Winter Newsletter 2014/15 by Savills inc Smiths Gore

Buildin

Contents

4 6 9

Welcome Andrew Harle, Senior Partner

Successful succession planning Michael Orde, Lucy Moore

A truly historic year for Scotland Mark Fogden

Alien invasion

The state of the nation

Neighbourhood watch

Scotlandâ&#x20AC;&#x2122;s affordable rural housing challenge

13 14 16

18 19 20

Brian Berry, Chief Executive of the Federation of Master Builders

Professor Gavin Parker, Director of Planning Programmes at The University of Reading

Debbie Mackay

Life in the slow lane Ben Knight, Bob Cushing, Broadband Vantage

The energy revolution Dr Alan Harries, Thomas McMillan

And now for something completely differentâ&#x20AC;Ś Dr Jason Beedell

Digging deep John Dutson

Chain reaction Micheal Mack

Festive Stories Dr Jason Beedell Sustainability and renewable energy

ng Britain

22 24

Renewable heat incentive and Feed-in Tariff update

Rays of hope

Dr Alan Harries, Thomas McMillan

Floods, farms and forests Dr Alan Harries, Thomas McMillan

Dr Alan Harries, Thomas McMillan

Dr Jason Beedell

The state of the regions Dr Jason Beedell Property Market Review

Building Britain

House numbers

Tom Hall, Senior Ecologist at Cascade Consulting

32 33 33 34 35 35 36 36 37 37 39

Farmland market Giles Wordsworth

Agricultural rents Stephen Spencer

Farmland investment and valuations Gerald FitzGerald

Residential sales Andrew Turner

Residential lettings Christopher Jowett

Commercial property Tim Cathcart

Forestry Andy Greathead

Telecoms Kay Paton

Sporting David Steel

Equestrian Simon Derby

News in brief

Welcome There can be no doubting that 2014 has been an exciting and challenging year both politically and professionally. Septemberâ&#x20AC;&#x2122;s referendum in Scotland led to The Smith Commission proposals for further devolution of powers for the Scottish Parliament. The spotlight continues to shine on land reform and we are preparing for the opportunities and challenges that lie ahead for our clients in dealing with this. It will also be interesting to see how much devolution influences the general election in May. There is much to engage with on the professional front; energy remains at the forefront of many of our clientsâ&#x20AC;&#x2122; business plans. With UK policy on climate change developing, our renewable energy teams, led by Alan Harries and Thomas McMillan, ask (on page 24) why there is so little focus on adaptation to climate change. With flooding expected to increase in the future, will agricultural land be a sacrificial lamb or used to control flooding, with payments to the land owners? Succession remains a major focus of many of our clients. Our lead article, by Michael Orde and Lucy Moore of our Corbridge office, focuses on the process of managing and passing on wealth to future generations.

2014 has felt like the first year since the start of the recession that residential and commercial property has started to recover. Andrew Turner, our Head of Residential Agency, reviews the housing market. With interest rates likely to remain low and a fairer Stamp Duty system announced in the Autumn Statement, there are positive signs that the pent-up demand from buyers will be liberated in the market early next year. Limited opportunities to purchase farmland and increasing demand from farmers and investors look set to dominate the headlines for the 2015 farmland market. And we expect demand for commercial property to finally rise across the country. There is no doubt that the winds of change are upon us as we enter 2015. As professional advisers and consultants, we will continue to take a considered approach to the challenges and opportunities that the new year will bring. We look forward to working with our clients to manage risk, develop strategy and provide solid foundations for a sustainable future. We hope you enjoy our newsletter and enjoy a peaceful Christmas and healthy and prosperous new year.

Andrew Harle Senior Partner 01904 756312 andrew.harle@ smithsgore.co.uk

Successful succession planning

Wealth creation involves long hours of hard work and application and is not without risk, but when this is allied to a clear sense of purpose, it can be achieved.

Handing down a family estate involves a complex mix of economic and emotional factors, with heirs expected to respect long-established stewardship responsibilities, while requiring the freedom to take risks and grow the business Successful succession to an estate’s business is far more than merely inheritance of the assets. The biggest worry of the donor generation is usually that their successors will not adopt an attitude of stewardship to the family’s wealth. Whilst this fear is usually unfounded, preparing successors to have an understanding of wealth is imperative for long-term success. Rural estates are multi-generational investments of capital, invested for much more than income and capital returns. It is a key concern of most land owners that their feeling of responsibility to previous and future generations is adopted by their successor. Rural estates have a high capital value and a significant combined turnover from all the enterprises that make them up. Each generation’s attitude to the wealth and income has an impact on the family’s opportunity to retain or build upon it. It is a consistent objective of each generation that succession by the next should ensure the on-going success and survival of the estate, and with that the success of the family. In order to achieve this, no generation can simply maintain the status quo; in order to succeed all businesses need to be driven forward and adapt to changing times. There is a common aphorism that the first generation creates the wealth, the second enjoys it and the third spends it; however, there are many exceptions, as evidenced by many families who have held land for several centuries. Nevertheless, it is interesting to consider the different attitudes and drivers of such stages in the wealth cycle and whether each generation will seek to generate, preserve or apply the wealth at their disposal, with or without positive influences from the previous generation. Successful businesses have never focused on avoiding catastrophe; instead they have managed risk, whilst focusing on success. Accordingly, it is not sufficient to simply avoid wealth destruction - creation is key. The way estates were created many generations ago was by different activities to those of recent generations, and every new generation needs to find their own way of building upon the achievements of previous generations. Different approaches, which are complementary, can create incremental advantage to a family over several generations. Estates play a very important part in the rural economy as one of very few drivers of activity and we would strongly advise that it is a key role for owners of such businesses to be economically and socially active. It is the owner’s ability to work and to make a difference that makes them useful in society. Wealth can be used as a positive influence for good within the community and for positive social change. From Smiths Gore’s experience, these

two aspects make it important for successors to find experience that will develop their social responsibility, as well as their business skills. Wealth matters to those who have it, and aspire to it, because it provides opportunities; how the wealth is used secures or misses those opportunities. However, this will be measured by each generation and others over the length of their time stewarding their estates, rather than over individual years or even decades. To give confidence to the donor generation and also to develop their personal understanding of the subject, Smiths Gore has found that it is an important task for a donee to understand wealth before inheriting it. The next generation may be the heir to the property, but it is also important for the concept of succeeding to the leadership role in the business to be fully understood. It is often beneficial for the successor to accumulate wider business experience off the estate before their active involvement. It is also positive if both generations listen to each other and increasingly share their thoughts on the estate so that they better understand each other and each other’s expectations. Each successor is both the next generation, with responsibility towards all those who have looked after the estate and the family’s wealth in previous generations, and the first generation of the future, with a responsibility towards the generations that the family hope will follow and be able to benefit from the careful stewardship of their ancestors. Which of these responsibilities they see as the more important to their vision will influence the approach they take to the business management.

I took over running my small family estate when my father was still regularly walking round it observing what was going on and my son was just a glint in his parents' eyes. Whilst I did make changes, I was keen to have my father's approval and so perhaps management was more conservative than it might have been. Although I am perfectly satisfied with the results of my decisions, I regret not developing a vision then for where I wished to take the estate during my period of stewardship - perhaps I could have been bolder. My son is now pursuing his own career, learning about how businesses are run and how they are built; hopefully he can bring these skills home and take the estate forward for the benefit of future generations. An estate owner

Succession planning best practice Before succession, both generations have important roles to perform as part of the build up to handing over responsibility.

1st generation

2nd generation

Estate succession stages

Identified

Influence in the business

Represented by 1st generation

Sole owner in full control

1st generation retains control

Informed but without involvement or influence

Considered control as the aims and objectives reflect those of both generations

Consulted but with limited influence

2nd generation is now deferred to even though they have not yet taken over active responsibility

1st generation is still deferred to during decision making

1st generation is now representing 2nd generation

Sole owner in full control

Retired

Timeline

The donor’s role

The successor’s role

The donor should seek to both deliver and facilitate the support the successor needs in coming years and decades. • To continue to ensure that the estate is well managed and developed, continuing to achieve the family’s goals.

• To find their own way in life, despite their role as successor.

• To establish a professional support network suitable for the successor’s use at the point of succession.

• To understand that succession will be a long process and that they should develop a career, build experience and adopt their own outlook on life in the meantime.

• To keep the estate’s strategy and risk management under review, drawing the successor into such discussions as the succession process advances. • To provide or facilitate mentoring and coaching of the successor. • To stand back, providing support with an open mind.

• To come to a conclusion, by the time they succeed, as to what sort of a land owner they will be and the roles that they will both adopt and delegate within the businesses and the wider community. • To understand and respect the drivers of wealth preservation and generation.

• To ease succession but allow the successor to work for his successes and to learn the satisfaction when financial reward results from hard work and management of business risks. • To allow the successor to drive their own personal development and the succession process. • To make clear that the time before succession is to be used to develop skills and experience that will be of benefit to them and the estate. • To recognise that the successor may perform their role as owner of the properties and businesses in a different way, playing to their strengths, skills and interests and complementing this position with such beneficial support as they identify.

Lucy Moore 01434 632001 lucy.moore @smithsgore.co.uk

Michael Orde 01434 632001 michael.orde @smithsgore.co.uk

A truly historic year for Scotland Mark Fogden, our managing partner in Scotland, looks back and forward It might be said north of the border that we look south with a degree of envy at the relatively benign politics when it comes to land and property. On our side of the wall it cannot be denied that 2014 has been a big year. On 18 September the Scottish electorate made their mark on the ballot papers in numbers never seen before with 3,619,915 votes cast or 84% of the eligible electorate - a turnout that any government or political party would be rightly envious of. For much of the year it was the only talk in town no matter which box you ticked and (land) reform was on the agenda. Since the Scotland Act 1998 the Scottish Government has passed 233 Acts, with all aspects of property being well represented and likely to continue to be represented into the future. The Government has been very consultative, with consultations on land reform, agricultural holdings and residential tenancies. It will now take some time for the political fog to clear, but land ownership will be and is an easy target when viewed though the historical lens of political and public perception. Holyrood has the appetite for change - some of which will be and is radical. There is no reason to think that the pace of change will lessen and this has now been confirmed by the recommendations

contained in The Smith Commission report and the expansion of the Scottish Parliamentâ&#x20AC;&#x2122;s responsibility and accountability. However, we mustnâ&#x20AC;&#x2122;t be afraid of reform, no matter that aspects of it seem to strike at the very essence of property rights. This will mean a more strategic approach and risk awareness of how land is occupied in the future and a need for more innovative joint ventures and partnerships. Whilst it has been possible (and sometimes preferable) to quietly co-exist, reform is happening and consultation, community and engagement should now be familiar words embedded in every business plan. 2014 has been a truly historic year and it is imperative that we now move forward with confidence.

Mark Fogden Managing Partner (Scotland) 01387 274395 mark.fogden @smithsgore.co.uk

Building Britain

House numbers Local house builders have a key role to help tackle the housing crisis, says Brian Berry, chief executive of the Federation of Master Builders Housing is a hot political issue and one that all the main political parties are wrestling with - to build more homes to tackle the growing housing problem. The number of households in England is projected to grow to 24.3 million by 2021 which represents an increase of 221,000 households per year. However, annual housing completions in England were 110,000 in 2013. It’s not surprising therefore that there is growing pressure to build more homes and, whilst few people disagree about the need, where these new homes should be built is much more controversial.

Alongside this concern is the alarming decline in local house builders. Twenty-five years ago local house builders built two thirds of all new homes but last year that proportion had fallen to just 27%, with the result there is less choice in the house building industry. The Government’s recent planning reforms have fuelled concerns that our countryside will be concreted over. However ‘the presumption in favour of sustainable development’ only applies where a Local Plan doesn’t exist, is silent or out-of-date. It is critical therefore that local authorities should have their Local Plans in place if they are concerned about development. Equally important is the need to re-use previously developed sites. The planning system tends to excessively focus on larger strategic sites at the expense of smaller, normally brownfield sites. This leaves smaller local house builders reliant on windfall sites whose status is uncertain, leading to greater upfront risk in bringing applications forward. We welcomed the Government’s June announcement that local authorities will be required to place Local Development Orders on over 90% of brownfield sites suitable for housing by 2020. It will encourage builders to invest in bringing more of these sites forward for development. Neighbourhood Planning encourages local residents to become more engaged in land use planning and refocuses attention on smaller, brownfield sites. What is certain is that we will need to increase capacity in the house building industry if we are to have any hope of building 200,000 or more new homes each year. The only way this can be achieved is to encourage and support more local house builders to enter the market, which means tackling the issues that have led to the decline in the number of small builders. A recent survey of FMB house builders found access to finance was the number one issue, followed by access to suitable

smaller parcels of land. The Builders Finance Fund is a welcome government initiative to help inject much needed finance but its threshold of 15 or more units excludes the majority of local house builders who build far fewer new homes. The need to allocate more smaller sites (1-30 units) for development is something that local authorities should also be required to do as part of their five year land supply and Local Plans. Finally, whilst the housing debate has tended to concentrate on new build, we shouldn’t forget that existing buildings offer great scope to help tackle the housing problem. Changes to permitted development rights have helped create new opportunities but charging VAT at 20% on building works can sometimes mean it is cheaper to knock down a building and rebuild it to avoid VAT. This can’t be right on all sorts of levels, not least in terms of sustainability and is something that governments have ignored for far too long. Support local house builders to help create more diverse housing in the countryside.

Did you know... 221,000 new households will be needed annually in England. 27% of new houses are built by local house builders. 15 is the minimum number of units to qualify for the Builders Finance Fund. 2020 deadline for 90% of brownfield sites to have Local Development Orders. 20% VAT charged on building conversion work. 0% VAT charged if a building is demolished and rebuilt.

Brian Berry

Chief Executive of the Federation of Master Builders 020 7025 2900 brianberry @fmb.org.uk

BUILDING BRITAIN

Building Britain

Neighbourhood watch Local communities will need consultant support as they progress their Neighbourhood Plans, says Professor Gavin Parker, School of Real Estate and Planning, University of Reading At the time of writing around 1,200 neighbourhoods were active and it seems that more will join in as experience develops and the behaviour of neighbouring communities triggers a domino effect. There will be modification surely in the next year, but the genie of ‘lower than local’ planning is out of the bottle. My recent research* with users of Neighbourhood Planning tools has shown that communities are progressing Neighbourhood Plans and consultant support is important - local authority support is critical and understanding of what to do and how to do it is growing. More clarity over the type and extent of support is needed and guidance on how to navigate the system and the various challenges posed is being worked on already.

There is likely to be a reconsideration of the targeting of resources to different areas and possibly a need to think about encouraging particular types of neighbourhoods to engage in a supported way. This may be neighbourhoods that need growth, that need economic development and moreover the process benefits of Neighbourhood Planning i.e. neighbourhoods working together on issues of common concern and thinking about the future of the area, may be an aid to fostering greater social cohesion. If Neighbourhood Planning is to have real value it needs to help provide clarity about the way that the area will grow, both for the community and developers alike.

Act now

1. Keep abreast of what Neighbourhood Planning activity is taking place in your area. 2. Monitor the outcomes of independent examination of draft plans - as well as planning appeals that involve areas with Neighbourhood Plans. 3. Keep a close eye on the Department for Communities and Local Government and the incremental changes that are being made to Neighbourhood Planning support.

Did you know... No affordable housing required on small rural sites

Housing crisis needs green belt building

The Government announced on 1 December that developers will no longer have to provide affordable housing or tariff style contributions on sites of 10-units or less (and < 1,000m2 combined gross floor space). In National Parks and Areas of Outstanding Natural Beauty, planning authorities may choose to lower the threshold to 5-units or less; on developments of 6 - 10 units, a cash payment should be sought - not actual built houses.

The Centre for Cities think-tank says that building on just 5.2% of the green belt around the UK’s ten least affordable cities would fix the housing crisis - providing 1.4m low-density homes close to existing infrastructure.

Professor Gavin Parker Director of Planning Programmes at The University of Reading 0118 378 6460 g.parker @henley.reading.ac.uk

*The executive summary of the research is at http://bit.ly/Neighbourhood-Planning

Building Britain

Scotland’s affordable rural housing challenge Derek Logie, Chief Executive of Rural Housing Scotland, talks to Debbie Mackay, Smiths Gore’s Head of Planning in Scotland, who has just been appointed to the Charity’s board, about the difficulty in delivering affordable housing in rural areas.

Debbie Mackay: What is the current situation?

DM: How can land owners help?

Derek Logie: Lack of affordable housing is particularly acute in rural Scotland. Alongside high house prices, there is a shortage of affordable rented and social housing meaning there are few alternatives to buying a house. First-time buyers in rural areas are more scarce than anywhere else in Scotland. Creating new affordable housing is particularly challenging. Little land is available for housing, and any that has planning permission is highly prized and priced.

DL: The Rural Homes for Rent scheme was a very successful way of delivering affordable rural housing, for private and community land owners. Unfortunately this Government grant scheme is no longer available but we are working with Scottish Land and Estates for its reintroduction.

DM: What are the main obstacles preventing building more affordable housing? DL: Money, planning and land ownership, with interaction between the three. Planning determines land value and thus the ability of housing associations and communities to buy land for affordable housing. In areas such as East Lothian, the limited designation of land for housing has resulted in very high land values, preventing much affordable housing development. Land ownership can also inhibit rural development. Some developments have taken years to progress due to the gap between the hope value placed on the land by the owner and the price the community was able to pay. This is compounded by building costs being higher - construction costs due to lack of scale, infrastructure and transport costs. Many developments have only progressed because land was free or very low cost.

Building partnerships between communities, public agencies and land owners can be very successful. North West Mull Community Woodlands are building on land they own. At Ulva Ferry, a local farmer provided land at low cost to the local community trust, which is now fund raising to be able to build two new houses. DM: What are the top three things the Government can do to boost delivery? DL: It is reducing the money, planning and land ownership obstacles. Provide grant support to enable communities to deliver affordable housing themselves. Increase site supply by local authorities allocating land exclusively for affordable housing and encouraging houses on rural exception sites, as is done in England. Support people to build their own lowcost homes. Since the abolition of the Rural Home Ownership Grant there has been no effective support for low-cost home ownership in rural areas, despite it being available in urban Scotland. DM: What Rural Housing Scotland achievements are you most proud of? DL: Helping create new housing in some of Scotland’s most remote communities, including Gigha, Colonsay and Durness. It has allowed some local people to remain in these areas and help sustain and grow the communities. We have also helped people to move out of terrible conditions to dry, affordable and secure housing.

Debbie Mack ay Head of Planning (Scotland) 0131 344 0891 debbie.mackay @smithsgore.co.uk

BUILDING BRITAIN

Building Britain

Life in the slow lane Better broadband means better rents, but when will rural areas enjoy the speed, quality and coverage of Britain’s cities?

The first round of Government funding on rural broadband is coming to an end and the next round is just starting. The first round targeted delivery of SuperFast Broadband (faster than 24 megabytes per second) to 90% of the population and the second looks to extend this to 95%. Over £1.5bn will be spent in total.

We believe that Fixed Wireless Access will provide the best combination of speed, quality, coverage and value for money for most new projects, with satellite useful for the most remote places. A Rural Community Broadband Fund with some key changes, would be an effective public-private approach to delivery.

It’s useful at this point to draw breath and review some of the outcomes.

Smiths Gore and its joint venture partner Broadband Vantage are working with more and more clients to address coverage problems and improve property rents - better broadband means better rents.

SuperFast Broadband first round • •

The project is administered by County Councils (or their equivalents) and the Welsh and Scottish governments. The only provider is BT and its approach is to upgrade the connections to the street cabinet to fibre, using the existing copper lines for the final leg to your property.

Coverage will not hit the 90% target - it may be 75-80%, so missing its target by between 10-15%, and lower in rural areas. (Don’t forget we started at around 60% coverage). The way coverage is calculated is very misleading too, with a whole postcode considered ‘covered’ if only one property is connected. BT’s approach is increasingly ineffective and poor value-formoney for further rural deployment as fibre-to-the-cabinet and fibre-to-the-property and mobile broadband will only address a relatively small percentage of this market.

Ben Knight Head of Rural Commercial Broadband 01285 888008 ben.knight @smithsgore.co.uk

Bob Cushing Broadband Vantage 07776 302579 enquiries @broadbandvantage.co.uk

Wales ran a single project but has decided to take a different approach for the Infill Project. Cornwall and South Yorkshire had previously been directly funded by Europe.

Scotland withheld a significant proportion of the funding which is administered by Community Broadband Scotland and welcomes small community project approaches.

Some councils withheld funds for community projects at the start (Lancashire, Cumbria, North Yorkshire).

Building Britain

The energy revolution Clean electricity generation presents great commercial opportunities for land owners while helping the UK to meet its climate change commitments

The UK has rightly positioned itself as a leader in the energy revolution via its legally binding CO2 target of 80% reduction by 2050 (compared with 1990 levels).

Cost effective energy storage technologies are rapidly emerging and should be available when needed in the next decade to manage variability in production from renewables.

Energy efficiency is both a huge opportunity for cost competiveness as well as a necessity to reduce climate change. It is being driven by both incentives and legislation. McKinsey & Company state that 25% can be saved with relatively little or no cost plus no significant changes in lifestyles and practices. Cambridge University says we have practical engineering options to reduce current energy demand by 73%.

The shift to ‘decentralized’ low carbon energy generation is critical with an important role for all local authorities, communities and land owners to play.

Passive haus buildings, for example, use 90% less heat than today’s homes and long-life LEDs lights are 65 - 85% more efficient than halogen lights and can be 20% better than compact fluorescent lights. A short-term target of reducing the demand for energy by 50% is therefore not unreasonable and would be the same as eliminating all of our coal and half of our gas electricity generation. The 2020 target for renewable electricity generation is currently 30% in England and Wales, whilst Scotland has ambitions for 100% by 2020 with an interim target of 50% by 2015. Clean, cost-effective, secure electricity generation should be a focus as the Department of Energy & Climate Change predict wholesale prices could double between now and 2020-2030. DECC predicts electricity demand to double by 2050 as we move towards more efficient and clean electric transportation and heating through means such as electrically-powered ground source heat pumps. The new Contracts for Difference (CFD) scheme comes into effect in 2015 to incentivise clean electricity generation whilst driving cost performance through a competitive process. CFDs offer good value as they lock-in energy prices for the long-term. CFD support for technologies such as wind and solar power lasts for 15 years. These technologies will not require additional subsidies to keep on producing energy for the long-term and to ‘repower’ in the future as the infrastructure will already be in place, operational costs are very low (no fuel costs) and solar panel and wind turbine head costs are decreasing. Nuclear energy, on the other hand, requires support at the same level as wind and solar power but for twice as long (30 years). It also has a finite life and a costly waste legacy.

UK’s current energy situation 1.

The UK total annual energy consumption in 2013 was 1,745 terawatt hours.

Electricity accounted for 18% of the UK’s energy consumption, heat generation represented 46% and the transport sector claimed 36%.

Total primary energy consumption decreased by 5.0% from 2012 to 2013. However, when adjusted to take account of weather differences, consumption fell by only 0.5%.

The UK’s energy supply comes from electricity (18%), gas (32.5%) and petroleum (45%).

A significant proportion of electricity generation still comes from coal. However the electricity generation landscape is changing with a number of old coal power stations scheduled to close by 2015.

Electricity generation from renewable sources increased to a record 15% in 2013 (up by 28% from 2012).

The world’s first Renewable Heat Incentive (RHI) has been in place in the UK since July 2011. In 2012, 2.2% of our heat energy was generated from renewable sources. In 2013 this had increased to 2.6%.

The UK is third to last in the European league table in its use of renewable energy (electricity, heat and transport), at just 4.2% in 2012, just ahead of Malta and Luxembourg.

By 2020 the UK has a target of generating 15% of its energy from renewable sources, ahead of the 2012 European average (14.1%), but well behind the leader Sweden on 51%.

10. The 2020 target for renewable electricity generation is currently 30% in England and Wales, whilst Scotland has ambitions for 100% renewables by 2020 with an interim target of 50% by 2015.

BUILDING BRITAIN

2013 electricity generation profile

Renewables 14.8% Gas 26.8% Nuclear 19.8% Oil 0.7% Coal 36.3% Other 1.5%

Act now • Investigate the benefits of lowenergy refurbishments (some properties will need an EPC rating of at least E by 2018). • Investigate passive haus techniques for new build residential / commercial. • New roofs should be futureproofed and ‘solar ready’. • Investigate grid-export potential and local opportunities for local generation (and energy storage). • Investigate 3rd party energy investor opportunities if required.

2013 renewable electricity generation profile 55 50

Bioenergy (inc co-firing)

Generation (TWh)

Onshore wind

Solar PV

30 25

Hydro

Offshore wind

15 10

Wave and tidal

5 0

2006

2007

2008

2009

2010

2011

2012

2013

Dr Alan Harries

Thomas McMillan

Head of Sustainability 0207 409 9490 alan.harries @smithsgore.co.uk

Renewable Energy Consultant 0131 344 0886 thomas.mcmillan @smithsgore.co.uk

And now for something completely differentâ&#x20AC;Ś Here are a few examples of Smiths Goreâ&#x20AC;&#x2122;s extraordinary reach...

Strategic review of a Rhino sanctuary in Kenya A business plan for a holiday resort in the British Virgin Islands

Rent review of a surf school

The 3rd largest tungsten mine in the world

Letting an explosives depot for storing fireworks Land used for a circus

Agreements for a tidal barrage scheme

Growing truffles in woodlands

250 acres of car parking for the Goodwood Festival of Speed

Joint working with mental health and housing associations on a new care in the community model

Advising two Chelsea footballers

Advising the world’s longest-running factory manufacturer

Visitor accomodation in a double-decker bus

Housing the largest collection of bakelite in Britain

We manage over half of the houses in which the Church of England bishops live

Valuing the largest cemetery in the UK

A new stone tower for shoot lunches

Benchmarking the cost of a dozen eggs 1 million square feet distribution centre development on the M4

A high ropes course Landing strip for large model aircraft

An extension to a sea port

Overseeing restoration of a Vulcan Bomber

‘Manage’ a nudist camp

Disc frisbee golf course Land for grazing alpaca

To find out more about any of the above, please call

Dr Jason Beedell Head of Research 01733 866562 jason.beedell @smithsgore.co.uk

Digging deep The first metal mine to open in Britain for 45 years becomes operational in 2015 The peninsula of the south-west of England is notable for its long mining history of metalliferous mineral extraction, which largely occurs as vein deposits in and around the granite outcrop. Tin, copper, lead, zinc, tungsten, iron and arsenic have all been produced in the past, but due to high operating costs, low- to moderate-grade ores and low world prices, the industry has not generally been commercially viable.

However, for the last seven years Smiths Gore has been acting on behalf of the three main land and mineral owners who have entered into a single lease agreement with a mineral developer, Wolf Minerals, to develop the Hemedon Drakelands tungsten mine outside Plymouth. At the moment, 80% of the worldâ&#x20AC;&#x2122;s tungsten output and 60% of the proven reserve is Chinese. Drakelands has the potential to be the third largest tungsten reserve in the world and, when operational in late 2015, will produce around 3,000 tonnes a year; it will also produce

460 tonnes of tin a year and create 200 direct jobs in the local community. Other smaller mineral operators are looking to buy metalliferous assets elsewhere in Devon and Cornwall - both for the metals and subsequent void space which can be used, and to make claims for trespass against developers whose foundations extend down into the mineral rights. The Department for Business, Innovation & Skillsâ&#x20AC;&#x2122; recent report on the extractive industries recommends that all UK industrial strategies should take into account our domestic extractive sector, and that a government minister is appointed to ensure a deliverable plan is produced for both energy and non-energy minerals. It would appear that the UKâ&#x20AC;&#x2122;s wealth of minerals is being rediscovered!

Tungsten Fact File 1.

Mining for tungsten in Britain has largely been restricted to a few localities in south-west England and Cumbria.

Tungsten is among the most highly recycled commodity metals.

Tungsten has the highest tensile strength at temperatures above 1,650oc, and the lowest coefficient of expansion of any pure metal.

Tungsten plays a vital role in the manufacture of cutting tools and drills.

The military has used tungsten in armour piercing ammunition. Tungsten was used in 15,000 different applications in World War 2.

Tungsten has a very high density, similar to gold.

The combination of tungsten (or tungsten carbide) with copper, silver, nickel and rare metals produces relatively hard, heat resistant materials with superior wear resistance, robust physical properties at elevated temperatures, and good electrical and thermal conductivity.

John Dutson Minerals and Waste Surveyor 01962 857408 john.dutson @smithsgore.co.uk

Chain reaction Closer co-operation between the links of a supply chain can deliver advantages to all involved Smiths Gore is increasingly playing a role as a facilitator in supply chains to encourage better understanding of the needs of each link in the chain - to everyone’s benefit. Many supply chains’ relationships are under pressure - a downward pressure on prices with increased pressure on traceability and quality. However, in the organic oat fields of England these trends are being reversed. Mutually beneficial contracts are being adopted, supply chain issues are being openly discussed and research funds are being set up to specifically support the farmers to improve crop quality and productivity. Last winter Organic Arable, an independent farmer-controlled business specialising in marketing organic grains and pulses, worked with Smiths Gore to set up a supply chain conference specifically looking at their oat crop. The conference looked to build on work over past years to find a way of making the crop a more viable option on the producers’ farms. The producers, the principal processor, White’s Speedicook Ltd, and a core customer explored a range of supply chain issues, such as contract structure, production issues and guarantees on yield and quality.

It’s now a year on and Organic Arable is preparing for annual Oats Conference and a lot has been achieved. We restructured our contracts with White’s Speedicook Ltd so that they’re based more on quality then quantity. This encourages our producers to grow a better quality crop and increase their income through premiums. This allows the mill to process more efficiently and produce a higher grade product. So everyone benefits. Andrew Trump, Organic Arable

Michael Mack from Smiths Gore helped facilitate the conference: “At the start, both producers and the processer felt uncomfortable discussing some of the issues that had to be raised. But after a couple of hours it was clear that many of the issues were shared throughout the supply chain. By building trust, some improvements along the supply chain have been achieved.” Over the following months, Smiths Gore provided funding, through the Rural Development Programme for England, for the producers to visit the White’s Speedicook Ltd processing site in Ireland and meet some of its other producers, and to arrange ‘supply chain clubs’, to look at production challenges at a farm level.

Act now Smiths Gore can act as an impartial facilitator to help improve integration, trust and performance throughout supply chains.

Oats have always had a volatile market. We can now work on growing better quality crops rather than worrying about how we’re going to sell them. Adrian Steele, organic farmer, Worcestershire

Michael Mack Business Improvement 01638 665848 michael.mack @smithsgore.co.uk

HS GOR E T I M S

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Christmas jumper charity day

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A reindeer ‘r est’ farm before pullin g sleighs

Turkeys for dinner!

Christmas hampers - by internet

Toothpas te to clean your teeth event (th after the of the pase abrasive part te is a min eral)

Hydro electric scheme

Renewable Heat Incentive and Feed-in Tariff update

Gasification

Biomass

Heat Pump

Solar

Heat pumps - double support for hassle-free heating

Biomass - more cuts but don’t rush installations

Subsidies for ground source heat pumps doubled in 2014 in order to encourage uptake. The non-domestic Renewable Heat Incentive tariff for ground source heat pumps over 100kW, for example, has increased from 3.9p/kWh to 8.7p/ kWh. These subsidies provide income for 20 years, index linked for inflation. This is great news for heavy oil users or those heating with electricity.

Commercial biomass below 200kW is the first Renewable Heat Incentive (RHI) technology to have its rate reduced. It received a 15% cut in October and will reduce by a further 10% on 1 January 2015 (as will biomethane).

Smiths Gore has installed several of these systems. Our calculations show that this can now be more profitable than biomass and is even better if electricity to power it is generated on-site, using solar PV, hydropower or wind energy. Also, there are no fuel management requirements, low maintenance needs and the equipment has a long lifespan.

Smiths Gore’s Adam Baxendine, who has experience with over 300 biomass installations, advises not to overly rush installations to meet the deadline: “A rushed installation hugely increases the risk of having something go wrong further down the line. For example installing poorly specified equipment because it is available on shorter lead times can result in lower efficiencies, greater heat loss and increased running costs.” The domestic RHI scheme was introduced in April 2014. Again biomass has been the only technology to see any significant uptake and the domestic RHI rate reduces by 10% on 1 January 2015.

Gasification - a developing technology The latest tariffs favour the less established technologies such as gasification and solar thermal. Smiths Gore has been helping its clients explore these newer technologies with the help of government support grants.

Rooftop solar PV - still provides good, low risk returns There will be a 3.5% reduction to the solar PV Feed-in Tariff on 1 January 2015 but this is broadly in line with the continued fall in capital costs and increasing efficiencies so it won’t materially affect profitability.

Other (non-solar PV) renewable electricity generation In October most of the technologies received a Feed-in Tariff rate reduction of 5 - 10% except the largest capacity of hydropower and anaerobic digestion (AD) which remain the same. In April 2015 all technologies, except AD greater than 500kW, will have exceeded their annual deployment trigger, meaning the tariffs will be reduced by 20%.

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over d from linked doubled heating technology Heat Pumps for inflatio 100kW, for ) doubled in (GSHP) renewa or those Source e, has increase can on-site 2014 in examp n. This ble electric ed with now be more Heat Pumps for exampl for heavy oil users order to for Ground le, has is great Source 100kW, ity genera le if combin increas profita news news for profitab ed from encourage uptake ble s for Ground for GSHP over is great tion e.g. To qualify heavy 3.9p/kW icthroug than bioma even more ent subsidie e (RHI) tariff for inflation. This oil users . The non-do for the ss installa become h to 8.7p/kW h solar RHI is or those y. The domest non-do The governm linked Incentiv mestic ions and PV, hydrop also tions mestic heatin ble Heat 20 years index one propert s installat wind energy. investmthanavailab g with h. These subsid ower or and becom le. This the capitalRHI the Renewa for biomas more ent cost. back electric wer or wind energy e even more schem provide ies income le than heat to paying ity. hydropo e must s a higher provide profita . towards or provide have more profitab solar PV, ble if combin annua now be Heat Pump through rcial setting (7 years) geared l income a commercial ogy can ion e.g. ed with a comme period setting but for Technology This technolelectricity generat on-site or provide a shorter must have but for a shorter Heat pumps ble period the scheme renewa income use electric (7 years) heat to more energy tages estic RHI annual than one presen Disadvan higher geared non-dom a s to power for poorly t within itysuitable unit of for the toward proper provide the. electric the be ground ty. s paying To qualify available. This buildings extraction May not units ges back the The domestic nt of heat• ity used toor drafty via for single of the Advanta RHI is also cost. power power buried capital Advant heat on investme pipes. also extract can insulated be supplie ages ent 3 phase the heat For each High return investm Requires dover 14kW. pump, heat • heat to effecti • • your from pumps three or High return ve, or possible. ment on of the logy heat water source building. more Techno on investm Heat pumps Disadva fuel manage Heat Pump) from the air the extracti For each possible • No if ground s, which can ntages . ent ents. Heat Pump • No ty to power buried pipes. long-life.. can more requirem be space fuel manag ance and three or use electrici ground via is limited very cost • May requirem ement Low mainten Heat pumps heat pump,Heat pumps can Heat pumps (Air within the • the not ents. • Low Source . are present used to power heat emitte cost insulate be suitable building mainte energy e when rs are largelow tempeeffectiv ty nance to your • Require d or drafty for poorly can be verySource and long-life most rature system (large unit of electricican be supplied sources, which are (Air s 3 phase buildings. radiato s usually . heat heat pumps is limited power water Example re, they rs or underf units of supply over 14kW. for single heat from if ground space 50°C. Therefo Costs and loor heatin ing heat n 35°C also extract from the air Return Theent. g) relative between 35°C table e, or g heat betweeheat requirem s effectiv - 50°C. to the supplyin to the oil usage below provide upon current heat require Theref usually ) relative with heatin s some depending ore, they Heat Pump). ment. ture systems indicat or heating are most g bills of 12-20% ive costs tempera decrea s or underflo effecti are low the region and sing by radiator ve when can be in over 50% payback periods Heat pumps large (large GSHP heat returns Installa s are in many Pre-tax . Pre-tax tion period emitter Propert periods. cases. returns Payback y Floor d Annual payback can be Returns 50 kW Area (typical Estimate in the region e costs and in many cases. Ground insulati Costs and on) d Annual Collecto indicativ 50% RHI Payment Example of 12-20% 100 kW Area 6-8 years r s some Estimate (Oil) 550m2 by over Indicat depend e Install below providebills decreasing ive Install Fuel Saving ing upon 200 kW Indicativ 1100m£5,600 2000m6-8 years Cost The table 2 2 current 6,000 Estimat with heating Collector Cost oil usage

Tariffs Double

Act now: Request our briefing notes on each technology. Inside - • typical costs • requirements • payback periods and returns

Ground Source Heat Pumps

ion

Floor Area Property n) insulatio (typical

Ground Area

2000m2

£3,000-£

£75,000

£11,000

2200m 2 12,000 Sustainabil £6,000-£ £22,000 ity &-£15,000 Renew

4000m 6-8 years 2

8000m

£75,00

£120,0

ed Fuel SavingAnnual (Oil) £3,000 -£6,000

Estimat ed RHI PaymenAnnual t

Initial £12,000 Paybac able Energ £200,0 feasibi £6,000 £5,600 k period 0 00 -£12,00 550m2 y (SRE) 4000m2 £200,00 • Identif lity study 0 Team Servic £12,00 £11,00 6-8 years • Providi ying the most 0-£15,0 1100m2 0 8000m2 ion. es 00 suitabl • Financ ng installa ty generat £22,00 6-8 years s tion descripe RHI 2200m2 0 electrici eligible Service on-site • Settingial modelling tion include technology entary 6-8 years (SRE) Team includi out and complem for the RHI. Energy project nities for qualify ng sensitivity sizing, fuel usage opportunities Renewable ents to timescale, opportu for comple and key costs and analysis. ogy and Tender requirem ing and require technol and next steps • key contra ments mentary on-site ct/proj ity study suitable RHI eligible sizing, fuel usage • Managing the. to qualify to take electric the project for the ity genera Dealinforward tender ect management Initial feasibiling the most ion include analysis. RHI. the project g with plannin process to forwar descript tion. ty take • Providi d. • Identify g installation g sensitivi next steps to g aspectility. ensure best • Co-ord ng assuran s, tenant value • Providin l modelling includinle, costs and ce in reputab inating terms of s and energy and give installer timesca in Financia confide RHI nce quality • applica meteri nce in out project compli Please tions. give confide installe ement ance and ng. • Setting r reputa value and t manag g. get in touch on-site Safety issues. t/projec to ensure best bility. meterin contrac Health & with our team project. Health & Safety process and energy and Foron-site ng and Mid and if you any potential Tenderi issues. ng the tenderg aspects, tenants compliance would South ce on like advice Englan • Managi with plannin assistan of quality d and on heat in terms or require Wales • Dealing g assurance pumps pumps ions. on heat Alan or require • Providin ating RHI applicat like advice assista Harr nce on you would ies • Co-ordin Head of any potent team if - London Sustainabilit Hagan with our ial project t 020 7409 Consultant Alex in touch y - Londo . able Energy Please get 9490 e alan.h n and Wales k arries@ Renew7409 9474 England ore.co.u smiths and South t 020 Alex For North gore.c gan@smithsg For Mid Hagan Englan ies e alex.hao.uk Renew d and able Energ Scotla Alan Harr ability - London nd t 020 y Consu of Sustain

GSHP Installat

£120,00

50 kW 100 kW

200 kW

ability & Sustain

Head k 9490 ore.co.u t 020 7409 rries@smithsg e alan.ha d

For North

England

and Scotlan

7409 9474 ltant Thom e alex.h London agan@ as McM rgh Renew smiths dine able Energ illan gore.co.uk Baxen Consultant - Edinbu t 0131 344 0886 y ConsuAdam ltant - able Energy e thoma RenewEdinburgh 0889 s.mcm ithsgore.co.uk illan@smithst 0131 344 Adam axendine@sm Baxendin adam.b egore.c Renew o.uk e able Energ t 0131 344 0889 y Consultant e adam - Edinb urgh .baxen dine@ smiths gore.co.uk

rgh illan as McM Consultant - Edinbu Thom Energy k Renewable 0886 344 mithsgore.co.u t 0131 s.mcmillan@s e thoma

Dr Alan Harries

Thomas McMillan

Head of Sustainability 0207 409 9490 alan.harries @smithsgore.co.uk

Renewable Energy Consultant 0131 344 0886 thomas.mcmillan @smithsgore.co.uk

Floods, farms and forests Should the UK concentrate on reducing its greenhouse gas emissions or on adapting to climate change? Is the focus on cutting greenhouse gas emissions a dangerous distraction from our need to adapt to a changing climate? These two challenges need to go hand-in-hand, although adaptation is the junior partner in what is the greatest environmental challenge to face mankind. When it comes to climate change adaptation in the UK, we need more research and development, more training, more education, more awareness and above all more leadership. It feels like we are sending out our school team to play the All Blacks.

When I worked in New Zealand and Australia, both countries were suffering the latest of a long series of severe droughts. These focus the minds of farmers and government. It opened my eyes to the fact that cutting greenhouse gases was not top of the agenda adaptation to climate change was. Thomas McMillan

24 Adaptation is on the fringes of the UK Governmentâ&#x20AC;&#x2122;s radar and in the infancy of policy development. Despite the UKâ&#x20AC;&#x2122;s first Climate Change Risk Assessment being published in early 2012, analysing 100 potential effects of climate change, the Adaptation Sub Committee of the Committee on Climate Change only started collecting evidence to support this risk assessment in February 2014.

Floods and farms The most pressing issue in the UK is flooding and coastal erosion, which are a significant risk to agriculture. In England and Wales, currently around 50,000 hectares (twice the size of Birmingham) are at risk of flooding every three years and this is projected to increase to around 200,000 hectares by the 2080s (the size of London). As flooding worsens it will be agricultural land that is sacrificed before homes, schools and hospitals - it already is. But should we sacrifice farmland for new homes, schools and hospitals in places that could flood in the future? We need to think long-term about development. If we do nothing now in promoting the right type of adaptation measures we will suffer the consequences in the future. What will farmland in your area look like when your grandchildren retire? Whether you believe climate change is manmade or not does not matter. Long-term records show that the global climate is changing, getting warmer, the ice caps are melting and sea levels are rising. Ignoring this simple fact is not an option. If we are going to tackle climate change then adaptation to a changing environment is essential. If you have any questions about climate change adaptation or how you can adapt, please get in touch.

So why is there so little focus on adaptation to climate change? It could be because there is no silver bullet and no single issue that really focuses the mind, like there is in Australia with water shortages. If we are going to understand the climate change challenges that face us and how we must adapt successfully, we need a wider awakening from all sectors of the economy. Farmers and foresters have a great role as they manage around 90% of land in the UK and many of the solutions will come from the land. (See box)

What is climate change adaptation? Changing the way we do things to prepare for the future effects of climate change. It will help us be better protected against issues such as increased frequency and severity of flooding or droughts. The earlier we plan for adaptation, the less it will impact on our businesses.

Dr Alan Harries

Thomas McMillan

Head of Sustainability 0207 409 9490 alan.harries @smithsgore.co.uk

Renewable Energy Consultant 0131 344 0886 thomas.mcmillan @smithsgore.co.uk

Flood Risk Increase from Climate Change

Land at risk of flooding in England and Wales (hectares) 1 Flood Risk

2012

1 in every 3 years

50,000 hectares

1 in every 10 years

200,000 hectares

2080 200,000 hectares (2% of agricultural land)

over 500,000 hectares (>5% of agricultural land)

Farming and forestry - yields expected to fall Farming, forestry and land management account for around 10% of UK emissions. Cutting emissions by crop nutrient management and livestock feeding practices is important, but so is climate change adaptation. Despite higher CO2 concentrations increasing crop yields and longer growing seasons, overall yields are expected to reduce by around 1% each decade (IPCC AR5 report). The main short-term issues for farmers are the increase in frequency and severity of droughts and heavy rains and flooding. To adapt, consider:

•

Investing in reservoirs to store water for irrigation in dry periods (for own use or to sell to neighbours).

•

Proactive flood prevention and improved drainage so your land can withstand heavy rains.

•

Using varieties that are more tolerant of heat and water logging.

•

Investing in ‘climate change proof’ businesses, such as renewable energy generation and energy storage.

CO2 concentrations timeline 2 50 million years ago the Earth was around 1,000 parts per million and the temperature was around 10oc higher than in the pre-industrial period. There was little ice and sea levels were 60m higher than today’s level.

1,000ppm

2075 3-5 million years ago the earth was last at 400ppm and the temperature was 2 - 3.5oc higher than the pre-industrial period.

2014 1000

500ppm

400ppm

1900 280ppm

300ppm

800,000 Years ago 200ppm

Rays of hope

Solar energy has a sound future despite misleading stories about subsidies Solar farms produce clean, affordable energy with the opportunity to continue food production and deliver biodiversity enhancements, yet the technology seems to attract misleading stories.

For example, it would be easy to think that the Government has just decided to withdraw farm payments for land under solar panels, after Liz Truss, the Secretary of State for Environment, Food and Rural Affairs in England, recently said that the land under solar panels will not be eligible for Common Agricultural Policy payments. This is not new news - it has been the position since 2011. Nor will it affect solar development, despite generating negative press. Yet there is an irony here. The environmental elements of the Common Agricultural Policy - called ‘greening’ - are so poorly designed that they will produce much less biodiversity gains than they could. Indeed, CAP’s environmental elements will probably create less biodiversity than the land under solar panels. Recent research suggests biodiversity gains on solar farms can be ‘significant’, as they can provide undisturbed grassland meadows. This is often good habitat for pollinators and so supports the new National Pollinator Strategy for bees and other pollinators in England (November 2014). Smiths Gore has a number of solar schemes in development which integrate sheep grazing, grassland meadow and apiaries, to provide homes for bees.

Further shadow was cast on the economic future of solar farms by a different, equally misleading news story: that solar is falling out of favour as subsidies are cut. Many commentators have said that removing big solar projects (greater than 5MW) from the Renewable Obligation (RO) scheme shows reduced Government favour for this technology. In reality, the lower prices of solar panels and increasing efficiencies mean that the Government has made this switch from support under the RO to the new Contracts for Difference (CFD) scheme two years earlier than scheduled. This is a positive for the industry and the UK’s population as it makes the subsidy process more competitive. Furthermore the Government increased support for large-scale solar by 30% under the ‘established technologies’ CFD budget in October. This could support as much as 650MW of projects enough to power 170,000 homes. If you would like to know more about solar, please contact us.

over d from linked doubled heating technology Heat Pumps for inflatio 100kW, for ) doubled in (GSHP) renewa or those Source e, has increase can on-site 2014 in examp n. This ble electric ed with now be more Heat Pumps for exampl for heavy oil users order to for Ground le, has is great Source 100kW, ity genera le if combin increas profita news news for profitab ed from encourage uptake ble s for Ground for GSHP over is great tion e.g. To qualify heavy 3.9p/kW icthroug than bioma even more ent subsidie e (RHI) tariff for inflation. This oil users . The non-do for the ss installa become h to 8.7p/kW h solar RHI is or those y. The domest non-do The governm linked Incentiv mestic ions and PV, hydrop also tions mestic heatin ble Heat 20 years index one propert s installat wind energy. investmthanavailab g with h. These subsid ower or and becom le. This the capitalRHI the Renewa for biomas more ent cost. back electric wer or wind energy e even more schem provide ies income le than heat to paying ity. hydropo e must s a higher provide profita . towards or provide have more profitab solar PV, ble if combin annua now be Heat Pump through rcial setting (7 years) geared l income a commercial ogy can ion e.g. ed with a comme period setting but for Technology This technolelectricity generat on-site or provide a shorter must have but for a shorter Heat pumps ble period the scheme renewa income use electric (7 years) heat to more energy tages estic RHI than one presen Disadvan higher annual geared to power for poorly t within itysuitable unit of for the non-domprovides a toward proper the. electric the be ground ty. s paying To qualify available. This buildings extraction May not units ges back the The domestic nt of heat• ity used toor drafty via for single of the Advanta RHI is also cost. power power buried capital Advant investme insulated heat can on pipes. also the be phase ages ent 3 extract return supplie For each heat pump, investm 14kW. heat Requires dover • High heat to your effecti • High three ve, or • from possible. buildin ment on of the logy water source heat pumps return g. Heat or more Techno on investm Disadva fuel manage Heat Pump) from the air the extracti For each possible pumps • No if ground s, which can ntages . ent ents. Heat Pump • No ty to power buried pipes. long-life.. can or more requirem be very space fuel manag ance and three use electrici ground via is limited cost • May can mainten Heat pump, requirem ement Heat pumps pumps (Air Source within the • Low the heat not ents. • Low . Heat pumps are present used to power heat emitte cost insulate be suitable building mainte energy e when rs are largelow tempeeffectiv ty nance to your • Require d or drafty for poorly can be verySource and long-life most rature system (large unit of electricican be supplied sources, which are (Air s 3 phase buildings. radiato s usually . heat heat pumps is limited power water Example re, they rs or underf units of supply over 14kW. for single heat from if ground space 50°C. Therefo Costs and loor heatin ing heat n 35°C also extract from the air Return Theent. g) relative between 35°C table e, or g heat betweeheat requirem s effectiv - 50°C. to the supplyin to the oil usage below provide upon current heat require Theref usually ) relative with heatin s some depending ore, they Heat Pump). ment. ture systems indicat or heating are most g bills of 12-20% ive costs tempera decrea s or underflo effecti are low the region and sing by radiator ve when can be in over 50% payback periods Heat pumps large (large GSHP heat returns Installa s are in many Pre-tax . Pre-tax tion period emitter Propert periods. cases. returns Payback y Floor d Annual payback can be Returns 50 kW Area (typical Estimate in the region e costs and in many cases. Ground insulati Costs and on) d Annual Collecto indicativ 50% RHI Payment Example of 12-20% 100 kW Area 6-8 years r s some Estimate (Oil) 550m2 by over Indicat depend e Install below providebills decreasing ive Install Fuel Saving years £5,600 ing upon 200 kW Indicativ 6-8 1100m 2000m Cost The table 2 2 current 6,000 Estimat with heating Collector Cost oil usage

Tariffs Double

Ground Source Heat Pumps

Property

Floor Area n) insulatio

Ground Area

£3,000-£

£75,000

2200m £11,000 2 £22,000

12,000 Sustainabil £6,000-£ ity

4000m 6-8 years 2

8000m

£75,00

£120,0

ed Fuel SavingAnnual (Oil) £3,000

Estimat ed RHI PaymenAnnual

&-£15,000 00 ion (typical -£6,000 2000m2 £120,00 Initial t £12,000 Renewable Paybac £200,0 feasibi £6,000 £5,600 k period Energy 0 00 -£12,00 550m2 4000m2 (SRE) Team £200,00 • Identif lity study 0 £12,00 £11,00 6-8 years • Providi ying the most 0-£15,0 1100m2 0 8000m2 ion.Services 00 suitabl • Financ ng installa ty generat £22,00 6-8 years s tion descripe RHI 2200m2 0 electrici eligible Service on-site • Settingial modelling tion include technology entary 6-8 years (SRE) Team includi out and complem for the RHI. Energy project nities for qualify ng sensitivity sizing, fuel usage opportunities Renewable ents to timescale, opportu for comple and key costs and analysis. ogy and Tender requirem ing and require technol and next steps • key contra ments mentary on-site ct/proj ity study suitable RHI eligible sizing, fuel usage • Managing the. to qualify to take electric the project for the ity genera Dealinforward tender ect management Initial feasibiling the most ion include analysis. RHI. the project g with plannin process to forwar descript tion. ty take • Providi d. • Identify g installation g sensitivi next steps to g aspectility. ensure best • Co-ord ng assuran includin g and Providin s, value tenant • ce in reputab le, costs and give l modellin inating terms s confide RHI applica of quality and energy nce in installer • Financiaout project timesca meteri nce in compli Please tions. give confide installe ement ance and ng. • Setting r reputa value and t manag issues. g. get in touch on-site t/projec to ensure best bility. & Safety meterin with our Health contrac Health energy & Safety process team if and al project. Foron-site ng and Mid and and Tenderi you on issues. any potenti ng the tenderg aspects, tenants compliance South ce would like advice Englan • Managi with plannin assistan of quality d and on heat in terms or require Wales • Dealing g assurance pumps pumps ions. on heat Alan or require • Providin ating RHI applicat like advice assista Harr nce on you would ies • Co-ordin Head of any potent team if - London Sustainabilit Hagan with our ial project t 020 7409 Consultant Alex in touch y - Londo . able Energy Please get 9490 e alan.h n and Wales k arries@ Renew7409 9474 England ore.co.u smiths and South t 020 Alex For North gore.c gan@smithsg For Mid Hagan Englan ies e alex.hao.uk Renew d and able Energ Scotla Alan Harr ability - London nd t 020 y Consu of Sustain

GSHP Installat

50 kW 100 kW

200 kW

ability & Sustain

Head k 9490 ore.co.u t 020 7409 rries@smithsg e alan.ha d

For North

England

and Scotlan

rgh illan as McM Consultant - Edinbu Thom Energy k Renewable 0886 344 mithsgore.co.u t 0131 s.mcmillan@s e thoma

Dr Alan Harries

Thomas McMillan

Head of Sustainability 0207 409 9490 alan.harries @smithsgore.co.uk

Renewable Energy Consultant 0131 344 0886 thomas.mcmillan @smithsgore.co.uk

Alien Invasion New legislation is increasing the liability and responsibility of land owners and tenants, says ecologist Tom Hall The Infrastructure Bill, currently passing through Parliament, will increase the liability of land owners to manage invasive, nonnative species on their property. Land owners may be legally required to not only control the species but eradicate them altogether, which can be very expensive. These are invasive species which do not usually live in or visit Great Britain in a wild state and which have either a negative ecological or human impact, such as Japanese knotweed or signal crayfish. It is estimated that they cost the British economy more than ÂŁ1.6 billion each year in terms of property, infrastructure and ecosystem damage. Yet early management which prevents establishment can significantly cut this cost1. The new legislation is in response to a Law Commission review which found current legislation insufficient. The new law will amend the Wildlife and Countryside Act 1981 so where environment regulators consider an invasive species to be

present, they can agree a Species Control Agreement with the land owner on how the species should be managed. If the owner fails to agree or carry out the management, a Species Control Order will compel the owner or regulator to do the work - at the ownerâ&#x20AC;&#x2122;s expense. Regulators will be given powers of entry to investigate and monitor sites. This development will increase the liability of land owners, lease holders, land purchasers and developers.

Act now: Surveys for invasive species will become an important liability consideration. Ensure all legal agreements cover who is liable for controlling invasive species.

27 Tom Hall Senior Ecologist - Cascade Consulting 0161 227 9777 enquiries@cascadeconsulting.co.uk

Roy H E et al. (2012) Non-native species in Great Britain: establishment, detection and reporting to inform effective decision making.

The state of the nation How is the UK doing? How are we doing compared with Germany or the States? And how are the different regions in the UK doing - is London really as dominant as the newspapers say? Politicians and policy makers are increasingly thinking that we must go beyond GDP and economic statistics to get a fuller understanding of how society is doing. The Organisation for Economic Co-operation and Development (OECD) has developed a way of comparing countries and regions within them, which allows us to zoom in on how life is lived. In the table below, the UK’s regions are scored out of 10 for how they are performing on education, employment, income generation, security, environment, broadband and voter engagement. The table on the right shows how the combined regions of the UK compare with 33 other OECD countries. The UK is in the top ten for income per head and the proportion of the population

with broadband. But we are middle ranked for all of the other indicators, apart from voter engagement, which is just outside the bottom 10, which should send a message to our politicians that they need to raise their games (and which also helps explain UKIP’s ‘honest’ appeal). The top ranking countries are Australia, Canada, Germany, New Zealand, Norway, Sweden and Switzerland. There are serious reasons for producing the measures - to know where life in the UK can be improved. We need to improve life expectancy (especially in the North): better housing, food, air quality and exercise will all contribute, as well as removing barriers to economic growth, like broadband access and unnecessary planning restrictions. The countryside has just as important a role in doing this as towns and cities.

Overleaf we look in more detail at the key issues facing the UK’s regions. Score out of 10

North East England

8.0

5.8

4.5

9.2

6.0

7.8

4.1

8.2

7.0

North West England

8.0

6.7

4.9

8.9

5.9

5.8

4.4

9.5

6.9

Yorkshire and The Humber

7.8

6.5

4.6

8.9

6.6

4.5

9.2

6.6

East Midlands

7.9

7.4

4.9

9.4

7.4

6.2

5.3

9.9

6.9

West Midlands

7.6

6.5

4.8

9.0

7.2

6.5

4.9

8.9

6.5

East of England

8.0

8.3

5.9

9.6

8.4

6.2

5.5

10.0

6.6

Greater London

8.9

6.5

7.8

8.5

8.4

6.3

4.8

10.0

4.8

South East England

8.4

8.3

5.6

9.8

8.6

6.1

5.6

10.0

6.5

South West England

8.3

8.2

5.6

9.7

8.6

6.1

5.8

10.0

7.0

Wales

8.1

6.8

4.7

9.4

6.7

7.0

4.9

9.0

7.2

Scotland

8.4

7.2

5.4

8.7

4.8

7.9

4.7

9.3

5.6

Northern Ireland

7.3

6.8

4.7

8.9

6.4

8.3

3.4

10.0

5.7

Countries ranked from 1 (top) to 34 (bottom)

Education United Kingdom

Germany

Australia

United States

Austria

Belgium

Canada

Chile

Czech Republic

Denmark

Estonia

Finland

France

Greece

Hungary

Iceland

Ireland

Israel

Italy

Japan

Korea

Luxembourg

Mexico

Netherlands

166

New Zealand

Norway

Poland

Portugal

Slovak Republic

Slovenia

Spain

Sweden

Switzerland

Turkey

Top

Bottom

Labour force with at least secondary education

Jobs

Employment rate; unemployment rate

Income

Household disposable income per capita

Safety

Number of homicides per 100,000 people

Health

Life expectancy at birth

29 Environment

Air quality (level of fine particles in the air (PM2.5))

Civic Engagement Voter turnout percentage

Accessibility to services

Percentage of households with broadband access

Housing

Number of rooms per person

Dr Jason Beedell Head of Research 01733 866562 jason.beedell @smithsgore.co.uk

The State of the regions In Europe the UK has by far the biggest gulf between its most productive and least productive regions. Key economic, workforce and government spending facts are set below, with key priorities for the national and local governments.

Scotland, Wales & Northern Ireland The three countries are below the UK average on most measures, although Scotland’s education system, Northern Ireland’s broadband and the quality of the environment stand out. Wales and Northern Ireland are two of the three smallest regions economically in the UK. Scotland’s economy is the same size as the South West and a third of London’s. The three countries continue to develop their distinct policy agendas, which are more radical and ambitious than England’s, especially Scotland’s energy and land reform policies. Continuing priorities are to raise life expectancy and to capitalise on high skill levels.

Growth, productivity and jobs •

The three economies grew at the same rate (@40%) in the past decade as the rest of the UK, excluding faster London.

•

Aberdeen, Edinburgh, Belfast and Glasgow are in the top six UK cities in terms of productivity growth.

•

Unemployment is above the UK average (although, on its own, Northern Ireland is below the UK average).

•

Public services, inequality and quality of life •

They receive similar levels of public spending on education and health as the other regions.

•

Scotland has the lowest proportion of people in relative low income in the UK, and it has been most successful at cutting the proportion. Wales has a higher proportion than average, and Northern Ireland slightly below.

•

Life expectancy is below the UK average; Scottish expectancy is the lowest in the UK.

Skills, innovation and investment •

•

Scotland and Wales have the highest levels of skilled workers outside the South; Northern Ireland has the lowest. They also retain some of the highest proportions of their graduates.

They receive, with London, the highest Government expenditure on economic affairs.

The countries have some of the lowest business spending on R&D in the country - well below UK and European levels (as a % of GDP).

North The North fares badly in relation to other UK regions on many indicators. The north-south gap has widened since the start of the global recession. But it is not all bad news - there is a positive story in key areas such as skills and innovation. Cities such as Greater Manchester and the Leeds city-region are experiencing rapid jobs growth. And rural areas like Cumbria and Cheshire are consistently among the fastest-growing economic areas in the country over the past decade. There is a growing body of evidence that maximising the ‘agglomeration effects’ of the northern cities will bring significant economic benefits - for the north and the whole country. The three big priorities for northern economic development are skills, infrastructure and developing institutional clout.

Growth, productivity and jobs

Public services, inequality and quality of life

•

Unemployment rates increased twice as fast as those in London and the South East over the past decade.

•

Northern local authorities (as well as the inner London boroughs) have been particularly affected by government spending cuts.

•

Workforce jobs have only just returned to their pre-recession numbers and ‘underemployment’ (or spare capacity) is higher than in the UK as a whole.

•

Northern core cities are lagging well behind comparable cities in Germany, France and Spain.

The North has above-average proportions of people on relatively low incomes and life expectancy is one of the lowest in the UK, and improving slowest. The age profiles and dependency ratios of every part of the North are rising relatively rapidly.

Skills, innovation and investment •

Improving the skills base would be the most important driver of northern economic growth. The North continues to ‘export’ significant numbers of people towards the south of England.

•

The government spending review for 2014/15-2015/16 will have a disproportionate impact on northern economies.

Midlands Although the East and West Midlands have been grouped together, the two areas are different with the East Midlands above average on many measures and the West below, and the gap is growing. Economic growth needs to be boosted, which will raise incomes, and retaining skilled workers is key to this.

Growth, productivity and jobs •

Economic growth is slowest of all UK regions (GVA, 2002-2012) and the core cities are lagging behind European comparables. Household disposable income is below the UK average, even when London is excluded.

•

Unemployment rates have risen faster than the UK average (2004-2013) and workforce jobs have only just returned to their pre-recession numbers.

Skills, innovation and investment •

•

Business investment in R&D is at UK average levels but needs to accelerate to keep up. Government spending on economic affairs (enterprise, development, science, technology, employment policies and transport) is amongst the lowest of all regions.

•

The government spending review for 2014/15-2015/16 will cut spending more than in the South (but less than in the North).

Public services, inequality and quality of life •

There is a skills issue - the region has lower proportions of qualified people and is falling further behind in higher level qualifications. It retains fewer graduates than the rest of the UK.

The West Midlands has the second highest proportion of people living with relatively low incomes in the UK, behind London. Life expectancy is around the UK average; it is better than in the North but worse than in the South.

The greater South (London, East of England, South East, South West) It is often said that London is like a separate country and the data supports this. The ‘greater South’, including London, is performing significantly better than the rest of the UK. The South is already congested and so must address infrastructure issues if it is to retain its position as a leading world region with a leading world city. Will an ‘independent London’ do this or weaken the rest of the UK?

Growth, productivity and jobs •

•

London, the South East and East of England are three of the four biggest regional economies in the UK, and they have grown faster than the rest of the UK since the recession started in 2008. There are now 10% more workforce jobs in the South than in early 2007, while levels in the Midlands and North are just catching up to pre-recession levels. Household disposable income is above the UK average - and higher than in many advanced countries. The region has the highest employment rate and lowest unemployment rate in the UK - and compares well with Germany and the US. But London has high unemployment levels - a sign of the gap between rich and poor.

Skills, innovation and investment •

The greater South has the highest proportions of working-age qualified people - and is attracting more of them - importing from the North. London is the only part of the UK with a labour force as educated as Germany and the US.

•

Business spending on R&D is the highest in the country and it spends more on economic affairs than the North and Midlands. Government spending cuts will have the least impact on the greater South.

•

Broadband access is the best in the UK and at world-class levels.

Public services, inequality and quality of life •

London has the highest proportion of people living with relatively low incomes in the UK; but the East, South East and South West have the lowest proportions. Benefits have been cut more in the South than any other region.

•

It has the highest life expectancy in the UK, and one of the highest in the world.

Property Market Review Farmland market The crystal ball for 2015 is looking fairly opaque but with limited 2015 sales instructions currently and continued demand, there is likely to be a repeat of the 2014 market plenty of demand, versus limited supply, although there is a change to more focus on larger blocks of land with fewer buildings. Country estates continue to remain popular but only if they are not geographically challenged and the main house is not a complete sinkhole for money - people are prepared to invest money in refurbishment and renovation but not a total rebuild. Whilst really large, older houses might show well in a magazine or on a website, when it comes to buying they are not as popular.

The farmland market has become more discerning as prices have increased. The market continues to be based upon demand from local and regional farmers with a number of larger investors (many of whom have already set up farming businesses) still looking for large lumps of land but not necessarily wanting the large farmhouse. There will continue to be popular counties, as we saw with the sale of Trinley estate along with other sales in Hampshire in 2014, but as prices have increased so have purchaser’s requirements - and if these are not met then they will not engage.

Bare land Equipped land (farms with houses and buildings)

The general election is already causing a few headaches as it will coincide with the usual time to launch the marketing of larger farms and estates. Most look at their best at the end of April and into May, and with an election in May vendors are going to need to be careful with the timing of marketing to ensure it’s not lost in the swill of media surrounding the election. Most do not believe the election will affect land or property prices in the short-term but a general election is always a distraction. A far greater factor will be the uncertainty leading into the EU referendum debate and also the cold whispers of re-entering a global recession. None of these issues will have a dramatic effect on prices due to such strong demand and global market uncertainty often increases investment in land and property. Sellers will need to temper their expectations as the market does become more discerning. Equally buyers will need to be more realistic in seeking their Xanadu in a limited market. The Smiths Gore land market model predicted a 7% increase in the all land value for 2014 which appears to be about right and looks likely to be of similar vein again for 2015 but with the top of the market levelling off.

2014Q3

Rise in last 12 months

Rise in last three years

£7,400

27%

£11,000

20%

Giles Wordsworth Head of Farms and Estates Agency 020 7409 9490 giles.wordsworth @smithsgore.co.uk

Agricultural rents The level of activity on rent reviews seems to continue unabated and the latest results of our Agricultural Rent Survey suggest that the bull run of rents has lost little of its momentum. The rate of increase for both Agricultural Holiday Act and Farm Business Tenancy rents remains almost unchanged from the previous report. However, behind these headlines, there are now perhaps the first signs that caution about crop and stock prices is beginning to manifest itself in the rents being agreed by our teams across the country. This year, we have been involved in letting substantial areas of farm land in most parts of England, including some of the largest blocks of land to come on the open market for some time. The results of these tenders have been to achieve some significant rent increases for the land owners and to provide successful farming businesses with much needed land for expansion and development. It is also great to see the confidence of tenants in committing to long-term tenancies.

There is now some evidence that some bidders are ‘thinking twice’ before adding that extra £20 or £30 per acre to be sure of coming out on top. That said, the demand for land in many areas remains robust and rents in excess of £200 per acre for average land let by tender are still being achieved. On average, the rents for newly granted Farm Business Tenancies are continuing to increase faster than those settled under continuing tenancies and Agricultural Holding Act tenancies. Whilst there is still an underlying strength in the rental market, and it is too early to say that the era of increases is over, perhaps a period of calm and consolidation lies ahead?

Stephen Spencer Agricultural Lettings - England & Wales 01543 266403 stephen.spencer @smithsgore.co.uk

Farmland investment and valuations In 2013 we saw renewed interest by investors in this sector, with yields for investment farms dropping considerably and, as a result, a large rise in values. There continues to be a steady if small supply of land for sale and, there may be up to 4,000 acres marketed this year, which is more than in 2013. As with the main farmland market, there is much stronger demand and higher prices for the prime areas and uses, and this year we have seen more hill farms being sold.

With reducing crop and stock prices, a likely rise in interest rates and a poor Euro exchange rate, investors are now building in less rental growth in their pricing. However the reversionary value and tax advantages continue to underpin values.

Ger ald FitzGer ald Head of Investment and Valuations 0207 409 9492 gerald.fitzgerald @smithsgore.co.uk

Residential sales With so many conflicting pressures in the market, forecasting ahead to 2015 is fraught with difficulties. Only a few weeks ago, the indications were that an interest rate rise was imminent; now, with uncertainty over the wider economic recovery, we are told that rates will stay where they are for the forseeable future, and medium-term fixed rates look set to plummet. Whilst interest rates remain low, the lenders’ criteria for granting mortgages have toughened sharply this year, and this has put a further brake on market recovery. Chancellor George Osborne took everyone by surprise with the radical review of Stamp Duty Land Tax in his Autumn Statement, which should deal effectively with the selfinflicted damage this hated tax has caused to the property market, and to people’s aspirations to move up the housing ladder. Whilst the increase in purchase costs for people buying £2 million plus houses is considerable, the flip side is a significant reduction in the tax rates at the middle and lower reaches of the market. If we are to have strong, sustainable growth in the housing market, this is where it needs to gestate; wild price rises at the extreme top-end clearly don’t act as a stimulus for the mainstream market.

The May general election appears at this stage to be too close to call, with UKIP throwing a spanner in the works of the established parties. If there is to be another coalition, it could well be between Labour and the Liberal Democrats in which case a Mansion Tax in some form would seem inevitable, even on top of the reformed Stamp Duty, which

has increased significantly the costs of buying a top-end house. If the Conservatives were to win, we could be in for a potentially bruising referendum over Europe, which could damage the UK’s international standing and London’s ‘safehaven’ status. So, either way, we may see a sudden end to the foreign investment that has fuelled dramatic price rises in the capital. Whilst the market outside London has not been particularly exciting throughout 2014 in terms of rising prices, there has been a marked increase in the number of houses for sale, and the volumes sold. Clearly Help to Buy has assisted in this, but I feel the main reason for the steady improvement in sales levels is that, after seven years of inactivity, there has been a strong pent-up demand from people trapped in the wrong house, or the wrong location, who have finally had the confidence to take the plunge and move, buoyedup by an improving economy and greater job security. The Stamp Duty changes can only add more impetus. As long as the economy continues to grow, unemployment continues to fall, and interest rates remain low, the housing market recovery should stay on its improving course next year, but the potential for it all to fall apart if the politicians make the wrong calls is significant.

Andrew Turner Head of Residential Agency 01904 756303 andrew.turner @smithsgore.co.uk

Residential lettings 2015 and beyond In the words of Nigel Farage, all bets are off on the makeup of the next government, which brings considerable uncertainties for us all. No sector seems to be more politically charged than housing, and private rented accommodation is at the top of that agenda, as all parties seek to gain the support of the broadest possible part of the electorate. Ed Miliband in particular has set out his store with a 50 point plan, which includes a range of measures which are intended to improve the lot of private renters - these include: • • • • • •

Longer tenancies More predictable rents Enforcement of decent homes standards Registration of landlords Licensing of letting agents A ban on letting agent charges to tenants

The proposals do not hail a return to the gloomy days of the 1970s. Longer tenancies means three years, with opportunities to break if tenants don’t perform or the landlord wants sell or occupy a property.

Initial rents would be set in the market place, reviewable annually in line with market conditions. Licensing or registration of landlords and agents is something we feel the industry would benefit from, as it would allow better control of standards. Whilst letting agents in England and Wales do now routinely charge tenants for referencing and inventories, the associated costs are in most cases modest in the context of the worth of a smoothly running tenancy. For respectable landlords, whatever the outcome of the election we continue to predict an attractive with steadily rising rents and the flexibility to operate your portfolio to deliver to your own ambitions.

Christopher Jowett Head of Residential Letting 01962 857421 chris.jowett @smithsgore.co.uk

Commercial property Changes to planning rules allow conversion of office space to residential without the need for full planning permission. With most commercial property markets stagnating or suffering since the recession started, this has created a new opportunity for generating capital.

We are already seeing competition for space rising, and spreading from city centres to accessible rural locations; the effect around Maidstone is that units that previously struggled to let during the recession are now much more in demand.

The change has also helped to reduce the over-supply of office space available and we now see limited choice of space for commercial occupiers in some regions, especially those benefitting from the London-effect.

We expect demand to continue to rise in 2015 and, with the more competitive commercial market, office rents may start to rise once more.

Whilst vacant commercial space hit an all-time high in 20102012, many city centres have seen a substantive reduction in available space as a result of changes to the planning rules. For example, in Maidstone, Kent, over 120,000 sq ft of former offices have sold, are under offer or are being marketed for conversion to residential. It is a similar pattern elsewhere.

Tim Cathcart 01732 879057 tim.cathcart @smithsgore.co.uk

Forestry Forestry values

Timber marketing

With demand and prices for timber remaining firm, woodland values have remained strong in 2014 although, as in the farmland market, there are signs that more average properties are not selling as quickly.

Softwood timber values are now stabilising after dramatic price rises in the first quarter of 2014. Demand for sawlogs remains good but there are signs that the upswing in the spring is slowing, with a gradual return to a more normal situation. We expect prices to remain stable into 2015.

Forestry continues to generate market-leading returns for investors - 15.8% total return in 2013 (the latest data) and 19.7% average per year over the last five years. High yield class, well managed commercial spruce forests remain in strong demand throughout the UK and, in addition to the open market, there have been significant off-market forestry sales in 2014. Values reduce with the lower growth rates and poorer market access associated with north Scotland and the islands, but overall values remain strong based on the positive drivers of a rise in underlying land values, biological growth and rising demand for construction and biomass.

There is still a strong market for standing timber due to the recovery in the building sector and the wider economy, coupled with growth in demand for biomass. The UK’s sawn timber is still price competitive with imports so our sawmills should retain their market share.

Andy Greathead Head of Forestry, Woodland and Arboriculture 01620 828979 andy.greathead @smithsgore.co.uk

Telecoms Last autumn I reported on the Government’s Mobile Infrastructure Project to tackle ‘complete mobile not spots’. It aims to improve coverage to the 5-10% of consumers and businesses where there is poor or non-existent 2G mobile coverage, which is mainly in remote and rural locations. This project was awarded to Arquiva, which is identifying suitable sites in the target areas and agreeing 20 year leases. Then mobile network operators, such as Vodafone and O2, will be allowed to share these sites, resulting in wider coverage. The Government views this project to be distinct from leases between operators and land owners, as it is targeted at areas where providing mobile coverage is not commercial. Hence the Government is heavily subsidising it.

For land owners, there is less room to negotiate lease terms; the Government’s argument is that there is a direct benefit to the land owner and the local community of better coverage. Whilst landlords may find themselves in a weaker negotiating position than in the open market, they are not powerless and with the right advice can work towards ensuring that sites are viable and do not prejudice other future interests in the same land.

K ay Paton Head of Telecommunications 01387 274394 kay.paton @smithsgore.co.uk

Sporting Consistent with the last few years, the 2014 grouse season has again been very productive across all moorland regions, almost without exception. The threat of disease still looms large though, and some moors this season had their shooting seriously curtailed due to Cryptosporidiosis or ‘bulgy eye’ as it is more commonly known. No significant English moors were brought to the open market during the year although some have traded privately. Pent up demand and few opportunities to buy, would result in a moor with a decent track record attracting a queue of wealthy buyers. The same can be said for large lowland sporting estates - few opportunities to buy - other than a couple of recent offerings in the south of England. Quality, scale and sporting potential (if not already existing) remain prime influencers of demand and value. We have a number of buyers waiting for the right estate to buy. A prime sporting estate would sell quickly and successfully.

The Scottish sporting estate market has been more active - both publicly marketed and private deals. But few buyers were willing to commit until the Referendum result was known. Even now, overseas buyers are less wary of possible political changes to land ownership than UK purchasers, who remain cautious at best.

ACT NOW Register now to analyse your shoot’s strengths and weaknesses and financial performance with our Shoot Benchmarking Survey. 100 small and large shoots took part last season. Participation is free.

David Steel Head of Sporting 01200 411051 david.steel @smithsgore.co.uk

Equestrian With the onset of the new year, many people with equestrian interests will begin to search for a property to suit their needs. We recommend that buyers prepare a list of criteria as we approach the traditional spring market, when many equestrian properties can be seen at their best and are launched on to the market; the criteria should include what you must have and what you are prepared to compromise on. Every buyer will have a different set of criteria that is determined by their particular equestrian affiliation; the most important are affordability, location, security and quality of land. Budget plays an important role when speaking to agents; it is essential that you set out your stall at the beginning of your search; determine what you can afford to buy and how much you may wish to budget if you need to add extra facilities after completion. Location is not something that you should ever compromise on; it is the one factor that you cannot change in a property once you have completed the purchase. But it is worth exploring the facilities nearby and the road networks if you need to travel your horses on a regular basis.

Security is a key factor. Are the stables situated within walking or viewing distance of the house? Nobody wants to wake up to find they’ve been burgled or worse that the horses have been rustled. Grazing is an important part of equine welfare; we recommend that you allow 1.5 acres per horse. The soil should be free-draining, of good quality and not prone to flooding. Does the land have its own water supply? If not, how much is it going to cost to put in? What is the quality of fencing like? If poor how much is it going to cost to put it right? We regularly assist both private individuals and professional horsemen looking to purchase or rent equestrian properties.

Simon Derby Head of Equestrian Services 01823 445036 simon.derby @smithsgore.co.uk

News in Brief Cheviot Centre design commended by RTPI Ian Mark of our Wooler office designed a recent scheme of alterations at The Cheviot Centre in Wooler, which was one of only three projects to be commended in the Royal Town Planning Institute’s 2014 planning awards for the North East. The brief, from a partnership between Glendale Gateway Trust, Northumberland County Council and the North East Rural Growth Network, was to create an interesting and innovative working environment that enhances the existing community building and creates offices, hot desking space and provides three external office pods.

Debbie appointed to the Board of Rural Housing Scotland

Commercial heritage skills expanded

Congratulations to Debbie Mackay, our Head of Planning in Scotland and partner at our Edinburgh office, on her recent appointment, which recognises her significant private and public sector expertise. She is looking forward to supporting the charity in its vital work in tackling the housing challenges faced by rural and island communities. She will focus on addressing urban-centric approaches to planning which can have unintended negative impacts on rural people. RHS’s annual conference takes place on 26 and 27 February at Birnam.

We welcome Dr Nikki Cooke to our planning team who specialises in finding innovative ways to deal with the historic environment in the planning process - be it above ground, below ground or underwater. She is a landscape archaeologist and experienced heritage consultant, with significant experience in the commercial heritage sector. She also specialises in parks and gardens.

38 Light Bulb Winner! Lachlan Robertson, a planner in our Reading office, has won a Wolfson Economics competition ‘Light Bulb’ prize which recognises outstanding contributions to specific aspects of delivering a new garden city. Lachlan won the award for producing for a range of convincing ideas on protecting the interests of affected residents: they include ‘property bond’ style mechanisms (such as those proposed for campaigners affected by HS2) which guarantee property prices; extra pensions linked to the value of the city; a menu of ideas on mitigating environmental, amenity and privacy concerns that go well beyond the existing planning system; and a menu of ways to record and celebrate the area’s heritage to prevent it being ‘lost’. He received £1,000 in prize money and a special ‘Light Bulb’ award.

Lachlan speaks to Leonard Cheshire Disability on planning Lachlan was also invited to speak to Leonard Cheshire Disability, the UK’s leading charity supporting disabled people, about the planning system. The charity’s new campaign is about the chronic lack of suitable housing for people with mobility impairments. Lachlan was quizzed on how to put the charity’s ideas to government and industry.

Rural Housing Policy Review Our planning and research teams were asked for their opinions and to contribute a think piece to the on-going Rural Housing Policy Review, led by Lord Best. Our overarching advice was that it’s really about incentivising land owners to release sites. Given that many land owners will view affordable housing as a last resort due to relatively low land values, the fact that they will generally cede management control, if not ownership, to an housing association, and the hassle factor from a planning and NIMBY standpoint, it is unsurprising that supply is restricted. But there are ways to encourage owners to release sites. The Review will be published in the spring.

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Services Architecture and Building Surveying David Shaw | 01962 857409 | david.shaw@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 Rebecca McAllister | 0118 903 5191 | rebecca.mcallister@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 Dan Coston | 01733 559317 | dan.coston@smithsgore.co.uk

Residential Property Agency Andrew Turner | 01904 756303 | andrew.turner@smithsgore.co.uk

Farms & Estates Agency Giles Wordsworth | 020 7409 9490 | 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 Kay Paton | 01387 274394 | kay.paton@smithsgore.co.uk

Historic Building Conservation and Repair Ewan Stoddart | 01798 345910 | ewan.stoddart@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

Edited by Dr Jason Beedell