Latest News
14/11/2011 - UK housing market sees rise in activity
The housing market saw an increase in activity during October, as sales levels rose, and demand edged up, said the latest RICS UK Housing Market survey. During October, 8 per cent more chartered surveyors reported newly agreed sales rose rather than fell, representing a rebound in activity after the past month's dip (-3 per cent).
Although still at historically low levels, this rise represents the best reading since April 2010. Some surveyors attributed this increase to growing realism from many sellers, who appear to be more willing to take offers in order to secure a sale.
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31/10/2011 - ACT NOW TO PREVENT LOSING OUT ON VALUABLE PLANNING CONSENTS
Readers within the Scottish Borders who have obtained planning permission for the development of traditional farm steadings and building plots during the last few years are reminded to review the expiry date on these consents. Outline consents (now replaced by planning permission in principle) had a three year time limit whilst full consents (now referred to as full planning permissions) were for five years and approval of reserved matters (now approval for matters specified in conditions) provided for two years before work had to be started.
A strong demand for new housing in rural locations coupled with local policy enabling development of some steadings and small building groups created a surge in this type of application during the late 1990’s and early 2000’s. However, as a result of the downturn in the property market during 2008, the re-sale of completed development sites is now trickier and with finance still difficult to obtain the level of interest in acquiring new development sites has waned. Simultaneously the number of fresh planning applications has fallen although there is still a reasonable demand for good rural plots for individual residential development.
The shift in the property market is not the only thing to change shape during the last few years – the planning system has also continued to evolve and Scottish Borders Council (SBC) is currently working towards delivery of the National Planning Reform Agenda. There has not only been a change in the name of the various types of application but also in the policy which these applications are assessed against.
The Scottish Borders Consolidated Local Plan was introduced earlier this year. This document clearly sets out the policy which all new applications in the area are assessed against. Most notably there is a significant change within policy D2 – Housing in the Countryside. This policy now accepts (in certain circumstances) the expansion of rural building groups by up to two new dwellings or 30% of the number of houses in the existing building group (whichever is the greater). Note: ‘existing building group’ is the group as it stood at the moment of adoption of the Consolidated Local Plan 2011. This is a reduction from the expansion that was theoretically allowable previously and should any existing consent lapse then a new application would be assessed under this new policy. Therefore a site that previously obtained consent for three units may under new policy only be able to obtain consent for two (or less). Even ‘renewal’ applications resubmitted close to expiry of previous permissions will be considered against current policies and a reduction in numbers may be pursued by SBC. Fresh applications will also require assessments of the following:
• Environmental Impact
• Transport
• Water And Drainage
• Flood Risk
• Contaminated Land
• Natural Heritage, Trees, Wildlife And Biodiversity
• Heritage, Conservation Areas And Listed Buildings
• Sustainability Issues
• Noise
• Structural Stability Of Existing Buildings.
A further factor to consider is whether or not Local contributions for affordable housing and education have already been paid through a Section 69 Legal Agreement. Fresh applications on sites where previous consents have lapsed and only a reduced number of units can be granted under new policy may mean that the applicant will be able to apply to the Council for a refund. Section 75 Agreements facilitate the deferral of contribution and where new consents are obtained after the original consent has lapsed there may be the requirement to enter into a new Section 75 Agreement or to alter the terms of the original agreement. In both scenarios there is likely to be associated administration or legal costs which could be otherwise be avoided by acting before the original consent expires. It therefore stands that prompt action could prevent the loss of valuable consents and save on costs. The property market will in time recover and these developments will once again be in vogue. Meanwhile it is noted that there are, albeit in fewer numbers, still transactions of both plots and steading sites taking place in the current market so the prospect of selling now should not be dismissed.
Finally, where there is a danger of existing consents being lost, whether full or outline, steps can often be taken to ensure that this does not happen – for example, by applying for approval of reserved matters or by starting work on the development. Given the amount of money at stake, even for a single plot, this is something which may need to be considered.
28/10/2011 - 2011 Autumn Farming Review on planning
ACT NOW TO PREVENT LOSING OUT ON VALUABLE PLANNING CONSENTS
Readers within the Scottish Borders who have obtained planning permission for the development of traditional farm steadings and building plots during the last few years are reminded to review the expiry date on these consents. Outline consents (now replaced by planning permission in principle) had a three year time limit whilst full consents (now referred to as full planning permissions) were for five years and approval of reserved matters (now approval for matters specified in conditions) provided for two years before work had to be started.
A strong demand for new housing in rural locations coupled with local policy enabling development of some steadings and small building groups created a surge in this type of application during the late 1990’s and early 2000’s. However, as a result of the downturn in the property market during 2008, the re-sale of completed development sites is now trickier and with finance still difficult to obtain the level of interest in acquiring new development sites has waned. Simultaneously the number of fresh planning applications has fallen although there is still a reasonable demand for good rural plots for individual residential development.
The shift in the property market is not the only thing to change shape during the last few years – the planning system has also continued to evolve and Scottish Borders Council (SBC) is currently working towards delivery of the National Planning Reform Agenda. There has not only been a change in the name of the various types of application but also in the policy which these applications are assessed against.
The Scottish Borders Consolidated Local Plan was introduced earlier this year. This document clearly sets out the policy which all new applications in the area are assessed against. Most notably there is a significant change within policy D2 – Housing in the Countryside. This policy now accepts (in certain circumstances) the expansion of rural building groups by up to two new dwellings or 30% of the number of houses in the existing building group (whichever is the greater). Note: ‘existing building group’ is the group as it stood at the moment of adoption of the Consolidated Local Plan 2011. This is a reduction from the expansion that was theoretically allowable previously and should any existing consent lapse then a new application would be assessed under this new policy. Therefore a site that previously obtained consent for three units may under new policy only be able to obtain consent for two (or less). Even ‘renewal’ applications resubmitted close to expiry of previous permissions will be considered against current policies and a reduction in numbers may be pursued by SBC. Fresh applications will also require assessments of the following:
• Environmental Impact
• Transport
• Water And Drainage
• Flood Risk
• Contaminated Land
• Natural Heritage, Trees, Wildlife And Biodiversity
• Heritage, Conservation Areas And Listed Buildings
• Sustainability Issues
• Noise
• Structural Stability Of Existing Buildings.
A further factor to consider is whether or not Local contributions for affordable housing and education have already been paid through a Section 69 Legal Agreement. Fresh applications on sites where previous consents have lapsed and only a reduced number of units can be granted under new policy may mean that the applicant will be able to apply to the Council for a refund. Section 75 Agreements facilitate the deferral of contribution and where new consents are obtained after the original consent has lapsed there may be the requirement to enter into a new Section 75 Agreement or to alter the terms of the original agreement. In both scenarios there is likely to be associated administration or legal costs which could be otherwise be avoided by acting before the original consent expires. It therefore stands that prompt action could prevent the loss of valuable consents and save on costs. The property market will in time recover and these developments will once again be in vogue. Meanwhile it is noted that there are, albeit in fewer numbers, still transactions of both plots and steading sites taking place in the current market so the prospect of selling now should not be dismissed.
Finally, where there is a danger of existing consents being lost, whether full or outline, steps can often be taken to ensure that this does not happen – for example, by applying for approval of reserved matters or by starting work on the development. Given the amount of money at stake, even for a single plot, this is something which may need to be considered.
11/08/2011 - SRDP 2011 round-up
The latest round of Scottish Rural Development Programme (SRDP) biodiversity applications has just finished, with the Berwick and Galashiels offices submitting another varied selection of schemes, including SSSI management, a range of moorland options, grassland management for birds, woodland planting and arable options such as wild bird mix and grass margins. Due to budget restrictions, SGRPID have temporarily suspended the hedge management option from the programme, and this suspension is likely to continue for the remainder of the scheme (until 2013). However, the extended hedge option, where a 3m margin from the centreline of the hedge is managed on one or both sides of the hedge, is still available and was taken up by a number of our applicants. Capital costs of new planting, stock fencing, rabbit netting and gates are also still available with the extended hedge option.
It is unlikely that there will be another biodiversity round of applications this year, but we expect that there will be another round for biodiversity schemes in 2012. The application process is increasingly complicated, but there is still money available for those who are interested in applying.
The next SRDP submission date is yet to be announced, but there may be one in the autumn and it is likely to be open to business schemes only. There is still funding available for a range of business applications, including new sheds, poultry units and business diversification, but it is increasingly necessary to ensure these score well. Due to increasing application requirements, it is best to start the application process as soon as possible so that all the information is collated and all the necessary consents are in place in time for the deadline.
Anyone interested in either biodiversity or business grants should contact either Patrick Playfair in the Berwick office (p.playfair@edwin-thompson.co.uk or tel: 01289 304432) or Michael Evans in the Galashiels office (mevans@edwin-thompson.co.uk or tel: 01896 751300). We welcome any enquiries.
Applications dealing with SSSI areas only can now be submitted at any time. Forestry schemes are the same, providing they are forestry only (i.e. they don’t include any biodiversity options as well) and that they meet the criteria. There have been a number of recent grant updates, including the increase of thinning payments and an increase in payments for productive woodland creation models, making both options more attractive. If you are interested in submitting a forestry scheme, please contact Mark Seed in the Carlisle office (m.seed@edwin-thompson.co.uk or tel: 01228 548385) or Patrick Playfair in the Berwick office (p.playfair@edwin-thompson.co.uk or tel: 01289 304432).
13/06/2011 - Latest RICS Residential Lettings Survey
Tenant demand pushes rents higher
Published 09 June 2011
Increased tenant demand and low levels of rental property coming onto the market pushed rents higher in the three months to April, says the April 2011 RICS UK Residential Lettings Survey.
Overall, 42 per cent more surveyors reported rents rose rather than fell in the three months to April (up from 40 per cent more). Although rents increased across Great Britain, it was London and the South East which saw the most notable increases.
Comments from surveyors reveal that rents in some areas have now risen so sharply that previously affordable homes are now unattainable to many, as an increasing number of renters are priced out of the market.
Meanwhile, home ownership remains out of reach for many would-be buyers, partly because of the high deposits required by lenders, but also due to the cost of available mortgage finance.
As a result, surveyors report that many people have little choice but to rent. In the three months to April, 35 per cent more respondents reported demand rose rather than fell – the highest level for over two years.
Turning to supply of rental property to the market, 6 per cent more surveyors reported new instructions from landlords increased rather than fell – taking the net balance into positive territory for the first time since April 2009.
Instructions from landlords to let flats showed the most pronounced change, with a net balance of +6 per cent (from -7 per cent). The increase for houses was slightly less than in the previous three month period (+2 compared with +5 per cent).
Despite an upturn in new instructions, supply to the market still remains unable to keep up with demand. Tenants are staying longer, resulting in less availability, while fewer landlords are selling their properties at the end of a tenancy. Just 2.8 per cent of landlords sold property in the three months to April (down from 4 per cent).
Looking ahead, the overall rental outlook remains strong, with 33 per cent more surveyors expecting rents to rise rather than fall. Expectations for rental prices were highest in London, followed by the Midlands, the South East and the North.
Although we are beginning to see more mortgages aimed at first-time buyers, many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market. There has been a small uplift in supply, but the imbalance between demand and availability can only mean rents will continue to rise.”
RICS UK spokesperson James Scott-Lee
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25/05/2011 - LOCAL FARMERS MUST ACT QUICKLY TO RECEIVE DISCOUNTED FARM LENDING RATES SAYS AMC
Farmers considering making an investment in their businesses are being urged to tap into discounted loan rates from the Agricultural Mortgage Corporation (AMC), but should act quickly to ensure they secure a loan before the EIB funds expire.
AMC has negotiated access to a £250 million fund provided by the European Investment Bank (EIB) aimed at stimulating investment and job creation in small and medium sized businesses, including farming.
“Our access to this fund allows us to effectively subsidise loans for a wide range of farm improvement and diversification projects, including, building works and livestock housing, machinery and equipment purchases, farm shops, milking parlours and farm energy schemes. The total fund pot is limited and we have already seen a good deal of interest” said Jonathan Allright, Head of AMC.
Local AMC Agent Neal Thompson of Edwin Thompson says: “This scheme provides an opportunity for farmers, who are considering expanding or investing in improving farm efficiency, to access favourable loan rates at a time when interest rates are already historically low.”
Those borrowers eligible for the EIB scheme will receive a discount of 0.8% off the normal loan margin. The minimum amount borrowers can apply for in the scheme is £25,000 with the maximum set at £11 million – equivalent to €12.5 million. The discount is available on loans of up to 10 years for projects that have a definite start and end date.
Neal Thompson also noted that “A wide range of projects fall within the scope of the schemes but, as always, there are some eligibility criteria that must be attained and each case will need to be discussed on a proposal by proposal basis.”
For further information contact Neal Thompson or Sarah Rennie (Berwick office) on 01289 304432 or Hugh Jones (Galashiels office) on 01896 751300 or John Raven or Christopher Gray (Carlisle office) on 01228 548385.
10/02/2011 - Planning Permission in the Scottish Borders and North Northumberland
Although times of recent economic unrest may have deterred thoughts of development and diversification, the increased popularity of the country lifestyle coupled with competitive build costs still means that plots and dwellings are much sought after in rural areas. If you have already been granted outline or full planning permission, it is important that it is not allowed to expire, as local contributions will not be refunded, and the cost of re-applying may be high.
Edwin Thompson are currently involved with several local projects, and offer first rate advice on all stages of applications from an initial enquiry through to final submission. Our building department also offer a comprehensive service for building design concerning both residential and commercial sites.
For more information, please contact Susan Burns or Sarah Rennie at the Berwick office or Simon Sanderson at the Galashiels branch to arrange an appointment.
22/12/2010 - Edwin Thompson gain licence certificate from Gangmasters Licensing Authority (GLA)
Edwin Thompson’s newly gained GLA licence certificate enables us to provide labour and supply gang labour in relation to forestry and agricultural as per your requirements. The licence will provide work and job opportunities for traditional casual labour associated with the forestry and agricultural sectors for activities such as hedge planting, new woodland creation planting, re-stocking planting, various sivicultural related activities such as pruning, re-spacing work in young plantations through to general agricultural and land based gang working scenarios. It captures the casual labour requirements for many typical Edwin Thompson clients in a legal and socially responsible manner at cost effective rates.
It is an offence under the Gangmasters licensing act of 2004 to employ more than one sole-operator contractor onsite unless you have a gang-master licence certificate and could result in prosecution with heavy fines, or even a jail sentence.
To access use of a gang or squad at competitive rates please contact either Mark Seed or James Holliday, Forestry Managers based in our Carlisle office on 01228 548385.
The Edwin Thompson Forestry Department also has long-term agreements with a variety of tree nurseries for all species native, non-native, broadleaf and conifer through to hedging and shrubs with supply of materials relating to planting such as tree stakes and shelters. Also providing for large scale to small scale ground preparation for new woodland creation, restock sites and hedge planting, with a high quality comprehensive fencing service as required.
The Forestry Department, in partnership with all five offices of Edwin Thompson will nationally provides forest management and all types of applications relating to land use both north and south of the border, from large scale woodland creation schemes through to small scale environmental schemes. At present, Edwin Thompson Forestry Department is actively pursuing and purchasing land and forestry assets throughout the UK and can again provide all services regarding acquisitions of these including identification of renewable land based opportunities.
19/08/2010 - Threat of Telecom Mast Removal Affecting Landowners
The telecoms market has enjoyed strong growth during the last decade and landowners have benefited from lucrative rents through leasing of land to telecom companies for erection of masts. Rents for a standard 15m mast with standard equipment rights located in a rural area would typically range from £3500 p.a up to £6000 p.a depending on the quality of the site and proximity to towns, principal roads and railways. This was generally a welcomed additional income stream for farmers especially if the mast was located in the corner of a more marginal field and out of sight from the farmhouse.
Historically, landowners have had a strong position when negotiating new leases and rent reviews as the key providers such as O2, Vodafone & Orange needed to increase their network coverage to make their product more efficient and attractive to customers.
Consumer demand is still strong in the telecoms sector however; the market has become saturated with almost everyone in the UK possessing at least one mobile phone. As technology has improved, phones have become more efficient and call costs have come down as competition increased between the key providers. The need to cut costs and the hit of the recession has put further pressure on the telecom industry. Telecom companies have found that merging networks and eliminating excess masts is the way forward. Company mergers including Orange and T-Mobile, Vodafone and O2 allow ‘group companies’ to site share, which in turn will trigger the decommissioning of many surplus sites.
The telecom companies and their agents are now playing hard ball with the terms they are offering at rent reviews and lease renewals. They are also declining to contribute towards the Landlords’ professional fees for negotiation and documenting of leases, which historically was standard practice. These changes mean that landowners unwilling to settle at lower rents and/or on poorer terms may loose out as the telecom company could move their equipment to a neighbours mast. There have already been a number of deals where negotiations have broken down and sites have been de-commissioned. Landowners reluctant to agree to less attractive terms should also be aware of the implication of the Telecommunication Act 1984 and Communications Act 2003.
Many Landlords will have received letters from their Tenant and/or their Agent requesting a reduction in rent out with the provisions of the lease. This offer or alternatively, ‘threat’ should be carefully considered with reference to the individual site and lease terms before responding. Edwin Thompson has negotiated many leases and rent reviews on favourable terms for the landowners in the past and despite the turbulent market we are well placed to offer cost effective advice to Landowners. For further information please contact Sarah Rennie or Neal Thompson at the Berwick office.
15/07/2010 - Grants for Traditional Farm Buildings
Historic farmsteads and their buildings make a fundamental contribution to landscape character and local distinctiveness. This is because their varied character, like the patterns of settlement and landscapes around them, has been shaped by centuries of change and cultural traditions. It is apparent however that cost of upkeep and suitability for modern day agriculture are key factors when considering how to manage traditional farm buildings.
A way that is drawing upon much attention at the moment is the grant rates that are currently available from Natural England. Natural England is an independent public body whose purpose is to protect and improve England’s natural environment and encourage people to enjoy and get involved in their surroundings.
Prior to the recent change in government grants for restoration of traditional farm building restoration was available if you were in the following Natural England Schemes:
• Environmentally Sensitive Areas Scheme - introduced in 1987 - Now Closed
• Countryside Stewardship Scheme - introduced in 1991 - Now Closed
• Higher Level Stewardship Scheme - introduced in 2005 - Open
For farmers and land owners in the above three agreements grants of 80% were available. However since the recent change in government budget reductions have been announced for capital works funding in current HLS, ESA and CSS schemes.
This budget reduction only impacts on the ability to add in new capital works to existing agreements that will result in a claim submission by March 2011. It does not however impact on:
• annual revenue payments for existing agreements
• capital works that are already in agreement
• annual payments for new HLS agreements that we set up this yea
• capital works added to agreements for claiming after March 2011
• existing Entry Level Scheme agreements or new UELS / ELS applications
Currently therefore 80% grant funding for restoration of traditional farm buildings can only be obtained through entering into a new Higher Level Stewardship Scheme.
Higher Level Stewardship is open to all farmers and land managers. The scheme funds the delivery of environmental benefits through agriculture and aims to conserve wildlife, maintain and enhance landscape quality and character, protect natural resources, and promote public access to the countryside.
Building restorations funded through HLS schemes are not confined to traditional farm buildings. Other buildings of historic significance can be considered, for example industrial or military buildings, such as mining structures and World War II pillboxes
Edwin Thompson therefore advise farmers and land owners who feel they are eligible to take advantage of the funding available through Natural England’s Higher Level Stewardship (HLS) agri-environment scheme, to get in touch with either the Carlisle or Berwick office for more detail and information.
28/05/2010 - Woodland Management and Improvement Grants.
Over the past year and a half we have seen substantial changes in the available grants for all types of woodland management under the English Woodland Grant Scheme. These grants range from the Woodland Planning Grant, aiding with the cost of writing a long term, sustainable forest plan to the improvement of woodland habitats for various avian and mammalian species.
The woodland improvement grant has been altered to provide funding for woodland management that may not be financially sustainable to conserve various British bird species including the lesser spotted Woodpecker, Spotted Fly Catchers and Willow Tits which have declined by more than 50% since the late 1960’s. Funding can be sought for the thinning of existing plantations, the fencing of existing plantations to encourage further shrub led growth and the creation of standing dead wood and provision of nesting sites. These grants can be applied for where existing Woodland Improvement Grants are held or where there has been no management over recent years.
Edwin Thompson has submitted various grant applications on all scales to capitalise on this grant and can serve these important species throughout the whole of the North of England.
The Woodland Creation Grants have also been revamped and there is still a substantial under spend within this grant budget of which can be applied for on any land ranging from a mere 1 hectare to an area which has no upper limit. If the proposed woodland creation is within a National Park, an area of Outstanding Natural Beauty, an area of Urban Fringe or an area where Woodland Birds have declined further grant aid can be sought with a maximum of £3,800 per hectare for creation of woodland. There is also the option to claim farm Woodland Premium Payments as compensation for last loss of agricultural land and the Single Farm Payment can also now be claimed on areas of land which have been planted since 2008.
15/04/2010 - Upland Entry Level Stewardship (UELS).
The new Upland Entry Level Stewardship (UELS) was recently launched by Natural England and DEFRA to replace the existing Hill Farm Allowance, which finishes this year. UELS is an environment based subsidy aimed at rewarding farmers in Severely Disadvantaged Areas (SDAs) for protecting the upland environment and wildlife, whilst also continuing food production.
UELS is available for farmers occupying land within SDAs as long as there is no existing ESA or CSS agreement on that land. If there are existing agreements, you could be eligible for the Uplands Transitional Payment (UTP).
The payment rates for UELS are higher than those under the ELS in order to reflect the challenges faced by upland farmers. UELS operates in the same way as ELS and OELS in that is a points based system and agreements will run for 5 years. To qualify for an UELS, applicants must reach (and slightly exceed) the following points targets:
• Parcels below the Moorland line must have the equivalent of 62 points per ha
• Parcels above the Moorland line less than 15 ha must have the equivalent of 62 points per ha
• Parcels above the Moorland line 15ha or more must have the equivalent of 23 points per ha.
• Land which is organic will receive an additional £30 per ha for parcels less than 15ha above the Moorland line and for land below the Moorland line.
The points target will be reached by meeting a set of compulsory requirements (worth 15 points per ha) depending on the category of land and by selecting a range of options suitable to your land. The options can be chosen from the ELS and OELS options and from a new range of options devised for the UELS.
As with ELS and OELS, the points targets directly transfer into payment rates, so that if the 62 points per ha target is met, then a payment of £62 per ha per year will be made. The payments will be made in the same way as with ELS and OELS, every six months in arrears.
Farmers can apply for a UELS now, with the first agreements starting on 1st July 2010. Edwin Thompson can offer advice on how to complete an UELS, or can complete the application for you. For more information contact Mary-Jane Fleming or Patrick Playfair at the Berwick office, telephone 01289 304432.
