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Peelings ManorEstate management focus

Telecoms Code ReformThreat or opportunity?

Development Update Post Election Bounce

Planning for the future Permitted Development opportunities

Rural OutlookSUMMER 2015

Compulsory Purchase How to beat the system

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• Leo Hickish - 01892 509281 l.hickish@batchellermonkhouse.com• Andrew Sadler - 01444 412402 a.sadler@batchellermonkhouse.com• Martin Sadler - 01798 877555 m.sadler@batchellermonkhouse.com

3RURAL OUTLOOK

It is no bad thing for business that there was a decisive result to the 2015 general election, but the British economy is still fragile, and the world economy is even more fragile. There is still reason to believe that business in the countryside will remain the poor relation to the commercial sectors in the UK. We have all heard the promises on taxation but the pressure to raise tax revenue will not desist. Even within existing legislation we have seen increasingly stringent interpretation on cuts and tax charges – especially on Capital Gains Tax.

Having said that, we at Batcheller Monkhouse are positive about the future. That might sound counter-intuitive, but for a start, the business environment is a lot better than it could be. The articles in this edition of Rural Outlook demonstrate that rural businesses in the south east of England are dynamic and ambitious, and that opportunities certainly do exist. Whether it is in development, telecommunications, or any one of a myriad of routes to diversification, there are profits to be made by the adventurous, the imaginative, and the dedicated. Our clients are highly motivated, are undaunted by difficulties, and certainly welcome a challenge. The pressure on core Agriculture of course remains a deep concern.

This firm offers a very wide range of specialist services to our clients, no matter whether they are farmers, estate owners, institutions, tenants, or landowners. Batcheller Monkhouse is the largest independent firm of its kind across a huge swathe of countryside – stretching from Dover to the M3, and from London to the south coast. We have an unmatched team of professionals with the highest qualifications and many years of experience.

As ever, the most successful businesses will be those who are best advised and supported by highly skilled, utterly dedicated experts.

Head of Professional Services

Leo HickishPartner

Keeping you in the picture

4

1TAX AND TRADING STRUCTURE

It might seem like a simple point, but when it comes to taxation planning, have you considered the tax structure under which you are trading?

Circumstances change, and although it might have been preferable to trade as a sole trader a few years ago, should you now operate as a limited company?

Or indeed, vice versa? It’s a fundamental issue which is well worth reviewing again.

A typical landed estate will sometimes have multiple trading vehicles. One (or more) might principally be for trading income, whereas another might be for the investment assets. In some instances, having all activities under one operation might well enhance the position for Business Property Relief. Giving careful thought to the structure(s) under which your business operates could be advantageous for both tax and succession planning, and may result in significant savings for the next generation.

2 COUNTRYSIDE STEWARDSHIP SCHEME

The new three-tiered Countryside Stewardship Scheme will replace Environmental Stewardship, the English Woodland Grant Scheme, and capital grants from the Catchment Sensitive Farm Programme. It will contribute around £900 million to rural businesses.

The Higher Tier is similar to the existing Higher Level Stewardship and the Mid Tier replaces Entry Level Stewardship. Agreements are for a five year period, and there are more than a hundred options to choose from. Applicants are therefore able to choose options which best suit their existing farming systems, but options that benefit wild pollinators, farmland birds and other farm wildlife means your application will score more highly.

As well as multi-year agreements, there are a range of stand-alone capital grants for items such as woodland, water and hedgerows. Examples grants include: restoration of hedgerows £5,000; reducing water pollution £10,000; woodland creation £200/ha/pa (over 10 years); woodland improvement £100/ha. All definitely worth serious consideration.

3 BASIC PAYMENT SCHEME

We are back to pen and paper! The RPA have largely abandoned the new £154 Million computer system and farmers are being asked to submit their claims on paper forms by the revised deadline of 15th June. Issues with the BPS were easy to predict. After a long process at EU level to reach agreement on CAP reform, member states were left grappling with how to implement the new scheme whilst the detailed rules were yet to be published. The complex scheme and the tight timetable have not helped matters.

Points to particularly watch out for include greening, EFA’s, mapping and ineligible features, automatic loss of surplus entitlements, new crop codes and cross compliance. Handling over 300 applications there are few scenarios we have not yet come across and resolved.

4 LEADER GRANT FUNDING

The focus for the new LEADER funding is on rural businesses and employment generation. It is administered by Local Action Groups (LAG’s) across a number of target areas – each of which will be allocated a sum up to £2 million. We are fortunate that several members of the firm sit on LAG panels, which provides an excellent insight into how they operate and an understanding of the types of applications which are most likely to succeed.

The delay to implement the scheme has been infuriating. The 2015-2020 LEADER was intended to be open for business in January 2015. As of May 2015, DEFRA have still not issued contracts. Despite the austerity, we remain optimistic that the funding will still come forward, as it is fundamentally an EU scheme.

Applicants should not be dissuaded from looking at their options. If your project meets one of the priority areas, it is well worth bidding for LEADER grant support. We successfully secured funding for over £1.5m of projects last time.

Ten Topics You Really Ought To Know About

George ChapmanAssociate

5RURAL OUTLOOK

5 PERMITTED DEVELOPMENT RIGHTS

The new permitted development rights to convert agricultural buildings to residential properties were introduced in April 2014. However, it has taken nearly 12 months, and the release of further guidance in March 2015, to really establish how different Local Authorities have interpreted the legislation. In every case, there are a number of matters to be considered as part of the prior approval procedure, but our experience is that Local Authorities have been particularly focussed on the soundness of the existing structure of the building and sustainability matters. Having succeeded in securing a number of prior approvals, we are now able to advise with increasing confidence on how to succeed.

6 ENERGY PERFORMANCE CERTIFICATES

The Energy Act 2011 paved the way for further regulations to be introduced to improve energy efficiency in let property. It is expected that landlords will shortly not be able to refuse a tenant’s request to carry out energy efficiency works where Green Deal funds or other subsidies are available to pay for the work. This is expected to be in force by April 2016. Further, properties that do not meet an EPC rating of E or above, will be deemed unfit to be let from April 2018.

These rules are still to be enacted but it is not too soon to start thinking about what can be done to improve the energy efficiency of privately rented domestic properties. We recommend a full review is undertaken when any property comes back in hand from now onwards.

7 NEIGHBOURHOOD PLANS

Neighbourhood Plans are a growing movement. They were introduced by the Localism Act 2011, with the objective of enabling local people to get the right type of development for their community. They are usually led by parish or town councils. Many are still in the early stages of development but several others are already influencing planning decisions. As Neighbourhood Plans carry significant weight in planning terms, we strongly recommend that landowners engage in the process, and promote sites with development potential through appropriate representations and consultation.

8 CGT – PRINCIPLE PRIVATE RESIDENCE

Whilst the threat of a mansion tax may have receded private dwellings are not immune from capital taxation. 100% relief is available on the sale of one’s home but only on such land and buildings as are “required for the reasonable enjoyment of the main dwelling”. Without any legislative change we have seen the incidences of CGT being applied to house sales increase significantly in the last five years. HMRC are more and more forceful in their interpretation of the legislation and we only expect this to increase. With skill however valid arguments can be presented to secure the inclusion of substantially more than the statutory allowance of up to 1.25 acres.

9‘UNDERGROUNDING’ POWER LINES

National Grid have set aside £500 million to bury, screen or re-route high voltage cables. Target areas are National Parks and AONB’s: The High Weald has been identified as a particularly important contender. The benefits are obvious. Pylons are a visual blight on the countryside, affect farming, forestry and game-keeping operations, and can significantly depress property values.

It is a competitive programme, and we therefore advise preparing a comprehensive report and justification to accompany any applications, to ensure the best chance of success. This will concentrate on key issues including an assessment of public benefit, landscape enhancements, ecology and environment.

As ever, the funding pot is disappearing, and applicants are advised to act quickly.

10 TENANCY DEPOSIT SCHEME CHANGES

The Deregulation Act 2015 introduced a number of changes to the regulation of let residential property in England. Landlords should be aware that failure to protect tenants’ deposits and serve the prescribed information risks the ability to serve a Section 21 Notice to Quit. This includes Assured Shorthold Tenancies that began prior to 6th April 2007, being the date when the Tenancy Deposit Scheme was first introduced. There is however a 90 day window to rectify issues relating to unprotected deposits. This ends on 23rd June 2015. The message is to act now, otherwise landlords may be forced into returning tenant’s deposits in full before being able to serve a valid Notice to Quit.

For more information on any of these topics, please contact George Chapman

on 01798 877555.

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An Englishman’s home is not just his castle – it’s far more important than that, and although it is only a few years since the media was wailing its tales of doom and gloom, and home-owners were understandably nervous, the property market in the south east is in very good heart.

The general election, often predicted to stall the market had very little impact this time, with the spring market at Batcheller Monkhouse being generally busy. With the election behind us though, we do expect to see a lot more people bringing their homes to market. Not everyone has been keeping their powder dry, but we have seen a reticence in the higher price brackets; in excess of £1.5 million owners – and buyers – have been sitting, watching and waiting.

Overall though, the first few months have seen a lot of activity in both country and village properties. The busiest price level has been £500,000 - £800,000. The changes in Stamp Duty helped and with interest rates low, house-owners have been on the move.

As ever, buyers are looking for the best locations – the old mantra about ‘The Three Ls’ is still very true – and we simply can’t get enough good properties on the edge of attractive villages. We are seeing, in particular, both working couples and families moving this year, and though their requirements are of course different, quality of life is paramount, and they all want to live their lives in the most pleasant surroundings possible.

So far as who these buyers are, the local market is strong, but we are seeing an increase in families, in particular, moving out of London. This trend has been underway for more than a decade

now, but it did drop off when the financial situation was more uncertain. Now, especially as communications

improve, it is increasing once more – and these buyers are happy to move further out, well

beyond the M25. These home-owners might commute into London every day,

or more likely two or three times a

week, and the first imperative for them, naturally, is good railway services. As they tend to be family men and women, the next criterion is good schools – of which we are fortunate to have a good number in the region.

As ever in the south east, equestrian properties are very popular; in fact there are more buyers than sellers – especially for larger houses with suitable outbuildings and land, in the £1 million-plus bracket we are encouraging owners to take advantage of this solid market and place their equestrian properties on the market.

Although land prices have increased considerably in recent years, land ownership is still much sought after. Even if they do not have horses, owners of country properties want a suitable parcel of land as an amenity, and woodland is very popular too. An area of fifteen or twenty acres around a house will always be a huge plus, and

when it comes to larger areas of land, buyers are very happy to add them to their investment portfolio – particularly given the inheritance tax benefits.

The only part of the south east where there is a certain sensitivity is in the villages around Gatwick, which might be affected by any expansion of the airport. The commission looking at the needs of London’s airports doesn’t report until after the election, and we have no way of knowing what it will recommend, so some uncertainty is understandable. If it decides on an expansion of Heathrow (or the other, less-likely options) the sigh of relief will be heard across the county. The other factor affecting the same area is the recently-announced oil discovery – but it is too early to really know how large it is, or what effect it might have over the next decade or so.

All the factors which affect the market are stable, interest rates are predicted to go up very little, and the national economy should remain sound (subject to all the usual disclaimers!). All in all, good prices are being easily achieved for good homes – and if you are thinking of selling we would very much like to offer you a valuation, and help in any way we can.

Russell ParkesPartner

The Domestic Property Market – Good And Staying Good

LONDON

QUALITYTIME

Interest rates are predicted to go up very little, and the national economy should remain sound.

7RURAL OUTLOOK

Stamp Duty Land TaxAlteration to the calculation of SDLT brought in at the end of last year offer savings to some buyers. Purchasers of residential property up to £937,500 (and bizarrely from over £1m to £1.125m) pay less stamp duty than under the old regime. Beyond these levels, conversely buyers of mixed use properties which include farms, some equestrian properties, non-residential or commercial buildings, make potentially huge savings when compared to the residential rates. For example the Stamp Duty Land Tax on the purchase of a small farm for £1.5million would be £33,750 less than if purely residential. So it may well be worth buying any additional land and buildings that are on offer when looking for a country house.

£0

£4,000

£8,000

£12,000

Land Prices 2015 Per Acre

Although land prices have increased considerably in recent

years, land ownership is still much sought after.

Grassland10 Acresless than

Woodland10 Acresless than

WoodlandArable Grasslandmore than 10 Acres

LONDON

QUALITYTIME

Prestigious Instruction – The Wephurst Park Estate including over 700 acres of land

8

Hankham is a small village in East Sussex, just north of the A27, and no distance at all from both Eastbourne and Pevensey. When the Normans landed (just a few miles away, in Pevensey Bay) almost a thousand years ago, the village was held personally by King Edward, and after the conquest it was granted

to Count Robert of Mortain – and was worth just four shillings. Nowadays the High Weald area of outstanding natural beauty sits to the north, and the South Downs National Park to the west; it is very attractive, very lush countryside.

This is where you can find the Peelings Manor Estate, which is managed for its trustees and beneficiaries by Batcheller Monkhouse. The estate is smaller than some other estates handled by the firm, but it is a fascinating study in how estates both survive and develop.

Peelings comprised a Grade II listed manor, a range of agricultural buildings with surrounding land, and residential property when it was acquired by the late Kenneth Banner in the Fifties. He died in 1995 and the estate passed to the trustees.

The first exercise in generating an income from the estate was the conversion of redundant agricultural buildings into commercial units in the late Nineties. These were designed to be studios and workshops for artists and crafts workers. There are currently eight creative tenants, including woodworkers, a sculptor, and a potter – who has a retail shop as well as a workshop.

Batcheller Monkhouse were appointed as Managing Agents to the Estate in March 2010. Since then there have been several key changes, some bigger than others. Following the death of Kenneth Banner’s widow the manor was let on the open market, achieving a very satisfactory income for the owners and much needed boost to the economics of the estate. In 2012 a cottage came back in hand, and the firm advised that it was large enough to split into two residences, with one half being occupied by one of the beneficiaries

Estate Focus: The Peelings Manor Estate

Oliver RobinsonPartner

Peelings Manor Estate comprised a Grade II listed manor, a range of agricultural buildings with

surrounding land, and residential property when it was acquired by the late Ken Banner in the Fifties

9RURAL OUTLOOK

of the Estate, and the other let on the open market – and again a good rental was achieved. Part of Batcheller Monkhouse’s brief had been to achieve a balance between generating income and accommodating the requirements of the beneficiaries.

The heart of the estate surrounds the main house. The estate had however retained some strategic land to the south of the new A27 near Stone Cross which clipped the edge of the estate in the 1980s. The aspiration had always been that this might be suitable for residential development at a later date. The advice was to seek allocation and planning approval for new homes to be built on this land as soon as the Local Authority started to prepare its housing strategy.

That process began two years ago and a key step Batcheller Monkhouse achieved was to bring a number of adjoining landowners together to form a viable joint venture proposal. This was to be presented to the Wealden District Council planning department as a single proposal, which made things much simpler for everyone involved; one larger scheme rather than five smaller ones. The entire scheme came to 30 acres in total, making the Peelings Manor Estate the largest single partner.

Rather than simply sell an Option agreement it was evident from the status of the Wealden Local Plan, that there was an opportunity to make a pre-emptive strike. Whilst still pursuing formal allocation the owners combined to appoint their own team of Managing Agents to prepare and submit a formal planning application. Speed was of the essence and retaining control key to ensuring the owners secured maximum value.

Within 10 months of forming the Joint Venture outline, planning permission was secured for a scheme of 276 new homes; a stunning successful outcome achieved in record time. With the consent in place, Batcheller Monkhouse were retained to take the scheme to the market and the site was recently sold to one of this country’s major house-builders.

The impact for all the owners is a sudden and much needed injection of capital. The next step was to decide how best to

re-invest the profits into the estate, having regard to the requirements of the beneficiaries and the need to secure the long-term viability of the estate.

After a period of over twenty years during which resources allowed only limited repairs and maintenance, a long overdue programme of repairs and improvements can now be undertaken across all the estate’s buildings.

The unique quality of the traditional brick and flint built Sussex farm buildings can be preserved with the opportunity to develop more of the estate’s redundant agricultural buildings bringing these historic buildings back into productive use, thus improving capital values as well as creating additional income. The firm is looking closely at the potential of a large and characterful barn, with a number of possible uses. One being explored is a weddings and community events venue - which would create employment in the area, and be a source of income for a wide range of local suppliers, as well as being a dynamic new business.

Such a development introduces an entirely new income stream, so that the estate’s profitability is not tied to one or two, possibly unreliable, sources of revenue. There might also be opportunities to buy nearby agricultural land, which would be advantageous in terms of roll-over tax relief.

The situation of the Peelings Manor Estate is a good example of the need to both manage the smaller detail, look out for longer term strategic gains at the same time and then react fast when the opportunity presents itself.

Smaller estates such as this one face different challenges from larger ones, and professional advisors such as ourselves have to look at a broad range of options in advising owners, as well as keeping a close eye on national trends and demands so that opportunities can be seized upon. The country estate might sound like an old-fashioned concept to some, but landownership can certainly still be a valid and profitable use of capital, and can provide remunerative – and indeed creative and enjoyable – business opportunities.

London

Tunbridge Wells

Haywards Heath

BattlePulborough

The country estate might sound like an old-fashioned concept to some, but landownership can certainly still be

a valid and profitable use of capital

Peelings Manor Estate

10

It is no exaggeration to say that Batcheller Monkhouse’s planning department covers a very versatile range of projects across the South East, including a number of schemes in London. We handle applications from loft conversions through to new uses of redundant buildings, and right up to strategic land promotion.

Similarly, our clients range from homeowners to farmers and landowners, right up to substantial developers. We also handle applications to gain certificates of lawfulness in more technical cases, where a change of use might have occurred over a period of time. At the top end of the range, we work with those larger

landowners – or often consortia of landowners – to promote development schemes which might well involve the building of hundreds of new homes.

As well as working on submissions for clients, we also work very closely with other colleagues within the firm; often a project will involve several different professional disciplines. The fact that Batcheller Monkhouse is a multi-disciplined firm, with agency and professional departments, makes us almost unique as planning consultants.

We are consulted by our colleagues in other Batcheller Monkhouse offices across the south east on an almost daily basis. Often our estate agents have clients who are interested in a property, and who want an opinion as to the likelihood of getting permission for extensions, stables, or maybe secondary accommodation – and we are asked for our assessment, which often translates into an application later. Also, our colleagues in the valuation department often handle cases of probate, and we are asked to advise the beneficiaries as to the possibility of obtaining planning consent to maximise the value of the property in question.

Harriet RichardsonPlanner

CASE STUDY 1: BARN TO RESIDENTIAL CONVERSION

The farming press has been full of pessimism about the new Permitted Development rights allowing the conversion of agricultural barns to residential. One of our recent successes is therefore a perfect example not only of how to secure this valuable concession but also our professions work together to our client’s great benefit.

Our land agents were contacted by a client regarding the re-structuring of their farm near Hailsham. We suggested selling his existing farmhouse to generate capital, and under the new Permitted Development rights applying to convert a redundant dairy into two residential units.

We were happy about the sustainability of the location and landscaping issue but brought in a structural engineer to prove the conversion was eminently viable. We also reviewed the financial viability case of the scheme early on in the process. Everything stacked up and the prior approval application was submitted for the two new dwellings. Our application included robust argument that the new properties would be both eminently sympathetic in terms of their design, and entirely sustainable. The application was one of the first to be approved by the Local Planning Authority.

Planning for the future

CASE STUDY 2: BARN TO OFFICE CONVERSIONAs well as the conversion of old agricultural buildings into residential units, central government has been encouraging local authorities to permit the conversion of redundant rural buildings into offices and for light industrial use. Near Dorking in Surrey a client of ours had a very large and unattractive agricultural barn which was largely unused except for hay storage.

11RURAL OUTLOOK

You will always find a pair of – usually muddy – wellies in the back of our cars. It is very important to get out of the office and see the site or buildings

in question, and get a sense of the scale for ourselves, and see how our thinking works in relation to the rest of the surroundings.

More often than not a planning application will involve land or a property within the Green Belt, in the National Park, in the Ashdown Forest and its buffer zone, or in an Area of Outstanding Beauty – and what matters then is the firm’s long experience in this area.

We do of course have to go out of house for some expertise; for example we work hand-in-hand with landscape consultants when preparing applications that are in sensitive parts of the region. Depending on the scope of the scheme we also work with transport consultants, environmental experts, and architects. Again, due to our long experience, we usually have a feeling for which architect, for example, would be best suited to a particular project. We then make our recommendation to the client – assuming that the client doesn’t have someone in mind themselves, of course. Part of our role then is as project managers; as well as offering our advice we bring together these other professionals and fit them all into the jigsaw so that we can offer our clients the most efficient and cost-effective service.

One of the most important parts of our work is our relationship with the different local authorities, and this is often far from simple.

Some planning departments, it might be said, are instinctively more helpful than others. Some departments are happy to have an informal first conversation and offer guidance as to what their thinking would be, but it is not unusual for other planners to simply quote their planning policies. These days the local authorities charge a fee at every step, so if we are not careful it can become very expensive for our client. We therefore need to know local policy and the peculiarities of each authority and how they work.

You will always find a pair of – usually muddy – wellies in the back of our cars. It is very important to get out of the office and see the site or buildings in question, and get a sense of the scale for ourselves, and see how our thinking works in relation to the rest of the surroundings. We will usually meet the client or clients, and any other consultants on site too, and that teamwork is very productive. Every project we handle is a challenge, no matter how large or how small, and there is always great satisfaction to be gained from getting the right result for our clients.

The client was seeking to bring the asset into a use which would generate some income, but previous applications for consent to turn the barn into offices had been refused. The building was approached by a fairly narrow rural road, and the planners’ objection concerned the volume of traffic which would use the access, and the impact it might have.

In light of the new guidelines we decided to re-apply, and brought in our specialist transport consultant to add a robust response to a specific, technical question.

The key point was that the traffic generated by the proposed new use would be of no greater impact than for the existing agricultural use. With that included, and detailed information on the exact use and how the site complied with all of the relevant legislation, the application was approved – which has transformed our client’s business plan.

CASE STUDY 3: CHANGE OF USEWe recently undertook a change of use for a dental practice to a residential unit. Normally for an application where there is a loss of a public service a full marketing exercise is required to prove there is no demand from other practices who may wish to take over the property. This is both a lengthy and expensive process, which puts off clients looking for a change of use.

In this case, the dental practice had not ceased to exist, but had merged with another practice to expand and allow for a more sustainable site, close to public transport links. We were able to

argue that the service was therefore not lost, but simply relocated to a more suitable, desirable location, and as such the marketing process should not be necessary.

The existing site was in a predominantly residential location, on a main road outside the centre of town.

Our evidence base and planning argument was sufficient to avoid the marketing exercise, allowing our client to achieve their objective more quickly, and making some significant financial savings.

This is a great example of how a lengthy process can be avoided on occasion by providing a robust and sound argument.

12

Over the past year, one of the most dynamic and exciting areas of Batcheller Monkhouse’s operation has been in residential development. We have worked with a range of clients and achieved many gratifying successes in obtaining planning consent for the development of new homes.

Elsewhere in this issue of Rural Outlook, my colleague Oliver Robinson talks about diversification in estate management, and how a development scheme can be a very valuable opportunity for landowners, and can provide new capital to rejuvenate and even revitalise an estate (as well as allowing owners to take a profit). It’s worth looking at planning in broader terms as well – and at the opportunities it can provide for landowners.

All over the south east local authorities are struggling to meet their obligations to provide new homes, and central government – only too aware of the pressures on this sector - is growing impatient with the local councils’ slow progress, and lack of focus on the problem.

On the other hand, the large house-builders’ rampant enthusiasm for pretty much any site, such as we saw over the last two years, has cooled noticeably since Autumn 2014. As the case studies below show, not all development sites with planning consent find purchasers immediately. It must be said, however, a very satisfactory outcome was secured for the landowners. With the election over we expect to see the development market push up again quickly.

The house-builders’ cautiousness was understandable. Several of these large companies experienced traumatic times in 2008. Several national and regional firms went to the wall and other very large failures in the industry were only narrowly avoided. Now, despite the government ambitions to deliver a substantial number of new homes, the local authorities are not getting near the government’s targets. Although the builders are buying sites with consent, they have been buying very cautiously. It must also be recognised that, whilst delivery levels for new sites and houses remains well below government targets, the amount of consented land is at a 20 year high.

Within any given house-building company a regional development team would typically be expected to deliver around six to eight hundred new homes every year. Although there is only a handful of builders in any area, the arithmetic doesn’t add up. Hence the builders are playing it safe; they are making profits but they appear nervous about any possibility of over-reaching themselves. It’s all very well for the government to want them to hugely increase their turnover of new houses, but they, understandably but perhaps over-cautiously, do not want to be in a position where the economy slows once more and they are left with over-supply.

The builders did benefit from the Coalition’s ‘Help to Buy’ initiative, but that money is coming to an end. We expect the new Government to extend that scheme but we await the details.

Batcheller Monkhouse recently handled a scheme seeking planning consent for a development of 120 new houses on a site in an attractive small town in Mid Sussex. A large, national firm of builders took a twenty-year option on land owned by one of our clients, and they did eventually achieve a successful outcome with the planners, after what was a long and rather tortuous process.

The expectation was, of course, that with the consent in place the house-builder would take up the option to buy. Instead they have announced that they are not going to do so, or certainly not now. They have five years to run on the Option and can afford to wait. Our client is in limbo; he doesn’t know if the option might be triggered soon, or at some point within the time scale of the agreement, or the house-builder might ask for an extension to the option.

What probably happened here is that while it was in itself an excellent site and a very attractive development, the builder was looking across the whole region when it came to the decision as to which new project to action. From their own strategic point of view they decided to give a green light to some sites – but not this one. It is not an ideal outcome for our client, but on a positive note they do now own a very valuable asset, but may now take longer to realise. The lesson to learn here is that, unless Option agreements are very carefully negotiated, landowners can lose control on the timing of disposal.

Leo HickishPartner

Election Jitters Post Election BounceThe big building firms have been sitting on their wallets – but opportunities open up

All over the south east local authorities are struggling

to meet their obligations to provide new homes

Alex WilkesPartner

13RURAL OUTLOOK

The firm’s job in these cases – and our commitment – is to offer the very best advice to our clients, guide them carefully through every step of the planning process, add other expertise where it may be necessary, and make sure that our clients see the very best return on their investment, maintaining as much control as possible.

Local authorities are required by central government to prove that they have a rolling five-year plan for new homes:} Some councils are still in the very early stages of preparing

plans, with many having no policy documents adopted since the introduction of the national planning policy framework (NPPF). This leaves them in a vulnerable position leading to the grant of planning permission for some schemes which would, under a fully compliant new plan, not be permitted. Emerging plans are under close scrutiny by landowners and developers, who are seeking opportunities to promote sites or to bypass the tedious promotion process on the grounds of inadequate housing supply.

} There are a number of aspects that are considered, deliverability is just one of them. The main reason the majority of plans have been thrown out or delayed by the Inspector has been on the grounds of a failure to provide a robust and supported 5 year housing supply. A current example in this area would be Horsham District Council, which is currently

undergoing consultation on the Main Modifications. The key modification was the failure to provide a high enough annual housing target, and the result has been a delay of almost a year for the local authority to adopt an up to date plan.

} In areas with a sound housing supply, most sites have been snapped up by house builders through option of promotion agreements and as such, developers are already looking ahead to 2030 when many plans will require updating. Landowners, particularly those with sites not directly adjacent to settlement boundaries should consider a similar long term approach. It is never too early to start promoting your land.

} The opportunities for brown-field development have never been better, with Local Authorities desperate to avoid greenfield sites, many of which are restricted by a range of land designation.

} If the government continues failing to provide social housing, the onus will be increasingly on developers to bring forward more affordable housing. With many council’s now having an adopted community infrastructure levy, it is becoming more expensive to provide larger sites. A future issue that may arise will therefore be the number of proposed schemes, many of which may already be in the local plan, which are found unviable due to rising financial demands.

If in doubt, get in touch. Now is the time to act.

CASE STUDY: THE WELLS

At the end of 2012 Batcheller Monkhouse identified what is best described as a fundamental flaw in Wealden Council’s housing policy. Quite simply they did not have a plan for a deliverable supply of new homes.

The firm pro-actively brought together a consortium of landowners and drew up a scheme for more than two hundred and fifty new homes on thirty acres of land called The Wells. The members of the consortium funded the application, which was granted in the autumn of 2013. The site was then put on the open market, but it wasn’t sold to a developer until the end of the following year. It has to be expected that the sales process will be longer than previously; a period of about six months is realistic in most cases when you are selling a private home – so it be would strange if the timescale for selling the land for more than two hundred homes was any quicker.

Having funded the application themselves, the owners were in charge at every stage, and we helped them move very fast indeed. They also had a free hand when it came to selecting a purchaser and agreeing terms. The outcome for our clients was very satisfactory, and building will begin on those thirty acres very soon.

14

New technology has lead to the creation of many entirely new industries over the past three decades, and one of the biggest of these, of course, centres around the use of mobile phones. Great Britain has one of the highest rates of mobile phone usage in the world, and there are no fewer than 83.1 million mobiles in

this country – which is truly remarkable as there are only 62 million people. A fifth of homes now have one or more mobiles but no landline, and just 5% of all adults do not have a mobile phone.

Considering that mobiles were still fairly rare twenty or twenty five years ago – and were often not truly mobile as they were attached to cars by twirly cables – those are astonishing statistics.

As the phone industry has evolved, and evolved so quickly, regulation and legislation has had to run to keep up. This year there will be a new legal framework for installing and leasing of electronic communication apparatus on private land, updating telecoms legislation stretching back to 1984. At the time of writing the consultation on the proposed Bill has ended, but it is important that landowners appreciate what fundamental changes might arise with their relationship with telecoms operators such as BT and the other mobile phone companies.

Mr Justice Lewison, handing down a judgement recently, described the existing law as one of the least coherent and thought through pieces of legislation he had ever seen. The overall purpose of the new Bill is to replace the old Code and clean up the legal position for all parties – which we welcome.

An interesting element underpinning the new Bill is that the Government now sees electronic communication as an essential service rather than a luxury, which moves the subject on to a higher rung of the ladder and gives it the importance we know it merits. The Government is therefore committed to improving high speed connectivity and coverage, and to encourage the roll-out of the essential infrastructure; this last point is the one which is pertinent to us. The authorities’ declared wish is to be even-handed in the treatment of all parties with a stake in the industry.

The element of the Bill which is probably most important to landowners is the question of rent. The operators have been

lobbying the Department of Culture, Media and Sport that they should not pay rent at all, and made an argument that they should have access to land in a way similar to water and power companies. In this scheme of things the landowner would only receive the existing user value of the few square metres of field upon which the mast was situated. We argued successfully that a bona fide market has developed in terms of rental values and the idea of market value should continue. The draft Code is based on that assumption – which is obviously good news for our clients.

The operators have complained that they have been ‘held to ransom’ where a landowner might have the only viable site in a given area. The new Code seems to address this by adding the assumption that there will always be alternative sites in any given location.

So far as assigning leases is concerned, landowners will be able to have an authorised guarantee agreement but will otherwise not be able to restrict assignment. Additionally landowners will not be able to ask for additional payment when masts are upgraded or shared between operators. The Bill provides that operators can upgrade or share, so long as there is no additional burden on the landowner and his or her environment; however this only applies where the main operator has exclusive possession of the site. The danger is that the operation of a mast could pass at some point from a large, blue chip company to a less reliable or solvent company, which might create problems particularly regarding reinstatement. Our recommendation to landowners looking at new agreements would be to ensure that an authorised guarantee agreement is incorporated into a lease whenever possible. Also, if a landowner can take legal control of a mast thus denying the operator excessive possession, that is definitely in their best interest.

There has previously been technical problems for landowners ending a lease protected by the Landlord and Tenant Act 1954. This clashed with the protection which the operators had under the Code. The new Bill clarifies this by simply stating that the 1954 Act does not apply to new telecoms agreements. That is a very helpful aspect of the new regulations.

The question of landowners being able to break an agreement is addressed in the new Code by the introduction of a process whereby the landlord can initiate the termination of an agreement by stating specific reasons why the contract should be ended. The notice period will be eighteen months, and the grounds for terminating the contract must be continual breaches of contract by the operator, non-payment of rent, the existing arrangement no longer being in the public interest, or the landlord re-developing the site. The presumption in the Code is that so long as the landlord has met the conditions laid down, possession will be allowed. The operator will pay all relocation costs – or compensate the landlord if

Tom Bodley ScottPartner

Good news for landowners?A new government Code about telecommunication

masts is positive for landlords

15RURAL OUTLOOK

the court decides that there is any loss of value in the site. This is much clearer than at present and is to be welcomed; there is now certainty in this area for landowners, which may give confidence to these landowners who avoided offering property to telecoms operators.

Another aim of the updated Code concerns resolution of disputes. Previously representation was made to the county court, but in future disputes can be taken to a valuation tribunal, which will be better for all parties as their experiences in these matters is much greater.

One element upon which the Department of Culture Media and Sport is currently seeking opinions is whether or not the new Code should be retrospective. It has not been drafted in that way, which we believe is definitely preferable. Thus current agreements would continue as signed.

One complication previously was that it was possible to contract out of the ’54 Act, but no party will be able to opt out of any provision under the new Code.

Batcheller Monkhouse was very involved in the discussions around the Law Commission’s 2013 report on telecommunications, and the firm was quoted in the report more than any other. We have continued to be highly active in the consultations since then, and are watching the creation of the new Code very carefully. As I say, the legislation in this area has evolved a long way, and may well change further in years to come, but this new Act looks as if it will encourage more landlords to have greater confidence in this sector and be less nervous of signing new leases.

83.1 MILLION MOBILE PHONES IN THE UK

15RURAL OUTLOOK

62 MILLION PEOPLE

5% OF ADULTS IN DO NOT HAVE MOBILE PHONES

16

Compulsory Purchase Orders were first introduced in Government Bills in the Nineteenth century for the building of railways, and they were seen as a terrible attack on property ownership at the time – though of course without them landmark projects of that kind could never have been realised.

Many Victorian landowners quickly realised the benefits which train travel would bring them. CPOs were then extensively used post war and again in the Sixties and Seventies for slum clearance, large-scale re-developments and an explosion in road and rail construction. At that time it was already recognised that a system bought in over 100 years ago was struggling and frequently unfair. Lord Denning, who could often be relied upon to cut to the chase, pressed for a reform of the legislation in the 70’s. Sadly 40 years on we are still awaiting any meaningful reform. That does not mean that robust negotiation and skill cannot be brought to bear to protect our clients, be they landowner, occupier or nearby resident.

We have represented clients for decades threatened with Compulsory Purchase Orders. Cuts in national infrastructure a few years ago meant that many large projects were cancelled or delayed, and there were far fewer CPOs issued. The effect of those cuts in budgets have meant, particularly here in the south east, road congestion, over-crowded railways, and a lack of housing in several sectors of the market.

During the last years of the coalition government a number of infrastructure projects were brought back into play though; many of which were overdue and much needed. Over the last two years

alone the value of these projects across England has grown to a staggering total of £50 billion. In this part of the country the majority of these schemes relate to road building. These include the widening of the A21, the A27, the M25, the Arundel relief road, and the Bexhill to Hastings link road.

The biggest bone of contention about CPOs has always been the levels of compensation, and that is still true today. Rural business groups have lobbied the government tirelessly to try and get the basis of compensation improved.

In theory no landowners should be disadvantaged by a CPO. An open market value is placed on the land, but there is an assumption of no actual loss and no material gain. Most importantly the market value excludes any uplift associated with the proposed scheme

itself. That might seem fair in principle, but one immediate problem is that these projects are notorious for taking a very long time from inception to formal launch. Many property owners find their property negatively affected by a draft proposal, well before there is any statutory right to compensation. This pre-scheme “blight” and the associated effect on the value can be very hard to compute. The uncertainty can easily last for decades. This does not just affect home owners; local businesses may find their expansion plans thwarted as well.

An example often quoted is that of the HS2 rail link. This is clearly a great concern for many but we have seen similar situations here in the south east along the East Sussex sections of the A21 and now along sections of the A27. I challenge anyone to say when either scheme will actually be rolled out.

In cases such as this, properties and land can be almost impossible to sell – let alone at their true value – and businesses cannot plan development or expansion. In some instances, such as the disposal of land or buildings to meet inheritance tax, owners have no choice but to sell, and the CPO leaves them in an invidious and highly unfair position.

Parts of the A21 are used by as many as 35,000 cars a day, and a section of the road was said to be one of the most dangerous roads

Parts of the A21 are used by as many as 35,000 cars a day, and a section of the road was said to be one of the most dangerous roads in the south east.

The biggest bone of contention about CPOs has always been

the levels of compensation, and that is still true today.

Chris TipppingPartner

Compulsory Purchase It Need Not Be A Nightmare

17RURAL OUTLOOK

in the south east. This firm has represented around a dozen clients affected by the proposed widening for some years now, but work is only beginning this spring on a small section near Tunbridge Wells, having been put on hold several times.

Over the next couple of decades there are likely to be many more infrastructure projects, large and small, across the country; utilities and railways as well as roads. We are already seeing gas, water and electricity companies needing to undertake substantial upgrading as greater demands are made upon the utilities by new residential developments.

In many cases the land take is not limited to what is required for the development, but, for example, the Highways Agency adding landscaping and mitigation work to the scheme, and therefore increasing the area of land compulsorily acquired, which may in itself have a detrimental effect on the remaining property.

One other form of development currently subject to a CPO is a massive offshore wind farm on the South Coast. We are currently representing numerous clients whose land will accommodate a massive power line running from the coast to 20 miles inland.

Whilst the acquiring authority in this case are comparatively co-operative, our farmers are left this season not knowing if the developers will come in this harvest or next to dig up a 50m swath of their crops – not a happy position for anyone to be in.

The firm’s responsibility to its clients is to compute what we judge to be a fair value for the CPO, to have regard to the relevant legal and valuation principles but then to negotiate robustly to maximise all heads of claim. With experience one knows how far to push and what can be achieved. It is also necessary to vigorously manage the project itself, including access arrangements, to reduce stress, disruption and nuisance for the clients. Too often we find that, whilst the acquiring authority aim to act reasonably, overly enthusiastic contractors can create real issues on site.

In all fairness it should be recognised that the claimant’s duty is to mitigate their losses and support any claims for compensation with detailed evidence. Putting the right systems in place from day one, agreeing early entry arrangements, access provisions and securing robust advanced payments is all key. Starting on the right foot and ensuring the case is managed from first enquiry to settlement of the final claim requires experience and attention to detail.

CASE STUDY: WIDENING THE A23We recently acted for clients who own a very attractive house alongside the A23 south of Gatwick. A scheme to widen the road was approved and CPO procedures started to acquire strips of adjacent land to accommodate the scheme. In this case the owners were to lose their existing access directly off the A23, to be replaced by a shared side road on the other side of their home. Only a very small strip of land was to be taken. Nevertheless it was immediately apparent to us that their property would be substantially affected by the scheme.

Urgent discussions with the Highways Authority started the moment the scheme was proposed and formal representations about essential mitigation measures were made at the subsequent public inquiry. We argued vigorously that an extensive programme of landscaping of the grounds was required, in addition to a new driveway, gates and associated facilities together with robust compensation payments for injurious affection, disturbance and disruption. Most significantly we won the argument that their own Project Managers, being Batcheller Monkhouse, should be retained throughout the three years of the scheme at the Highways Authorities expense to appoint contractors and manage the build. This ensured the clients’ requirements were properly represented and such works were not simply seen as part of the massive road construction programme itself.

It took a staggering 6 years from public inquiry to completion but throughout our clients had the satisfaction of knowing that they could call on us to represent them without any financial burden.

18

It is thought that the Greeks concentrated the power of the sun to light flares more than two and a half thousand years ago, so humans have actually been using solar energy for a long time. It was back in 1767 though that a Swiss scientist, Horace-Benedict de Saussure, first ‘harvested’ the sun’s rays, reaching temperatures of well over two hundred degrees

Fahrenheit in a glass box, but the modern solar cell was only developed in 1999. Since then we have seen the collection of solar power all round the globe; the world’s largest solar farm is in Gujurat in India, which has a capacity of 600 megawatts. Even the Vatican and the White House have been fitted with solar panels in recent times.

Solar power is an important energy resource within the EU’s strategy for renewable energy, and solar collection – be it in domestic applications or in larger commercial units – has been incentivised by the government for some time. A ‘feed-in’ tariff for generating energy into the national grid was introduced in 2010, and a new industry to supply solar technology appeared very rapidly.

Land and estate consultants, Batcheller Monkhouse, began compiling knowledge and experience immediately when this technology emerged, and have been involved in this industry ever since. Just a year in from the 2010 initiative, the government reduced the original level of support, and cut it further in 2012. This reduced the activity in the market, but the technology has moved forward rapidly, and in particular the cost of the solar panels themselves has dropped considerably. Whilst the take up of new sites has slowed, there nevertheless remain good opportunities for landowners.

There are two main ways landowners can participate. The most obvious is to install smaller arrays on your own land or buildings. With a significant reduction in installation costs this still remains very viable, but particularly so where you intend to use much of the power. Examples of such schemes include clients who are running top fruit cold sheds and processing plants on their own renewable energy.

The alternative is larger field scale plants, which remain a very interesting opportunity.

The principle is very simple; banks of panels are placed on your land by a leaseholder, and you as the landowner are paid for the use of that land. There are no capital costs for the landowner and

no maintenance costs. The Lessee sells the power into the national grid, while you enjoy solid rental income. At the end of the lease the contractor is obliged to remove all evidence of the installation and make good. Or that is the theory. Not all leases are quite as well constructed as that.

The firm has recently been working on the development of solar farms at Natewood Farm north of Polgate in East Sussex. The landowner had been offered a lease by solar farm developers, and brought the draft contract to us. We quickly came to the conclusion that the terms could be a lot better for our client, so we approached several other developers and asked them to offer terms on the site, which we knew was perfect for solar farm use. We looked closely at their respective track records and the schemes they had undertaken in the past, and identified which company was offering the best deal.

The site in question extended to forty acres and was able to accommodate an 8.8 megawatt installation.

The site was ideal because it met a number of criteria; there was the existing main road running along the eastern edge, there was already a mobile phone mast in the centre of the farm buildings, and there was a large poultry shed – so it could very plausibly be argued that there was a high level of existing blight. In addition, woodland would shield the solar panels from view from all other directions, though Batcheller Monkhouse did recommend planting some new hedging. Planning consent was approved for the solar farm and the site is currently under construction.

In this part of the world a lot of the countryside is designated as National Park or Areas of Outstanding Beauty, so although local authorities have been urged by central government to be sympathetic towards renewable energy projects, there is a limited area of land in the south east of England where they can be situated (of course we are at an advantage in this region in that we enjoy a larger-than-average numbers of hours of sunlight). Environmental concerns are, of course, a high priority for local authorities, even if a proposed site is outside a protected area. This does mean that if a landowner has land which is shielded from sight in whatever way, it does have better than average potential to obtain consent.

Perhaps the biggest single issue is one of capacity on the National Grid – unless of course you can utilise the electricity more locally. Having an existing sub-station nearby is a good start, but there is no guarantee that it will have adequate capacity. For that reason solar farms would have to produce at least five megawatts to be economically viable in terms of initial investment. It is also important to consider how the geography of the farm or estate will be affected once the solar farm is in place; is the impact upon the residual estate acceptable?

Leases on solar farms are usually for twenty five or thirty years, which guarantees a good return over a long period, but this has to be thought through in terms of the amount of land being taken

Charlotte Pearson-Wood Land Agent

Let The Sun Shine InWhy you should look at a solar farm for your land

19RURAL OUTLOOK

out of use for an entire generation. In terms of selling your land during the period of the lease, parallels can be made with other assets which are offered for sale with existing contracts in place, such as telecommunication masts, and existing protocol applies. Because of the guaranteed income a solar farm will increase the

capital value of your land; indeed, investment institutions are very favourably disposed to solar farms which have long periods

remaining on the lease and the solar companies themselves are very interested in such acquisition opportunities. The

values at present however do not yet offer the level of yield that might encourage many landowners to sell

rather than enjoy a good rental income.

It is very difficult to know what the position might be by the time the lease comes to

an end. It may well be that solar energy is still very desirable, and the lease

will be extended for another term. It may be that a source of

energy currently unknown to us will be powering

the grid, but in that eventually there is

still the fall-back position of the

land coming back in

hand

and being used for another purpose.

As I say, there has been a drop in the feed-in tariff, and this has been argued by the operators for reduced rents which developers are willing to pay. Given the parallel drop in the price of panels and the increasing scarcity of sites we would argue that the pressure on rents is for them to rise not fall. Time and robust negotiation will tell.

For landowners with appropriate sites, solar can still be a very worthwhile use of their land, but great care is needed in securing the right operator under the right terms.

The ‘tick list’ is simple; do you have a parcel of land of around twenty to thirty acres, which is away from homes (including your own), is well-shielded from sight generally, has good access for plant and machinery, and is not top-quality arable land? If so, solar could be right for you.

The world’s largest solar farm is in Gujurat in India,

which has a capacity of 600 megawatts.

19RURAL OUTLOOK

20

The lettings market has been steady and solid so far this year – and looks set to remain so. Levels of supply and demand remain fairly evenly balanced, and this is true right across the market, from large country houses commanding rents in excess of £6,000 per month, to smaller cottages and flats at under £1,000 per month.

Having taken the decision to expand the lettings discipline across all the Batcheller Monkhouse offices last year, we are pleased to continue to receive a stream of new instructions, and equally importantly, to have found the right tenants.

Unlike our estate management offices in Pulborough and Tunbridge Wells, which always have a large number of smaller cottages, the Haywards Heath office specialises in particular from the mid-range right to the top of the market – and it’s that top end that has been very busy (not that we are not adept at the lower end of the market too).

We deal directly with a number of relocation agents in the South East area. They are always interested in top quality homes for their executive clients and tend to complete on deals quickly.

The supply of larger dwellings does vary quite a bit. Last winter there was a noticeable cooling of interest in those houses commanding rents over £3,500 per month. This has rapidly changed and these properties are really being snapped up quickly, with an associated increase in rental levels.

For that level of rent the accommodation will include four or five bedrooms, plus large reception rooms in a top-quality house, either in the country or in town. Every property we have handled recently has been in very good order, and in the majority of cases, has been refurbished and equipped with all the very latest features. Houses with land and stabling are particularly sought after.

Tenants are not over-demanding, but they are discerning, and rightly so. The days of letting draughty and un-centrally heated houses have gone. Right across the spectrum we find that tenants want - and will pay for - well presented houses or cottages.

We can advise landlords on refurbishment work that might be necessary or desirable. Some simple refurbishments, such as refitting a bathroom, can readily return a profit of 20% on the

investment. This is very worthwhile, and the property is much more likely to attract and retain quality tenants.

In country properties in particular we do find that landlords often have to accept dogs – albeit well-behaved ones. It is reasonable to ask working couples if the dog is going to be left at home all day. Some rural landlords are very dog-friendly, while others prefer not to have dogs in their property, but will accept them if the tenants are ideal in every other way.

We have noticed an upwards trend in the number of tenants coming from London. Some are renting with a view to buying in the area, and are putting a toe in the water; taking their time, and seeing exactly where they want to be. One client of ours rented a home for a year at a rent of £3,500 a month, decided that it really was where they wanted to live, and – in the preferential position of being cash buyers – bought a house in the same village for £2.5 million.

Other clients renting their London homes for very considerable sums are then renting around here and pocketing the difference – while still being on the central London property ladder.

The number of Londoners moving out in June, July and August typically increases. These would-be tenants have families, and want to be settled in a new home ahead of the start of the school year in September. For us that is a very sizeable sector of the market these days.

One sort of family we are seeing a lot of at the moment is older couples with a grown-up child – or children – still living with them. The youngsters would like to buy but can’t afford to at this point – though it’s not impossible that mum’s cooking and the use of dad’s car are advantageous factors too.

The outcome of the election won’t have an effect on us, although the removal of the threat of rent control is important, we anticipate that we will remain very busy for the foreseeable future. Whether our clients are looking to rent out their own home, are a buy-to-let landlord, or a large estate looking for good returns from their property portfolio, we remain very confident about the rental market and our abilities to find and manage the best tenants.

Dorothy Purdie Associate

The days of letting draughty and un-centrally heated houses have gone.

Residential Lettings Are Steaming Ahead

21RURAL OUTLOOK

Levels of supply and demand remain fairly evenly balanced, and this is true

right across the market, from large country houses commanding rents in excess of £6,000 per month, to smaller cottages and flats at under

£1,000 per month

22

Forestry is an integral part of any traditional estate. Well managed woodland will not only provide commercial revenue but sporting potential, enhanced amenity value and of course carbon sequestration. Forestry management is an essential skill in estate management. Philip Trower, agent on the Wotton Estate, and experienced forester,

explains the value and adaptability of one species in particular: The Scots Pine.

The wooded areas at the Wotton Estate are extensive, and unusually make up half the estate’s entire acreage. They divide between the main woods (mostly in quite large blocks) and the wooded Commons. The Evelyn Family as owners have a proud silvicultural tradition, one of the most famous members being the Diarist John Evelyn (1620 — 1706) who wrote “Sylva” — a dissertation on forest trees in 1664, which encouraged other landowners to put their woods in proper order.

The two main silvicultural systems operating at Wotton comprise what one can term “plantation forestry”, and “natural regeneration”. The first chiefly operates in the main woods. Mature areas of timber are harvested at the appropriate “rotation age” as a “clear fall”, then replanted, maintained, and steadily thinned until they are clear felled in their turn. In the larger blocks this can achieve a good variety of ages and species, although the present situation with various forest diseases affecting a number of species can result in quite a headache on what to plant as a replacement crop. Larch has been extensively used in the past, as it provides a mature crop quite quickly (say 45 — 50 years for Japanese or Hybrid Larch) and is attractive. Unfortunately a nasty lurgy called Phytophthora Ramorum hit the UK some years ago, and fairly recently the discovery of two infected Larch trees at Wotton resulted in over 20 acres having

to be cleared, some less than halfway through their rotation but thinned three times and otherwise looking very promising — as the planting was to make good 1987 Gale Damage this was really quite heartbreaking. Pines (especially Corsican Pine) have been suffering from Red Needle Blight. Ash faces severe threat from Chalara. In many ways foresters have to be eternal optimists.

The principal species on the estate’s Commons, especially the large area running down to Leith Hill, is Scots Pine. This has seeded in naturally for about a hundred years, once Commoners’ animals ceased to graze the area. A programme of “seeding fellings” has been operated for a while now. This involves a heavy thinning initially, to leave about 12 of the best trees per acre. These then seed over the largely cleared area and (with a little patience) a new crop emerges. Some institutional owners primarily interested in conservation prefer to convert (or restore) these areas to heathland, but the annual cost of preventing such areas from a reversion to pine and birch woodland is astronomic. Relatively inexpensive establishment of useful timber crop has its attractions. Scots Pine has been part of the Surrey landscape for about 10000 years. It is very satisfactory to perpetuate this.

There is of course nothing particularly novel about the natural regeneration system. It has been used to good effect elsewhere, for example The Hurtwood to the west of Wotton, where BM Partner Alex Wilks acts for the Shere Manor Estate.

The Scots Pine: A British Forester’s Stalwart

Philip Trower FRICS Partner

Red Needle Blight has attacked Pines in the UK – in particular

Corsican Pines. Scots Pine was at first thought to be less susceptible

but is now being affected.

23RURAL OUTLOOK 23RURAL OUTLOOK

Acute oak decline – a disease that has been affecting native oak species for up to 30 years

Ash dieback – a fungal disease now sweeping across the UK

Asian longhorn beetle - a beetle that attacks a wide range of broadleaf trees

Oak processionary moth – another threat to oak trees, but also a possible risk to humans

Phytophthora – A plant pathogen that has two main variations.

Red Band Needle Blight – a fungal disease of conifers

Woodlands across the UK face numerous challenges, not least the recent surge in pests and diseases. Ash dieback is of course one of the most recent but is by no means alone in threatening to change the landscape; potentially as significantly as Dutch Elm disease did 30 years ago. The forestry industry needs as much help as possible to track and monitor the spread of these threats. Climate change is often claimed as a major cause, but of greater concern has been the poor management of our borders and the importation of infected plants.

The following are some of the main areas of concerns:

24

It is a curious thought, but some long-established firms have family trees almost as extensive as their clients’. They can be drawn up, pored over, and framed on the wall – and that can certainly be said of Batcheller Monkhouse.

The firm’s roots here in the south east of England go back to the 19th century. Across the last century, the needs of

Batcheller Monkhouse’s clients have changed enormously - and the firm has changed accordingly. Some fundamentals remain the same in principle – bringing land to market or letting cottages, for example – but the way in which that is undertaken has changed out of all recognition. The World Wide Web means that property can be marketed much more dynamically, information disseminated more rapidly and demand trends identified more quickly.

Many of the services the firm now offers would be as mysterious to our Victorian forebears as the internet; the feature in this issue of Rural Outlook about telecommunications springs immediately to

mind. The energetic, questing Victorians would have been delighted by the notion of the mobile phone, but would have been certain that it only existed in an H G Wells novel. Planning Law is of course also a comparatively new invention only coming into force in 1947.

One of the firm’s core business areas in those early days was livestock auctioneering – cattle markets in the main – not always held in large, purpose-built centres with adequate car and truck parking, but in the open air, and simply at rural crossroads.

Managing country estates was also an important focus in the nineteenth century too. The very largest estates might have had their own Land Agents (though even so they would often call upon specialist knowledge from firms such as ours), but many estates wanted the complete service which the firm could offer. Their requirements could be anything from the acquisition of land, woodland management and understanding of new Landlord and Tenant legislation to attending to a dry well or making sure that there was provision for widows and orphans.

The firm was here for landowners and farmers in particular as they re-thought their businesses between the wars, and then again when the rural industries were faced with radically new government thinking in 1947. In the 60s and 70s we saw massive new challenges, and again we were on hand to advise and assist. Landlord and Tenant negotiations came to the fore as new legislation was introduced, but so did the needs of in-hand farming reacting to the dramatic advancement in agricultural science and investment.

The firm has always reacted rapidly to the needs of our clients; in fact, we have always tried to anticipate those needs as the world has changed and new challenges have presented themselves. Again, looking at this issue of Rural Outlook, there is an article on the very wide scope of our Planning Department – that was created

Charles ThackerManaging Partner

Lineage, Heritage, Experience

Why our family tree matters in the 21st century

25RURAL OUTLOOK

by the firm to meet a need as opportunities for rural development increased. In similar vein, tax planning has become very important in recent years and we continue to expand our expertise in this area as new challenges present themselves. Nowadays we are concerned about issues of Inheritance Tax and Capital Gains tax, on even modest Estates. We are perhaps not faced with the punitive tax rates seen in the 1940s or 50s when the top rate of income tax peaked at 99.25%, but then again the origins of the firm saw Gladstone and Disraeli doing battle of the abolition of Income Tax. The tax threat remains as will be well understood by those estates who suffered substantially from the former Estate Duty which hit 75% in the 1970s.

Estate agency grew rapidly as an important limb of the family tree after the Second World War. As well as the rural lettings which the firm had always handled, the rise and rise of the owner-occupier and the huge increase in new homes meant that there was a demand for us to handle valuations and sales – both in rural areas, and in the towns and villages of the south east – and it is now an essential part of the bespoke range of services we offer.

The move into estate agency was achieved by both organic growth and mergers. There has never been a buy-out, just partners welcoming the skills of fellow professionals and joining with them to create a firm with broader horizons, able to offer an ever widening range of services to our clients. So the branches of the family tree fed into the trunk and the firm’s lineage grew and prospered.

There is a simple word for this process; one which is perhaps a little over-used in the modern world – and that is ‘heritage’. We think of castles and cathedrals as having heritage, just as the great Ashdown Forest does, or Eastbourne promenade and pier. Families have heritage too though, and indeed so do long-established firms.

We at Batcheller Monkhouse are proud of our twenty-first century abilities and instincts, and the fact that we can offer utterly modern solutions to our clients’ modern problems – but we are proud of our heritage too. Viewed in principle, there are many contemporary questions which we find we have answered – albeit in entirely different ways - in the past. That is called experience; it is the other side of the coin from heritage, and we firmly believe that there is no substitute for it.

We at Batcheller Monkhouse are proud of our twenty-first century abilities and instincts, and the fact that we can offer utterly modern solutions to

our clients’ modern problems

1840King and Chasmore

1866T Bannister

and Company

1980Bannisters

1985Braxtons

1953David G Braxton

and Company

1980Braxton

and Whiteheads

1993Five Principle Pulborough

Members set up Monkhouse and Partners

1991Two Principle Partners set up Batcheller Thacker

2000Monkhouse and

Bannisters2011

Batcheller Monkhouse

1840

2011

1950

1980

1985

1988

1994

1998

2005

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Our TeamEstate Management and Property Consultancy

Planning and Development

Telecoms

Rural Agency

Estate Agency

Lettings

Alex Wilks MRICS FAAV Partner, Pulborough 01798 877520

David Blake MRICS FAAV Partner, Pulborough 01798 874524

Leo Hickish FRICS MBIAC Partner, Tunbridge Wells 01892 509281

Philip Trower FRICS Partner, Pulborough 01798 877510

Chris Tipping MRICS FAAV Partner, Tunbridge Wells 01892 509283

Martin Sadler FAAV Partner, Pulborough 01798 877512

Oliver Robinson MRICS Partner, Tunbridge Wells 01892 509280

George Chapman MRICS Associate, Rural Surveyor, Pulborough 01798 877515

Charlotte Pearson-Wood MRICS FAAV Rural Surveyor, Tunbridge Wells 01892 5092887

Charles Gregory Bsc Hons Graduate Surveyor, Pulborough 01798 877555

James Dear BSc Hons Graduate Surveyor, Pulborough 01798 877555

James Dillon BSc Hons Graduate Surveyor, Tunbridge Wells 01892 50280

Canan Clatworthy MRTPI Senior Planner, Tunbridge Wells 01892 509280

Harriet Richardson BA Hons MSc Planner, Tunbridge Wells 01892 509280

Tom Bodley Scott MRICS FAAV Head of Telecoms, Tunbridge Wells 01892 509282

Derek Harvey BSc MBA ARICS Associate, Telecom Surveyor, T. Wells 01892 509284

Marcus Curle LLB MSc Telecom Surveyor, Tunbridge Wells 01892 509288

Russell Parkes MRICS FAAV Partner, Pulborough 01892 877503

Andrew Sadler FRICS FAAV Partner, Haywards Heath 01444 412402

Matthew Braxton BSc Partner, Battle 01424 775577

Battle 01424 775577

Haywards Heath 01444 453181

Pulborough 01798 872081

Tunbridge Wells 01892 512020

Battle 01424 775577

Haywards Heath 01444 453181

Pulborough 01798 872081

Tunbridge Wells 01892 512020

27

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www.batchellermonkhouse.com

Battle01424 775577battle@batchellermonkhouse.com

Haywards Heath01444 453181hh@batchellermonkhouse.com

Pulborough01798 877555sales@batchellermonkhouse.com

Tunbridge Wells01892 509280twells@batchellermonkhouse.com

LondonMayfair Officemayfair@batchellermonkhouse.com