Winter Newsletter 2012/13
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Contents
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Welcome Simon Knight, Senior Partner
Four ideas to boost rural areas Rupert Clark
A step up for Business Improvement Michael Mack, Keith Barriball
Growth from innovation
Simon Blandford, Roy Cox
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Assessing financial viability
Uptake of AD by farmers Neil Smith, Thomas McMillan
Two major challenges facing forestry Marc Liebrecht, Robert Hudson,
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English Farmland
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English Agricultural Rents
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Residential Sales
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Residential Lettings and Equestrian Market
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Forestry and Telecoms Market
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Shoot Benchmarking
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Rural House Price Survey
Giles Wordsworth, Dr Jason Beedell
Rupert Clark
Andrew Turner
Chris Jowett, Simon Derby
Andy Greathead, Lorna Broadbent
David Steel
Gerald Fitzgerald
After the flood Chris Batterby
Get off my land!
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Andrew Turner
The Interview: Educating future land managers David E Cox, Professor Ali Parsa
Richard Morris
There’s an elephant in the room! Michael Mack
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High quality design is key to letting and investment success
Ross Aylward
2012 Property Market Review
Sarah Mason
Rural housing update
Jane Jones –Warner, David Shaw
Jonathan Clarke
Five things you need to know about CAP reform
Repairs and alterations to a Grade I Listed Church, West Sussex
Dr Alan Harries, Alastair Deighton
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A life in land management Robert Gladstone, Mark Fogden
News in Brief
Office contacts
Welcome Welcome to the winter edition of the Smiths Gore Newsletter. 2012 has been a year of great contrast. We had the marvellous celebrations of The Queen’s Diamond Jubilee followed swiftly by London hosting the wondrous and spectacular Olympics and Paralympics but what should not be forgotten is the misery of the wet weather of 2012 which started in the Spring and which has not let up ever since. Householders across the country have suffered flooding to their homes and farmers and growers have endured one of their worst harvests for many years. Farmers have also struggled to plant a fraction of next year’s crops. All this on top of continued economic pressure in the public and private business sectors which is continuing to provide major challenges for government trying to relieve the country’s debt burden whilst also trying to stimulate some growth. We have always prided ourselves on the strategic management of property and our innovative approach to the challenges and opportunities it presents for owners, trustees and future generations. Rupert Clark, Head of our Management Division, gives some ideas that would boost the rural economy. This is complemented by an article from our guest author, Jonathan Clarke, Head of Business Development at the John Innes Centre, on the opportunities for growth in agricultural production from technology and plant breeding. The debate on the reform of the Common Agricultural Policy continues and our Farm Management team provides a synopsis of the key issues for farm businesses although it is looking likely that the reforms will not be implemented until 2015 at the earliest. It has been a remarkable year for the land market with new high levels being achieved for farmland but this again is in contrast with the residential and commercial sectors which continue to labour. Our benchmarking survey demonstrates that agricultural rents are showing good growth across all sectors of the farming industry. We are delighted to announce the expansion of our commercial property team in the South East and we also welcome Edward Hall who will be leading our new estate agency service from our office on Marlborough High Street. There is plenty to think about as we head into 2013 and we look forward to working with you to drive your property and businesses forward for a robust economic future. Please contact either myself or any of my colleagues in our offices.
Simon Knight Senior Partner
Four ideas to boost rural areas Rupert Clark explores how rural areas could get a boost
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Rupert Clark Head of Management Division 01798 345999 rupert.clark@smithsgore.co.uk
I would like to spark a debate on how to stimulate the rural economy and ask you to think creatively about whether these ideas could make a significant difference. Do please let me have your thoughts by emailing: debate@smithsgore.co.uk. 1. Ensuring that the CAP reform maintains the Freedom to Farm Some of the CAP proposals, such as capping of payments to those farming large areas and the definition of who is an active farmer, will damage the structure of UK farming and existing landlord and tenant system. I am not aware of any evidence that big farms are bad for the environment – indeed, I am confident that we can prove that they are not. In terms of who is an active farmer, landlords are not by definition bad and we can show that they support new entrants to farming and the expansion of the most entrepreneurial farmers. These systems work in the UK – maybe not perfectly – but they allow people to farm, with less capital investment and lower risk than if they had to buy their own land. Making sure that the reforms continue to allow the freedom to farm is important otherwise it is likely to lead to artificial avoidance schemes. The reforms should help the sector to continue to restructure, not set it back and should reduce any unintended environmental consequences. 2. Restoring the link between farming and forestry Forestry has been divorced from farming due to the way the CAP was established. This is now illogical, environmentally damaging and should be changed. We now know that woodland, through work like the National Ecosystem Assessment, is one of the most environmentally valuable habitats on farms. We also know that in the UK around 50% of woodland is un- or under-managed, so it does not provide all of the benefits it could. Many of the unmanaged woods are on farms. Restoring the link by making the management of woods an option for the environmental work (or greening) required to receive farming payments would improve the environmental impact of the CAP and reduce the amount of productive land taken out of production, which often produces negligible environmental benefits. 3. Community Engagement The community is often a key component of a vibrant rural estate but what can be done to improve the lot of the rural community and hence add value to the estate itself? The provision of high speed broadband will undoubtedly attract and retain residential and commercial tenants and therefore strengthen a community - in fact if it is practical to provide it then this will become essential and potentially a new income stream for the landowner too. However, sustaining the village
shop, pub, hall, village school and sports facilities is arguably just as important as having access to the world of new media. How though can the sustainability of these community facilities be achieved where the local economy is not strong without the financial support of the landowner? There is no magic wand to be waved here and whilst this may be seen as a generalisation and subject to local circumstances, I think it is accepted that such financial support, from landowners, though reduced rents and providing villiage halls, will be fully justified by the positive impact that a strong community enhanced by excellent facilities has on the wider estate business. 4. Increasing affordable housing in rural areas In recent years, affordable housing has largely been delivered by the public sector and has been mainly focussed on urban areas. Rural areas have relied on the odd exception site and development. Lack of housing forces young people away from their communities to find somewhere to live which is of course to the detriment of those communities and the economy. Farmers and landowners own land on which new affordable houses could be built. They have created subsidised housing in the past – like alms houses – and many are willing to provide land for housing, provided the deal is right. The potential is significant. Farmers and estates are keen to do it if the incentive is there1. The things stopping them are planning and policy. Planners will not agree to them developing and then managing new affordable houses. Policy prevents them from becoming registered providers of affordable housing – not a single estate is a registered provider and very few want to register because the scheme is designed for Housing Associations and is too costly and onerous. One suitable mechanism to help unlock the provision of housing in rural areas is the Conditional Exemption Scheme. It is an existing proven scheme, operated by HMRC, to support the preservation and public enjoyment of important land, buildings and art collections. It could be extended to affordable housing – with suitable clauses to make sure that the housing remains affordable and meets identified needs. The benefits are great – targeted affordable housing where it is needed, throughout the country – and at no upfront capital cost to the Exchequer, unlike the existing broken system. The housing would be delivered in return for deferred inheritance tax. Incentivising landowners to release sites for affordable housing. A report to Lincolnshire Rural Affordable Housing Partnership. August 2011. Available from jason.beedell@smithsgore.co.uk 1
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A step up for Business Improvement We’re now offering supply chain and benchmarking courses for farmers
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Michael Mack
Keith Barriball
01638 665848 michael.mack @smithsgore.co.uk
07917 435899 keith.barriball @smithsgore.co.uk
Our Business Improvement team is making step changes in its activity this year with new staff, securing grant support for a range of activities and launching a number of new open training courses. With many of the Rural Development Programme for England training programmes ending during the summer of 2012, Defra has launched a national framework to deliver training over the next four years. Working with the Centre for Contemporary Agriculture, we have been asked to deliver over £300,000 of supply chain and benchmarking training for farm businesses. This funding is provided from a number of different sources including support through the Rural Development Programme for England. Over the next 15 months we will use this funding to deliver training courses for current clients and new farmer groups. Two programmes we are developing are “The Big Food Group” and Benchmarking.
The Big Food Group Working with LEAF and The John Innes Centre, we will run a series of five events during the year. Each event will pull together leading industry academics, producers, politicians and retail businesses to explore a current issue affecting the agricultural food supply chain. The first and second events will look at the security of the British food supply chains and whether the EU Pesticide Regulations
are stopping production or protecting the public. While we have ideas for these events, we would welcome input from farmers on what topics they would like included. Caroline Drummond, Chief Executive of LEAF, values the programme: “We welcome this unique opportunity to be working with Smiths Gore and John Innes to create a lively programme of debates. Numbers at each event will be limited, ensuring that the farmers who attend are able to get into detailed discussions with the industry leaders. This will help them and their businesses to be more prepared and resilient for the pressures and changes occurring from different directions right across the food chain, allowing them to explore their understanding and perceptions in a way not seen before.”
Benchmarking We have helped hundreds of farmers across England benchmark their business, enabling them to identify best practice and improve the farm performance. This new funding helps us work with existing benchmarking groups and to develop new benchmarking clubs. For further information on The Big Food Group or Benchmarking, please contact Michael Mack on 01638 676 747 or michael.mack@smithsgore.co.uk.
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Growth from innovation Jonathan Clarke of The John Innes Centre explains how innovation will help meet the population challenge Agriculture is back on the Government’s agenda. Population growth combined with erratic weather patterns has created a global challenge in food security. Innovation in UK agriculture to meet the production challenge offers the potential for sustainability in UK production and increased revenue from both global food export and the sale of technology. Produce “more for less” through innovation
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The innovation challenge to increase yields, quality and continuity of production would be demanding enough. But in the context of restrictive EU policy on agrochemicals, inorganic fertilizers, greenhouse gas emissions and energy efficiency it may also require a quantum shift in agricultural practices. In this ‘hostile’ climate the interface between technologies, scientific disciplines and an open mind to agricultural practices from the emerging and developing economies will be fertile ground for innovation. Blending technologies from cleantech* with renewable energy production and biologics and integrating these with precision agriculture utilizing sensor technology developed for the Mars Rover and ‘molecular noses’ from medical diagnostics may hold the key to revitalization of agricultural engineering. Creating the next generation of crops Climate change modelling, fundamental plant genetics research, the rapid advances in genomics and techniques developed for creating genetic variation may all combine to drive the next generation of crops. Global temperature change models forecast temperature shifts within the UK that will mean
many of our crops will no longer be fit for cultivation. Temperature spikes disrupt key growth processes, including grain filling, resulting in reduced yields. Fundamental research has unravelled the complex genetic controls that regulate flowering response to temperature and the core temperature sensing systems. Using genomics-based marker assisted breeding, new crop scheduling traits are underpinning the next generation of vegetable crops, fitted to the predicted UK temperature maps. Artificial DNA sequence variation and the new technology of TILLING, that allows that variation to be located, will shortly lead to new crops insensitive to temperature spikes and even to glasshouse crops that can be grown at lower temperatures. Unlocking genetic diversity Plant breeding is poised to undergo a revolution as technology unlocks the door to genetic diversity. The variation hidden within historic germplasm collections and previously inaccessible to wheat breeders is about to be released. The genetic controls that held complex genomes together can now be relaxed, genomics tools can identify DNA sequence variation linked to agronomic traits and genes from grasses can be accessed as wheat is resynthesized from its ancestors. Already new genes that regulate nitrogen use efficiency have been identified and are entering breeding programmes. Microbes and plants are becoming the new sources of agrochemicals. The signal molecules used by plants and microbes to modulate their environments are being harnessed for crop protection, crop enhancement and nutrient use efficiency. These new biologics are entering the market as selective herbicides or pesticides while microbial inoculums, developed in low
input agricultural systems, are finding acceptance as genomics technologies provide the insight into their modes of action. Microbes, once limited to cleantech applications, are now finding new roles in reducing greenhouse gas emissions from nitrate breakdown in agricultural soils. Farming industry must play its part now As new challenges drive a burst of innovation, improved efficiencies in agricultural production and new markets can increase profit margins and growth, but not without investment. Government incentives for commercially-led research and development recognise the vital role that the agricultural industry plays in targeting innovation. The EU wants to redirect CAP funding to stimulate innovation. There is no shortage of UK innovators and the UK has a world leading research base, but new technologies must be validated by the industry. It’s time to play your part. * ‘cleantech’ is the scientific term referring to technology relating to environmental services such as taking household waste and turning it into electricity.
jonathan clarke Head of Business Development The John Innes Centre jonathan.clarke@jic.ac.uk
Five things you need to know about...CAP reform A year and many column inches on from the publication of draft proposals, we take a look at the key issues likely to affect farmers 1. When will it happen? With the EU Summit failing to reach a budget agreement in November, a January 2014 start for the new ‘Basic Payment Scheme’ looks extremely unlikely. The Mid-Term Review in 2002 took three years to run from draft to final legislation and was based on 15 Member States, tied by a FrancoGerman agreement on spending. Consider now 27 countries, a European Parliament, German elections, a lack of agreement on spending, the Greek crisis and the development of a new Rural Payments Agency computer. We may even be looking at a practical implementation date for the UK in 2016. 2. How much will I get? Subject to a deal on the EU budget, it is widely accepted that CAP spending will reduce over the period to 2020 with direct payments under the Basic Payment Scheme falling to 70-80% of their current rate. The President’s revised proposals look to protect Pillar 1 (Direct Payments) and see the cuts borne mainly by Pillar 2 (Rural Development), which in the UK translates to the RDPE, SRDP and RDP Wales and agri-environment schemes. It could leave farmers already committed to these schemes feeling rather sore. A cut in Pillar 2 spending will almost certainly shape not only the design of Pillar 2 but also the ‘Greening’ elements of Pillar 1. 3. How will ‘Greening’ affect me? The European Commission appears willing to accept alterations to the original ‘Greening’ proposals, which were a compulsory 30% of the Direct Payments budget allocated to environmental works, crucially under
Pillar 1 not Pillar 2. Exemptions from having to do the ‘Greening’ works, such as those enjoyed by organic farmers, are being sought for those in agri-environment schemes. We should see some loosening of definitions, particularly the retention period for permanent grassland to eight years (from five) and the inclusion of grass and spring crops of the same genus within crop diversification; that said at least three crops will still be required. The area of ‘Ecological Focus Areas’ for wildlife may also reduce to 5% of the farm, rather than 7%. On a practical level, it seems that Defra is gearing up to draft a ‘revision clause’ allowing farmers who enter agri-environment schemes after 2010 to drop out if Greening measures come to fruition. Given that the reforms are at least three years off, we still encourage farmers to enter agri-environment schemes where it makes sense. 4. What about Active Farmer, Golden Tickets, Entitlements and Capping? The Active Farmer rules are likely to be devolved down to Member States, as a consistent EU-wide approach is unlikely to be found. The UK will need to ensure diversified business are not penalised but how the approach is adopted and more importantly scrutinised remains unclear. It is likely that existing entitlements will be re-granted, which largely nullifies the potential for both Golden Ticket and entitlement fiascos. We expect the link back to a 2011 reference period in order to receive payments to continue to lose traction with many expecting it to simply disappear.
We expect capping of payments to large farmers to be adopted at the original thresholds (i.e., €150,000 upwards). The allowance for farms employing high numbers of workers is expected to remain and we don’t think that the hours worked by contractors or contract farmers will count towards the allowance. 5. What next? Once an EU budget is agreed, which is highly unlikely before February 2013, specific elements will then be debated in earnest and agreement sought. Post 2013 and before the new CAP is in place, we will probably have a transitional ‘Single Payment Scheme’ that is very similar to the current form. The bigger problem is that rural development programmes will grind to a halt in December 2013; unlike SPS there are no legal provisions for transitional arrangements and there will be a ‘gap’ in Pillar 2 funding, which may see a large push on agri-environment and development projects during the next calendar year to beat the gap. Following agreement on a budget we expect movement during the Irish Presidency and hope for a consensus ahead of the German election campaign in September 2013. The debate is far from over.
Simon Blandford 01962 857405 simon.blandford @smithsgore.co.uk
Roy Cox 01865 733308 roy.cox @smithsgore.co.uk
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Assessing financial viability Government needs to take a more flexible approach to support development We are carrying out increasing numbers of financial viability assessments on development sites as many proposed residential schemes are unviable when affordable housing quotas, Section 106 contributions and Community Infrastructure Levy (CIL) payments are factored in. This particularly affects lower house price areas where build, infrastructure and planning requirement costs are disproportionately high. We take a structured approach to assessing viability, which mirrors the newly published RICS guidance notes: 1. Value the current use of the site This provides a benchmark value against which the proposed development value can be assessed. 2. Value the site based on the development proposals This is a residual valuation, which means how much ‘value’ is left once all development income, from selling the houses, and costs have been incurred. We use the latest data on house prices, site acquisition costs, build costs including abnormal costs, professional fees, contingency costs, marketing costs to sell the properties, financing costs and developer’s profit, as well as local authority requirements, such as affordable housing, Section 106 contributions and CIL payments. A 20 - 25% uplift above the previously developed current use land value is, typically, the industry-norm minimum threshold required by a property owner to even consider bringing a site forward for development.
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If the developed value does not generate this uplift, the scheme is considered to be financially unviable and there is a case to negotiate with the local authority to reduce its requirements.
Higher value area (e.g Sevenoaks, West Kent)
Lower value area (e.g Thanet, East Kent)
Current use site value:
Current use site value:
£750,000
20 houses 30% affordable housing, no grant funding Local authority requirements (CIL, s106)
20 houses 40% affordable housing, no grant funding1 Local authority requirements (CIL, s106) Developed site value: Uplift: Site may come forward for development
£250,000
£1,200,000 Developed site value: 60%
£0
Uplift:
-100%
Site will not come forward for development But if grant funding at Affordable Homes Programme 2008-2011 levels of £65,000 per house Developed site value:
£390,000
Uplift:
56%
Site may come forward for development This example demonstrates that in lower value areas, in the absence of Affordable Homes Programme grants 1, development will continue to be unviable unless a reduction in the ‘public take’ - affordable housing, Section 106 contributions - can be negotiated. The Government appears to have now recognised this and it has called for a more flexible approach to Section 106 requirements and is planning new legislation in 2013 to allow a developer to appeal where affordable housing makes a scheme unviable. Therefore the requirement for independent financial viability assessments will become even more important. We carry out viability assessments throughout Great Britain and would be delighted to talk to you about it. The Affordable Homes Programme for 2011 – 2015 does not provide any grant funding for houses that are Section 106 requirements; the previous Programme made contributions, for example, around £65,000 per house in Kent. 1
Sar ah Mason 01732 879068 sarah.mason @smithsgore.co.uk
Uptake of Anaerobic Digestion This technology, whilst prolific within some EU countries, is relatively small scale within the UK. In the last few years there has been a cautious resurgence in interest in farm-scale AD sparked by government incentives. The Centre for Agricultural Strategy, based at the University of Reading, has researched the uptake of AD within farming and the wider agriculture industry. The research suggests that the stumbling blocks to farmers developing AD plants include regulation and planning, capital costs, lack of access to funding and low returns. Further it shows that AD is economically viable and benefits the agricultural sector by improving farm profit, reducing the risk of pollution and it offers a significant step towards more sustainable farming.
First grass AD facility in Scotland But there are some plants being developed. Our team assessed the potential for a 500 kW AD plant on a former dairy farm in North East Scotland, which was looking for alternative uses for its land. An AD system had the potential to double the current income from 700 acres of land.
purposes, such as drying for grain and growing vegetables in glasshouses. The scheme requires a 12,000 tonne silage pit to store the grass and will be the first of its type in Scotland.
The case is currently progressing through the planning system, with a decision due shortly and a grid connection has been secured from Scottish and Southern Energy. The project will predominantly use grass silage, triticale and farmyard manure as the fuel to produce biogas. This will generate electricity via a Combined Heat and Power unit; the excess heat can be used for light industrial and agricultural
Neil Smith 01343 823004 neil.smith @smithsgore.co.uk
Thomas McMillan 0131 344 0886 thomas.mcmillan @smithsgore.co.uk
Two major challenges facing forestry
National changes in culture required, according to The Independent Panel on Forestry Report Marc Liebrecht spoke to Shireen Chambers, one of the Panel members and the Executive Director of the Institute of Chartered Foresters. The Independent Panel on Forestry Report stated that there is untapped potential within England’s woodlands to create jobs, sustain skills and livelihoods and improve the health and wellbeing of people while providing better and more connected places for nature. It calls for government investment to kick start these changes which will repay itself many times over in terms of public benefit.
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Marc Liebrecht: “Do you think that the report lays out a vision for the future of our woodlands and forests or is it too conservative?” Shireen Chambers: “I don’t think the panel’s report was at all conservative. The key point that should be taken from the report was that there must be a national change in culture required in order to move from the ground swell of love for our woodlands without supporting knowledge to increased understanding and appreciation of the skills and the investment required to deliver benefits through pro-active woodland management. “There is a need for woodland policy to exist outside political cycles and a longer-term strategic approach needs to be taken to ensure the sustainable management of our woodland resource.” “As part of this strategy we recommended that the Forestry Commission Estate should be kept in the public ownership, but it is the responsibility of all professional foresters, not just those in the Forestry Commission, to promote and educate, ensuring that knowledge is passed onto the public.” Marc Liebrecht: “What do you think is the key ingredient to achieving the vision?” Shireen Chambers: “I feel that the overall key to success is management of the existing resource and valuing the products that forests give. This is where the focus of education and investment should be to improve the skills and practices within the forestry sector while increasing public awareness of the extensive benefits delivered by active management of our woodlands and forests.”
Shireen Chambers Executive Director of The Institute of Chartered Foresters
Our response - creative thinking needed Our professional foresters are committed to working with clients, other professionals and the public to help with the delivery of a national change in culture regarding England’s forests and woodlands - helping secure the sustainable long term future. But ‘business as usual’ - style of thinking will not be enough. Creative thinking is needed, such as the idea on forestry in Rupert Clark’s article on page 6.
Marc Liebrecht 01543 261999 marc.liebrecht @smithsgore.co.uk
Ash trees could be lost like Elm Chalara is a fungal disease of ash trees (Fraxinus species) that causes leaf loss and crown dieback and can lead to tree death. The disease has been found in plant nurseries, on sites planted with ash and also in the wider environment. It is a serious threat to the 80 million ash trees in the UK and has already caused widespread damage in continental Europe. Approximately 60-90% of Denmark’s ash trees have been affected by the disease. Experience on the Continent indicates that it kills young ash trees quickly, while older trees tend to offer resistance initially but eventually die. A ban on ash imports and the movement of trees from areas with confirmed cases of dieback came into force on 29 October, just days after Government scientists confirmed that the disease had reached the UK at sites in Norfolk and Suffolk.
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The legislation also requires Plant Health Notices to be served on landowners where infected ash plants are identified, requiring both infected and non-infected material to be destroyed. Movement of all ash material from an infected site under statutory notice is prohibited. The legislation does allow movement within Great Britain of all ash timber, including chips and logs, provided it is not from a site under statutory notice. Environment Secretary Owen Paterson has indicated that the focus will be on slowing the spread of the disease while efforts are increased to identify the trees that have a genetic resistance to it. The Forestry Commission will operate a flexible approach with existing grant or licence agreements which specify ash as a planting species. The situation will need to be discussed with the local woodland officer before alternatives can be chosen. Our Woodland and Arboriculture Department will continue to monitor the situation as it evolves and can provide detailed information and guidance in relation to the disease. Updates will be available on our website at www.smithsgore.co.uk.
Robert Hudson 01543 266404 robert.hudson @smithsgore.co.uk
Forestry Commission Valuation Win Our Valuation and Forestry teams have won the contract for the valuation of all the Forestry Commission’s woodland throughout England, Wales and Scotland for the next five years. “I believe our ability to secure this contract was based on a combination our team’s ability to value large portfolios, and the breadth and depth of experience within Smiths Gore, in our forestry department, building surveying and other disciplines.” Gerald FitzGerald, Head of Valuation.
Ger ald Fitzger ald 0207 409 9492 gerald.fitzgerald @smithsgore.co.uk
After the flood What to do if your property floods
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Chris Batterby 01543 266406 chris.batterby @smithsgore.co.uk
River Ouse, York
Our last newsletter had an article on dealing with the effect of drought on buildings. Now it is the turn of flooding. More than five million people in Great Britain live and work in properties at risk of flooding. Many properties have lost or are at risk of losing insurance cover for flooding so it is important to plan ahead to minimise the disruption if it happens and to make your property as resilient as possible.
Recovering from a flood – step two •
Get properly qualified electricians and plumbers to check that the services are safe.
•
Pump out the water and remove debris from in and around the building.
•
Start agreeing the detail of the claim with your insurance company. Agree what you can throw away. Agree what work is needed to the building’s structure and internal finishings. If the building is Listed or in a Conservation Area, you will need to speak with your local authority.
•
Ensure that the drying out process is managed by an experienced Chartered Surveyor or other property professional and includes difficult to reach areas, like spaces under flood boards and cavity walls. Drying and heating should be carried out by specialists otherwise it will take longer and could lead to mould and rot. Never decorate until the building is properly dried out – otherwise you might be doing it again!
Recovering from a flood – step one •
Take care as there may be dangers in the flood water, like raised manholes and contaminated water.
•
Check for structural damage to the property, possibly using a Chartered Building Surveyor.
•
Use a property professional to manage the reinstatement process for you; many insurance policies cover this cost.
Improving resilience to flooding The flood resistance of new and existing buildings can be improved in many ways and it should reduce the extent of flood damage, reduce repair costs and speed up reinstatement times. Take some professional advice on the risk of flooding to your buildings and, if significant, consider what would be appropriate. Below are some suggestions.
Structure
• Use waterproofed and painted timbers so they do not absorb water and warp
• Ensure any cracks or gaps in the external walls are filled
External walls
• Install flood barriers on ground floor doors • Install flood shutters to air-bricks or other air vents • Use water resistant render with a lime based plaster finish instead of plaster
Internal walls
(although it will not suit all properties) • Install plasterboards horizontally so they can be replaced more easily • In cases of repeat flooding, consider replacing suspended floors with solid concrete • Use waterproof plywood or treated floor boards instead of chip board
Floors
• Use water resistant floor coverings, like ceramic or stone tiles, with water resistant grout • Install removable hatches in the floor to allow access to the sub floor void for drying out if there is a
flood; in new buildings, try to avoid designing hidden spaces which can trap water • (Re)locate electricity and other services above likely flood levels
Services and fittings
• Make sure any fitted furniture is as water resistant as possible, such as PVCu units and treated or painted
timber rather than chipboard • Install non-return valves (also known as anti-flooding devices) in private below ground drainage
Our Building Surveyors have experience dealing with flood resilience and reinstatement and management of claims so please do call them if you need any advice.
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Get off my land! Squatting is now a criminal offence in the UK but there are still potential problems
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There has already been one successful prosecution under section 144 of the Legal Aid, Sentencing and Punishment of Offenders Act for squatting in a residential property owned by London & Quadrant. But this relatively straightforward case gives no real indication of how effective the powers of the new Act will be in the long-term. The legislation does not currently apply to commercial properties and there are also still potential problems with adverse possession, boundary disputes and tenants claiming security of tenure.
Boundary disputes
Adverse Possession
Tenant security of tenure
Adverse possession occurs when someone claims that they have been occupying a part of your property without your consent, and without any money changing hands. If they show that they have occupied it for the last 10 years then they can be granted possessory title.
Issues can also arrive where a tenant is inadvertently given security of tenure so regaining possession of the property becomes more difficult. The problem here is particularly acute if there is an element of commercial activity, which may be a wider definition than you think, and if the letting is, or could be, to a company. Remember, individuals may die, companies can live forever!
The first line of defence is to identify what is rightfully yours. This may sound obvious but it is often surprising when people look to register their land, particularly if it has been inherited or within the family for a long time, how they may discover that land which they believed to be theirs is being occupied and claimed by a third party. Indeed, it is not unusual for the opposite to be the case where you may actually own more than you realise!
Boundary disputes are often very distressing; out of the blue, a neighbour can instigate a boundary dispute or claim rights over your land, especially the right of access. The sale of a neighbouring property is often a trigger for these disputes. Your neighbour may try to improve the value of their property by pushing the boundaries and people try to change what you may have regarded as a ‘gentleman’s agreement’ into a legal right.
As well as the inconvenience and emotional distress, these problems are often costly. Our advice is to try and solve the problems as early on as possible before positions become entrenched. Professional advice at the outset is often the most economical solution and depersonalises situations. We offer dispute resolution services which will help nip these problems in the bud.
Richard Morris 01823 445030 richard.morris@smithsgore.co.uk
There’s an Elephant in the Room 19 The elephant’s name is succession. Farming is a family business where multiple generations work together and rivalries are played out. At stake is a way of life, highly valuable assets and generations of family history. With so much at stake why are farmers so reluctant to make clear long-term plans which are bought into by the current and future generations? The reason appears to be fear. - Fear of seeing your successor fail, or even, do better than you have.
A healthier approach to succession is to focus on dealing with the objectives of the family through the creation of a structured and considered succession plan. The Keys to a Good Succession Plan 1.
In creating a succession plan all relevant parties must be engaged in the process but it remains the responsibility of the head of the business.
2.
Communication is critical; all interested parties are relevant, including daughters- and sons-in-law, mothers and children not looking to engage in the business.
- Fear that their partner will run off with the family land. - Fear that they will not have anything to do themselves. Don’t be scared Succession is often dealt with as a result of a problem or issue hitting the business such as ill health or realisation that inheritance tax implications require attention.
4. Deal with the thorny issue of who gets which asset and when. If one sibling comes back to the farm and works to build up the acreage, would it be fair that this is split with all the other siblings?
3.
Don’t be afraid to start the process early. In some US programmes the process starts when the next generation is still in further education so there is time for them to develop their skills in areas such as marketing, customer relations, engineering and people management. These skills are invaluable to making sure the business is ready for the future.
5.
Ensure that all tax and legal issues are covered in the plan. But they should not necessarily drive the process. Often this needs a long leadin time and regular reviews.
6.
Don’t leave it too late
Michael Mack is a member of our Business Improvement team and would like to hear the views of farmers across the country on whether they believe this change in approach could work for them.
Michael Mack 01638 665848 michael.mack@smithsgore.co.uk
Rural housing update Landlords should be aware of these new responsibilities and opportunities
Energy Act 2011
1. Green Deal
New drivers for energy efficiency refurbishments
New Support for energy efficiency improvements to properties
The Energy Act of 2011, notable for the introduction of the Green Deal, contains several pieces of key legislation that will affect landlords. From April 2018 at the latest, it will be unlawful to rent out residential or business premises that do not reach a minimum energy efficiency standard (for example Energy Performance Certificate rating ‘E’). From April 2016 at the latest, private landlords will be unable to refuse a tenant’s reasonable request for consent to energy efficiency improvements where a finance package, such as the Green Deal, is available. With these drivers in mind, it is worth considering how to begin implementing energy efficiency measures now to spread the cost over the next few years. There are three government promoted schemes:
Landlords and other property owner/occupiers can access interest-free loans to carry out improvements to properties to increase energy efficiency through the Green Deal. Repayments are made through the utility bills for the property and are offset through the savings made by reduced energy consumption. Increasingly, tenants will be more attracted to properties with lower utility bills.
2. Feed-in-Tariffs (FiTs) Continued support for renewable electricity generation FiTs are payments for generating electricity, using technologies such as solar photovoltaic panels (PV), wind energy, anaerobic digestion, biomass or hydro power. Although payment rates were cut in 2012, the investment return from installing renewables is still over 8% for many projects. A change in how tariff levels are charged should provide additional investor confidence.
3. Renewable Heat Incentive (RHI) New support for renewable heat generation
Dr Alan Harries Head of Sustainability 0207 409 9490 alan.harries@smithsgore.co.uk
Proposals to extend RHI from the non-domestic market to include the domestic market have now been published. From mid-2013, payments can be made to homeowners for each kilowatt hour of low-carbon heat produced compared with the property’s expected heat use. This includes technologies such as biomass boilers, solar thermal panels and heat pumps. The greatest opportunities still remain within the non-domestic/ commercial sector, especially for larger schemes like large-scale biomass. Proposals have also been published to extend the commercial RHI scheme to include air source heat pumps.
Housing Health and Safety Rating System (HHSRS) Landlords are now under a duty to review regularly the conditions of their properties to see how they can be improved and made safer This system requires that all residential properties must meet certain standards to make them safe and habitable. It was introduced by the Housing Act 2004 but its use has become more widespread by local authorities in the last few years. If conditions in a property are bad or could put a tenant’s health at risk or even cause a nuisance then the local authority can intervene. The HHSRS is a risk-based evaluation that local authorities use to assess the risks in a property. There are 29 hazards, which are given a weighting to determine if they are serious (category 1) or less so (category 2). Properties that are considered to be hazardous or unsafe, are issued with an improvement notice; if landlords choose to ignore the notice, the local authority has the power to carry out the work itself and recover the costs from the landlord. The worst case scenario is a Prohibition Order which will prevent the property from being occupied and can stay on the registered title until the work is carried out.
Alastair Deighton 01823 445038 alastair.deighton@smithsgore.co.uk
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High quality design is key to letting and investment success
Redevelopment at Foley Farm, Berkshire Foley Farm’s existing agricultural buildings had no historic value, were poorly built and would prove difficult and restricting to convert. Uncertainty over the final construction costs was also a significant factor in deciding to start the project from scratch. By starting with a clean sheet, our architects had more scope to design a higher quality scheme that met our client’s brief for a courtyard style development of 3-4 bedroom houses to meet local market need. Quality of design was important to minimise voids and achieve good rental incomes. The project used traditional materials to produce a small community with buildings that had presence and a link to the past. Each unit takes advantage of the secure courtyard environment, as well as offering long views over the surrounding countryside. They feature double height space with semi-open plan living to provide a family feeling which allows flexibility. All bedrooms are good sizes with exposed timber trusses and each house has at least 2 bathrooms.
The client was keen to ensure energy efficiency and we therefore incorporated air source heat pumps. Letting and investment criteria met Our client is delighted, with many comments highlighting how the high quality of the design and character of the development has increased its desirability in a competitive lettings market. The project was delivered on time, within budget and met the investment criteria.
Ross Aylward 01962 857425 ross.aylward@smithsgore.co.uk
Repairs and Alterations to a Grade I Listed Church, West Sussex
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This stunning Grade I listed church was built shortly after 1380. The church interior is split by an iron grille separating the Fitzalan Chapel from the rest of the church. In 2008 the Parish made the decision to reintroduce the wonderful height space associated with the window to the west end, reinstate the stone steps and flooring, repair the west end roof and replace a very basic painted
timber door with a new single glazed door. New Portland stone was matched to the existing flooring and the black and red encaustic tile central walkway carefully extended to the reinstated stone steps by the West Door. English Heritage hopes to secure grant funding for further works.
Jane Jones – Warner 01798 345910 jane.jones-warner @smithsgore.co.uk
David Shaw 01962 857409 david.shaw @smithsgore.co.uk
A selection of the services our Architecture and Building Surveying team offer
Bespoke New Build
Refurbishment and Extensions
Masterplanning
Conservation Repair
2012 Property market review English Farmland Land prices will continue to rise in 2013 The 2012 farmland market continued to defy the doom merchants who had predicted an end to the continuing rise in land values seen in the last few years, but the market in 2013 may well defy logic and the prediction models.
different reasons but principally to expand existing operations with strong commodity prices and a positive outlook for UK farming for the former; or as a good non-volatile investment with strong total returns and tax incentives for the latter.
In 2012, we saw bare land values rise 6% in the 12 months to the end of the third quarter and equipped land rise by 1% for the same period. As a result the combined ‘all land’ value broke through the £9,000 barrier for the first time.
Record low for sale
Whilst these are great headline figures, they do hide a couple of future price indicators creeping into the market. Bare land strong
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Demand for bare land remains strong but there is now a clear split between good and poor for both arable and grassland. In addition we are starting to see stronger regional variations with good land in less ‘popular’ areas not being so hotly contested by neighbours who had previously acted as the foundation for the current market rises. Equipped land flattening Most telling was the flattening of the equipped land market in the second half of 2012 - is this a sign that the market feels values are ‘full’?
The amount for sale is key to 2013. The predicted total figures for 2012 are less than 100,000 acres in England compared with over 128,000 acres in 2011, which is considerably less than previous years - 190,000 acres in 2000 and 400,000 acres in 1980. Lack of supply will continue to frustrate demand which is always going to put some pressure on prices. Despite the recent poor harvest and battle with extraordinary weather conditions, we do not see any indicators for the supply increasing until 2014/15. But sit on the fence for too long and those looking to sell will become part of the rush. It will take a considerable amount of land to satisfy demand but it will not take too much to fulfil those who are prepared to pay premiums. Our statistical model estimates a rise of 7% for 2013 (it predicted 7% for 2012 and rose by 6%). As one of the top three sellers of land in the UK, we have a good view of the market and feel this might be too strong for 2013. But ultimately it is the market which will dictate and the market is crying out for more land.
In reality we continue to see considerable interest from existing farmers and new entrants to the farming world for a number of
Giles Wordsworth
Dr Jason Beedell
Head of National Farms and Estates Agency 01865 733302 giles.wordsworth @smithsgore.co.uk
Head of Research 01733 866562 jason.beedell @smithsgore.co.uk
English Agricultural Rents Rents rose by more in 2012 than in previous years Average rents rose by 29% in the 12 months to April 2012, with arable (34%) and livestock rents (34%) rising most and continuing the trend as the farm types seeing the greatest increases, according to data from the Smiths Gore Agricultural Rent Database. English rents settled in the 12 months to April 2012
Arable
Dairy
Livestock
Mixed
Total
149
48
155
129
481
35,473
9,921
42,766
35,375
123,535
Previous rent (£/acre; average)
£71
£73
£53
£62
£63
New rent (£/acre; average)
£97
£84
£72
£73
£81
% increase (average)
34%
17%
34%
20%
29%
Number of rents settled Area (acres)
Farm Business Tenancy (FBT) rents have continued to rise faster (40%) than Agricultural Holding Act (AHA) rents (21%), with arable FBT rents rising by 46% to an average of £109 per acre across the country, and livestock rents by 45% to £81 per acre. There is a clear premium being paid for new arable FBT lettings (average £151 per acre) when compared with rents arising from re-lettings or reviews (£101 per acre); the same is also true for livestock FBT lettings although the difference in average rents is smaller. Arable
Livestock
AHA
FBT
AHA
FBT
85
64
69
84
25,315
10,159
27,806
14,893
Previous rent (£/acre; average)
£70
£72
£50
£57
New rent (£/acre; average)
£87
£109
£60
£81
% increase (average)
25%
46%
23%
45%
Number of rents settled Area (acres)
We expect continuing rental growth in most sectors over the next 12 months as lowland agriculture continues to perform well. Our rural management and farm management teams would be pleased to discuss rents and provide advice on whether rent review notices should be served. Our database now contains details of over 2,000 agreements, covering almost 600,000 acres, and is one of the most comprehensive in England, Scotland and Wales. Please note that the rents shown in the tables above represent averages and there is considerable variation either side owing to the quality of a holding, its fixed equipment and the terms of the agreement.
Rupert Clark Head of Management Division 01798 345999 rupert.clark @smithsgore.co.uk
Simon Blandford 01962 857405 simon.blandford @smithsgore.co.uk
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Residential Sales Five years on from the crash is anyone getting what they want from the housing market? Looking at three very different counties up and down the length of England - Northumberland, Lincolnshire and Hampshire - the performance of the housing market appears remarkably similar. A picture of a stalled market in which first time buyers are struggling to get on the ladder, despite the pace being forced by historically low interest rates; up- and down-sizers baulked by the low volume of available properties at fair prices and supply cramped by a lack of new development. Unless you’re one of the lucky few bailing out of the hotspots of central London and moving to the Shires, it’s hard to see that the current market dynamics are working well for anyone.
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In each of these three counties, prices peaked five years ago and tumbled to their lowest points in the summer of 2009. Whilst the Northumberland and Lincolnshire markets are still bumping along the bottom, there has been a very modest rise in both volumes and values in Hampshire. How different this is to the late 1980s crash, when high interest rates meant a large number of mortgage foreclosures and forced sales, with values dramatically reduced in some markets – London
Docklands, as an extreme example – but very high sales volumes. If interest rates were now to rise sharply we could be in for the same rollercoaster ride. But the Government seems content to keep things steady, which will inevitably mean little change in the performance of the housing market, so we’d better get used to things as they are. Despite these testing times, in the past couple of years we have bucked the trend amongst property agents, opening new offices in both Hampshire (Andover) and Lincolnshire (Stamford), and have bolstered our teams at Berwick and Corbridge in Northumberland, and these investments are starting to pay off. Andover is our second office in Hampshire, 20 miles from our established base in Winchester, and both consolidate our coverage across the county and tie in with our new agency team in Marlborough, providing a comprehensive property agency service to the south and west of London. Fair - pricing policy In these difficult market conditions, setting the marketing price at the right level from the start is absolutely key. With complete transparency over ‘sold’ prices thanks to the availability of Land Registry data, valuation should be more of a precise science than ever before. However, a lot of houses are still going onto the
market at entirely unrealistic prices, causing a real logjam in the system. I guess it’s all too easy for some vendors to fall for the sales pitch of an überconfident agent who promises a miracle result, despite the firm evidence of five years’ achieved prices. Since opening in July 2011, our sales from Andover office have averaged within 2% of the guide price, and most have been achieved swiftly, despite the tough conditions – hard evidence of the effectiveness of a fair-pricing policy. In some cases, a guide price pitched at the bottom end of expectations can be really effective, and bring out the competition for a house, as in the case of The Old Vicarage, Shipton Bellinger, which sold after a week of marketing, over its guide price of £1.5 million. So, there is evidence of real progress in the market for those that accept the realities of the situation and are prepared to sell for a fair price. But the market’s tough for everyone, from the oligarchs competing for the top addresses in the middle of London to the first time buyers struggling to get on the ladder. Personally, I can’t see any major changes in the UK housing market dynamics in the year ahead unless there are more international financial shocks to come – and who’d bet against that!
Andrew Turner The Old Vicarage, Shipton Bellinger
Head of National Residential Agency 01904 756303 andrew.turner@smithsgore.co.uk
Residential Lettings Major changes are afoot in Scotland with the launch of the Scottish Tenancy Deposit Scheme and a slew of other legislation and regulation from Holyrood. We have been working hard to ensure that our clients remain compliant. In England and Wales, OFT ‘Guidance on Property Sales’ was published in September and is valuable reading. The market is patchy with regional variations and dependent upon time of year. I sense a slight slowdown and tenants are certainly becoming more price sensitive. It seems easier to let lower value property, although with the attendant risk of securing less robust tenants.
Chris Jowett Head of Residential Lettings 01962 857421 chris.jowett@smithsgore.co.uk
Attractive yields are available, supported by a relatively weak sales market in some areas. A period of increasing rents coupled with low finance costs (where finance can be secured) means that it is more attractive to let property than it has been for years; some recent studies conclude that it is now cheaper to own than to rent. Looking ahead, I feel that we will get to a point where some tenants will return to being property owners. I will not be surprised if we have seen the top of the market and are in a period of little real growth in rents.
Equestrian Sales
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The second half of 2012 continued to be a challenging period for vendors of equestrian properties. Properties in the right location, competitively priced, have continued to sell. Second division properties, without realistic market prices, have struggled to find purchasers. Buyers needing a mortgage, despite the banks’ suggestion to the contrary, found accessing funds particularly challenging and time consuming, causing frustrations for purchasers and vendors alike. Our role as buying and selling agents is now about managing the process through to completion and trying to achieve the sale within a reasonable timescale.
Aslackby, Lincolnshire For sale through our Stamford office
Simon Derby Head of Equestrian Services 01823 445036 simon.derby@smithsgore.co.uk
Forestry Prices and Investment Timber prices rise The Coniferous Standing Sales Price Index for Great Britain, based on Forestry Commission sales, rose 1.9% in real terms in the year to March 2012, following rises of 34.8% and 5.1% (real) in 2011 and 2010 respectively. The Increase in timber prices contributed to the 34.8% total return on forestry investment in 2011, recorded by the IPD Forestry Index, which followed 20% in 2010; this is the best annual performance since the start of the index in 1992. In the current challenging economic climate, forestry investment compares very favourably against equities, gilts and commercial property. With the 1992 – 2011 average of 7.7% total return per year (real), forestry can provide an important diversifier of risk within an investment portfolio.
Andy Greathead Head of Forestry, Woodland and Arboriculture 01620 828979 andy.greathead@smithsgore.co.uk
Telecoms 4G mobile service available to 16 UK cities by the end of the year Everything Everywhere Limited (the owner of T-Mobile and Orange) will launch its 4G mobile service across 16 cities by the end of 2012, with 98% of the population getting 4G coverage by 2014.
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This was instigated by Ofcom’s approval to allow Everything Everywhere to start its 4G service using its existing radio spectrum, ahead of the 4G licence auction for the remaining mobile phone operators in early 2013. What is 4G? 4G is the fourth generation of wireless mobile communication. It allows us to download information on to mobile devices, like tablets, phones and laptops, even faster. What does it mean for landlords renting out sites to mobile operators? Mobile operators will need to upgrade existing networks so landlords should be aware of current equipment levels or new upgrade works. Now is the time to check what site operators can do within existing leases. Landlords may be able to increase rent or negotiate new terms where mobile operators are in breach of equipment thresholds or if the operator asks to assign a lease. Landlords of O2 and Vodafone – Beware! Vodafone & 02 have recently got approval from Ofcom to launch a combined network. This will allow sharing of phone masts to compete in the 4G market. The firms will want to assign leases to the new combined network, which provides an opportunity for landlords to negotiate one-off payments or improved rental payments. We strongly advise landlords to take professional advice on such major changes to leases. Hostile rental market in 2012 Operators continue to dispute rent levels and attempt to re-negotiate lease terms. The outlook for 2013 with 4G imminent remains uncharted territory.
Lorna Broadbent Head of Telecommunications 01200 411055 lorna.broadbent@smithsgore.co.uk
Shoot Benchmarking Shoot profitability increases Over 150 shoots took part in our third annual shoot benchmarking survey, produced with web-based sporting agency GunsOnPegs. This represented 2,700 days shooting and over 1,200,000 partridges and pheasants released. This year the survey is supported by the Game & Wildlife Conservation Trust and the British Association for Shooting & Conservation.
•
Average variable costs remain constant at £8.06 per bird (average). Birds, feed and casual labour make up 78% of total variable costs.
•
Fixed costs have reduced by over £1 per bird as shoots look to improve profits. Staff, rent and vehicle costs make up 76% of total fixed costs.
•
The total cost per bird released (regardless of whether it is shot or not) was £12.42. With an average return of 41%, this equates to a cost of £30.29 per bird shot. Two-thirds of commercial shoots made a positive net income per bird shot, averaging £8.94.
The key findings for the 2011/2012 season: •
Poult prices unchanged at £3.55 for pheasants and £4 for partridges (average).
•
•
More than 90% of let days are sold before the season starts. Word of mouth and recommendations remain the primary source of bookings.
The results of the surveys for the last three seasons clearly demonstrate how shoots have reacted to the need to rein in costs and increase charges to stem losses, which looked worryingly unsustainable.
•
Prices charged increased by £2 per bird to £32 for pheasants and £31 for partridges (averages excluding VAT).
Looking forward to the 2012/13 season
•
Average bag sizes appear to be increasing, both on commercial and private shoots (213 and 147 birds shot per day respectively).
We anticipate further increases in costs for the 2012/13 season, given high cereal prices. Increased feed bills together with more intense competition and less disposable income to chase means shoots have to remain ahead of the field if they are to survive and prosper.
•
Return rates remained constant. Private shoots continue to achieve higher returns than commercial shoots (42% v 40%). There is a 13% difference in returns between the top and bottom performing shoots.
•
•
Shoots are tightening up on overages, with more shoots charging per bird shot and fewer allowing a 10% leeway. Average salaries for keepers remained largely unchanged (249 staff surveyed), as did average beaters’ and pickers-up pay (£25 and £29 per day).
If you would like a copy of the full results or wish to register to take part in future surveys (free of charge and confidentiality ensured), please email me.
David Steel Head of Sporting 01200 411051 david.steel@smithsgore.co.uk
For analysis, the data was split into let shoots, which are predominantly commercial, and private shoots, some of which let days to defray costs.
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Rural House Price Survey Our new house price survey will compare rural with urban prices - in detail The meteoric rises in Central London prices over the past three years, running contrary to the results in the rest of the country, have distorted the true picture of housing market performance. By extracting and comparing data at county level, we aim to build a picture of the changing dynamics of markets in areas of interest to our clients, and to inform their buying and selling decisions. Some counties are more rural than others so we have put them into three categories: the ‘rural suburban areas’ which have a small proportion of their population living in rural areas, ‘mid-rural areas’, and ‘very rural areas’, which have more than 70% living in rural areas. Our analysis is based on all residential property transactions made in England
and notified to the Land Registry, so typically 50,000 or more transactions a month, and we have used a robust methodology to ensure an ‘apples with apples’ comparison. Smart data at local level Each of our local offices will have access to the data on sale prices and transactional activity on a very local basis which will be a powerful tool in assisting decisions on marketing strategy and pitching asking prices. Bespoke reports can be prepared on a defined area. These ‘Smart’ reports will also benefit the construction industry in the development appraisal process, to help minimise the risks of building the wrong product in the wrong location. Solicitors, accountants, bankers, valuers and others with a keen
interest in property are likely to find the detailed market intelligence of assistance in informing the advice they give to clients. Our first annual Rural House Price Survey will be produced early in the New Year, with quarterly reports thereafter. They will be sent by email to all our property owners and applicants. If you would like to receive the survey, please let us know.
Andrew Turner Head of National Residential Agency 01904 756303 andrew.turner@smithsgore.co.uk
The Interview: Educating future land managers The past and current Deans of the School of Real Estate and Land Management at the Royal Agricultural College (RAC), David Cox and Professor Ali Parsa, talk about how the RAC is training the surveyors of the future. What do graduate surveyors need to know now compared with 10 years ago?
being taken out. This is a real challenge for us and for our graduates.
David Cox: They need to know everything they would have known in 2002 and more. Rural surveying is a dynamic professional practice that needs to anticipate and respond to change.
Have the skills they need for business life changed?
Over time the rural surveyor’s horizons have expanded and whereas in 2002 we may have been focussed on Europe, the EU, CAP reform and its implications, now the horizon is truly global. Today’s graduates need to understand the global context, the impact of population and the changing structure of world markets for food, energy and natural resources. A major focus now is on sustainability across the spectrum of our activities, from energy use at a building level, to the impact of climate change on society as a whole. Graduates need to have an understanding of emerging policies and be able to recognise how these will translate and be applied in the rural economy. What will they need to know in 2022? Ali Parsa: I don’t think we can predict that with any certainty but it is likely that they will need to know more. The evolution of the knowledge base and skills required continues. We may not know the destination but we can identify the direction of travel. Perhaps the biggest difficulty for us as an education institution is that, as the needs of clients and their professional advisors become ever more complex, practitioners specialise. However, our graduates still need to be prepared to cover the wide spectrum of practice in order to be able to specialise later. This means that the curriculum is expanding and nothing is
DC: Yes, to a degree. Naturally with the development of the ‘digital age’ our graduates need to be equipped to operate with all the latest technology and communication systems. The need for skills in finance, marketing, human resource management, employment law, and so on have evolved over the last twenty years and are underpinned here by the development of RAC’s School of Business in 1989. Leadership, entrepreneurial and interpersonal skills are still very much at the core of rural surveying and their importance has never been greater than it is now.
the world in which we operate. They will be faced with complex problems to solve in order to hone their strategic thinking and they will continue to be exposed to leading practitioners in the relevant fields. Our relationship with practice and our alumni is very important to us and will continue to be a great asset to support the delivery of our programmes and the evolution of our curriculum.
David E Cox Dean (Retired August 2012) School of Real Estate and Land Management
Have the demands that firms, like Smiths Gore, make on their graduates changed? DC: Certainly in the 31 years that I have been involved at RAC. Employers in the 1980s were recruiting graduates with detailed technical knowledge of agriculture, farm management, building construction, land measurement, landlord and tenant law and property valuation. Today’s employers are recruiting critical thinkers with imagination, the ability to recognise the changing context of clients’ situations, to think around problems and respond to a rapidly changing environment. So how will the RAC ensure that its graduates will continue to meet the needs of practice? AP: Our students will continue to be exposed to leading edge research, from the RAC and other bodies. They will be challenged in seminars and discussions to sharpen their critical understanding of
Professor Ali Parsa Dean School of Real Estate and Land Management
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A life in land management A fairwell to Robert Gladstone after 34 years with Smiths Gore in Dumfries and an introduction to his successor
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Partner Robert Gladstone will retire on 31 March next year. Robert speaks to Mark Fogden, his successor, in a brief interview on a distinguished career. Mark Fogden: What’s the best piece of advice you’ve ever been given? Robert Gladstone: I like to follow the advice of Walter Scott’s character from the Heart of Midlothian when the old laird of Dumbiedykes said on his deathbed to his son, Jock: “ When ye have naething else to dae, you may aye be sticking in a tree, it will be growing, Jock, when ye’re sleeping.” MF: What are the key changes in how surveyors work during your career? RG: We now have a much more structured and formal approach to work, brought about by increased regulation and compliance. Work has
also become much more specialist and, as a result, professional.
MF: What will you miss most in your retirement?
MF: How has the client/agent relationship changed over the course of your career?
RG: Obviously, I will miss the regular pay cheque and company car! I will also miss the cut and thrust of business and companionship of colleagues and clients. In my sphere, many clients are also friends and I hope to keep in touch after March.
RG: Fundamentally it has not changed much. We still strive to do the best for our client. These days however we work for a wider range of clients, all of whom have different requirements. It is vitally important that we understand these needs and provide the service that is required, on a cost effective basis. MF: In your opinion what has been the best innovation during your career and why? RG: When I started work there were no computers or e-mail, and now we would not know how to operate without them! Despite being an enthusiastic user of e-mail, I refuse to check it while on holiday, and believe we all need undisturbed time.
MF: And finally, who do you most admire in the profession and why? Simon Knight, Senior Partner of Smiths Gore for 16 years. He has led the firm brilliantly during a period of expansion.
Robert Gladstone 01387 274395 robert.gladstone@smithsgore.co.uk
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Mark will assume the mantle of Lead Partner in Dumfries on 1 April 2013. I joined Smiths Gore’s Carlisle office in 1992. My father-in-law ran the Army tank range at Kirkcudbright during the 1980s and as a result he and his family made south west Scotland their home. It was during a family visit to them that I found myself accepting a job with Adrian Brown in the Carlisle office of Smiths Gore, working on the Church Commissioners’ Cumberland and Lancashire Estates. In 1995 I was offered the opportunity to work with Toby Metcalfe in our Fochabers office in Moray with The Crown Estate and a number of private client estates. I reflect on this period most, not only because it is a wonderful part of the country to bring up a young family, but also because I don’t
believe there is another office within Smiths Gore that provides young surveyors with such a varied range of professional experience. I like to think under the guidance of Toby that this is where I really understood the value of holding and fostering long-term relationships with clients, their customers and stakeholders. In 2001 I was invited to open the firm’s new office in Parbold, Wigan which we relocated to Preston where I was based for 10 years. Whilst Morayshire was great fun, I found the Lancashire ‘bling’ infectious. However both Moray and Lancashire are similar in that they are both vastly underrated counties which have so much to offer both in terms of landscape, professional challenges and people. During my career so far, I have felt immensely proud to have represented not only some wonderful, engaging and charismatic private clients but to
have been intimately associated with the Church Commissioners, the Duchy of Lancashire and The Crown Estate, with the latter two at senior level. However what I have really learnt is that it doesn’t matter how much you know, if you cannot listen and learn to adapt to changing circumstances then all the knowledge in the world is of little value. I am looking forward to listening, continuing the voyage and to living in our house in Kirkcudbright for the first time in 10 years!
Mark Fogden 01343 823024 mark.fogden@smithsgore.co.uk
News in Brief
New Clitheroe Office
The UK’s First Land Girls Memorial
Our Lancashire-based team has recently relocated from Preston to new premises in Church Street, Clitheroe. Partner David Steel says: “The move will allow us to deliver our full range of services across Lancashire, Merseyside, South Cumbria and West Yorkshire. It will also provide us with scope for future expansion.”
The memorial recognises the efforts of all the women who left their homes to work on farms to feed the nation during the two World Wars as part of the Women’s Land Army, some of whom attended the ceremony.
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It was officially opened by HRH Prince Charles on the Fochabers Estate in Moray, Scotland in October, and is the brainchild of former NFU Scotland President, Jim McLaren, whose mother was a Land Girl. Smiths Gore is proud to donate its professional services to the project.
New Estate Agency in Marlborough Edward Hall, who joins us from Strutt & Parker, will be assisted by Clare Manley.
Heritage Lottery Fund Win For Coultershaw Trust, West Sussex Terry Adsett, our Head of Architecture & Building Surveying, worked closely with the Trust’s Chairman, Robin Wilson, in making the application. The funding will be used for the £300,000 renovation of a warehouse into an educational unit and the conversion of the engine house for inter-active displays relating to water pumps. The site is significant locally, originally housing a four-storey flour mill and has a fully working wooden beam pump.
Marlborough High Street is a vibrant location and the ideal spot to establish a residential sales office to support our existing, high-profile farm and estate management team.
South East Commercial Property Team Grows Our Maidstone, Kent office has expanded with David Parry, Alison Owen, Sarah Mason and Lucy Winzer joining us from Cluttons. They bring many years’ experience in the commercial property and development market throughout the wider South East. The office continues to go from strength-to-strength, having opened only four years ago.
Offices
Estate offices
Abergavenny t 01873 859200
Exeter t 01392 278466
Perth t 01738 479180
Andover t 01264 774900
Fochabers t 01343 823000
Peterborough t 01733 567231
Berwick-upon-Tweed t 01289 333030
Haddington t 01620 828960
Petworth t 01798 345980
Carlisle t 01228 527586
Lichfield t 01543 251221
Stamford t 01780 484696
Cirencester t 01285 888000
Lincoln t 01522 539555
Stow-on-the-Wold t 01451 832832
Clitheroe t 01200 411050
London t 020 7409 9490
Taunton t 01823 445030
Corbridge t 01434 632001
Maidstone t 01732 879050
Truro t 01872 274646
Darlington t 01325 462966
Marlborough t 01672 529050
Winchester t 01962 857400
Dumfries t 01387 263066
Newmarket t 01638 665848
York t 01904 756300
Edinburgh t 0131 344 0888
Oxford t 01865 733300
Angmering Park Arbury Barlavington Exbury Firle Goodwood Knowsley Leconfield Llanover Scone Windsor
Other offices Pembroke DTE office Sennybridge DTE office
Overseas offices Australia British Virgin Islands
Services Architecture and Building Surveying Terry Adsett | 01798 342642 | terry.adsett@smithsgore.co.uk
Investment Gerald FitzGerald | 020 7409 9492 | gerald.fitzgerald@smithsgore.co.uk
Business Improvement Matthew Currie | 01387 274382 | matthew.currie@smithsgore.co.uk
Minerals and Waste John Dutson | 01962 857408 | john.dutson@smithsgore.co.uk
Commercial Property: City Centre James Dunlop | 020 7290 1611 | james.dunlop@smithsgore.co.uk
Planning Ian Smith | 01733 559320 | ian.smith@smithsgore.co.uk
Development Robert Weldon | 020 7290 1618 | robert.weldon@smithsgore.co.uk
Project and Construction Management Piers Owen | 01872 274646 | piers.owen@smithsgore.co.uk
Equestrian Services Simon Derby | 01823 445036 | simon.derby@smithsgore.co.uk
Property and Lettings Management Christopher Jowett | 01962 857421 | chris.jowett@smithsgore.co.uk
Estate Management Rupert Clark | 01798 345999 | rupert.clark@smithsgore.co.uk
Research Dr Jason Beedell | 01733 866562 | jason.beedell@smithsgore.co.uk
Facilities Management David Goodson | 01733 559306 | david.goodson@smithsgore.co.uk
Residential Property Agency Andrew Turner | 01904 756303 | andrew.turner@smithsgore.co.uk
National Farms & Estates Agency Giles Wordsworth | 01865 733302 | giles.wordsworth@smithsgore.co.uk
Rural Commercial & Broadband Ben Knight | 01285 888008 | ben.knight@smithsgore.co.uk
Farm Management Simon Blandford | 01962 857405 | simon.blandford@smithsgore.co.uk
Sporting Services David Steel | 01200 411051 | david.steel@smithsgore.co.uk
Forestry, Woodland and Arboriculture Andy Greathead | 01620 828979 | andy.greathead@smithsgore.co.uk
Sustainability, Renewables and Energy Dr Alan Harries | 0207 409 9490 | alan.harries@smithsgore.co.uk
GIS Mapping Bob Allcock | 01543 261990 | bob.allcock@smithsgore.co.uk
Telecommunications Lorna Broadbent | 01200 411055 | lorna.broadbent@smithsgore.co.uk
Historic Building Conservation and Repair Jane Jones-Warner | 01798 345910 | jane.jones-warner@smithsgore.co.uk
Valuations Gerald FitzGerald | 020 7409 9492 | gerald.fitzgerald@smithsgore.co.uk
International Property Edward Childs | 001 284 494 2446 | edward.childs@smithsgore.co.uk
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