22/04/2015
Headlines
23 April 2015
Rent statistics from Defra for 2013 Defra’s statistics for England show that the average Agricultural Holdings Act (AHA) rent was 5% higher in 2013 than in 2012 and 11% higher for Farm Business Tenancies (FBTs). The table below compares Defra’s data to our Agricultural Rent database. Although the AHA rents are broadly comparable, Defra’s FBT rents seem very low compared with our experience of the market. We found FBT rents reviewed in 2013 rose by 33% (Defra says 20%) compared with previous rent levels. AHA
Defra
Smiths Gore
Arable Dairy Livestock Mixed % change at rent review (all farm types)
£77 £78 £45 +14%
£87 £83 £49 £82 +21%
(£/ac, average)
FBT
Defra
Smiths Gore
Arable Dairy Livestock Mixed
£85 £79 £40 +20%
£157 £99 £82 £93 +33%
(£/ac, average)
Government and BT have more to do on rural broadband, says EFRA committee The House of Commons Environment, Food and Rural Affairs Committee says that BT, despite saying that the target of 95% of premises receiving superfast broadband by 2017 may slip, must meet the target otherwise the gap between the digital ‘haves’ and ‘have nots’ will remain. It also says:
that the difficult terrain and remoteness of some communities must not be used as an excuse that government should reassess whether the 2 Mbps Universal Service Commitment remains a valid one – as many online services now need 10 Mbps that the allocation of funding between urban and rural areas is greatly unbalanced, with poorly connected rural areas sometimes asked to pay twice: once through their taxes for the Governmentfunded Broadband Delivery UK (BDUK) programme and potentially again from their own pockets if the BDUK programme does not reach them.
CAP reform 2014: MEPs lay into ‘totally unworkable’ CAP that was supposed to be simplified The debate on how to simplify the new CAP regime, which has barely started to be implemented, has highlighted how badly the European Commission has failed to simplify it. Words used by MEPs have included chaotic implementation, avoiding flexibility and obstinate officials. Given the CAP’s long-term failure to meet its policy objectives, is it time to start again with a new simple model, focussed on addressing market failures and rural development?
Farming Farm tenancies: government makes changes to 1986 Agricultural Holdings Act There are three changes: the option for parties to use third party determination rather than arbitration; changes to end of tenancy compensation for short-term improvements and tenant right matters; and, the introduction of new Model Clauses on who is liable for maintenance, repair, replacement and insurance of fixed equipment. The changes only affect England and Wales, and it is unclear whether the Welsh Assembly will apply them.
Dairy faces the open market as 31 years of milk production quotas end Farmers’ leaders are concerned that the end of quotas could lead to slumps in milk prices and difficulties for some producers, most notably those in mountainous or less favoured areas. The quota end-date was decided in 2003 as the EU committed to make the sector more market-oriented. Despite the continuation of quotas, EU dairy exports have increased by 45% in volume and 95% in value over the last 5 years amid surging demand among the growing middle income populations in countries such as India.
CAP reform 2014: call for applications to Growth Programme launched The Growth Programme has launched in five Local Enterprise Partnership areas (Worcestershire, South East Midlands, Greater Lincolnshire, South East and Coventry & Warwickshire). Support will focus on small and micro-businesses, tourism, agri-food businesses and business-led renewables. Also for skills and business advice for rural businesses, broadband and community renewables projects. The minimum grant is £35,000
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and usually up to 40% of eligible costs. onwards.
Further calls will be made in all 37 LEP areas from the summer
World food prices decline to a four year low in February Prices are at their lowest levels since July 2010, and 14% lower than a year ago, due to ample supplies and a strong US dollar.
CAP reform 2014: EU farmers’ union calls for evidence-based review of greening COPA-COGECA has, sensibly, called for an evaluation of the effectiveness of greening in improving the farmed environment and supporting farming, once there is sufficient experience and data. Smiths Gore comment: we support the evaluation 100%. We would also like to see more flexibility for Member States in implementing the CAP and on allowing existing environmentally sensitive farming practices, such as integrated farm management, to replace greening requirements.
CAP reform 2014: LEADER: local action groups announced Defra has confirmed which of the local action groups (or LAGs) have been given funding for the next five years to support the six LEADER priorities in their areas: support micro and small businesses and farm diversification; boost rural tourism; increase farm productivity; increase forestry productivity; provide rural services; and, provide cultural and heritage activities.
Election 2015: The Rural Coalition sets out the rural priorities for the next Government The priorities include: rural proofing Local Enterprise Partnerships, faster rollout of broadband and 4G, strengthening cross boundary strategic planning, introducing targets for affordable housing in smaller communities, develop models for small-scale old peoples’ housing, enable more flexible public investment in affordable housing, require change of use permission for new second homes, retain the requirement for a proportion of affordable homes in small developments, support neighbourhood planning better, encourage local food supply chains, protect town centre retail, support small enterprises better, scale up good neighbour and village agent schemes, strengthen rural community facilities for health and social care, overhaul the NHS funding formula and keep rural surgeries viable.
National Minimum Wage – from 1 October 2015 The new rates will be: adult rate: £6.70 per hour, up 3% from £6.50 18 to 20 year olds: £5.30 per hour, up 3% from £5.13 16 to 17 year olds: £3.87 per hour, up 2% from £3.79 apprentice rate: £3.30 per hour, up 20% from £2.73.
Property Issues Law: inspect your property regularly to prevent easements being established A recent case, where the customers of a fish and chip shop parked in a Conservative Club car park, has reminded landowners how important it is to inspect regularly to see whether unauthorised people are using it and to use notices to tell them that their use is illegal. Smiths Gore comment: we provide inspection services for a range of clients.
Visits to UK attractions rose in 2014 The average number of visitors to leading UK attractions rose by 6.5% in 2014, compared with 2013, according to the Association of Leading Visitor Attractions (ALVA). Scottish attraction visitors rose most, by almost 10%, due to the effect of the Commonwealth Games, with London rising by 7%. Interestingly, libraries attracted substantial numbers, with the Library of Birmingham being the most visited free attraction outside London. The 100th anniversary of World War 1 also had an impact throughout the UK, with many country houses telling the story of their part in the Great War.
Planning: 220,000 homes approved on green belt land – with numbers tripling in some areas The areas most affected are London, the West Midlands and Yorkshire, Leeds and Newcastle. The CPRE says that there is still available brownfield land and called on the next government to protect green belt more.
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Residential Markets
UK house prices grew 8.4% in the year to January 2015, down from 9.8% in December. Prices in England rose 8.5% (London 13% and England excluding London and the South East 6.5%), Wales 4.9% and Scotland 7.8% house purchase approvals are starting to rise, a sign that the housing market is beginning to improve. The British Bankers Association says that demand for loans and other types of personal borrowing is rising at its fastest rate since the financial crisis, as consumers feel more confident there are no signs of any marked changes in house buyers’ behaviour as a result of 2014’s changes in stamp duty (Halifax) 73% of homes were sold for less than asking price in January, up 17% in January 2014, suggesting that the market is moving in favour of buyers (NAEA).
Renting: renting a safe home: a guide for tenants This new guide, from the Department for Communities and Local Government, covers topics from light and noise to pollutants.
Environment Smiths Gore at the All-Energy show – 6-7 May – Glasgow This is the biggest renewables event in the UK and FREE to attend. Come at see us on the National Farmers Union Scotland Renewable Development Initiative stand (A34) and at the Perth and Kinross section (H18). Click here to book free tickets. See you there!
And finally… Liberland A Czech man, Vit Jedlicka, has declared that a 2.7 square mile area between Serbia and Croatia, which he says neither of them claims, is now the sovereign state of Liberland, and he is its self-proclaimed "president". The country has a flag; finer details, such as a constitution, will be sorted out in the near future. Current population: seven. Whilst every effort has been made to ensure the accuracy of this briefing, its information may not be comprehensive and recipients should not act upon it without seeking full professional advice. If you have queries regarding any of the articles, please contact jason.beedell@smithsgore.co.uk (01733 866562) or andrew.teanby@smithsgore.co.uk (01522 507310)
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