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2018 was a challenging year for farming and for the farmland market.
A late spring and uncertainty over Brexit and the Agriculture Act dampened enthusiasm in farming communities. Land prices had fallen for the previous three years and further falls were widely predicted. Why buy this year when the same commodity could be cheaper next year?
The supply of land to the market started slowly and in our region continued at a low level all year. Predictions of thousands of acres coming to the market to beat a post-Brexit farming slump never came to pass. In my experience, the supply of land to the market has rarely moved in line with agricultural returns. The only time that increased land comes to the market is when the banks put pressure on farmers and landowners but it seems that most have their businesses in reasonable shape and no such pressure has been applied. Accordingly, the supply has been limited to the usual factors of death, divorce and relocation.
Demand for land has varied from cautious to enthusiastic. As usual, the majority of funds are introduced from non-farming sources. Rollover funds from windfall developments are important in our area together with newcomers to farming who have made their money in the city or from the sale of a business.
Accordingly, we have seen prices vary hugely. Strong neighbour interest can drive the price to £10,000 per acre or occasionally even £15,000 per acre, yet a similar block not too far away has struggled to make £7,000 or £8,000 per acre. Predicting the outcome of a sale has never been trickier.
Given the despondency at the beginning of the year, it was perhaps surprising to find that prices were marginally higher on average by the end of 2018.
Looking forward, we start the year with similar difficulties. As I write, Brexit madness is reaching fever pitch and predicting the nature or even the timing of a settlement is impossible. Disruption to farming businesses, particularly those which rely on trade with the continent, has never been more uncertain. We know nothing more about the Agriculture Bill than we knew 12 months ago. Yet despite these difficulties, I would still predict a strong market. I doubt that supply of land will increase greatly as farmers are in no more difficulty with the banks this year than they were last year. Some blocks of land will still be enthusiastically fought over where there is local interest with funds available. Other land may be difficult to sell where the neighbours are not interested.
Small complete farms will always sell well to the lifestyle buyer and larger complete farms will inevitably attract great interest. The number of 1,000+ acre farms which come to the market in any year is limited and can never satisfy the demand from those seeking to farm at scale.
I predict a limited supply with a wide range of prices but with average prices much the same as last year. Brexit will come and go and farming fortunes will take their usual unpredictable course. However, the opportunity to buy the land next door will always be difficult to resist and sometimes price is not an issue.
For more information or to discuss how we can help you sell or let your farm or land, please contact me.
The world of residential lettings is ever changing with new rules and regulations being introduced all the time. It can be quite confusing so to help we have summarised all changes and highlighted what you need to be aware of.
The lettings market
We let 38% more properties last year. However, this year the market is stalling a little due to Brexit which is seeing more tenants staying put. Bedford has a high number of European tenants who are waiting to see what their future is within the UK before committing to another six month minimum contract.
Rental prices have increased over recent years but we are expecting these to stabilise. Three bedroom properties seem to be the most popular and we are currently seeing rental prices averaging at £995 per calendar month.
Management of properties has also increased and we now manage 400. This increase is largely due to regulation changes which landlords don’t want the hassle of sorting out themselves.
Tenants who are moving are expecting higher standards of accommodation and those who are finding their ideal property are staying put for an average of 3-4 years.
Mandatory five-yearly electrical installation checks on private rented housing
The Ministry of Housing, Communities and Local Government (MHCLG) has stated that it plans to introduce the legislation as soon as possible.
In year one all new private tenancies will be affected and in year two all existing tenancies will come within scope. Properties that already have a valid Electrical Installation Condition Report (EICR) will not need to replace it until five years have passed since the date of issue. Penalties of up to £30,000 will be issued to any landlords who do not comply.
Thankfully we organise five-yearly checks on all our managed properties and we ask landlords to do this for properties we don’t manage.
Tenant fees are banned
The ban on tenant fees applies to all tenancies commencing on or after 1st June 2019.
We have always been very clear on the fees we charge both landlords and tenants and we believe our fees are competitive compared to other lettings agents. However, this does mean that landlords will have to foot the bill for the tenant reference checks. Our current fee is £38.40 per person. We will ensure we carry out all income and identity checks before undergoing the reference process to try to avoid receiving any unacceptable references.
Minimum Energy Performance Certificate (EPC) Rating of E
From 1st April 2018 there was a requirement for any properties rented out in the private sector to have a minimum energy performance rating of E. This was on new lets and renewals. From 1st April 2020 this will also apply to existing tenancies. Penalties of up to £4,000 will be imposed.
If your rental property has an EPC rating lower than an E, please do get in touch. Our surveyors will be able to visit your property and make recommendations to improve your rating and manage the works if you wish. 2020 seems like a long time away but works can take some time to sort out so I suggest you think about this now.
OFFER – REFER A LANDLORD TO US AND RECEIVE £100 AND TWO MONTHS FREE MANAGEMENT
For further information or to book a free, no obligation lettings appraisal please get in touch with Kellie.
The Department for Environment, Food and Rural Affairs (DEFRA) has recently launched a paper outlining the proposals put forward by the Tenancy Reform Industry Group (TRIG).
TRIG advises on measures that assist the tenanted sector within the agricultural industry and includes representatives from various professional bodies such as the Central Association of Agricultural Valuers (CAAV), the Royal Institution of Chartered Surveyors (RICS) and National Farmers’ Union of England and Wales (NFU).
The mood from DEFRA is that agricultural productivity in England is lagging behind other countries. They want a younger, more entrepreneurial tenant base in order to drive forward new ideas and help productivity. They are keen to progress ‘structural change’ in the tenanted sector.
The proposals in respect of Agricultural Holdings Act tenancies are as follows:
1. To help older tenants realise financial value from their tenancy by allowing them to assign the tenancy for payment to a new tenant. This would be exercisable on only one occasion and subject to the right of the landlord to serve a counter-notice to negotiate to buy out the tenant’s interest.
If the tenancy is assigned, the rent would be at an open market level and the landlord can serve an incontestable Notice to Quit after 25 years. There would be no further succession rights.
If the landlord serves a counter-notice, there is 6 months for the parties to agree a figure for the landlord to buy out the tenant or the matter is referred to an arbitrator or independent expert.
2. To remove the minimum age of 65 for retirement, enabling tenants to retire and hand over to their successor at any age.
3. To remove the right for close family relatives to apply to succeed to the tenancy when the current tenant reaches 5 years past state pension age.
If this proposal were to be accepted, it would take effect 8 years after the legislation is enacted to allow tenants the ability to restructure their affairs.
4. To only allow Council landlords to serve retirement Notices to Quit where the tenant has reached the age they can receive state pension.
5. The removal of the commercial unit test, which currently prohibits those already occupying a commercial farm from being able to succeed.
6. To replace the existing suitability test with a new business competence test which takes into account a variety of different factors, including experience and business management skills.
7. An extension of the eligibility provisions to include those cohabiting with the tenant, or the children of cohabiting partners, to be treated as eligible to succeed.
8. To widen the definition of close relatives to include nephews, nieces and grandchildren of the tenant so that they would be able to succeed.
If grandchildren are able to succeed, there may be a provision that the landlord can serve an incontestable Notice to Quit after 25 years, in addition to the rent being at open market level.
9. To introduce legislation to allow either landlord or tenant to refer to dispute resolution where there are clauses within tenancies restricting activity such as diversification or environmental schemes.
10. To allow investments in fixed equipment on the holding made by the landlord to remain as a separate return on the investment capital and excluded from rent review considerations.
There are also provisions to cover some amendments to short notice in Farm Business Tenancies. The main aim is to introduce short Notices To Quit for new Farm Business Tenancies of 10 years or more, thereby encouraging landlords to offer longer term lets. The proposal details that specific circumstances, such as non-payment of rent or death of the tenant, would be subject to shorter termination procedures, leading to investment in productivity improvements and environmental outcomes in the tenanted sector.
It is important to remember that, at this stage, these are only proposals and will be subject to modification and amendments. However, if adopted they will have far-reaching consequences for landlords and tenants and they need to be fully considered when making decisions now.
For more information or to find out how our Rural Property & Business department can help you please contact 01234 352201 or email bedford@robinsonandhall.co.uk
Tenant fees were banned with effect from 1st June 2019 meaning that all letting agents had to review their charges and update their marketing accordingly.
Kellie Marsh, Residential Lettings Manager at Robinson & Hall comments “The ban of tenant fees has caused turmoil for some letting agents. The removal of tenant fees could impact their business quite significantly, particularly for those who charged tenants for extras such as renewals and end of tenancy checks. I therefore believe that some agents now charge landlords the tenant’s fees.
Thankfully this is not the case at Robinson & Hall as we have decided to abolish our tenant administration charges and we have never charged tenants for extras such as renewals or end of tenancy checks. The only additional charge our landlords receive is the tenant reference fee of £32 + VAT (£38.40 inc VAT) which covers the cost of any reference checks for the tenant.
So, what impact will this have on the lettings industry?
It is looking likely that rents will rise across the industry as landlords have to foot the added costs.”
A full list of our residential letting charges can be found here: http://robinsonandhall.co.uk/fees-and-charges
To find out how our residential lettings department can help you or to book a no obligation market appraisal, please call 01234 351000 Option 1 or email lettings@robinsonandhall.co.uk
2018 saw our party wall surveyors involved in over 80 Party Wall Awards and related matters. These ranged from rear extensions to semi-detached houses to a cinema in Luton being converted into 66 apartments.
Recent experience has shown four key areas of misunderstanding:
If you are intending to carry out building work close to your neighbour’s property or if your neighbour is about to build, telephone Stuart Brown, party wall expert at Robinson & Hall, to obtain advice on whether the Act applies and what procedures are involved.
The recent Spring Statement confirmed that the Government would be introducing a package of new reforms to allow greater changes of use between premises. In a subsequent written ministerial statement, Housing, Communities and Local Government Secretary, James Brokenshire, confirmed the following:
In October 2018 the Government proposed the introduction of new permitted development rights and consulted on the proposed changes until January 2019 entitled “Planning reform: supporting the high street and increasing the delivery of new homes”. The plans propose to allow greater change of use to support high streets, support extending existing buildings upwards to create additional homes and to speed up the delivery of new homes. These changes include:
These new permitted development rights are expected to be confirmed in spring, with the more complex matters including upward extensions to be confirmed in autumn.
How can Robinson & Hall help?
With these permitted development changes comes greater opportunity and Robinson & Hall is ideally placed to provide advice on how you might be able to benefit. Should you have any queries on the above or wish to discuss opportunities that may arise from these changes, please do not hesitate in contacting any member of the planning team.
Auction House, the UK’s leading national and regional property auctioneer, has delivered its best ever first quarter sales in the 12 year history of the company.
The group sold 762 lots between January and March 2019, up 5.5% on the previous year, at a success rate of 74.4% and raising £87.9 million in the process.
Charles Lovell, Head of Auction House Robinson & Hall, said: “These are remarkable figures for Auction House, particularly at a time when the industry is reporting a 10-15% drop in sales. Once again, Auction House continues to buck market trends, confound the critics and exceed expectations.”
“Certainly, regional auctions are gaining in popularity as more local sellers switch to the auction room for a faster result. The appeal of speed and certainty is the big attraction, typically just two months from instruction to completion, compared with around five months or even longer via estate agents.”
“The month of March also delivered well for the group, with 243 lots sold (242 in March 2018), at a success rate of 71.3% with £29.1 million raised. Charles explained: “Matching last year’s sold result in March is a powerful outcome amidst unprecedented political turmoil over Brexit. We put that success down to our unique combination of local knowledge, regional expertise and national strength, which enables our winning performance to be maintained year on year.”
The number of entries into the group’s April sales is also up on last year. There are currently 528 listings to date – a marked rise from 485 in April 2018, 22 of which were offered by Auction House Robinson & Hall.
Charles added: “Our auction rooms are buoyant, with buyers finding properties that are ideal for their requirements. Prices are keener than they have been, lower land values are bringing builders back into the market, and undoubtedly there are some bargain opportunities out there.”
“Overall, our results across the regions have held up extremely well, despite what pundits have been saying about property transactions being hard hit. I expect interest to strengthen further – especially when our Brexit future becomes clear.”
Results for our April auctions last week can be viewed here: https://www.auctionhouse.co.uk/robinsonandhall/auction/past-auctions. We are now taking lots of our June auctions so please contact us for a free, no obligation auction appraisal on 01234 362899.
We often receive planning jobs whereby the individual has attempted to apply for planning themselves and they now require our help. Abel Bunu, Senior Planner at Robinson & Hall, explains why it is important to use a planning consultant from the outset when applying for planning permission.
In certain cases, if you get it wrong, it may be possible to apply for retrospective planning permission but there is no guarantee that such permission would be granted. Should that be the case and the council considers it expedient to take enforcement action to remedy the breach of planning controls, this could result in huge costs and/or prosecution. We recommend that you discuss your project first with our team of experts, no matter how straightforward it appears to be, in order to avoid some of the common pitfalls.
Planning legislation and policies are always changing and the Planning team at Robinson & Hall can help you keep up to date with the latest changes and how you take advantage of them to unlock the value of your property.
Not all development requires planning permission and our team of experienced planners can assist you to interpret the regulations and how you can benefit from the relevant provisions. For example, by considering Permitted Development Rights, you could make huge savings in application fees and costs of producing detailed drawings and surveys. It also means that the scope for third parties to object against your proposal are limited to only those matters that are stipulated in the relevant regulations.
We advise that even when the internet is awash with information on planning related matters, it is not always possible for developers to get it right or pick the best route as planning regulations are couched in legal language which may require expertise to get the correct interpretation.
Getting to grips with planning jargon and the planning process can prove to be a daunting task. Our team includes planners with previous work experience in local planning authorities and as such are well versed with planning procedures. This therefore puts us in a strong position to negotiate positive outcomes with council officers and members.
Once an application has been submitted to the council, it may be necessary to keep abreast with its progress to ensure that you do not get an unexpected outcome at the end of the process. At Robinson & Hall, our team monitors clients’ applications by constantly checking the council website and remaining in contact with the planning officers. Where necessary, we respond to third party representations before a decision is issued and if support is required at the planning committee, we are on hand to assist.
At times you may get a decision that you disagree with and wish to challenge it. Our team of experienced planners can assist you with the process, first, by assessing your options. We advise that as a first step, it is better to exhaust all channels of obtaining a positive outcome at the local level before lodging an appeal. We can explore your chances in this respect and advise how to overcome officers’ reasons for refusing planning permission. This is usually quicker than pursuing an appeal process. However, if we do not believe that there is merit in trying to address the reasons for refusal at the local level where, for instance, disagreement is based on matters of principle, it would normally be advisable to lodge an appeal. There are different ways of appealing a decision and after assessing your case, our team would be able to recommend one that best suits your circumstances.
Our team takes specific instructions from clients and these can be amended by mutual consent throughout the project cycle. For large projects, we would normally recommend a phased approach which gives you the opportunity to review your costs and the original design brief. From our experience of handling varied projects, we have found this approach effective as unexpected costs can be avoided at an early stage. After carrying out an initial appraisal of your project, we will not advise you to proceed to the next stage if we believe that there are no reasonable prospects of obtaining a positive outcome from the planning process.
At Robinson and Hall, we aim to provide a one stop shop which would provide you with the added convenience of dealing with only one agent. To prepare a successful planning application, and depending on the complexity of the project, several technical inputs could be required. We have an in-house drawing office which can prepare bespoke architectural plans designed to satisfy the councils’ design guidance and policy requirements.
The planning decisions that you make frequently have wider implications on the value of your property and at Robinson & Hall, we have a valuation team that can assist you with this process and the disposal of your property.
If you wish to find out more information about our planning consultancy and how we can assist you, please contact one of the Planning & Development team.
We are delighted to announce that Tessa Smith joined us this month as Commercial Property Surveyor.
After graduating from Harper Adams University with a BSc (Hons) in Rural Enterprise and Land Management, Tessa then worked for a national telecoms company as a Graduate Commercial Property Surveyor where she became a Chartered Surveyor. She then spent the last 18 months working for a commercial surveying firm in London.
Determined to grow and develop her knowledge of the property industry, she decided to join Robinson & Hall as we deal with a variety of property types including residential, commercial and rural.
Tessa works across all commercial fields but is currently focusing on property management, lettings and disposals.
In her spare time, Tessa has a hands-on role managing her and her partner’s flock of pedigree Suffolk and Texel sheep, walking her dogs and exploring different parts of the world.
To find out how our Commercial Property department can help you, please call Tessa.
With the HSE announcing that farms will come under scrutiny, being compliant with health and safety is more important than ever.
In the figures announced for 2017/2018, the agricultural sector faced the highest rate of workplace injury across all sectors. Of the 144 workers fatally injured, 29 worked in agriculture.
An HSE inspection can occur without notice and this can have serious consequences. This year the HSE has announced it will be particularly looking at how risk is being controlled in the following areas:
The majority of farm vehicle fatalities occur as a result of overturns when working on slopes or collisions with pedestrians. Always make sure you properly plan farming operations and ensure machinery is suitable for the task.
Falls are the second highest cause of death in agriculture. Most incidents can be avoided if risks are identified and managed in advance. Work on fragile roofs is particularly dangerous so always take the correct precautions and do not take any risks when planning any works at high level.
Ensure that you have good handling facilities in place and that workers are fit and able to undertake the work. Where possible, select fields without public rights of way for bulls or cattle that have calves. We are expecting the Small Capital Grants Scheme to re-open later in the year which can partly fund certain new livestock handling equipment.
Children should always be supervised to make sure they are kept away from danger. Always ensure they are kept away from machinery and vehicles.
As with any sector, working in agriculture has its risks. However, having clear procedures and planning ahead allows for that risk to be managed. The HSE’s message is clear – pay closer attention to how you manage risks in the workplace or face a potentially serious penalty.
Robert Franklin, Head of Architecture & Building Surveying, comments “the advice is to always plan ahead for any kind of works, whether you are erecting new buildings or extensions or just simple everyday maintenance. When you employ contractors, always ensure they are competent and have the skills to do the job. There is plenty of guidance available on the HSE website www.hse.gov.uk/agriculture/ to ensure you have systems in place to reduce the risk of an accident occurring.”
To discuss this matter in more detail or find out how Robinson & Hall’s Architecture & Building Surveying department can help you, please call Robert Franklin.
