|
environmental
practices across the farmers entire holding, for
example farmers will not plough within 2m of a hedge
or ditch centre line (fields greater than 2 hectares),
hedges will not be cut between 1st March and 31st
July.
The above very simplified explanation of volumes
of literature raises many serious issues for many
of our clients who have previously let land in the
short term via farm business tenancies or grazing
licences.
For the first time for many years there are issues
to resolve other than obtaining the highest rent
you can achieve. Although by no means exhaustive
the following are common issues for debate.
1. Registration into the scheme in spring of 2005
is absolutely essential for the future rental and
freehold value of most land. A
compulsion on the tenant to register must be included
in all agreements. If you have an existing agreement
without this compulsion negotiate a surrender and
a new agreement.
2. Tenants will normally only be prepared to register
rented land and thereby attach “their” historic
payment to it if they have the
security of a longer letting. Common lettings under
the new arrangements are 7 – 8 years, but consider
that in a longer letting terms for obtaining earlier
possession can be incorporated but will require
a Notice of some 12 – 24 months.
3. Given the poor quality of the 2004 harvest, tenants
are generally looking to push rents down. The rental
market is of the order of 10% down on last year
so incorporate a rent review clause in say year
three in case things improve.
|
|
4.
Insert a clause into an agreement to ensure that
on ultimate termination of the tenancy all rights
to future entitlements on the land transfer to the
landlord.
As all lettings and the circumstances behind them
are different it is essential that professional
advice be obtained prior to entering into negotiations.
Wales
The payment in Wales will be based on the historic
claims between 2000 and 2002; no decision has been
taken as yet on the use of National Envelopes.
Northern Ireland
In Northern Ireland the payment will be a “static
hybrid” with approximately 80% of the payment being
on a historic basis and the remaining 20% on a flat
rate basis.
50% of the payments which are currently directed
to the beef special premium and slaughter premium,
35% of the sheep annual premium, 80% of the LFA
sheep supplement and 20% of the arable aid payments
will be put into one pot. The proceeds of which
will be spread across the eligible land in Northern
Ireland to provide a payment of approximately £48/hectare.
The balance of these payments plus the suckler cow
premium scheme, extensification scheme and dairy
premium scheme will be allocated on the basis of
individual farming businesses’ historic receipts.
Mark Mitchell - Perth
Steve Parlett - Thirsk
|
|
PROPERTY –
END OF THE BOOM BUT NO BUST
Just about everybody in the property world has tried
to predict what will happen to the market in 2005.
The general consensus is that the market will slow
down and prices will stabilise but there will be
no late 1980’s crash.
It is important to differentiate between the Scottish
market and that south of the border. The south of
England has seen a slight drop in prices (Nationwide
report a 0.4% drop in October) and some reports
have stated that prices will remain static over
the next five years (Sunday Telegraph 24 October
2004). North of the border we still have some catching
up to do and there is talk of prices rising by 3%
- 4% during 2005.
|
|
|
in one set of
market conditions and buying in another
and it is important that they realise this
distinction so confidence in the stronger
Scottish market is not undermined.
|
 |
The
upshot will be that guide prices will
moderate and offers will be more conservative –
10% - 15% over rather than some of the 30%+ bids
we have all seen in recent years. The other result
will be that more properties will be offered on
a fixed price basis. This method of pricing will
become more popular as the market steadies and in
turn will give encouragement to the many purchasers
who have made unsuccessful bids in the past.
|
|
This distinction is important for two main reasons.
Firstly, the rural Scottish market has always been
much steadier than its equivalent down south and
there is no reason to suggest this is likely to
change in the future. The market represents a good
investment for purchasers from both home and abroad.
The second reason is that the majority of editorial
comment relates to English market conditions however
the general perception is that it covers all the
UK. This particularly affects the high number of
purchasers who come from the south. They will be
selling
|
|
One notable sale that Bell Ingram achieved during
2004 was the disposal of 11 redundant workers’ cottages
at Tormore Distillery in Speyside. This has highlighted
an interesting section of the market where groups
of houses, land or other buildings can be offered
for redevelopment. Distilleries are often situated
in particularly attractive areas of the countryside
and it provides an opportunity for purchasers to
acquire a permanent or second home in scenic areas
often at an affordable price.
Martin Long
|
