was a former village school near Chesterfield. It attracted 9,203 page views, 135 registered buyers and, after 85 bids, the timer went to zero at £388,000 – £208,000 over the guide price of £180,000.

Online auctions are not just for residential sales; they can work equally successfully for commercial lots, development land, redundant buildings or parcels of land. And there are many benefits for the buyer too. They can do their research by studying the legal pack in the online data room and when it comes to bidding, they can do so from their own home with other family

members and watch the bids being submitted on screen. If you are the successful buyer, when the timer goes to zero, that’s the exchange of contracts. This offers more security than the more common private treaty sale, where getting to exchange of contracts can sometimes be quite a long and fraught process, taking typically three to four months.

Fisher German Talks: new podcast series focused on property and sustainability Fisher German has launched a new podcast series ‘Fisher German Talks’ with each episode hosted by an expert from the firm, who will be joined by a guest speaker to discuss the topical issues that our industries are facing today. Comprising seven episodes released fortnightly, the podcast series looks at the countless routes to Net Zero, discussing where we stand now and predicting where we’ll be in the future. The first episode ‘Regenerative Farming’ was presented by Fisher German partner and head of agribusiness David Kinnersley, who was joined by Jake Freestone, a farm manager at Overbury Enterprises, and focuses on the future of British farming and how farmers have found themselves on the front line of the fight against climate change. The ‘Telecoms Leases for Land Owners’ episode discusses telecoms leases and the impact legislation has had on property owners. There is also an episode, ‘Net Zero in Commercial Property’, in which our experts explore how property owners and landlords of commercial buildings can improve their properties to align with sustainability goals, ESG targets and to achieve sterner energy efficiency standards.

Laura Jane Taylor, marketing manager based at Fisher German’s Ashby office, said: “The podcasts provide a platform for industry experts to discuss key trends, changes in legislations, as well as key market updates, delivered straight to the ears of our clients and others interested in these topics within the wider property industry. We are thrilled that the first episodes have been so popular and we plan to launch a second series later this year.” The podcast series is available on all popular platforms, including Spotify, Apple Music, Google Podcasts and Amazon Music, and can be found by searching ‘Fisher German Talks’.

e are thrilled that the first episodes have W been so popular and we plan to launch a second series later this year.”

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Accelerating change The recently held COP26 has prompted many businesses around the UK into action in order to tackle climate change. Nowhere is this more true than for urban and rural environment businesses like Fisher German. We take a look at how the wider impact of COP26 is affecting the firm’s different sectors and the scope for potential change.

OP26 – officially the United Nations Climate Change Conference – took place in Glasgow in November 2021 and while it may not have achieved all the goals the UK Government set out to achieve, it very firmly cemented the urgency of action needed to respond to deal with climate change. And for businesses like Fisher German, which

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are involved in the urban and rural environment, it was clear that resulting change will be long-lasting and will require a dynamic approach that is able to react innovatively and swiftly to the challenges ahead. Here, members of the Fisher German team set out how they think the type of work they do will be affected by the call for urgent action that defined COP26.

PLANNING

SUSTAINABILITY

Sarah DeRenzy-Tomson, partner

Darren Edwards, head of sustainable energy

The UK planning system, although under significant pressures (see page 12), is well-placed to connect headline climate change targets with real action as required by COP26. The Development Consent Order (DCO) process for consenting nationally significant infrastructure projects is now tried and tested and firmly embedded in the planning system. This process is being utilised for large-scale energy projects and new infrastructure projects such as HyNet. At a local level, with more than 300 Councils now declaring ‘climate change emergencies’ and setting Net Zero targets, addressing climate change is becoming an important material consideration in the decision-making process for planning applications. The Fisher German planning team are currently working on four substantial planning applications for solar parks across the UK, with two due to be approved in the next month. The principle in favour of sustainable development has long been the ‘golden thread’ of the planning system and going forward the challenge of ensuring the right development happens in the right place and delivers a sustainable outcome is all the more important. Land is required for housing and commercial development, renewable energy schemes and infrastructure projects. This has to be balanced with securing our food supply and safeguarding the most valuable landscapes from development – so there is no doubt that the planning system has significant challenges ahead. To deliver the change required and ensure places are sustainably planned, it will be crucially important that the planning system is properly resourced and that National Policy Statements, the National Planning Policy Framework and local development plans are updated more regularly and become more agile to keep pace with change and adapt to evolving technologies. Personally, I think this is an exciting time to be involved in the planning process, particularly when we are witnessing significant investment in new projects to address climate change and develop sustainable energy.

Pre-Covid, people were very much locked on to climate change but in the past couple of years a lot of attention has understandably focused on overcoming the pandemic. What COP26 did was to help shift the gaze back to where it was. Unfortunately, since then, the Russia/Ukraine conflict and raising of the energy price cap has diverted attention away again, not least because it is hitting everyone in the pocket right up the energy supply chain from domestic consumers to big companies. Most of the UK Government’s domestic policy changes actually happened in the run up to COP26, undoubtedly, to draw attention to our hosting of it. A number of proposals, such as the end of sales of all new fossil fuel cars, vans and domestic boilers and a commitment to a net zero electricity system, alongside a not overly green Budget and Comprehensive Spending Review, all provided for discussion at the event.

The main benefits of COP26 to renewable and clean tech companies can be summarised as follows: 1) widespread global recognition of the need to move away from fossil fuels and the followthrough to investor and financier decisionmaking; 2) enhanced guidance for carbon markets globally (Article 6 of the Paris Agreement) which, subject to detail, should trigger increased confidence in these markets and create new opportunities for carbon offset schemes; and 3) the results of various agreements are expected to feed into more supportive international policy, such as the ‘One Sun, One World, One Grid’ initiative. Despite ongoing global challenges driving volatility in international energy markets, COP26 was key in bringing climate change back into focus and a level of unity rarely seen in the modern era. Darren Edwards 07918 677571 darren.edwards@fishergerman.co.uk

Despite ongoing global challenges driving volatility in international energy markets, COP26 was key in bringing climate change back into focus and a level of unity rarely seen in the modern era.”

Sarah DeRenzy-Tomson 07551 152685 sarah.derenzy-tomson@fishergerman.co.uk

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INFRASTRUCTURE

Sam Parton, associate partner Off-shore renewable energy – and how to quickly provide more of it – was one of the hot topics at COP26. Generating the electricity is only part of the equation though; distributing it once it reaches dry land is another. Fisher German is working with National Grid on a project that will upgrade part of the UK’s distribution network (in East Anglia) as part of a scheme to bring in power from proposed offshore wind farms. This includes a new high voltage, overhead power line, incorporating around 500 new pylons, which will run from Norwich down the east coast to Tilbury Docks. Fisher German is working with National Grid on the DCO, which is expected to be submitted in 2024. We are providing all land agency and referencing work and are currently looking at a list of several thousand potential landowners who may need to be consulted. We’ll need to contact them in the first instance to be able to proceed with survey work. This will also identify areas along the route where overhead cables might be out of place, such as areas of outstanding natural beauty or sites of special scientific interest. We already know there are quite a few of these, so we’ll need to liaise with stakeholders about the best

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Rebecca Hannah, senior associate solution in each location. That could mean burying the cables underground for certain sections, but as this is up to 12 times more expensive than overhead lines, we also need to take commercial considerations into account. We’ll be running our side of the project from Fisher German’s newest office in Bury St Edmunds and our team will be very much on the ground, dealing with local people for the duration of the project and beyond. For example, we’ll be attending consultation events that will be held at locations along the route, which are effective ways of explaining to people who could be directly affected why the scheme needs to happen and how we’ll deal with potential problems. I see this personal approach as being at the crux of large renewable energy projects. It’s about as far removed as you can get from the high level discussions at COP26, but for me understanding an individual’s concerns and finding a way round them is just as important and gives me immense job satisfaction, too. Sam Parton 07918 628995 sam.parton@fishergerman.co.uk

One of the things that emerged from COP26 was a clear sense that there will have to be a significant and permanent change in what kind of energy supplies we employ across the UK and how they are managed. This is going to result in a lot more infrastructure projects, many on a large scale, and it’s going to be really important for them to be expertly driven so that they can deliver what’s required in the fairly tight timescales needed. One of these kinds of schemes that Fisher German is involved with is Hynet North West, the first industrial decarbonisation project of its kind in the UK. From the mid-2020s, HyNet will produce, store and distribute low carbon hydrogen as well as – and this is a key part of the picture for this and similar projects – capture and lock up carbon dioxide emissions from industry. Carbon emissions will be reduced by 10 million tonnes a year by 2030 and the scheme will be able to produce 80 per cent of the UK’s clean energy needs for transport, industry and homes. Fisher German is working in partnership with energy company Cadent, as one of its framework suppliers. Our team of 12 started work in 2021 and is responsible for securing all land rights and delivering a successful DCO by

2025 on an 85 km pipeline that will be operated by Cadent. It’s a huge undertaking, which involves around 1,700 individual land parcels. As this is the 10th DCO Fisher German has

worked on, we now really understand the process, which makes it much easier when dealing with different landowners, from agricultural to commercial backgrounds.

It’s important in the DCO process to prove that we’ve consulted with anyone located close to the length of the pipeline and we understand that we are potentially building long-term relationships with landowners and other people we deal with; it’s not just a case of dealing with them once and never seeing them again. We know that people respond positively to those they perceive to be doing a good job. There is a high level of demand for land in the Northwest, as in so many other parts of the country, so we add value by being able to convince people of the long-term value of projects like Hynet, which are a really exciting part of our sustainable energy future. Although COP26 might not be remembered for that long, the big infrastructure projects that come about as a result of it certainly will. The way I look at it is that Hynet is something I’ll want to tell my grandchildren about and explain how proud I am to be involved with it.

Rebecca Hannah 07918 677565 rebecca.hannah@fishergerman.co.uk

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With the ever-increasing focus on sustainability and being climate positive, we take a look at how Fisher German’s Delivering Net Zero service is helping the commercial property sector to achieve that target.

Mapping the path to Net Zero “O

ne of the best things is working in an environment where all parties are trying to achieve the same thing: a common goal for the benefit of all involved. That’s very refreshing and far removed from the adversarial positions that can sometimes arise in propertyrelated matters,” says Fisher German’s head of sustainability, Darren Edwards, who leads Delivering Net Zero, a managed pathway that assists businesses in achieving net zero in their built assets. Since launching the service in 2020, a range of companies, including Wesleyan Assurance Society, IO Asset Management and Chancerygate, have already made significant advances in understanding what practical measures need to be undertaken to improve the properties in their respective portfolios. Darren explains: “We’ve completed several portfolio reviews, in each case establishing an energy performance benchmark for how the portfolio

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currently measures up and how it needs to measure up in time for regulatory deadlines (EPC level D by 2023, Level B by 2030 and net zero by 2050). That allows us to devise a plan for what needs to be done to achieve compliance.”

Focusing on feasibility

The team has also advised on buildingspecific issues, such as a manufacturing facility in Romford, east London, where the tenant, an aeronautical business, had approached the landlord as it wished to generate its own energy on site via photovoltaic (PV) panels. The initial question was whether the existing building structure was strong enough to take on the load of the solar equipment, so Fisher German’s building consultancy team was called in to prepare a report. In parallel, the landlord began to consider whether they, rather than the tenant, should be investing in the equipment. Fisher German’s lease advisory team was brought in to review the tenant’s current lease and

Landlords in particular are being squeezed by both investors and tenants, who are pushing for change when it comes to environmentrelated issues.” compare this with the expected lifespan of both the new equipment and the existing building. At the same time, the Delivering Net Zero team was examining the practical aspects of the proposed improvements, including install costs and how much power would actually be required by the tenant. The project is still ongoing, and Darren says it is representative of the type of process that many landlords, investors and tenants will go through as they explore ways of retro-fitting older buildings to make them more energy efficient: “The age of an asset and its structural integrity

A ‘green premium’? “There are some interesting value implications of the properties that are being upgraded as a result of Delivering Net Zero,” says Darren. As some buildings are fitted with environmentally friendly features, including PV panels, improved insulation, more energy efficient lighting and EV chargers in the car park, it is possible that the market may value these more over unimproved properties. Darren notes: “We are closely monitoring whether occupiers will be prepared to accept higher rental levels for greener buildings and whether there will be a corresponding capital value ‘bounce’ if investors are willing to pay more for these kinds of properties.”

Why DNZ matters to ESG Once upon a time most businesses had a single target: achieving the highest possible financial returns. More recently, though, greater awareness and acceptance of corporate responsibility has resulted in Environmental and Social Governance (ESG) objectives rapidly gaining importance. Delivering Net Zero and ESG are now closely interlinked as companies realise that, for the benefit of the environment, they need to lay out capital on and improve built assets they either operate or invest in.

will decide how easy it is, or not, to fit features such as PV panels, LED lighting and cavity wall insulation. “Since we launched Delivering Net Zero, we’ve found that while the theory of achieving Net Zero is increasingly well understood, the practicalities of improving existing buildings may be less straightforward than businesses expect. Whether a proposed improvement is both commercially sensible and practically feasible isn’t always clear in advance and is the kind of question that needs to be dealt with on a building by building basis. When it comes to Delivering Net Zero there isn’t a one-size-fits-all solution but utilising our experience and through our turnkey service offering, we are able to move clients in the right direction.”

A common goal

Overcoming these kinds of hurdles is made easier by a combined appetite from investors, owners and tenants for taking action, explains Fisher German divisional

“I think of ESG as a jigsaw and Delivering Net Zero has a major part to play in solving that,” says James. “For clients it’s a jigsaw because it’s a puzzle and many are still unsure how they should best deal with it. Delivering Net Zero offers lots of different pieces that can help solve the puzzle. I should stress it won’t solve the whole jigsaw, but it goes a long way in the right direction. Importantly, because it is based on practical solutions, it delivers clearly measurable results, which are necessary in an ESG setting.”

managing partner James Rigby: “What we’ve seen in the last couple of years is a sea change in attitudes, leading towards a much more collaborative approach to problem solving.” This is just as well, as Delivering Net Zero has seen the emergence of a diverse range of potential issues, such as maintenance obligations after the addition of new equipment. For example, the terms of most commercial leases provide for the tenant to be responsible for the upkeep of the roof. However, if a landlord installs a PV system and the roof subsequently begins to leak, it might not be clear who is responsible, demonstrating the value of property management professionals who can identify such potential contractual and financial hazards in advance. Being able to zoom in and out details, while maintaining a ‘big picture’ overview is one of the strengths of Delivering Net Zero. “Our approach is asset-focused,” adds James, “We are looking to improve the average asset rating across the whole

portfolio. By repositioning assets, we can add value and simultaneously improve the quality of the UK’s building stock.” What is clear is that Delivering Net Zero is unlikely to stand still, but is inherently dynamic, allowing it to evolve as market conditions change. Darren concludes: “Landlords in particular are being squeezed by both investors and tenants, who are pushing for change when it comes to environment-related issues. The energy crisis will only add further pressure and lead to a reassessment of potential improvements. Previous ‘nice to haves’ will in time almost certainly be deemed essential.” Darren Edwards 07918 677571 darren.edwards@fishergerman.co.uk James Rigby 07973 157079 james.rigby@fishergerman.co.uk

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Planning reform:

Levelling up and Regeneration Bill at a glance Following on from the publication of the Housing White Paper in 2020, the UK Government has now set out its updated approach to planning reform through the Levelling up and Regeneration Bill. While this points to more of an evolution of the planning system, rather than the revolution suggested two years ago, there are still changes proposed that will fundamentally alter the way planning operates in the coming years.

eforming England’s planning system was never going to be simple. It has been 73 years since the 1947 Town and Country Planning Act was enshrined into law, and since then the legal framework and supporting planning policies have been prodded and poked, altered and modified, and had new additions, with other parts taken away. The 2020 White Paper proposed a fresh start: a revolution to planning. Covid, Brexit, climate change, the cost-ofliving crisis and the need for votes then took over. As a result, the proposals delivered through the Levelling Up and Regeneration Bill are somewhat watered down, comprising a further set of amendments to the existing legal framework. While the Levelling up and Regeneration Bill has provided enough material for bedtime reading for the foreseeable (some 388 pages), we have focused our review on the proposed role of the five-year housing land supply and its impacts on the planning system moving forward.

Five-year housing land goodbye

Although criticised by the public, Councillors, environmental groups and even planning officers, it is fair to say that

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the need for Local Planning Authorities to maintain a five-year housing land supply has been a crucial element of the planning system during the lifetime of the National Planning Policy Framework (NPPF) and has driven the delivery of new homes across the country. The test, which in essence examines the number of homes to be built over the next five-year period, has enabled speculative development schemes, which conflict with the Development Plan, to advance as planning applications where Authorities cannot satisfy the test. The rationale is that the Development Plan is unlikely to deliver sufficient housing over the coming years, and thus to address this, sustainable non-allocated sites can be brought forward unless the impacts of the proposal significantly and demonstrably outweigh the benefit provided by the new housing. Proposals advanced under such circumstances often have little public support; particularly where the adopted Plan would normally clearly rule out the development. It was once described to me by a resident at a consultation event for one of our schemes as a ‘loophole’ to enable development. It is, of course, not a loophole, but a tool to ensure housing

The 2020 White Paper proposed a fresh start: a revolution to planning. Covid, Brexit, climate change, the cost-of-living crisis and the need for votes then took over.” continues to be delivered to fight the housing crisis. Its benefit, unlike its relative the Housing Delivery Test, is seeking to remedy delivery issues before they occur. However, planning is political, and over the past decade the pro-development approach, and the approach to land supply and its impact on development has lost voter support. Balancing the increasingly vocal action groups against the Government’s commitment to deliver 300,000 dwellings per annum nationally has become increasingly difficult. So, as the UK government, how do you address this challenge? The Levelling up and Regeneration Bill proposes a partial revocation of the housing land supply ‘loophole’ provided a Local Planning Authority has an up-to-date Local Plan (less than five years old). The offer to Councils is: keep your local plan up to date,

ensure it includes enough housing sites, and we will disarm one of the avenues which fuel speculative development. This, in practice, should free up Council time, with Officers able to focus on ensuring the Local Plan is kept up to date, instead of working through the speculative planning applications which can swamp Local Authorities with sizeable land supply shortfalls. There will still be a requirement to have five-year land supply on adoption of the Local Plan, something that will be tested through Examination of the Local Plan and in circumstances where the Plan is more than five years old. In theory, this means that there should always be a sufficient supply of sites to meet the needs of the Authority, and any shortfalls can be dealt with through regular Local Plan review. Does this mean an end to speculative applications?

Putting theory into practice

Under the current system, Local Plans should allocate sufficient sites to deliver at least 15 years' housing land supply, although this is rarely the case in practice. Why do so many Local Plans find themselves having land supply issues so early in the Plan period if they are examined thoroughly anyway?

The issue is the long lead times associated with the delivery of large housing allocations, the time planning applications take to move through the planning system, often as outline planning applications to start with, followed by Reserved Matters applications. This, combined with the complexity of Plan creation and ongoing need for review, slows housing delivery and results in the Authority not being able to demonstrate a five-year housing land supply. Under the current system this is where the speculative applications come in to assist delivery. Under the new proposals, Local Plans which fail to demonstrate a supply will retain full weight. This means a shortfall of housing land supply will have no remedy until the next review of the Plan. It is not clear whether or not there will be a requirement to address any shortfall in delivery through future iterations of the Plan, or whether it is considered that the Standard Method (the means of calculating housing need) will respond to such shortfalls as an inherent part of its calculations. Regardless, the proposal will ultimately reduce the level of housing delivered.

Does that mean there is little merit in the proposals? Politically, the proposals will provide certainty to local residents in understanding where new developments will be brought forward over at least the next five years. It reinforces the notion that planning should be Plan-led, not a series of ad hoc decisions. It should also, in theory, help to ensure new developments are supported by the correct infrastructure and service provision. The proposals also add further weight to the need to ensure land suitable for development is promoted early and throughout Plan-making, as an allocation will have even greater importance. Potentially, the proposals are likely to reward bad Plan-making and inevitably will be tested for a number of years through the Courts. At a wider level, the Bill is silent on wider issues such as the Green Belt, which already protects the position of a number of Authorities experiencing acute housing need.

James Beverley 01530 446039 james.beverley@fishergerman.co.uk

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Following Brexit, how is the UK agricultural landscape changing and what does it mean for all involved?

The future of farming I

n 2020 the Government laid out its roadmap for UK agricultural reform over a seven-year period to 2028. The Agricultural Transition Plan was billed as an instrument that would deliver a “better, fairer farming system in England, which will transform the way the Government supports farmers”. Like the proposed Planning White Paper (see page 12), the transition plan includes radical changes that are the most significant UK farming and land management has seen in the past 50 years. As we approach the plan’s quarter-way mark in 2022, to what extent are things going as expected? “Covid has undoubtedly slowed things,” says Fisher German partner and head of agribusiness David Kinnersley. “But we do have 90 per cent clarity now around the end of the Basic Payment Scheme (BPS), including the de-linking process and lump-sum payments.” BPS amounts will be reduced over the period to 2028 and plans for the

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lump-sum retirement scheme have recently been announced. This scheme will run to 30 September 2022 and allows farmers wishing to retire to take a lump sum in lieu of their final years of BPS payments. Acceptance on the scheme isn’t automatic, however. There are various requirements that applicants have to fulfil in order to qualify, which may have wider implications for tax planning, for example. David says: “It is proposed that in 2024 de-linking of payments from the requirement to be farming land will occur. This means that 2023 will be the last year in which farmers will have to fill out the annual BPS subsidy claim forms to get paid the remaining BPS payments – ending direct farm payments which started with the MacSharry CAP reforms of 1992.” The good news is that agricultural businesses now have considerable clarity about what they can expect from the existing payments system. David says:

“These businesses have all sorts of options and I’m working with many to discuss the best tactics, so they can decide what to do with land they either rent or own. They can see what income they can expect and the impact it will have on their business.” So far so good, but what about the second half of transition period, from 2023 onwards?

What’s next

As the BPS finishes, the new Environmental Land Management (ELM) schemes are to be introduced, including the large-scale Landscape Recovery Scheme (LRS), the Sustainable Farming Incentive (SFI) and Local Nature Recovery (LNR), the successor to Countryside Stewardship. Since Brexit and having left the EU’s common agricultural policy (CAP), UK farmers and landowners are now being incentivised to do a lot more with their land to deliver biodiversity and other natural capital benefits.

At the start of this year the Government announced how its LRS will work. The LRS focuses on long-term, major changes in land management, to encourage significant habitat and use change. David says: “The LRS is the top tier of Defra’s planned environmental schemes sitting above the SFI and LNR. Defra’s expectation is for it to create at least 20,000 hectares of wilder landscapes, peatland restoration and afforestation. The first round of projects will be focused on recovering and restoring England’s threatened native species and restoring England’s streams and rivers: improving water quality, biodiversity and adapting to climate change.” He believes the LRS is going to be most easily tackled by the nongovernmental organisations, which already have control over large land areas, for example, the National Trust and the RSPB, and larger landowners

who will have the area under their control and the resources to put into developing and managing the projects. David notes: “It will also appeal to the various groups of landowners who are starting to collaborate on environmental schemes such as the Environmental Farmers Group. These collectives may be able to access funding to help deal with phosphate issues in river tributaries, for example, and that work could potentially benefit all landowners within the relevant catchment areas.” The new ‘prosperity and productivity funding’ grant streams will also open in 2022, including the Future Farming Resilience Fund (FFRF) and the Farming Investment Fund, which will enable farmers to make changes to their businesses so they are ready for the removal of the farm subsidy.

We think there is quite a way to go before Defra has got ELM schemes that everybody really has confidence in. That bit has been more complicated and is further behind than the other parts of the Agricultural Transition Plan.” fisher german magazine

David believes that the impact of the move away from direct farm subsidy funding ‘public goods for public payments’ will be seen in the acceleration of environmental schemes over the next two years, although he warns: “Without the BPS payments there is still likely to be a significant reduction in annual income, which has supported the rural economy.”

Case by case

The reforms will impact farmers and land management in a number of different ways. David and his team are already helping to review business strategies on a business-by-business basis. He says: “It will undoubtedly lead to a period of rapid change as everyone

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evaluates their options. A lot depends on the age of the principals and whether or not they have successors, but it will also depend on their farm productivity and ability to continue to produce food at a profit without subsidy. For older, smaller farmers in less productive areas there is the appeal of contracting out their operations, but also mitigating their production risk by entering into the environmental scheme options in a significant way.” Larger businesses, particularly intensive livestock and fresh produce ones, should see far less impact from the agricultural reforms, though post-Brexit trade deals will be of more concern. David notes: “Others may be better

placed to focus on diversification such as agritourism, adding value to food – but everyone involved in rural businesses, including landlords, will be affected by the Government-led changes.”

The new ‘prosperity and productivity funding’ grant streams will also open in 2022, including the Future Farming Resilience Fund (FFRF) and the Farming Investment Fund.”

For now, the new environmental schemes being introduced are proceeding at a relatively slow pace. And the one thing they all have in common is an opaqueness about how much the Government is investing in them ie how much they will be costing the taxpayer. No overall figures are readily available, neither are total figures for individual schemes. The first phase of the LRP has confirmed that it will release just £7.5m, divided among 15 projects. Greater transparency over funding levels would certainly help boost appreciation of the new schemes. David says: “We think there is quite a way to go before Defra has got schemes that everybody really has confidence in. That bit has been more complicated and is further behind than the other parts of the Agricultural Transition Plan. Prosperity and productivity funding is pretty much in place and will evolve over time.”

Climate change and the net zero carbon agenda may also open up opportunities for farmers and landowners, by, for example, being paid to sequestrate carbon on behalf of other businesses or providing biodiversity net gain (BNG) services to developers, such as through The Green Offset (see page 18). Rural businesses may also find they can make financial savings and improve their environmental standing by reviewing their existing outputs through tools such as Farm Carbon Audits (see box). One further source of uncertainty comes halfway through the transition plan in 2024, when a general election is expected (unless it is called earlier). “If we have a different Government installed at the point, we could see some different policies,” says David. New policies could also be accompanied by a new budget for agriculture, but at this stage it is far too early to even hypothesise about either of these things.

Farm Carbon Audits Carbon Audits allow a business to understand its energy use and costs by measuring its carbon footprint. It can then identify ways to use resources more efficiently by highlighting key areas to focus on carbon emission reductions and opportunities to sequestrate carbon.

Significant progress made One estate, in Oxon, extends to around 770 hectares, of which approximately 380 hectares are in arable cropping and 224 hectares in permanent pasture. The farm has an extensive environmental scheme and has been reducing tillage and working toward greater implementation of regenerative farming practices over the past six years. Extending the rotation, using overwinter cover and fodder crops, increasing organic manures and direct drilling have all been part of the farm policy to reduce reliance on artificial fertilisers and pesticides. A carbon audit was undertaken using the Cool Farm Tool calculator to assess where the farming business was in terms of net emissions and to focus on the key emitting activities as a step towards the target of net zero. Key findings for Harvest 2020 were: • The major emitting factor was fertiliser use at 721 kg/ha • Energy (gasoil and electricity) use was the second largest at 256 kg/ha • Crop protection was 67 kg/ha The movement in carbon stocks with this model due to the level of direct drilling and use of organic manures indicate that the farm business was close to net zero for Harvest 2021. The focus of future work will be to increase the area direct drilled on an annual basis and reduce reliance on artificial fertilisers and gasoil, as well as building soil organic matter. All these elements will also help improve farm efficiency and margins.

David Kinnersley 07530 259915 david.kinnersley@fishergerman.co.uk

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A platform for growth Fisher German’s bespoke brokerage platform connects a range of stakeholders for land offsetting.

t’s not every day that a company gets to launch a genuinely innovative platform. But that’s exactly what Fisher German did in 2021 when it launched The Green Offset. The website connects those requiring land for a variety of environmental improvement reasons with landowners who are willing to provide acreage that will sustain new habitats or host renewable energy sources. The idea of a single place where all of the issues surrounding land offsetting can be dealt with by dedicated professionals has hit a chord with landowners, who usually face a bewildering array of options. Fisher German senior surveyor Alex Watts says: “We realise that we’re currently in a period of massive uncertainty for landowners and land managers, who are seeing the Basic Payments Scheme being phased out, they don’t know how the Environmental Land Management (ELM) schemes are going to work in practice and there is a lot of noise about biodiversity net gain and carbon sequestration, so it’s a really complex picture. “I think one of the reasons The Green Offset has proved so attractive is that it offers a free, simple way to understand the opportunities that are out there, with no strings attached.”

The ins and outs

So how does the platform work in practice? We’ll take a fictional developer – MoreBuild – that has done a baseline survey on the site to be developed, which informs it about the existing levels of habitat and biodiversity. From this

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MoreBuild can calculate the number of habitat units that need to be compensated for as a result of its development to achieve 10 per cent biodiversity net gain – in our notional example it is seven habitat units of grassland habitat. MoreBuild has three choices: it can deliver biodiversity net gain on the development site; it can pay a developer contribution to the council in lieu of providing biodiversity net gain itself, or it can look to deliver the net gain elsewhere. “This is where The Green Offset comes in,” explains Alex, “as MoreBuild can search for areas of land in the locality of the development site that landowners have made available exactly for this purpose. MoreBuild will be looking for land that can provide at least seven habitat units within the development site’s local authority boundary. That’s really important as local councils want to see the offset in as close a proximity to the development site as possible.” MoreBuild is in luck – a suitable area of land is potentially available nearby – so submits an enquiry to The Green Offset platform. Fisher German then contacts the relevant landowner, in this case the fictional LandGreen, to discuss MoreBuild’s interest, including the developer’s identity and their requirement of seven units. If LandGreen wishes to proceed further, Fisher German will link the two parties. Alex notes: “At this point The Green Offset ends, but LandGreen has instructed Fisher German to act on its behalf on brokering an offsetting agreement. The specific details of

I think one of the reasons The Green Offset has proved so attractive is that it offers a free, simple way to understand the opportunities that are out there, with no strings attached.” MoreBuild’s requirements and LandGreen’s site are considered in more detail and commercial terms will eventually be produced, stating the compensation payable by MoreBuild to the landowner.” That figure is calculated from a number of variables, principally: a 30-year minimum base term, capital devaluation, income foregone, the cost of establishment (of the grassland habitat) and the cost of maintenance. LandGreen can choose whether to take payment as a lump sum or on an annual basis. LandGreen understands that it won’t be offered development land value, but the sum should exceed the

current agricultural land value for that plot. If both parties agree to go forward solicitors are instructed to draft an environmental covenant to cover the legal delivery of that scheme. Alex points out: “This part of the process is probably the most complex and can take considerable time to resolve. Eventually, however, the deal will conclude and MoreBuild will have its offset in place and LandGreen will have secured an attractive income stream for a 30-year term on an otherwise unprofitable area of land.” The Green Offset is used by a wide variety of ‘seekers’ including but not limited to housebuilders, energy developers, corporate companies and utility operators. Although there is an assumption that offsetting requires large swathes of land, the reality is that smaller parcels are the norm. Alex explains: “If landowners wish to be more proactive, then they can discuss the possibilities of habitat banking or baseline surveys with us. There is certainly a lot of potential to explore what they could do further. They don’t have to wait for an enquiry via The Green Offset.”

New understanding from The Green Offset As with any new venture, The Green Offset has produced outcomes that weren’t necessarily foreseeable in advance. “Because of our background expertise and the fact that innovation was involved, we knew that we were dealing with a relatively high level of complexity,” explains Alex, “but it wasn’t possible to gauge accurately what impact that would have on real-world timings. What we know now is that process can be lengthy. That’s not a bad thing, as it means all bases are thoroughly covered, but I think it’s important that all parties understand this isn’t a ‘click and buy’ process.” The reaction from landowners who have used the system has been largely positive and many have been impressed by the sheer variety of potential commercial

possibilities for their land and the financial considerations resulting have also been well-received. However, other issues are also important to landowners. Alex says: “We are living in uncertain times, so committing land for a particular use for at least 30 years is a big decision. What makes the decision-making process even harder from a landowner perspective is that tax issues, particularly those surrounding inheritance tax, have yet to be resolved in relation to offset land.” For example, it is currently unclear whether a landowner who enters into a scheme to provide grassland to deliver biodiversity net gain will receive agricultural relief from inheritance tax. We are still awaiting confirmation from HMRC on this.

Alex Watts 07584 707294 alex.watts@fishergerman.co.uk

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Large space sets pace The logistics sector is thriving as businesses expand and profits soar. We explore the opportunities and challenges owing to the record levels of demand for large warehouse space.

t may come as a surprise to discover that not every business sector has been hammered by the pandemic. While companies operating in leisure, offices and conventional retail stores have been hit hard, many in the logistics sector, in particular, large warehouses, have seen their businesses expand and an increase in profits. Why? Because demand in this area – led by the longterm trends of digitalisation, supply chain resilience and an increasing focus on sustainability – far outweighs supply. Rob Champion, Fisher German partner and industrial property specialist, explains: “Covid-19 accelerated what was happening anyway, which was the move from bricks-and-mortar retail to online. Retailers and ecommerce businesses have been taking up warehouse space at a phenomenal rate.

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We’ve never seen growth like this before. Initially that wasn’t necessarily what we had expected, because we didn’t really know what Covid meant, but it’s gone from strength to strength.” Record levels of demand and take-up mean the sector is struggling to find new sites. And that is creating exciting potential opportunities for landowners. Major companies are combing the UK for either existing buildings or possible development sites and finding that their options are few and far between. Landowners who are prepared to do deals that allow logistics developments are likely to find that the financial rewards are significant. However, outdated notions of what may be permitted in certain areas might be dissuading potential landowners from engaging with interested parties. Rob

says: “If we can marry the requirements with the appropriate land, then there’s a strong prospect of working that through the planning process because of the strong economic development angles that come with it. The process could be fast tracked.”

Industrial vs residential

Another underreported fact is that well-located industrial land can now outperform residential land values in many key locations across the country. Rob explains: “Historically, landowners have often held the view that residential was going to drive the highest return on their land if they were ever to sell it. What we’re finding now is that industrial and logistics is outperforming in certain locations and can be quicker at getting through the planning system.”

Really there needs to be at least 10 acres of developable land for the bigger shed opportunities. That’s where the greatest land values lie. It’s that sort of scale of site that gets developers excited.” This is particularly true in areas such as the traditional Midlands logistics heartland, known as the ‘Golden Triangle’. Rob adds: “However, it is fair to say we’re seeing demand in areas that perhaps haven’t been traditionally associated with big shed development and occupation, such as the M5 corridor and other major trunk routes serving key regional towns and cities. The key factors that drive demand for development land are access to labour, power and transport infrastructure.”

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Up and coming geographical areas include parts of the Northwest, the M1 corridor and the M40. “The Northwest is very active at the moment, for example, we’re putting a large site into an agreement near Ellesmere Port on the Wirral (see box) and that area is attracting much more interest than it might have even a few years ago,” explains Rob. “Similarly, on the M1 corridor, north of the traditional Golden Triangle, specifically north Nottinghamshire and south Yorkshire, we are seeing a jump in activity levels. And the M40 corridor has been a hotbed of development activity in recent years. If you look at Banbury and Bicester, they’re unrecognisable now compared to how they were 10 years ago.”

Getting off the ground

Crucially, there is no indication that demand is going to let up. Paradoxically perhaps, the logistics sector could help large housing-led developments to come forward. With the Government’s ongoing aspiration to deliver 300,000 new homes

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each year – a target it’s failed to hit so far – many new homes will be located as part of large urban extensions or completely new settlements. Rob says: “The biggest issue is getting these areas opened up in the first instance, because invariably they require significant pieces of infrastructure to be put in at the start of the development. That can compromise the viability of these schemes. But logistics may be a solution. Historically, it’s a use class that hasn’t been associated with unlocking other types of development. That could well be changing.” Plot size is key, especially for the so-called ‘big box’ (100,000 sq ft and larger) logistics warehouses. “Really there needs to be at least 10 acres of developable land for the bigger shed opportunities,” says Rob. “That’s where the greatest land values lie. It’s that sort of scale of site that gets the larger developers excited.” Strong demand is also emerging for other employment uses in other locations, for example, close to new electric vehicle

Looking ahead, growth in logistics property rents and higher land values associated with logistics developments could be tempered by increasing construction costs.” (EV) charging stations. As a nationwide EV charging infrastructure is currently being established, this type of development is seen as a potential catalyst for opening up additional land for logistics and other employment generating uses.

A sustainable future

Rob is quick to emphasise that any kind of logistics development will have to meet a growing range of ‘green’ and sustainable criteria. The COP 26 climate change summit in Glasgow has resulted in already eco-

conscious developers sharpening their commitment to sustainable building. Recent legislation, such as the longawaited Environment Bill, which gained Royal Assent last November, mean that there is now also a legal imperative for developers, landowners and landlords to ensure they fully understand and comply with new requirements relating to concepts such as biodiversity net gain. Rob explains: “There is now a requirement for development to deliver in excess of 10 per cent gain in biodiversity, either on site, or if it that’s not possible, then at an alternative location. We are talking to some of the big shed developers around how they are going to tackle this, but when it comes to delivering 10 per cent while also trying to maximise a developable area on a site, it’s going to be very tricky to marry the two together in many cases.” This is where ‘offsetting’ comes into play, a principle which allows developers to meet biodiversity net gain requirements away from a development site (see page 18). And when it comes to the sustainability of

existing logistics buildings, landlords are having to work out how to meet energy efficiency targets and potentially improve net zero credentials (see net zero feature on page 10). Looking ahead, growth in logistics property rents and higher land values associated with logistics developments could be tempered by increasing construction costs and there is therefore an expectation that they may now plateau after rising rapidly over the last 12-18 months. Rob notes: “If it had not been for the significant growth in rents and sharp decline in yields then that would already have put a brake on the increase in land values.” Overall, he is positive about the sector’s future prospects: “It’s been a strange couple of years, because for many people it has been an incredibly tough time and we’ve all faced challenges. However, given our close links with the warehousing market in particular, this area for us as a business, has been fruitful and it doesn’t show signs of letting up any time soon.”

Getir gets into UK Turkish company Getir, a leader in superfast home delivery, is expanding in the UK. Getir, which means ‘bring’ in Turkish, was founded in 2015 and, via its mobile app, offers a 10-15 minute delivery service for grocery items, in addition to a courier service for restaurant food deliveries. The firm – valued at US$7.7 billion in 2020 – has prospered during the pandemic and is now looking to raise more than US$1 billion to finance overseas expansion. Getir uses a network of ‘dark stores’ (an industry term for small logistics warehouses) to enable it to deliver locally. The business already runs 500 dark stores in 35 cities in five countries: UK, Germany, France, Netherlands and Turkey, and is looking to expand further in the UK. Fisher German is carrying out a nationwide search and acquisitions programme for Getir. Ideal sites are between 500 and 5,000 sq ft, plus parking, located very close to residential areas in cities including: London, Birmingham, Manchester, Liverpool, Bristol, Leeds/Bradford, Cardiff, Leicester, Southampton, Nottingham, Portsmouth, Bournemouth, Sheffield, Cambridge, Edinburgh, Coventry, Glasgow and Oxford.

Large logistics sites Hooton Park, Ellesmere Port, The Wirral This 114-acre site is owned by a longstanding client and is partly designated greenbelt and partly commercial use. Heads of terms have now been agreed on a development agreement and an outline planning application will be submitted in due course. The site already has significant occupier interest.

Redhill Business Park, Stafford Some 132 acres either side of the A34 adjacent to the existing Redhill Business Park where a promotion and development agreement is in place with Stoford Developments. A first phase, draw down of 70 acres, is now seeing the delivery of a 670,000 sq ft distribution centre for Pets At Home and installation of a major roundabout on the A34. The remaining land is suitable for either logistics space or residential.

Symmetry Park, M40, Junction 10, Bicester Fisher German’s landowner clients have struck an agreement with developer Tritax Symmetry for a 200-acre site, capable of delivering 3.2 million sq ft of industrial and logistics space, subject to planning. Tritax is gearing up to submit an outline planning application imminently.

Rob Champion 07530 259915 rob.champion@fishergerman.co.uk

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New lease of life

Up and down the UK dormant building stone quarries are experiencing an unexpected revival. Fisher German discovers some of the interesting ways in which they are being used.

ith many building stone quarries dating back to Victorian times, these often small-scale ventures were opened to provide building materials for their local areas. But the importation of stone from abroad and a trend away from the use of traditional materials such as these made many sites uneconomic and since closure they have sat dormant in the landscape. But times have changed and with planning policy focusing on the use of local stone for housebuilding, in tandem with increasing consumer demand for locally sourced materials, many such quarries now have the potential for a new lease of life. William Gagie, partner at Fisher German, explains: “A current rise in housebuilding, in parallel with planning authorities stipulating they want local vernacular stone used in new homes in villages, means they will blend in, rather than building them

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from mass-produced red brick, which would be the cheaper alternative but less appealing.” He adds that to get the match of texture and colour to older buildings in an area will probably require products from a local quarry because stone varies in both of these qualities from area to area. Lincolnshire limestone, for example, has a white-ish hue, so would look completely out of place in the Cotswolds where the limestone tends to have warm honey tones. Heritage stone quarries located on farms and estates tend to follow a ‘limestone band’, which can be clearly followed on geological maps of the UK. The geology drives the location of the quarries. William explains: “The limestone band starts in the Cotswolds, works its way through north Oxfordshire and across into Northamptonshire, Leicestershire and then up into Lincolnshire.”

A lot of these sites were never fully restored when they were mothballed the first time around and therefore if they are reopened, there could be an opportunity to do some more positive land restoration when they do become exhausted.”

Need to crash and burn? Head to a quarry… What do quarries and the world of film and TV have in common? You’d be forgiven for thinking nothing at all. But you would be wrong. Large-scale quarries, in fact, make great filming locations for major TV drama series and Hollywood blockbusters. Unlike heritage quarries, these sites – typically former gravel or hard rock pits – are at the other end of the scale and can extend over many acres. Matthew Trewartha, partner at Fisher German, explains: “They tend to be big open spaces that can’t be damaged. Film and TV crews can build stuff there, then crash it, burn it and blow it up.” Historical TV drama Outlander, filmed at a redundant quarry in Scotland, is a prime example of a successful alternative use. Matthew, who advised the landowner, says: “The production was on site for four years. They built a whole set up there.”

These quarries tend to be small in size, making them less obtrusive on their locality. “They’re rarely bigger than five acres,” says William, “As one area is worked out and the quarry is extended, the original areas are progressively restored, meaning only small areas are exposed at any one time.” The process of quarrying often includes restoration of the site on an ‘as you go’ basis. William notes: “Once an area has been exhausted it isn’t just left as a scar on the landscape but is subject to an approved restoration scheme to restore its appearance and bring it back into use. It tends to be a progressive process. “We can get a big picture view from geological survey plans of where various minerals are, and the broad types of stone likely to be found in a particular location, but they are high level. To be absolutely certain, it is necessary to carry out site investigations, either via boreholes or trial pitting. “For example, we were recently on-site in Yorkshire, digging various trial pits with a mechanical digger to uncover samples from the bottom of the excavations. These are then

Spotting opportunities for income-producing alternative uses and dealing with all of the administrative and legal issues associated with it might be difficult for the blue chip landowners that often retain ownership of large quarries and similar sites. Matthew points out that Fisher German’s Non-Operational Property Management service is well-placed to assist: “These companies aren’t property businesses, so we add value by expertly managing land, as well as structures that might be built on it such as residential properties or telecoms masts, and ensuring it is all readily available, if needed, for the landowner’s own operations or disposal."

bagged up and sent away for testing to understand exactly what stone we have, what its strength is and whether it’s suitable for construction use.”

Planning and consent

Now that local building stone is back in favour, many heritage quarries can be straightforward to reopen from a practical and geological point of view, but planning issues need to be addressed to upgrade a dormant consent into an operational one. “Often planning will need to be refreshed to revive a dormant quarry. It’s obviously easier to do that when you’ve got a historic consent, even if it has fallen dormant, than where you’ve got no consent at all,” notes William. With dormant quarries often lying relatively close to existing towns and villages, local opposition and potential planning issues might need to be factored into the restoration process. However, locally quarried stone is now seen as a more environmentally friendly product, as it can involve fewer carbon transport miles, require less production energy and any waste can be recycled for aggregate use,

meaning heritage quarries (either previously quarried sites or new operations) could be viewed more favourably than they were in the past. “As with any application there is likely to be some local concern,” says William, “but because the quarries are small scale, not producing a lot of stone and not a big operation in terms of footprint – there is rarely any blasting taking place – those concerns can often be comprehensively assuaged.” He adds: “A lot of these sites were never habilitated when they were abandoned the first time around and therefore if they are reopened, there could be an opportunity to do some more positive land restoration when they do become exhausted.”

William Gagie 07551 152691 william.gagie@fishergerman.co.uk

Matthew Trewartha 07971 457015 matthew.trewartha@fishergerman.co.uk

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peoplenews Working with the RTPI Scott O’Dell is a Chartered Member of The Royal Town Planning Institute (RTPI) and is working on its Rural Planning in the 2020s project, which will consider how rural planning in the UK and Ireland will need to change to deal with the challenges these areas currently face, including climate change and flooding. He has also just been asked by the RTPI to sit on its brand review panel.

NCAT: Adding value in a challenging market Matthew Allen now leads the National Country Agency Team (NCAT). NCAT specialise in the sale of complex and higher value property including country houses, farms and estates. The unique properties NCAT look after often have unpredictable marketplaces and are in short supply, the sale is not seen as a short-term disposal objective, but a long-standing project with clients geared to achieving the optimum future sale. With more than 15 years of professional experience as a qualified chartered surveyor and valuer, Matthew has built a reputation for giving exceptional advice to his clients, especially in advising on complex country sales. Matthew has also been included in the Spears Property Advisors Index 2022 as a ‘Top Recommended’ Country Specialist in the UK.

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Fisher German announces promotions across its offices During the first quarter of 2022, there have been 54 promotions across Fisher German as part of its ongoing growth, including one partner promotion and seven progressions within the partnership. The promotions have been part of the firm’s career progression framework, which gives all employees a clear pathway to advance within the business. Sam Parton, in the infrastructure services division, has been invited to join the partnership. He joined Fisher German as a graduate in August 2010 and has since worked his way up through the business. As part of his role as partner, Sam will lead a team involved in the delivery of a Nationally Significant Infrastructure Project (NSIP) in the East of England. Liberty Stones, Alasdair Dunne, Ben Marshalsay, Paul Brown, Seb Kingsley

and Ruth Ofield have all progressed to more senior roles within the partnership. In addition, Jenny Occleshaw, Rachel Clipsham, Ben Flint, Matthew Davis, Thomas Blake, Emanuel Skelton, John Jones and Martin Blake have all been promoted to associate director. A further 39 promotions have been made across the offices in line with the firm’s career progression framework. Senior partner Duncan Bedhall said: “I would like to congratulate all of those within the firm who have received promotions. The high number that has been awarded is recognition of our continued growth and the success of our career progression framework, which gives all colleagues an opportunity to advance in the firm if they aspire to do so. I am confident that this success will continue moving forward as we are awarded an increasing number of contracts by both new and existing clients, and we are looking ahead to some exciting new projects that we have on the horizon.”

New consultant in rural property management Christopher Ussher has joined Fisher German, bringing a wealth of expertise in estate management and diversification. Christopher's experience is in rural property management, with a particular focus

on diversification, planning and fundraising. He was previously chief executive at Harewood House Trust and resident land agent at Harewood Estate for 25 years. During this time, he played an integral part in the development of the Emmerdale television film set on the estate and went on to secure filming opportunities with Heartbeat, ATouch of Frost and At Home with the Braithwaites.

Partner spotlight Miles Youdan

Miles Youdan is a recent addition to Fisher German, arriving in October 2021 from his own agency partnership to help lead the investment agency.

was introduced to surveying by my father Ian, a land agent. I decided to take the commercial option when I held his tape to measure up a portfolio of Bass Pubs as a kid. After I graduated from De Montfort University in 1992 I started work as a graduate industrial letting agent. My first experience of investment came early when I spotted a development funding opportunity in Park Road Retail Park in Pontefract.

Even back then my training would have been described as ‘old school’ and the scale of the project was larger than I was prepared for. When I raised the opportunity with the office senior partner, his response was, “Miles, it’s just a couple of extra noughts. Get on with it”. This encouraged me to set off on a journey to specialise in investment. I went on to work for King Sturge, LSH and Donaldsons throughout the 1990s and 2000s before setting up my own niche investment agency, RY Partnership, in 2009. Now I work out of Fisher German’s Doncaster office, although my role is commercial investment agency.

I like variety. For me, every day is a school day but a good work-life balance is essential to achieve my ultimate goals of health, wealth and happiness.”

young family. I also like to ski and scuba dive, particularly wreck diving whenever possible. Having grown up with horses and ridden most of my life I’ve been drawn back into this as a groom and chauffeur by my daughters. The village also has a good pub, which most of the locals use, so is great for that all-important socialising.

The importance of being on site

On a typical day I'm up at 6.30am, I feed the dog, take my daughter to feed her pony, then drive to the office or to site, or a meeting. I go through new opportunities that have come in over the past 24 hours and introduce those worth pursuing to clients. I chase agents to see what they are going to be selling and follow up on any pitches to make sure ongoing transactions are progressing. I try to be on the road at least once a week, looking at opportunities in the flesh. Asset management angles are often only apparent on site rather than in a brochure. Every generation tries to find a short cut for experience, but there isn’t one. It’s time served at the coal face that matters. Since I started, the most significant change is the speed of communication. In 1992 best bids meant standing round the fax machine and waiting to see what came in. There were no emails. It was post or phone so surveyors had to use their own judgement on many issues and then clarify with the client afterwards as it wasn’t possible to get client’s instructions to every single minor issue in real time.

I like variety. For me, every day is a school day but a good work-life balance is essential to achieve my ultimate goals of health, wealth and happiness. Most people judge themselves by specific targets – the biggest fee etc. For me, having an unusual name and a father in the same business, I spent a lot of my career being asked if I was related to my father, Ian, which led to a very specific goal. This was finally achieved when my father was doing a valuation in Galashiels and he was asked was he related to Miles!

Life outside the office

I grew up in rural north Nottinghamshire and have always wanted to go back to a similar setting, so my recent move to north Yorkshire finally achieved this goal. Before kids, I spent a lot of time building and then racing a kit car. However, the time required for this wasn’t compatible with a

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Sector insight Staying agile David Kinnersley, head of agribusiness

Reacting quickly at a time of volatility

A period of transition Darren Edwards, head of sustainable energy

Duncan Bedhall, head of commercial There is still a lack of certainty around future public funding in the industry and the private market opportunities that natural capital might bring. At the time of writing, rising commodity prices and soaring input costs, fuelled by the conflict in Ukraine, have bought food security back into focus. There has been much debate on the Government’s focus for the agricultural industry, with subsidy changes targeted at ‘public goods’ such as environmental resource protection, climate change mitigation and habitat creation as priority over and above food production. At present the payment rates in the recently announced Sustainable Farming Incentive (SFI) soil standard, the first element of Environmental Land Management (ELM) schemes, do not look sufficient to entice many farmers. Some will meet the requirements of SFI with limited changes to their systems. For others, the increase in input costs, along with the future potential for additional private funding through a developing carbon market, may provide the motivation to consider the principles of the schemes. While grain prices are at an unprecedented high, they have been outpaced by increases in fuel and fertiliser cost meaning that net margins are likely to be no better than in recent years, but cash flow risks are significantly higher. As we plan harvest 2023, farmers will have to make difficult decisions about the working capital required to fund crops. Recent volatility looks set to continue; it is therefore essential that farmers and landowners understand their margins and risk, where possible maintaining an agile system that can be adapted to change and consider, where appropriate, alternative income streams or structures to mitigate risk.

The past year has been pretty manic across all divisions as the UK economy and our markets have bounced back following the pandemic. However, I am writing this at a time of war in Ukraine and the full effects on the global economy are not yet known. The warehousing market has been particularly active with constant strong demand for space at a time when most of our clients have little available. We have never seen such a low vacancy rate in our portfolio, coupled with high levels of rent collection and minimal defaults. These factors have led to considerable rental growth and strong capital value increases. The office market has been somewhat subdued while businesses decide what their working practices will be in the future. There does, however, seem to be some improvement in sentiment as firms realise that remote working has its problems. I think that we will arrive at a model that permits flexible working, while revolving around an office hub. It could be that more space is actually required to cope with this and the space will need to be high quality. Commercial property has, with the exception of retail, recovered well, but we must be mindful of inflationary pressures that have been building over the past year. The increase in rents and an improving investment market have managed to absorb this inflation. However, we must consider the mounting pressures on the average household, as increases in the cost of living (particularly fuel) will erode discretionary expenditure unless wages grow similarly. If people’s discretionary spending disappears and coincides with commercial rents hitting unaffordable levels, then the market could turn. Given this and the uncertainty of the Ukraine war, we must remain vigilant and be prepared to react quickly.

The energy and sustainability sectors are a hive of activity. This time last year electricity generators and suppliers were having to adjust to huge drop-offs in demand brought about by Covid-19 invoked changes in consumer behaviour. We are in a period of grid transition in any case as we continue to phase out fossil fuels and rely more on renewable technologies. So this only put further emphasis on the growing importance of reactive power, grid balancing and inertia schemes, which help manage intermittency and ensure security of supply. Phase 3 of National Grid’s Stability Pathfinder programme is underway, focusing on increasing inertia and short circuit level and we are continuing to work with clients on potential schemes. COP26 finally happened late last year and this brought climate change firmly back into focus following something of an enforced hiatus due to the pandemic. As is often the case where politicians are involved, generally it was lacking in detail, although it did bring forward some eye-catching policy announcements, which will undoubtedly create both challenges and opportunities in the medium and long term. More on this can be seen on page 6 and we are working hard to solve problems and deliver solutions for our clients. Of more recent and pressing concern is Russia’s invasion of Ukraine and Ofgem’s decision to increase the energy price cap. The former triggered UK power prices to reach an all-time high, while the latter has exacerbated the cost of living crisis, adding to the energy bills of an estimated 22 million customers. All told, never has there been a more appropriate time to step back, look at what you own and consider sustainable energy options.

David Kinnersley

Duncan Bedhall

Darren Edwards

07530 259915

07831 824663

07918 677571

david.kinnersley@fishergerman.co.uk

duncan.bedhall@fishergerman.co.uk

darren.edwards@fishergerman.co.uk

28 fisher german magazine

Fisher German’s sector heads look forward to what lies ahead for the firm and its clients.

Short supply fuelling increase in land values

The race for space

A sector under pressure

Alasdair Dunne, head of residential

Clare Phillipson, divisional managing partner – infrastructure services

If you are monitoring the residential property market, you will probably be aware that there is more demand for properties than there are properties coming to the market. This imbalance between supply and demand is continuing to drive prices upwards. It’s interesting to speculate whether these conditions will persist. Continuing inflationary pressures are understandably driving base rate increases as the Bank of England tries to control the pressure. Thus far, mortgage rates have not significantly moved with the rising base rate because lenders have absorbed the cost into their margins rather than passing it onto borrowers. Looking ahead, we will undoubtedly see lenders passing on these increases. Together with rising borrowing rates, the cost of living squeeze is also likely to impact buyer behaviour as their spending power is reduced. There would appear to be a consensus of opinion that price rises and transactional volumes will begin to slow as we move through 2022 and perhaps be back to pre-pandemic averages in 2023. In many ways, this is a positive thing for the property market. A steady return to normality rather than an uncomfortable market correction. One of the more difficult factors to interpret in the property market is buyer behaviour driven by desire rather than economic factors. You may have come across a new phrase associated with property in the countryside – ‘the race for space’. The race refers to a dynamic part of the property market driven by those who have taken advantage, or hope to take advantage, of more flexible working to move further from the office and to relocate to larger houses with bigger gardens and perhaps a more rural way of life. Despite economic influences, this change in buyer behaviour shows no sign abating and is a very significant market driver.

It was hoped that there would be spring optimism in the air but having lived through the past two years with the impact of Covid-19 across all areas of the economy, we are now faced with another threat that most of us have no reference point for. The events that are unfolding in Ukraine highlight the ‘head in sand’ stance that has been taken with regard to energy, water security and connectivity in the UK market. The flip-flopping of support, both of a planning and financial nature, has left us with no clear solution and, while significant inroads are being seen across our sector, this should have already been in place. The pressures that we are now seeing as oil and gas prices surge, coupled with the underinvestment in alternative solutions, are now showing. The surge in major project activity, while very welcome, shows that there are shortages across all areas, knowledge, skilled individuals, materials and at a most basic level connection points where the electricity or gas generated can be supplied into the national grid. In the case of water the industry is looking at collective solutions as to how we can provide water to all, with movement and storage solutions across the country, which is reminiscent of the Victorian/ Edwardian golden age of engineering, on which we have so heavily relied over the years. Finally, the fibre roll-out to get all of us connected to high speed broadband is being delivered, but for rural communities it is still not planned for many until 2026. There is huge opportunity and I’m pleased to say that we are focused on meeting those opportunities as they present themselves to us.

Ben Marshalsay, head of development The demand for both consented and strategic land has given continued rise to upward pressure on land values. The supply of consented land, however, does not show signs of increasing any time soon. In 2021 nearly 250,000 dwellings were delivered in England, which is remarkable considering some of the issues still surrounding working practices as a result of pandemic restrictions. However, there were also the lowest number of consents granted for many years. This latter fact does not show any signs of improving, especially given recent reports showing the biggest ever slowdown in new housing delivery among Green Belt Local Authorities. Green Belt is a land-use constraint, but the trouble is many Green Belt-heavy local authorities do not have up-to-date local plans. In some cases they are abandoning many years of preparation due to local politics and the hope that central Government will reduce the housing numbers for these afflicted areas. As a result of the poor supply, we are finding that the acquisition strategies of many house builders are changing drastically – both in terms of quantum of development and in terms of location/revenues. We have certainly seen the result of this in recent tenders producing a record number of offers and indeed record land values. Such examples of this can be seen in much larger ‘urban extension’ sites being acquired by single purchasers; one recently completed transaction being The Lakes to the north of Lichfield, consented for 750 dwellings, bought by Redrow Homes. Although values may not increase at such a rate previously seen last year, for the remainder of 2022 we still believe the appetite for all development land, be it consented residential or strategic commercial and/or residential, will only continue to be high. Ben Marshalsay

Alasdair Dunne

Clare Phillipson

01530 567465

07501 720412

01530 410813

ben.marshalsay@fishergerman.co.uk

alasdair.dunne@fishergerman.co.uk

clare.phillipson@fishergerman.co.uk

fisher german magazine

Office directory 1 Ashby de la Zouch The Estates Office, Norman Court, LE65 2UZ 01530 412821

2 Banbury 2A, Banbury Office Village Noral Way, Banbury, OX16 2SB 01295 271555

9 Doncaster 2, Carolina Court Lakeside Business Park Doncaster, DN4 5RA 01302 243930

10 Exeter 1 Emperor Way Exeter Business Park Exeter EX1 3QS 01392 314 070

16 Knutsford Charles House 1-2 Royal Court Tatton Street Knutsford, WA16 6EN 01565 757970

17 Leeds 7 Park Row, Leeds, LS1 5HD 01135 121052

3 Bedford 8, Stephenson Court Fraser Road Priory Business Park Bedford, MK44 3WJ 01234 823661

4 Birmingham 326 High Street Harborne Birmingham, B17 9PU 0121 561 7888

5 Bury St Edmunds H2, Risby Business Park, Risby, BSE, Suffolk, IP28 6RD 01284 658130

6 Canterbury Court Lodge Farm Offices Godmersham Park Canterbury, CT4 7DT 01227 477877

7 Chester 4 Vicars Lane Chester, CH1 1QU 01244 409660

8 Cwmbran Suite 5, Raglan House William Brown Close Llantarnam Business Park Cwmbran, NP44 3AB 03708 505150

30 fisher german magazine

11 Glasgow 211 St Vincent Street, Glasgow, G2 5QY 03708 505150

12 Head office Ivanhoe Office Park Ivanhoe Park Way Ashby de la Zouch 01530 412821

13 Hereford The Middle Granary Brockhampton Hereford, HR1 4SE 01432 802545

14 High Wycombe Office 12, Devonshire House 1 Cliveden Office Village Lancaster Road High Wycombe, HP12 3YZ 03708 505150

15 Hungerford Firn House 61 Church Street Hungerford, RG17 0JH 01488 662750

18 Liverpool Exchange Station Tithebarn Street Liverpool L2 2QP 01512 364552

19 London 21 Ironmonger Lane, London, EC2V 8EY 03708 505150

20 Manchester Centurion House 129 Deansgate Manchester M3 3WR 01618 395515

21 Market Harborough 40 High Street Market Harborough, LE16 7NX 01858 410200

22 Newark 12 Halifax Court Fernwood Business Park Cross Lane Newark, NG24 3JP 01636 642500

23 Newcastle G17 Qora @ Q16 Offices Quorum Business Park Benton Lane, Newcastle Upon Tyne Tyne and Wear, NE12 8BX 03708 505150

24 Richmond 4 Zetland Square Business Centre, Dundas Street, Richmond, North Yorkshire , DL10 7AB 03708 505150

25 Rossendale Suite 16A, Link 665 Business Centre Todd Hall Road Haslingden, Rossendale 03708 505150

26 Southampton 14, Basepoint Business Centre Andersons Road Southampton, SO14 5FE 03708 505150

27 Stafford 2 Rutherford Court Staffordshire Technology Park Stafford, ST18 0GP 01785 220044

28 Thame 17 High Street Thame, OX9 2BZ 01844 212004

29 Worcester Global House Hindlip Lane Worcester, WR3 8SB 01905 453275

Sectors

Services

Commercial

Agency

Development

Agribusiness

Residential

Building Consultancy

Rural

Compensation

Sustainable Energy

Expert Witness & Dispute Resolution

Utilities & Infrastructure

Infrastructure Services Landlord & Tenant Property Management Planning

Telecoms Valuations

16 7

1 12 21

29 13

2 28

8 15

19 6

26 10

For more information visit:

www.fishergerman.co.uk

fisher german magazine

Fisher German Magazine Issue 26

Articles inside

Warehouse space is in high demand

landscape has changed

Levelling Up and Regeneration Bill at a glance