Landscope 240315

24/03/2015

Headlines

24 March 2015

Budget 2015 We have produced a summary of the main announcements that affect rural property and areas.

CAP: Basic Payment Scheme: RPA fails yet again so we revert to paper The Rural Payments Agency has decided, due to problems with its online system and mapping, to revert to applications being made on paper forms. We also understand that boundary changes and land / entitlement transfers will now be done using paper forms (RLE1). The deadline for submitting BPS claims has been extended to 15 June 2015 although we are urging our clients to aim for the original 15 May date. The RPA has said that the date by which payments are made will not be affected - we will see.

Shoot Benchmarking Take part in our highly-rated service and receive a free personalised report which contains information only available to participants. Closes end of April.

Farming CAP: Basic Payment Scheme: small, diversified farms beware of active farmer definition Farms with less than 36 hectares (90 acres) with a permanent sport or recreational facility (cross-country courses, maneges, stabling/livery or camp sites) may not satisfy the active farmer definition and so be ineligible for Basic Payment Scheme payments. Agricultural receipts must be at least 40% of total receipts or the BPS claim must be at least 5% of total non-agricultural receipts. Accountant’s certification of these calculations must be submitted before 15 May for a claimant to be eligible to receive any BPS entitlements in 2015. Please contact Simon Blandford, head of farm management, if you would like to discuss.

CAP: English agri-environment schemes: paper claim forms and agent authorisation Natural England, which now administers the schemes, is requiring all claims for 2014/15 to be made on paper forms and for a new agent authorisation form to be completed if an agent is submitting the claim.

CAP: England: Countryside Productivity Scheme opens The scheme, for increasing farming and forestry productivity, competitiveness, use of technology and research, starting businesses and skills and training, is now open for applications. Grants range from £2,500 to £1m and can fund up to 40% of costs. The deadline for applications is 30 June 2015. Applications are competitive and applicants need to show how the grant will help them create jobs, increase income, save labour or make environmental improvements.

CAP: England: Countryside Stewardship: facilitation fund for landscape applications opens This is to encourage co-operation between a minimum of four farmers so beneficial management is carried out over a large area (>2,000 hectares). Open to 30 April. Defra has also published the local priorities for Countryside Stewardship applications for all the 159 target areas for the scheme.

Prince's Countryside Fund: £800,000 available for projects Grants of up to £50,000 are available for projects that will have a long-term positive impact on rural communities and enterprise: projects that provide innovative solutions to deliver assets and services that keep rural communities together and develop a more sustainable rural economy; projects that develop stronger, more sustainable farm and rural enterprises; and, projects that help improve skills and increase opportunities of taking up rural careers, in particular in farming.

Milk quotas: only small increase in production once quotas end in April 2015 The latest European Commission figures suggest that EU milk deliveries will only rise by a moderate 1% in 2015, the first year without quotas.

Property Issues Permitted development rights for converting barns to residential use: 50% refused More than half of the applications submitted for prior approval for such conversions have been refused and many refusals are being upheld at appeal, according to analysis of the first six months of the policy. This is in stark contrast to the prior approval applications for office to residential permitted development rights. The

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main reasons for refusal are: that the building to be converted must have been used solely for an agricultural use; that the converted unit should be no larger than the floor area of the agricultural building itself; that the limit of three dwellings is a cumulative total of all dwellings on the agricultural unit - not three additional dwellings; and, that planning authorities say that the conversion is either not practical or not desirable (as too isolated, as it creates too many vehicle movements and that there are not the ‘special circumstances’ required to allow new isolated homes in the countryside).

Planning: size thresholds for Environmental Impact Assessments raised significantly The thresholds at which certain types of development project will need to be screened in order to determine whether an environmental impact assessment is required have been increased significantly to encourage more development.

Residential Markets 

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House prices fell 0.3% in February. They have risen by 2.6% in the three months to February, and so annual inflation has slowed to 8.6% (Halifax). Halifax say the market is ‘firming’, due to economic growth, rising wages growth, stamp duty reform and low mortgage rates. Demand remains stronger than the number of properties coming onto the market.

Mortgage market: Lenders are withdrawing their cheapest mortgage deals as the price war cools.

Gross mortgage lending fell 9% in February, to £13.4bn, the lowest since April 2013, amid caution ahead of the election and the introduction of new rules on lending. (CML) Asking prices: 73% of houses were sold at less than asking price in January, up from 57% in January 2014. (NAEA)

English Housing Survey: outright owners outnumber mortgage holders for first time The number of outright owner-occupiers (7.4m) in England exceeded those with a mortgage (6.9m) for the first time in 2014. 19% (4.4m) households were renting privately, up from 18% in 2012-13 and 11% in 2003, as getting onto the housing ladder becomes more difficult for an entire generation. The proportion of 25-34 year olds who own their own home has fallen from 66% in 2003-04 to 36% in 2014. Almost 50% of 25-34 year olds rent from private landlords, up from 21% in 2003-04. The proportion of private tenants in employment who receive housing benefit has doubled from 7% to 14% since 2009-10, fuelling rent rises and demand by landlords for houses.

Environment Green Deal reopens Home owners and landlords can claim up to £5,600 to help pay for energy efficiency measures. If you are looking for a Green Deal assessor, please contact Thomas McMillan, in our sustainability team.

Forestry Scotland: guide on how to manage invasive and non-native forestry species The guide is available here.

And finally…

“Would you goat with me to prom?”

Three US teenagers have been arrested for stealing a goat, which one of the boys planned to use to ask a girl to his school prom, with the classic line, “Would you goat with me to prom?”. Chip the goat was returned to its owner unharmed but it is unknown whether the girl said yes.

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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