We sell, rent, manage, survey, plan and advise...what can we do for you?
Since joining Robinson & Hall at the beginning of February, it has been an enjoyable transition back into the planning and development consultancy world, having spent nearly 2.5 years working for a housebuilder. Prior to this, I was at Bletsoes for over 7 years in the Planning & Development team, so I am very familiar with this role and look forward to getting back to helping landowners find added value across their portfolios.
Government Housing Targets
With the UK constantly falling short of its annual targets for homes, and 2023/2024 being the lowest level in over a decade, the new Government has proposed to reintroduce mandatory housing targets and has aimed to deliver 1.5 million homes over the next 5 years. One of the big changes is the recently revised National Planning Policy Framework (NPPF) which includes a new standard methodology for calculating housing need. This has led to local planning authorities being required to deliver 370,000 homes per annum, as opposed to the previous target of 300,000, under the current method. Due to this, councils are having to plan for sufficient housing and be able to demonstrate a 5-year land supply.
Permitted Development Rights
Recent changes to the Permitted Development Rights have opened the door for landowners to consider making changes within their farm holdings. With farmers always looking at other means of generating income away from farming itself, permitted development is seen as a fantastic avenue to explore. Many of my meetings consist of discussions around Class Q, Class R or Class A, and all three have seen changes recently.
Class Q
First introduced in 2014, Class Q is a valuable tool for landowners to convert old barns, sheds and grain stores without needing to apply for full planning permission. Recent changes have included the inclusion of agricultural buildings which are not part of the established agricultural unit. This will give farmers and landowners the opportunity to convert outlying buildings, which has previously been against the rules. Historically, buildings had to be solely used for agricultural use, however this has been removed in instances where that building is part of an established agricultural unit.
Other changes have included the maximum number of dwellings increasing to 10, with a total floor area of 1,000 m2 (previously the number of dwellings was limited to 5 with a maximum floor space of 865 m2).
Frustratingly, the maximum floor area for a single property has been reduced from 465 m2 to 150 m2.
Class R
Class R allows landowners to convert agricultural buildings to a range of commercial uses, along with diversification to other uses such as sport and recreational. The total floor area allowance has increased from 500 m2 to 1,000 m2.
Class A
For farms of over 5 hectares, the maximum size the barn can be is 1,500 m2, and for holdings less than 5 hectares, the total size limit has increased to 1,250 m2.
Many of Robinson & Hall’s client base are situated, fortunately, within the area known as the Oxford to Cambridge Arc. This is a globally significant area between Oxford, Milton Keynes and Cambridge which supports over 2 million jobs and adds £110 billion to the economy every year. It is seen as one of the fastest growing economies in England and there is a recognition by the Government that it is an area of opportunity to build a better economic, social and environmental future for the area. There is a real push over the next decade to transform this area, with initiatives such as the East West Rail being promoted to ensure better connectivity between Cambridge and Oxford, not to mention the potential of Universal Studios UK coming to Bedford, which would create thousands of jobs and put Bedford truly on the map! It is still some way off, with the theme park not expected to open until 2031, however it could be transformational for Bedford Borough.
As you can tell from the above, there is always lots going on and it is difficult to keep track. If you have a planning query or are curious as to whether your land has development potential, please do get in touch. It would be good to meet, and you never know, you might be sitting on a goldmine.
Please contact Tristan for more information or to find out how he can help you.
The East West Rail project has finally issued its route, and consultations are taking place locally. I visited the exhibition recently in Bedford.
The main points are:
The stated aim is to be primarily a freight route.
More details can be found online at here or you can visit the exhibitions in person.
The Autumn Budget was announced on 30th October, the first to be delivered by Chancellor Rachel Reeves of the new Labour Government.
What does this mean for farmers and landowners?
At the time of writing, I list the changes below:
Inheritance tax
There is no denying that the inheritance tax changes will have a significant impact on rural business and family farms. Firstly, there is the one positive change which had already been proposed by the previous Government which is that Agricultural Property Relief (APR) should include land in environment land management schemes. This will now come into effect from 6th April 2025.
The major negative change, and the one attracting most interest in the press, is that from April 2026, inheritance tax will apply for assets of over £1 million. This will be at a relief rate of 50%, giving an effective tax rate of 20%. Each person will in addition have their nil rate band of £325,000, which can increase to £500,000 with certain very strict criteria.
The first £1 million of assets remain tax free and then tax will be payable on the remainder of the value in relation to the deceased interest within the farm. This includes machinery, livestock, seed, fertiliser, growing crops, crops in store, hay, straw, silage, grain stores, milking parlours, etc – basically everything on your farm and not just land and property. It is important to note that these assets will be valued at the market value, not the value in your accounts. It is also worth noting that if there are tenancies where the deceased had an interest, the value of their share will be considered a business asset. It is clear to see that £1 million will not go far for many farmers and landowners, despite the Government’s current figures to the contrary.
From 2027, pensions will also be included in inheritance tax assets.
Other changes which could impact farmers and agricultural businesses:
Reduction in de-linked (ex-Basic Payment Scheme) payments – from 2025, the maximum payment will be £7,200 per annum. We have no information yet on whether there will be further payments beyond 2025.
National minimum wage – will raise to £12.21 per hour in April 2025, a 6.7% increase.
Employer national insurance contribution – will increase to 15% in April 2025 with the threshold cut from £9,100 to £5,000. The extra cost of employing staff needs to be factored into your cashflow.
Double cab pick-ups – will be treated as cars for the purposes of capital allowances moving forward.
Carbon borders tax on fertiliser – from 2027, there is likely to be a £50-£75 per tonne cost added to imported fertiliser, which will add a further cost to growing crops and lead to an extra cost compared to imported crops.
What should you do now?
A balance needs to be struck between the natural human reaction of either making knee jerk changes or ignoring it entirely and burying your head in the sand. With a consultation next year and the changes being brought in from April 2026, there is time to look carefully at all the options. The Government may yet alter the details, but that is not to say people cannot and should not start to make plans now. The focus needs to be on what is right for the business and individuals within that business.
One area which seems to be being ignored by large parts of the media is the way the changes affect the whole business. Many contractors and tenant farmers will have more than £1 million of assets given the value of modern machinery, crops in store and livestock. At times this will vary throughout the year, and it may be an easy place to start to give the next generation more control. Equally, the structure of debt is going to be important moving forward, with the banks moving away from lending solely to the older generation.
With a lot of concerned people out there, speak to those you can trust, whether it be a family member, friend or advisor. Everyone will have a view, with some better informed than others, but hearing those views and having time to make decisions, even if the decision is to make no changes, is vital for good business management.
Difficult conversations need to be had about whether your business is performing to its maximum and what changes need to be made.
At Robinson & Hall, we have worked with farmers for generations, and our expertise puts us in good stead to help and advise you. Please contact us to discuss further.
The Autumn budget was announced on 30th October, the first delivered by Chancellor Rachel Reeves of the new Labour government.
Andrew Jenkinson, Partner & Rural Surveyor shares his expertise…
“There has been considerable commentary on last week’s surprise budget announcement regarding Inheritance Tax. Social media is alive with advice and suggestions, much of which is ill informed or plain incorrect. A balance needs to be struck between the natural human reaction of either making knee jerk changes or ignoring it entirely and burying your head in the sand.
Good succession planning has always taken time, careful thought and at times some difficult conversations. Last week’s announcement does not change this, but should bring succession planning up the priority list.
With a consultation next year and the changes being brought in from April 2026, there is time to look carefully at all the options. The government may yet alter the details but that is not to say people cannot and should not start to make plans now. Every situation is different and so a tailored solution will be needed for all. Passing assets on to the next generation has to be balanced with the other big “d”: the risk of divorce. Furthermore, most trusts, often used in Inheritance Tax planning, incur a 10 year charge, so you need to consider the following:
The focus needs to be on what is right for the business and individuals within that business.
One area which seems to be being ignored by large parts of the media, is the way the changes affect the whole business. To date there has been a focus on the land element, as the most expensive asset, but the changes proposed effect your working capital, growing crops, livestock and machinery. Many contractors and tenant farmers will have more than £1,000,000 of assets given the value of modern machinery, crops in store and livestock. At times this will vary throughout the year and it may be an easy place to start to give the next generation more control. Equally the structure of debt is going to be important moving forward, with the banks moving away from lending solely to the older generation.
The agriculture sector is unique in many good and bad ways but the importance of succession planning should now be of the highest priority. This is something which affects all businesses. With a lot of concerned people out there, speak to those you can trust whether it be a family member, friend or advisor. Everyone will have a view, with some better informed than others but hearing those views and having time to make decisions, even if the decision is to make no changes, is absolutely vital for good business management.
At Robinson & Hall, we have worked with farmers for generations and our expertise puts us in good stead to help and advise you. Please contact our Rural Property & Business department on 01234 352201 to discuss further.
As we transition towards a more sustainable future, battery storage projects are becoming increasingly important in the UK’s energy landscape. These projects, which involve the installation of large-scale battery systems on land, play a crucial role in balancing electricity supplies during times of peak demand.
Landowners who fall within a mile or so of a large National Grid substation or a future substation are being approached by developers offering to promote new battery schemes. As the battery sector is still in its infancy, it is essential to receive informed advice to avoid common pitfalls.
Due diligence
When exploring energy proposals, it is important to understand the specifics of these projects, including the process of connecting to the grid, predicted energy use, grid connection offers, heads of terms, letters of authority, grid connection queue management and land area requirements. Understanding the grid capacity will also allow the landowner and promoter to understand the scale of any proposed scheme, which will fundamentally affect the total amount that the landowner may receive for any given scheme.
Land area
The land area required for a battery storage project will vary from scheme to scheme, although batteries take up little space compared to solar and are considerably more profitable per acre. An acre of land may hold a 15-30 MW battery scheme. On the other hand, a solar scheme producing the same amount of power may require 150+ acres. A 200 MW (13 acre) battery scheme could store enough power to power over 300,000 homes.
Landowners who have previously been approached for a solar scheme should now consider whether they may have a greater appetite to explore the possibilities of batteries.
Mixed schemes
Some proposals may consist of a mixture of solar panels and batteries. The batteries can receive the electricity from the solar panels during the day and then export the electricity when there is greatest demand at a higher price per KW.
Conclusion
Battery technology continues to develop, leading to the increased efficiency of energy storage systems, which in turn are making these projects highly profitable for both the landowner and developer. The ability to store energy and release it when needed not only helps to balance the grid but also allows for greater integration of renewable energy sources, therefore reducing our reliance on fossil fuels. This is a key factor in the UK’s strategy to achieve net-zero carbon emissions by 2050.
At Robinson & Hall, we act for the landowner, not the promoter, to guide you through the process and to achieve the most favourable terms. Factors that are often negotiated include the upfront payment to the landowner, the length of the term of the lease agreement and the proposed rent.
If you are considering a battery or solar project on your land and would like to find out how we can help you, then please contact Hugo.
With the continued focus on climate change and meeting net zero targets, there remains strong interest from developers looking for land for renewable energy projects. A letter through the door from a speculative developer, with proposed terms for a battery or solar project, is now common for a lot of landowners.
At Robinson & Hall, we have renewable projects at all phases of development, from early discussions with developers on behalf of clients, to schemes in construction, to completed projects. We provide advice to landowners from the outset of a scheme, through the negotiation of the heads of terms and on to the signing of the lease and option. Where construction of a project is completed, we also assist landowners with checking the rent payments received as these can be complex where they are based on the income from a site.
One project we recently worked on was a 100 acre solar project in Central Bedfordshire. The site comprised arable land, let on an Agricultural Holdings Act 1986 tenancy, close to a Grade I listed church and with a high voltage over head cable and underground gas main crossing the property. On first look, the project looked to have little potential, but the landowners agreed to a 6-month exclusivity period with the developer, agreeing not to speak with any other developers whilst the developer looked into grid connection and scheme feasibility.
During this time, the developer secured a grid connection and designed a scheme, leaving an area of arable land close to the church undeveloped to provide screening for the listed building. We progressed negotiation of heads of terms which included the key terms for the option and subsequent lease. We also negotiated with the agricultural tenant and agreed the compensation which would be payable if a planning consent was successfully achieved for the solar project. It was important to agree the compensation at an early stage to ensure the tenant was on board with the scheme and would provide vacant possession of the land at such time as the developer needed to start construction.
Once the heads of terms were agreed, the developer’s solicitor drafted the option agreement and lease which we and our clients’ solicitor reviewed before being signed by both parties.
Following signing of the option in September 2021, the developer secured planning consent and served the option notice. The lease was entered into in June 2023 and construction works are now ongoing on site. The rent received is 10 x higher than that received previously from the agricultural tenant with annual index linked increases. Our fees, and those of landowners’ solicitor, were covered in full by the developer, meaning the landowners incurred no cost during the project.
As well as solar projects, we have had significant interest from developers looking for sites for battery storage. As a developing technology, battery storage is being looked at as a way of storing energy produced by renewable projects so that it can be used at peak times and further reduce our reliance on fossil fuels. Battery sites can either come as part of a solar project or as a standalone site. As with solar, a grid connection is vital, but the land needed is much smaller than for a solar project.
We have in recent months seen a renewal in interest for sites for onshore wind. This follows the Prime Minister’s easing of the virtual ban on onshore wind sites, which was brought in by David Cameron in 2015. Whilst planning is still restrictive, with the Government focusing still on offshore projects, developers are sensing there may be a change of policy and are looking again at sites which were being considered prior to 2015. The surveys required for wind projects take a number of years and therefore developers are looking to get ahead of any policy change by having the surveys completed and sites ready to proceed.
When weighing up whether to pursue a renewable energy project, it is important to take advice at an early stage. The negotiation of the heads of terms is key as those are the terms on which the option and lease will be based. It is also important to consider which land should be included and the tax consequences of any change of use.
For further information please contact Polly or Andrew.
With a general election around the corner, there is an unusual amount of activity in the area on large scale infrastructure and progress being made on Local Plans, which is briefly summarised below.
In late 2023, Universal Studios announced that they are looking to develop their first European theme park at Stewartby in Bedfordshire, next to the A421. They have the area under their control, largely through the purchase of the freehold of almost 700 acres. This will create between 8,000 to 10,000 jobs. This scheme, which has support both in local and national government, is reliant on the building of the Wixams train station and a new train station for the East West Rail line, together with major upgrade work to the A421. With a combination of infrastructure and jobs, it will provide significant investment in the area and will affect clients far wider than just those in the immediate vicinity. Universal Studios are consulting locally and works could start as early as 2025.
With work coming to an end on the Bicester to Bletchley stretch, some clients have been surprised to receive survey requests from East West Rail Limited. This is in respect of a next phase of the work from Bletchley through to Bedford where there seems to be some need to do surveys on the earlier phase.
For those affected by the new route from Bedford to Cambridge, you will be aware of the proposed route, with a consultation due by the end of June on the detailed alignment. It appears that the land take will be very significant for this new line, partly in relation to biodiversity offsetting and also for long-term maintenance of the railway.
The 2040 Bedford Borough Council Local Plan is currently on hold until January 2025 whilst the Council undertakes further survey work with National Highways in respect of work required to the A421.
The new Milton Keynes Local Plan, for the period through to 2050, is progressing with a first draft due to be published in the next few weeks. However, the areas proposed for allocation of development have been widely circulated through parish councils, giving an indication of the Council’s thinking on the direction of development.
The West Northamptonshire Local Plan regulation draft plan is currently out to consultation until 2nd June 2024. Development has mainly been focused on the larger settlements within the Council area.
When the Buckinghamshire Unitary Authority was formed in April 2020, there was commitment to making a new Local Plan by 2025. This target is going to be missed, with a consultation on strategic growth expected later this summer as a step towards allocating land.
If you require any further information on any of the above and the effect that it may have on your land, then please contact Andrew.
2023 saw a continuation of strong competition for blocks of good farmland and, in particular, for larger complete farms. Unless there is a significant increase in supply of farms to the market, I do not expect this pattern to change in 2024.
The quantity of available farmland rose slightly in 2023 but still remains below historical level. With little pressure from the banks, it remains the instinct of many farmers and of their families to retain land if possible, even if responsibility for the day-to-day farming is given over to a contractor. The family can remain in the farmhouse and can enjoy the amenity of the farm. Diversification projects can be pursued. The taxation advantages of holding farmland have not been eroded. The status quo is appealing to many.
In the meantime, there is a continuous demand for farmland and for farms, both from those within the industry and from without. Landowners who have received a welcome windfall from development sales can quickly find themselves at the end of their 3-year rollover period, at which time sensitivity to the purchase price is dulled. Funds from outside agriculture, particularly for residential properties, is almost limitless.
Accordingly, we have seen that virtually all decent farmland achieved a minimum of around £10,000 per acre last year, but with local competition this price could be pushed to £12,000 per acre, £14,000 per acre or even higher on occasion.
For purchasers with many tens of millions of pounds to spend, of which there is no shortage, a residential farm of 1,000 acres or more is often the target. However, with only a couple of dozen such farms available every year, competition can be fierce.
As I write, the 2024 selling season is just beginning to get underway and we are beginning to see a few farms coming forward. At present, I see no sign that the supply will be much different to last year, and accordingly I would expect to see similar results. Smaller blocks of land will be subject to local competition, which can show a significant variation in prices dependent upon the appetite of the immediate neighbours. Larger blocks will attract interest from across the country, and the expectation is that prices will be in line with the prices which we have seen for the past few years.
At Robinson & Hall, we monitor all farmland sales across the region and larger sales further afield. We are happy to advise on all sales and purchases. Please contact David to discuss further.
In 2018, the Government began to undertake consultations regarding the use of exemption licences at permitted waste sites, with the aim of improving operator competence standards at such sites and reducing the use of the exemptions to cover illegal activity. The consultations raised a series of amendments to be made to the key exemptions that were deemed to encourage poor environmental practice or illegal activity. The proposed reforms make changes to storage limits on waste, the waste that can be used for specific exemptions and to remove some exemptions all together.
Some reforms have already been implemented, such as disallowing multiple exemption licences to be applied for on one site. Further reform on waste records now requires waste operators (i.e. those with a waste exemption licence or environmental permit) to keep electronic records of storage and movement and to provide these on demand.
The new reforms are proposed to come into force in autumn 2024, although a formal date has not yet been released. Each exemption has a specific transition period, setting a period in the months following the reform implementation by which waste operators must conform with the changes. The transition period applies to existing licences and licences registered in the transition period. For those exemptions that are due to be removed, waste operators will be required to apply for an environmental permit to continue these activities.
The table below details the changes to the individual exemptions:
| Exemption | Reform | Transition Period (months) |
| U1 – Use of Waste in Construction | Change to waste codes Name change | 12 |
| U16 – Using Depolluted End-of-Life Vehicles for Parts | Removal of exemption | 3 |
| T4 – Preparatory Treatment of Waste by Baling, Sorting, Shredding, Pulverising, Densifying, Crushing, Granulating or Compacting It | Change to storage conditions Name change | 6 |
| T6 – Treatment of Waste Wood and Waste Plant Matter by Chipping, Shredding, Cutting or Pulverising | Change to storage conditions Name change | 6 |
| T8 – Mechanically Treating End-of-Life Tyres | Removal of exemption | 3 |
| T9 – Recovering Scrap Metal | Removal of exemption | 3 |
| T11 – Repairing or Refurbishing Waste Electrical and Electronic Equipment | Additional fee for licence | N/A |
| T12 – Manually Treating Waste | Changes to storage conditions | 6 |
| T21 – Recover Waste at Waste Water Treatment Works | Change to waste codes | N/A |
| D7 – Burning Waste in the Open | Change to waste codes Name change | 12 |
| S1 – Store Waste in Secure Containers | Change to storage conditions Change to waste codes | 12 |
| S2 – Temporary Storage of Waste at a Secure Site Pending Recovery Elsewhere | Change to storage conditions Change to waste codes | 12 |
| S3 – Storing Sludge | Change to volume of waste required for exemption | N/A |
For further information on the waste exemption regulation reforms, please contact Emily.
As large-scale solar and battery projects gain popularity, more and more landowners are being approached by companies who wish to take out option and lease agreements across their land. Documentation from each company will vary, with some heads of terms being very comprehensive, whilst others are a little more simplistic. Given the number of projects that have popped up in our region, we have put together some pointers on some of the less common factors people need to give thought to before entering into an agreement with a developer.
Most developers will request an initial exclusivity period where the landowner agrees not to engage with any other party whilst the developer confirms grid connection and carries out an initial planning assessment. Thought should be given to the length of this exclusivity period and what surveys, if any, the developer may undertake during that time.
Whilst the prospect of generating renewable energy can be exciting, it is important to consider any existing agreements that you have entered your land into, and the limitations associated with these. With the decline in Basic Payment Scheme payments, more landowners have turned to Countryside Stewardship and the Sustainable Farming Incentive to supplement their income. However, these schemes come with a 3 or 5-year term respectively. It is therefore important to consider the timeframes for each stage of the project – will the solar tenant have achieved planning permission before the end of your land management scheme? Will they be prepared to compensate you if this is the case? Environmental schemes may place limits on the surveys that the solar tenant can do, as you don’t want to be penalised by the Rural Payments Agency because the solar tenant has dug a soil sample out of your flower-rich margins!
There will also be restrictions relating to existing tenancies on the land. It is important to check the termination provisions of such agreements and whether compensation may need to be paid to the existing tenant if the option agreement is acted on during the term of their tenancy.
There is great variation across the board in the value of option agreement payments and lease rents. Additionally, some solar companies will offer a lower rent for a lease but with extra one-off payments. It is important to consider the long-term income potential before deciding whether to take one-off payments or a higher long-term rent.
Solar companies are keen to fix their lease rents for the long term and may try to cap rent reviews in the heads of terms. It is usual to see rent reviews in line with an index, such as Consumer Price Index, but recent high inflation has seen some solar companies try to cap the increases to a certain percentage per year. It is often possible to negotiate at the heads of terms stage.
Decommissioning the site at the end of the lease comes at a cost to the solar company and therefore must be budgeted for. A landowner must ensure funds are set aside so a tenant doesn’t disappear at the end of the lease, leaving the landowner to clear up. Most leases include terms for a ‘decommissioning bond’, under which money is set aside annually by the solar company so that money is available for decommissioning when the time comes. The earlier this payment begins, the less risk to a landlord that they will be left with an issue at the end of the lease. It is also important that the lease includes provision for regular reviews of the bond amount to ensure adequate funds will be held at the end of the lease.
Generally, the developer will cover the landowner’s reasonable legal and surveyor’s fees. However, they will often put a cap on that amount. It is important to ensure the cap is at a suitably high level to cover all your costs up to and including the signing of the lease. The developer should also give an undertaking to cover these costs should the transaction fail to complete, other than where the landowner has acted unreasonably.
As a landowner, it is important to get the best deal as possible, but it can be difficult to see the next steps when looking at pages of legal jargon. If you would like more information on how we can help you to negotiate a solar agreement, please contact our Rural Team on 01234 352201.
