Press Release Archive News

Changes in Scotland’s Private Rented Sector

Changes in Scotland’s Private Rented Sector

Since September 2022, there have been regulations in place to control rent increases and safeguard against evictions for privately let residential properties, established under the Cost of Living (Tenant Protection) (Scotland) Act 2022. However, effective April 1st, 2024, these restrictions, including the 3% rent increase cap, will be lifted.

To mitigate the risk of significant rent hikes, pending parliamentary approval, the process for rent adjudication will be temporarily adjusted for one year, starting April 1st, 2024. This adjustment aims to provide a fair approach to resolving rent disputes during this transitional period.

Here’s what landlords need to know about rent reviews in April:

Private residential tenants can dispute a rent increase, with disputes reviewed by Rent Service Scotland or the First-tier Tribunal.

Rent will be determined based on the lowest of three figures: the open market rate, the rent requested by the landlord, and a comparator based on the difference between the market rate and the current rate.

Proposed regulations necessitate the use of a rent taper formula if a tenant applies for rent adjudication:

  • If the rent increase is 6% or less than the market rent, the landlord can increase the rent by the proposed amount.

  • If the gap between the market rent and the current rent exceeds 6%, the landlord can increase it by 6% plus 0.33% for each percent that the gap exceeds 6%. The total rent increase cannot exceed 12%.

Read the Rent Adjudication (Temporary Modifications)(Scotland) Regulations 2024 here..

As demand for rented property rises, many privately let properties with existing tenants now have below-market rent due to the 3% cap in place since 2022. This is likely to lead to widespread rent increases across the country, although the full impact on the market remains to be seen.

Before these restrictions are lifted, further changes are set to take effect on March 1st, 2024, with new measures being added to the Repairing Standard, which applies to all privately let residential properties and Short Term Lets. These include:

  • Safe Kitchens

  • Fixed Heating System

  • Safe Access to Common Parts

  • Consent to Work on Common Parts

  • Safe and Secure Common Doors

  • Residual Current Devices

  • Properties must be free of lead pipes, or a water quality test must be carried out.

  • Other fuels, such as oil installations, must meet the same repair standards as gas and electricity installations.

For full information regarding the changes to the Repairing Standard, click here. While many properties will already meet these additional requirements, there is a risk, primarily to older tenancies, that may not meet the new requirements, necessitating additional works.

For further discussions on how these changes affect your property, please contact our professional letting agents at Bell Ingram.

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Press Release Archive News

Rhona Booth promoted to Forfar Office Manager

Bell Ingram Announces Promotion of Rhona Booth

Bell Ingram, leading land and property management specialist, is pleased to announce a significant milestone within the organisation with the promotion of Senior Associate Rhona Booth to the position of Forfar Office Manager, effective April 1, 2024.

Rhona’s elevation to this pivotal role reflects her unwavering dedication, extensive expertise, and profound understanding of the Angus and Perthshire farming communities, positioning her as the ideal choice to lead the Forfar office into a new era of success.

With 20 years of experience as a highly accomplished RICS Chartered Surveyor and Registered Valuer, Rhona has been an invaluable asset since joining Bell Ingram in 2020. Her exemplary skills in estate and farm management, coupled with her strategic acumen, have consistently driven business growth and forged enduring relationships with clients and partners alike.

Rhona’s unparalleled knowledge and extensive network within the Angus farming community are standout qualities that will undoubtedly contribute to the continued expansion and prosperity of the Forfar office. Her deep understanding of the local landscape, combined with her established relationships, will be instrumental in solidifying Bell Ingram’s presence in the region and enhancing service delivery to clients.

Bell Ingram’s Forfar office is situated in the heart of the Angus’ agricultural community and provides a full spectrum of advice to clients on farm valuation, land management, farm sales and opportunities surrounding renewables.

While assuming the day-to-day responsibilities of managing the Forfar office, Rhona will collaborate closely with Senior Partner Malcolm Taylor, who will retain overall control. Malcolm’s strategic guidance will complement Rhona’s local expertise, ensuring an approach that maximises Bell Ingram’s impact in the region.

Mark Mitchell, Managing Partner at Bell Ingram, said: “Rhona’s commitment to our company’s goals, coupled with her proven track record, makes her the ideal choice for this role. I have full confidence that under Rhona’s leadership, the Forfar office will achieve new heights of success.”

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Farm & Estate Sales Page, The Bell Ingram Blog Spot News

Contract Farming Agreements – what to consider

Contract Farming Agreements – what to consider

By Douglas Ogilvie, Farming Consultant

Farmers need to respond to the challenges of increasing productivity, innovation, climate crisis, extreme weather and unknown policy changes that will hopefully help boost sustainable food production while supporting the environment.

One way is for a landowner or tenant, while remaining in complete control of their business and being an active farmer, to harness the management skills, labour, machinery, sometimes breeding livestock and technology of another farmer.

A Contract Farming Agreement is a straightforward Agreement whereby a Landowner or Occupier (the Farmer) engages the services of another Farmer or Contractor (the Contractor) on pre-arranged terms.

These agreements can be extremely flexible, prospectively long term and many agreements have been going for over 30 years.

The agreements are subject to the law of contract, and it is critical that these are properly drafted. There are many instances of agreements running into difficulties during inspections because of inadequate documentation or incorrect supervision.

It is vital therefore, that the documentation is correctly drawn up and supervised. Agreements work better with a third-party adviser being a facilitator and prevent problems festering. The adviser helps prevent mistakes, parties behaving contrary to the agreement, or it being found a sham.

Contract Farming Agreements should be distinguished from other agreements such as tenancies, partnerships, employment agreements, share farming and short term lets.

The Farmer usually provides:

  • The land

  • The buildings

  • Fixed equipment (eg. grain drier), although sometimes the Contractor will provide these facilities

  • Single Farm Payment, LFASS, SSBSS, SUSSS and in certain cases AECS

  • Finance to administer the agreement

  • Short and long-term policy objectives

The Contractor usually provides:

  • Labour

  • Machinery and all associated costs

  • Breeding livestock and replacements although these can also be provided by the Farmer.

  • Management expertise to implement the farming policy

Variable Costs and Fixed Costs

All variable costs are paid by the No. 2 Account. The Contractor pays for all his own labour and power costs. The remaining fixed costs are paid out of the No. 2 Account and may include:

Livestock

Breeding livestock can be owned by either the Farmer or the Contractor.

Finding a Contractor

Finding the right contractor this is the most important key to a successful long-term agreement, not the financial reward.

Finally

These agreements work extremely well for both parties for all enterprises whether arable or livestock. They are extremely popular and very flexible.

For further information

Contact Douglas Ogilvie who has over 37 years’ experience of Contract Farming Agreements or one of the Bell Ingram team in your local office. Tel. 01738 621 121.

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Farm & Estate Sales Page, Press Release Archive News

First class portfolio of farms comes to market in Stirlingshire

First class portfolio of farms comes to market in Stirlingshire

A large portfolio of farms in Stirlingshire including agricultural land and six dwellings has come to the open market.

Rural Estate Agents, Bell Ingram is marketing the farms, which total 513.5 hectare (1,268.70 acres), as a whole at offers over £8,450,000 or in six individual lots.

Bonnyhill Farm, Dykehead & Seabegs and Bonnyside Farm are all located within close proximity of the town of Bonnybridge and within about three miles of centre of Falkirk.

The main farming units at Bonnybridge are used as a base for a dairy enterprise whilst the farms and land further east, near Larbert and Falkirk, are used mainly for the rearing of beef cattle and also for the growing of arable crops. The farms also include areas of woodland and include a number of dwellings and farm buildings.

Estate Agent, Carl Warden comments on the sale: “We kick off the 2024 farm sales market with this large portfolio of businesses in Central Scotland. These first-class farming properties are currently used for a variety of different agricultural enterprises including dairy, beef cattle, arable crops and woodland. This sale presents an excellent opportunity for a diverse farming business looking to expand production.”

Lot 1 – Bonnyhill Farm Dairy is a first-class dairy farm with a range of purpose-built dairy buildings and equipment, principal farmhouse and two detached modern bungalows. It extends to about 96.20 hectares (237.60 acres) and is the base for a 270-cow dairy herd. It has an asking price of offers over £2,300,000.

Lot 2 – Dykehead and Seabegs farms include a cottage, outbuildings, farmland and woodland – 67.30 hectares (166.40 acres). It also includes an area of land at Reilly Road, which is held under Option. The land parcels are divided by railway lines and also by the Forth and Clyde Canal. Offers over £870,000.

Lot 3 – Bonnyside Farm including outbuildings and land lies to the north of Bonnyhill Farm and adjacent to the village of Bonnybridge. The farm and land, extending to about 108.10 hectares (267.00 acres), currently operates in conjunction with the dairy enterprise and includes a farmhouse and two farm buildings which lie within the village. Offers over £1,550,000.

Lot 4 – Househill Farm – 158.70 hectares (392.10 acres) including principal farmhouse, outbuildings and a range of land.  The farm is used as a base for a beef farming enterprise. It lies to the west of Larbert and to the southwest of the Forth Valley Hospital, adjacent to the M876 road. Offers over £2,700,000.

Lot 5 – Arable land at Hardilands extending to approximately 62.80 hectares (155.10 acres).  Lying to the south of the Kincardine Bridge and to the northeast of Skinflats, within close proximity to the River Forth, it has an asking price of Offers over £750,000.

Lot 6 – Arable land at Inches extending to approximately 20.40 hectares (50.50 acres) in all and lies to the north of Larbert. Offers over £280,000.

For more information or to arrange a viewing please contact Carl Warden on 01738 621121 or email carl.warden@bellingram.co.uk.

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Forestry Case Studies, Press Release Archive News

New UK Forestry Standard unveiled – what you need to know

New UKFS edition released after comprehensive review

By Sam Guthrie, Forester

A new (5th) edition of the UK Forestry Standard (UKFS) has been published following an extensive review process.

This latest update reflects the improvements in scientific knowledge, developments in international approaches to forestry, new or amended legislation, and new information about best forestry practice.

Enforced across all four UK nations, the UKFS is the reference standard for all foresters to follow, ensuring new forests and woodlands are sustainable – balancing environmental, economic, and social interests. It applies to all woodland, regardless of who owns or manages it.

A prerequisite for the approval of forest plans, felling and replanting operations, woodland creation proposals and forestry grants, is that forest owners, managers and contractors are responsible for ensuring that forest operations and activities are delivered in accordance with the UKFS.

Additionally, the UK Woodland Assurance Standard (UKWAS) certification builds on the foundations set out by the UKFS. Benefits of achieving certification can include higher prices and easier movement of certified timber.

But what does it all mean for forest managers?

As you might expect given government emphasis on tackling climate change and nature loss, sustainability is front and centre of this refresh, with biosecurity, tree pests and deer control at the heart of this new edition.

Importantly, the guidance aims to make forests more resilient to a changing climate and the increased risk of pests and diseases so they can continue to deliver multiple benefits.

Where necessary, good practice requirements have been amended or added to encourage more direct action to ensure forests remain, healthy, vibrant habitats providing timber and a range of environmental benefits to help meet net-zero ambitions.

 Key changes include:

  • The maximum proportion of a single species specified will be reduced from 75% to 65%. This will further diversify the range of species in woodland creation and restocking. Forest Plans submitted after October 1st 2024 will be required to show a transition to the new proportions over time.

  • Requirements to use deer management plans more widely to reduce browsing pressure to acceptable levels and enable the use of natural regeneration.

  • Requirements to plan and implement biosecurity measures across managed land to reduce the risk of introducing or spreading pests and diseases.

A 12-month transition period is now in place to allow guidance to be updated, users to become familiar with the new edition, and draft woodland plans to be finalised. It will be applied from October 1st 2024.

The new (5th) edition of the UKFS is available on the Scottish Forestry website.

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The Bell Ingram Blog Spot News

Harnessing financial opportunities: Landowners and carbon offset strategies in woodland creation schemes

Harnessing financial opportunities: Landowners and carbon offset strategies in woodland creation schemes

By Stuart McArtney, Forest Manager

In the global effort to mitigate climate change, carbon offsetting has emerged as a critical tool to reduce greenhouse gas emissions. Landowners, especially those with large expanses of undeveloped land, are presented with unique financial opportunities through participation in woodland creation schemes. However, as with any burgeoning market, there are considerations and potential pitfalls that demand careful navigation to ensure sustainable and ethical practices.

Carbon offsetting involves compensating for one’s carbon footprint by investing in projects that reduce or capture an equivalent amount of carbon dioxide from the atmosphere. Woodland creation schemes, a subset of carbon offset programs, focus on planting trees to sequester carbon and enhance biodiversity.

Landowners can benefit financially from participating in woodland creation schemes through various mechanisms. Governments often offer incentives such as grants and subsidies to convert their properties into carbon sinks. These financial incentives can significantly offset the costs associated with planting and maintaining woodlands.

Investing in land for the explicit purpose of carbon offsetting has become an attractive option for environmentally conscious investors and businesses. However, the acquisition process requires careful consideration of ecological factors, regulatory requirements, and long-term commitment. Sustainable practices must be prioritised to ensure the effectiveness of the carbon offsetting initiative.

Distorting the market:

As the demand for carbon offsetting increases, there is a risk of market distortion. Some critics argue that the commodification of carbon may lead to speculative practices, where land is acquired solely for financial gain rather than genuine environmental impact. This raises concerns about the sincerity of carbon offset projects and the potential for greenwashing.

Ensuring ethical practices:

To maintain the integrity of woodland creation schemes, landowners must adopt ethical and sustainable practices. This may include selecting native tree species, implementing proper land management techniques, and engaging with local communities. Transparency and accountability in reporting carbon sequestration efforts are crucial to building trust in the market.

Collaboration and Certification:

Landowners should consider collaborating with reputable organisations and obtaining certification through the Woodland Carbon Code (WCC) to provide assurance that projects adhere to rigorous environmental and social criteria.

In conclusion, the financial opportunities for landowners in the realm of carbon offsetting, particularly through woodland creation schemes, are vast. However, it is essential for stakeholders to approach this market with a commitment to sustainability and ethical practices. By carefully navigating the complexities of acquisition, market dynamics, and ecological considerations, landowners can play a pivotal role in combatting climate change while reaping the financial rewards of responsible carbon offset initiatives.

  • Bell Ingram offers a comprehensive range of specialist forestry services to clients across Scotland. To find out more go to our website bellingram.co.uk or phone 01738 621 121 to speak to a member of our forestry team.

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Press Release Archive News

Thriving café business and home for sale on popular tourism Isle

Thriving café business and home for sale on popular tourism Isle

A rare opportunity to acquire a thriving café and gift shop business together with a large Victorian stone-built three-bedroom house in a popular tourist destination in the northwest of the Isle of Lewis has arisen.

Highlands & Islands Estate Agent, Bell Ingram is delighted to bring The Wobbly Dog Café and residential opportunity to the market for offers over £290,000.

The sale of the Wobbly Dog Café is a superb opportunity to acquire a thriving and profitable business in a popular tourist destination on the Isle of Lewis. It is an ideal purchase for someone looking to take on a thriving business adjacent to their home.

Established in 2019, it has consistently high ratings on Google and TripAdvisor, the cafe/shop maintains much of the original style and charm of yesteryear, with original heavy wooden counter, glass display cases and fitted shelving. All fixtures, fittings and equipment are included in the sale.

There are rural views across croft land towards the Atlantic on the west and the Minch on the east making the eatery a popular destination with tourists looking for lunch with a view.

Attached to the café is a spacious three-bedroom home which has been upgraded throughout while at the same time retaining the charm of some original features.  In addition to a sitting room, dining room, kitchen, bedroom and bathroom on the ground floor, there are two further bedrooms and WC on the upper floor. The kitchen has a Rangemaster gas cooker and attractive Fired Earth tiling on the floor.

Commenting on the property, Estate Agent, Joanne Stennett says: “The Isle of Lewis is a favourite holiday destination and the café and residential property offer an excellent opportunity to have a change of lifestyle and take on a thriving business in this beautiful part of Scotland”.

For more information, or to arrange a viewing contact Joanne Stennett on 01463 717799 or email joanne.stennett@bellingram.co.uk 

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Carbon Overview Page, The Bell Ingram Blog Spot News

The Road to Net Zero: What it means for farmers and landowners

The Road to Net Zero: What it means for farmers and landowners

by Rhona Booth, Senior Associate

In an era defined by the urgent need to address climate change, the UK and Scottish Governments have emerged as global leaders in the race towards a sustainable future. With a commitment to environmental responsibility, both governments have set ambitious Net Zero targets signalling a transformative shift towards a low-carbon, resilient economy.

In Scotland, farmers and landowners hold the key to delivering many of the sector targets, specifically around carbon offsetting, sustainable farming practices, afforestation projects and initiatives to enhance biodiversity.

The Scottish Government also continues to invest in and promote the development of renewable energy projects, aiming to generate a substantial portion of the country’s energy from clean sources.

In this article I explore the financial opportunities around the strategies and initiatives employed by the Scottish Government to fulfil its commitments to achieving Net Zero.

Solar Power: One of the most promising avenues for landowners is the integration of solar energy into the national grid. Scotland’s government has been actively encouraging the adoption of renewable energy, and solar power is no exception.

Developers are actively pursuing solar opportunities across Scotland with hotspots on the East Coast where irradiance levels are highest. Bell Ingram are acting for numerous land owners, negotiating exclusivity agreements, Heads of Terms and assisting landowners and their legal advisors during the option and lease process.  Lease terms are typically 40 years with rentals significantly greater than those generated from agriculture making hosting a solar development and attractive proposition. Bell Ingram will negotiate the best deal with our knowledge of the market and expertise on practical matters of development. The developer will meet the cost of professional fees. Although the connection date to the grid can be up to a decade away due to the constraints on the electricity network, developers are keen to secure land at the present time via an option agreement.

Battery Storage: While solar (and wind power) are integral to the renewable energy landscape, they come with inherent challenges related to intermittency and grid stability. This is where battery storage systems play a crucial role. By storing excess energy generated during peak times and releasing it when demand is high, battery storage helps balance the grid, ensuring a reliable and stable power supply.

Landowners can enter into lease agreements with energy developers for the use of their land to host battery storage facilities. These agreements typically involve regular rental payments, providing a steady income stream for landowners without requiring active involvement in the day-to-day operations.

The land take for battery storage is relatively small, four to 20 acres making this opportunity as an addition to the farming business and income stream. The proximity of a substation is a prerequisite to hosting a battery storage scheme.

Carbon Off Setting: The financial opportunities for landowners in the realm of carbon offsetting, particularly through woodland creation schemes, are vast. However, it is essential for stakeholders to approach this market with a commitment to sustainability and ethical practices. By carefully navigating the complexities of acquisition, market dynamics, and ecological considerations, landowners can play a pivotal role in combatting climate change while reaping the financial rewards of responsible carbon offset initiatives.

Electricity Infrastructure: SSE’s massive £10 billion investment in electricity infrastructure is geared towards enhancing and expanding Scotland’s electricity infrastructure. This includes the development of renewable energy projects, grid upgrades, and the deployment of cutting-edge technology. Landowners situated in proximity to these projects stand to benefit significantly.

One of the primary opportunities lies in leasing land for renewable energy projects such as wind farms or solar installations. SSE’s commitment to increasing renewable capacity provides an ideal environment for landowners to generate steady income through long-term leases.

Beyond renewable energy projects, SSE’s investment includes significant upgrades to the electricity grid. It is important for landowners to engage early with SSE to ensure that their views are taken into account as far as possible in the design of the scheme. New pylons are the unfortunate requirement to secure renewable opportunities across the country and SSE and the Scottish Government has strong statutory powers the roll out their infrastructure programme.

Low-Carbon Hydrogen Economy: The Acorn Project, based in North East Scotland, is a groundbreaking initiative that aims to deliver low-carbon energy solutions. At its core, the project focuses on repurposing existing oil and gas infrastructure to support the development of a low-carbon hydrogen economy.

One crucial aspect of the Acorn Project is the need for gas transportation to the St Fergus terminal and those landowners situated along the gas transportation route to St Fergus have a unique chance to play a crucial role in this transformative journey. By exploring servitude agreements, lease arrangements, and actively participating in community development, it is envisaged that landowners can maximise the financial benefits while contributing to a more sustainable and resilient energy future.

Top Tips:

  • While the financial opportunities are abundant, it is crucial for landowners to navigate the regulatory landscape effectively.

  • Understanding planning permissions, environmental impact assessments, and community engagement requirements is essential for a successful partnership with energy infrastructure developers.

  • Seeking professional advice can help landowners make informed decisions and ensure compliance with regulations.

To find out how Bell Ingram can help your rural business make the most of these opportunities phone 01738 621 121 to speak to Rhona Booth or one of our Rural Land Management team.

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Forestry Case Studies, The Bell Ingram Blog Spot News

Forestry: Multiple benefits even in a quieter market

Forestry: Multiple benefits even in a quieter market

It seems 2023 has been a quieter year for forestry sales, with fewer properties being brought to the open market and agreed sales not seeing such high premiums paid as in the previous few years. One reason for this will be the fall in timber prices, which is obviously linked to the price paid for the growing crop – if returns from timber sales fall, plus there are increased harvesting costs resulting from higher fuel and other related costs, then the price investors are willing and able to pay has to reduce.

Sellers looking to secure high premiums need to be advised to consider the need to sell now or to readjust expectations, even if this is just in the short term. However, global demand for timber in the next 30 years is likely to continue to increase, partly based on the high sustainability of it within the construction industry, and it is well known that timber prices can be somewhat cynical – playing the long game should pay dividends. 

As a long-term investment, forestry remains a good bet, underlined by advantages in both capital gains and inheritance tax liabilities for commercially managed woodlands. Natural capital, carbon and peatland opportunities can also be secured from forestry, although the advice remains to exercise caution before jumping into deals which may hinder future flexibility, impact on the investment value or affect tax benefits.

Elsewhere in the market small amenity woodlands continue to see constant demand. As an affordable, often personal, investment, small local woodlands offer benefits and interests, again with opportunities to enhance a property’s biodiversity, improve public access or offer other community benefits. Enthusiastic owners working with forestry and other nature-based advisors can make big differences to a woodland’s interests in a relatively short time, and if kept for many years, monitoring can really prove these changes.

Finally, the need for firms to enhance their Corporate Social Responsibility (CSR) by getting employees to put something back into the community and the environment, means charities like The Woodland Trust or Wildlife Trusts can benefit from free input from volunteers. Planting new trees, clearing out invasive Rhododendrons or putting in a new footpath route also help cement the public’s engagement with woods in their locality.  Bell Ingram foresters and land agents can advise clients on suitable works for volunteers. Our staff are indeed encouraged to put on their own boots for nature-based volunteering activities as part of our efforts for both internal team building and enhancing the environment – watch this space for evidence!

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