News

31st March 2020

News

Qualifying for an exemption is not enough!

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 introduced Minimum Energy Efficiency Standards (MEES) to improve the energy efficiency of private rented property under the Energy Act 2011.

The Regulations apply to all domestic private rented properties in England and Wales that are let on specific types of tenancy agreement and are legally required to have an Energy Performance Certificate (EPC). Where this applies, and the property has an EPC rating of F or G, landlords must take appropriate steps to comply with the requirements of the MEES Regulations.

The qualifying tenancy types are an assured tenancy (including an assured shorthold tenancy) defined in the Housing Act 1988; a regulated tenancy defined in the Rent Act 1977; a domestic agricultural tenancy as set out in the Energy Efficiency (Domestic Private Rented Property) Order 2015 under section 24 of the Housing Act 1988, section 3(6) of the Rent (Agriculture) Act 1976 and section 4(6) of the Rent (Agriculture) Act 1976.

When the MEES Regulations were first implemented in April 2018 private landlords could not let properties on new tenancies to new or existing tenants if the EPC rating was F or G (unless an exemption applied).

From 1 April 2020 the prohibition on letting properties with an EPC rating of F and G will be extended to cover all relevant properties, even where there has been no change of tenancy. Landlords with properties assessed at EPC F and G must now improve the property rating to E, or register an exemption, if they wish to continue to let it.

The following exemptions may be applicable;

All relevant improvements made exemption
High cost exemption
Wall insulation exemption
Third-party consent exemption
Property devaluation exemption
Temporary exemption due to recently becoming a landlord

If an exemption applies to a property with an EPC rating of F or G the exemption must be applied for. Fitting the criteria is simply not enough. Landlords must register both the exemption type and the information
required to support that exemption before they can rely on it and let (or continue to let) the property. There is no fee or charge.

The PRS Exemptions Register is an online platform which allows landlords (or an agent acting on their behalf) to register valid exemptions from the minimum energy efficiency requirements. The Register can be accessed
here: prsregister.beis.gov.uk/NdsBeisUi/used-service-before

NB: Landlords and agents who need help or advice with registering an exemption, they can email PRSRegisterSupport@BEIS.gov.uk or call: 0333 234 3422.

Please see below article and fact sheet for further information.

ARLA factsheet MEES

MEES Update March 2020

27th March 2020

News

Electrical Safety Standards are changing

In January 2020 the Government published the draft Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020.

Currently an EICR (electrical installation condition report) is only a recommendation and not a legal requirement. The changes will bring electrical regulations in line with other checks we already see in the residential letting sector.

The MHCLG has indicated that the Regulations will be introduced in two phases over two years. Inspections will need to be carried out on all new tenancies in England from 1 July 2020 and 1 April 2021 for all pre-existing tenancies.

Click the below link for further information.

Electrical Regulations for Residential Tenancies

27th March 2020

News

Finance costs and lettings relief

Propertymark have published an article explaining the taxation and regulation of let residential properties. Click the below link to find out what you should be thinking about if considering purchasing an investment property.

Finance Costs and Lettings Relief

20th January 2020

News

Electrical Safety Regulations to come into force

The Government has laid The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020.

Subject to approval by both Houses of Parliament, landlords and agents will need to ensure electrical installation inspections and testing are carried out for all new tenancies in England from 1 July 2020 or from 1 April 2021 for existing tenancies.

The Regulations require landlords to ensure that every fixed electrical installation is inspected and tested at least every five years by a qualified person.

• The landlord is required to obtain a report which gives the results of the inspection and test, supply that report to each tenant within 28 days and retain a copy until the next inspection is due.
• Upon request the report must be provided to the local housing authority within 7 days.
• The private landlord must supply a copy of the last report to any new tenant before occupation, or any prospective tenant within 28 days of a request from the prospective tenant.
• The Regulations require local housing authorities to enforce the rules and have the power to arrange remedial action.
• Proven breaches of the regulations can result in the local housing authority imposing a financial penalty of up to £30,000.

15th January 2020

News

The Fifth Anti-Money Laundering Directive

Howie, Kent & Co are compliant with the latest and fifth anti-money laundering directive.

This came into force on 10th January 2020 and covers more businesses than the previous directives. This time letting agents must comply with the regulations but only if they are managing properties which yield an income of 10,000 euros or more per calendar month.

For more information and to access the full text please follow the below link, where ARLA Propertymark have made the changes easy to keep up to date with.

https://www.arla.co.uk/news/january-2020/letting-agents-to-comply-with-money-laundering-regulations/

3rd December 2019

News

Have you protected your land against claims of rights of way?

New public rights of way can be adversely claimed on your land if members of the public can prove that routes have been used over a period of time.

To remove this risk, landowners can submit a declaration to their local council under section 31(6) of the Highways Act 1980, as amended by the Growth and Infrastructure Act 2013, to prevent any claims of new rights of way. Such a declaration will protect your property for up to 20 years.

Before 2013, a submission would last for 10 years, but since then this has been extended to 20 years. If you haven’t submitted a section 31(6) declaration for over 10 years, or have never made one, now is the time to think about it.

Howie, Kent & Co are able to submit a declaration to Shropshire Council on your behalf, putting together the required statement, plans and declaration.

If preventing the creation of any third party rights of way over your property is a matter of interest to you, please give us a call and we can discuss with you the advantages of being proactive in submitting a declaration which can help protect your property.

Sarah Howie, of Howie, Kent & Co

17th October 2019

News

Our latest article for the Shropshire Star where we discuss the pitfalls of letting shed and yard space to neighbours without a formal agreement in place.

Beware the informal arrangements which could turn sour

Many farmers will often let sheds or space to local businesses or neighbours. The situation is often that a conversation takes place in the pub, and a local plant hire firm, builders’ firm, and so on, take over a small section of the yard, often on an ad-hoc basis that can continue for years.

There are three areas that should be considered when looking at carrying out this type of activity, including security of tenure, the potential for business rates to be charged, and whether the use requires planning consent.

Accidentally giving a tenant security of tenure can have big implications and can be very damaging. If the correct documentation is not put in place, and neither a lease nor a licence is correctly entered into, then your tenant may obtain the right to stay in the premises for as long as they continue trading, unless you can remove them under the terms prescribed in the Landlord and Tenant Act 1954.

In most cases, to start with a landlord and tenant get along fine, but if financial troubles or any other type of problem affects the relationship, then matters can soon become very sour and suddenly the landlord finds he or she is in a position where they cannot remove the tenant.

This can be very disruptive if both landlord and tenant are operating out of the same yard daily. The correct documentation must be put in place to prevent this from happening.

Business rates also need some consideration and it is worth expressing to the tenant on day one, as well as correctly documenting this, that if rates do become applicable then the tenant will be picking up the rates bill, not the landlord.

Lastly and needless to say, planning is also a major consideration and, in many cases, this type of occupation starts on a very short term basis, often for less than a month, but continues where it will be in breach of planning.

It is worth nothing that a certificate of lawful use can be obtained if a continuous use can be proved for a 10-year period, but for a new use, planning consent for change of use is required.

If we can be of any assistance on the above, then please do not hesitate to contact us.

Duncan and Sarah Howie
Howie, Kent & Co Ltd

2nd September 2019

News

Let before it reached the market

Our new tenants in Minsterley, Shrewsbury checked in yesterday after snapping up this house before it went to market.

We were approached by a landlord for advice in relation to their options for a property they had inherited. It had sat empty for some time and was relatively dated in terms of kitchen, bathroom and décor. We inspected the property and gave advice in relation to what rent the property could achieve in its current condition, what rent it might achieve if redecorated, and what rent it might achieve with a new kitchen, new bathrooms, redecorated and re-carpeted throughout.

The client took some time to consider the options, and in the meantime we were approached by a couple moving to the area, looking for a property in close proximity to their new work. Their requirements matched the property completely, and we contacted the landlord to see if they would be interested in allowing us to show the tenant around the property, which we then did.

The tenants were happy with the kitchen, bathroom and décor, and just had a few requests. After discussing the options with the landlord, we proceeded to carry out minor works to the property, including having the oven and some flooring replaced, as well as a deep clean, the electrics and gas tested, and agreed terms with the couple who had originally approached us. The couple moved in yesterday and we have a happy landlord and happy tenants!

There is not a ‘one size fits all’ solution to lettings and we approach different properties and different landlords with a personal service, establishing the objectives of the landlord before providing recommendations and creating opportunities.

If you would like to discuss a property with us, please do not hesitate to give us a call on 01743 404925, email enquiries@howiekentandco.com or visit out website https://howiekentandco.com/landlords/our-services/.

Howie, Kent & Co
howiekentandco.com
01743 404925
Shropshire, Telford, Shrewsbury, Oswestry, Newport, Ludlow, Bridgnorth

Howie, Kent & Co
howiekentandco.com
01743 404925
Shropshire, Telford, Shrewsbury, Oswestry, Newport, Ludlow, Bridgnorth

20th August 2019

News

New commercial property to let in heart of Shrewsbury’s industrial quarter

We’re very excited to share our latest press release, found in last weeks’copy of the Shropshire Star, promoting the latest addition to our commercial property portfolio in Shropshire.

Chance to rent in industrial quarter of Shrewsbury

By James Pugh | Business | Published: Aug 13, 2019

An opportunity has arisen to rent prime space in the industrial quarter of Shrewsbury.

Two adjoining units covering a total of more than 18,000 square feet have become available due to the restructuring of a well-established company in Ennerdale Road, Harlescott.

The property benefits from gantry cranes and a spray booth and while it would be ideal for industrial use, it has the option of filling a variety of other requirements with the bays available to rent individually or as a whole.

The property is available to rent through Howie, Kent & Co – a local agent currently seeing a big increase in demand for its services in both the residential and commercial property markets. With a strong base of clients in the south east, it is growing the business in Shropshire.

Duncan Howie, of Howie, Kent & Co, said: “There may be some concerns in certain quarters over life after Brexit, but we have been pleased with the growing number of instructions we are receiving, property is still being rented, and we are delighted to be playing such a major role in helping both local and national firms meet their business needs.

“Business is thriving in Shrewsbury and there are not that many premises that become available in the Harlescott area, so this is a wonderful opportunity for a firm looking for a new location or additional storage.

“The units have come onto the rental market following the restructuring of a highly respected steel fabrication company resulting in the consolidation of required space.

“It would be an ideal place for an industrial engineering facility but would also be suitable for a variety of other uses within Use Classes B1 Business, B2 General Industrial and B8 Storage and Distribution – creating a range of opportunities for anyone looking for a base in this part of town.

“Unit 1 covers a space of about 7,550 square feet, has a minimum height of six metres, and also benefits from about 2,000 square feet of offices laid out over two floors. This space includes a reception area, three offices, kitchen and toilet on the ground floor and four offices on the first floor. The rent is £46,200 per year.

“The second unit covers about 8,100 square feet, enjoys a minimum height of 7.6 metres, including an office area extending to some 450 square feet. The rent is £34,200 per year.

“Both units benefit from a concrete floor, roller shutters to the front, five tonne gantry lifting cranes and car parking.

“It is a major instruction for us and the location coupled with its flexible use options makes it a highly desirable property – one which has already sparked a high level of interest.”

For more information about the property, call Howie, Kent & Co on 01743 404925 or visit howiekentandco.com/lettings/commercial/industrial-unit-to-let-on-ennerdale-road-harlescott-industrial-estate

Howie, Kent & Co
howiekentandco.com
01743 404925
Shropshire, Telford, Shrewsbury, Oswestry, Newport, Ludlow, Bridgnorth

20th August 2019

News

BNI Thomas Telford Summer BBQ – Great night had by all!

We had a great time hosting the BNI Thomas Telford summer event last week at Welbatch Farm.

A massive thanks to everyone who came to join us for the evening ? here are some photos from the evening!

From left to right:

Rob Wallace – Salop Medical Services

Eira Moore – TaxAssist Accountants

Duncan & Sarah – Howie, Kent & Co

David Raybold – Will-makers of the Midlands

Niamh Kelly – The HR Department Shropshire

David Wells – Q Commerical Finance

Richard Scott-Worthington – True Potential Wealth Management

Jassie Clair – Clair’s Composite Doors

Kim Kelly – Granville Bookkeeping Services

Gail McKillop – Good2Great

James Godfrey -Lease Loop

Anthony Walker – HD-IT

BNI

#BNI #networking #business #shropshire #shrewsbury #telford #independentbusiness #businessgrowth #social #farming #lettingagents #thomastelfordBNI #businessdevelopment

6th August 2019

News

Farm Safety Week 2019 – “Mud, Sweat & Tears”

This week we are supporting Farm Safety Week 2019 across the UK, led by the inspiring Farm Safety Foundation – Yellow Wellies. They are working on various projects to highlight workplace injuries, fatal machinery accidents, mental health and the increased fatal injury rate in over-65s.

This year’s Farm Safety Week is bringing the focus back to farmers, farm workers and farming families and their needs in an ever-changing and uncertain world. We are immensely proud to share Yellow Wellies’ new hero film titled Mud, Sweat and Tears which tells the stories of four incredible farmers whose resilience, tenacity and clear drive to make a difference could, and should, inspire us all.

Please watch the video below and visit their website or FB page for more information or tips on how to make your workplace safer.

16th July 2019

News

Check out our new video detailing our fully managed buy-to-let investment opportunities.

Residential Property Sourcing

We are now offering a new service at Howie, Kent & Co. To see what this entails and how we can help you please check out the video below.

“Fully managed buy-to-let investment opportunities. Call or email us for more information.”

e: duncan@howiekentandco.com
t: 01743 404 925

Howie, Kent & Co, Property Professionals Letting Agents Shropshire

21st June 2019

News

Boda’s Birthday

Our office dog Boda is celebrating her 2nd birthday today, and in the office with us for bring your dog to work day 2019.

Happy birthday Boda from the rest of the team!

17th June 2019

News

Could you unwittingly be accused of being an unscrupulous landlord due to new legislation?

If you have cottages on your farm which you manage yourself to save fees, you may want to double check everything you are doing is legal. This is due to the introduction of the Tenant Fees Act 2019. It is important that well-meaning landlords do not inadvertently fall foul of the new legislation without realising. Wiser tenants who know their rights may well pick up on things if you do not comply. While the obvious answer would be for all people who privately let and manage properties to immediately move them into the management of Howie, Kent and Co, we fully realise that many people like to manage them in-house. It is to you people that this article is addressed and if you need any assistance please give us a call.

In short, the headline points are;

For all new tenancies from 1^st June 2019 and all existing tenancies from 1^st June 2020, payments from a tenant to a landlord or agent will be banned unless expressly permitted under the act. Permitted payments include rent, deposit, holding deposit, payments on a default, payment on variation of a tenancy, payment on termination (surrender) of a tenancy, payments for council tax and payments for utilities.
Prohibited payments include tenant application fees, tenancy set up costs, referencing charges, inventories, end of tenancy cleaning fees and general service charges amongst others.
Deposits are limited to five weeks’ rent. From 1^st June 2020, any deposits held in excess of this amount must be returned. This cap rises to six weeks’ rent if the annual rent is in excess of £50,000.
If a fixed term tenancy is renewed for a further fixed term after 1^st June 2019, this will constitute a new tenancy which must comply with the new legislation.
A breach of the fees ban is a civil oﬀence with a fine of up to £5,000. Successive breaches are a criminal oﬀence with an unlimited fine.

This means if you have one or several let properties where tenants have been in situ for some time, you need to know if your tenancy agreement is up to date. How much deposit do you hold? Will you need to return some of the deposit by 1^st June 2020? If your tenants are paying a service charge, do you need to re-arrange this to incorporate those costs into a higher rent? Are there any inclusions in the tenancy agreements that are prohibited payments?

If you need any assistance on this please give us a call on 01743 404925, we are more than happy to discuss possible concerns.

21st April 2019

News

Rural cottages – are you complying with new legislation?

The Tenant Fees Act takes effect from 1^st June 2019. What does this mean for you and any let properties you have? Are your houses complying with legislation or are you exposing yourself to financial penalties?

The Tenant Fees Act will affect all new tenancies from 1^st June 2019 and all existing tenancies from 1^st June 2020. The aim of the Act is to reduce the costs that tenants face at the outset, during and at the end of a tenancy. All payments made by a tenant to a landlord or landlord’s agent will be prohibited unless the payment is expressly permitted under the Tenant Fees Act. Permitted payments include rent, a tenancy deposit, a holding deposit, payments in the event of a default, payment on variation of a tenancy, payment on termination (surrender) of a tenancy, payments for council tax and payments for utilities.

Payments that are precluded from all new tenancies from 1^st June 2019 include tenant application fees, tenancy set up costs, referencing charges, inventories, end of tenancy cleaning fees, and general service charges, amongst others. From 1^st June 2020, the Act will also apply to all existing tenancies, and therefore if you have a tenancy in place which requires a tenant to pay for the redecoration of a property at the end of the tenancy, or pay for a check out, or pay a fixed service charge per month for gardening services, these will be invalid and unenforceable. All such costs must be included in the monthly rent. Writing a specific payment into a tenancy or contract does not provide a way around the new legislation.

The Act also limits the tenancy deposit that a landlord can hold to five weeks’ rent. From 1^st June 2020, any deposits held in excess of 5 weeks’ rent must be returned to tenants. This cap rises to six weeks’ rent if the annual rent is in excess of £50,000.

A breach of the fees ban will be a civil oﬀence with a financial penalty of up to £5,000. Successive breaches may constitute a criminal oﬀence with an unlimited fine.

For some landlords, the Act may have no effect. However, if you have one or several let properties where tenants have been in situ for some time, you need to ask yourself whether the tenancy agreement is up to date. How much deposit do you hold? Will you need to return some of the deposit by 1^st June 2020? If your tenants are paying a service charge, can you agree to remove the service charge but increase the rent by a proportionate amount? Are there any inclusions in the tenancy agreements that are prohibited payments?

Whilst reviewing your agreements, it would also be a good time to ensure all tenants have been given a copy of the Energy Performance Certificate, gas safety certificate if applicable and the Government How to Rent Guide, without all of which you will be unable to serve a section 21 notice if you require possession of a property.

If you require help reviewing any arrangements with existing tenants, we would be more than happy to discuss over the phone what you will need to do in advance of 1^st June 2020 to ensure you comply with and are not in breach of legislation.

10th April 2019

News

Passive income and diversification

As a farmer, you derive an income from using land. As a landowner, you derive an income from owning land which has the ability to provide an income from its use. If you are fortunate enough to be an owner occupier, you will have the benefit of deriving an income in both respects.

This may seem a strange statement, but it is worth some consideration. It highlights the two different types of income, firstly from working the land, or running a business using the land and secondly, the income from owning the land, which we will call passive income. Passive income is earnings derived without being actively involved.

As an owner occupier, it is critical that these two forms of income are considered within your farming business. Are you maximising both forms of income? If a theoretical rent is applied to the land, i.e. putting yourself in a tenanted position, are you still making enough profit to show that you are in a better position than if you rented the farm out?

Taking this a step further, can the desire to achieve an income from using the land to farm, as well as from owning the land, present any additional diversification opportunities that you may not have thought about?

Farm diversification is essentially the diversifying of income streams so that as a business, you are not solely dependent on the sale of a commodity. When looking at diversification projects, they need to a) be a business that can run on its own and not distract from the core agricultural operations; or b) be something that is a genuine passion and therefore any distraction from your farming operation is a conscious decision; or c) seek to enhance passive income from assets that the farm already has but is either under-utilising, or not using at all. In my mind, the latter is the ultimate form of diversification as it seeks to maximise income out of potentially low yielding agricultural assets by turning them into either commercial or residential income streams. Money generated from those diversification projects flows into the business month after month whilst still allowing you as farmers to continue running profitable businesses.

If you would like any assistance in looking at the opportunities you may have as a farmer and / or landowner to see things from a different perspective, we are more than happy to come out for a no-obligation discussion about where we see your farm’s potential opportunities.

12th February 2019

News

Solar is back!

After 18 months of a lot of noise and discussion by solar developers, it is clear that the development of large-scale solar is once again economically viable. Instead of going into the specifics of why they are again viable, it is more appropriate to cover why some sites will be of interest and others won’t.

There are three parts of the jigsaw to make a solar development work; land rights, the grid connection and planning. Developers in the large-scale solar industry normally build a development to sell to a funder who will then own the asset for its operational life. To keep things simple, we need to view the funder as the end-customer of the solar farm. The funder will have agreed an end value with the developer based on a price per mega-watt (MW) once it is fully operational.

Whilst there are some economies of scale involved in the construction of very large scale solar, the main costs that will determine the viability of a site are rights over land, the grid connection and planning. For example, it is feasible for a site to have planning and for land rights to be agreed with the landowner but a project cannot progress due to the grid connection costs being too high.

For your land to be viable, it needs to be close to infrastructure that has spare generation capacity. For example, if you are going to connect into a 132 kilovolt (kV) network (large metal towers), the minimum grid cost will be £2,500,000, meaning the solar farm will need to be a minimum of 250 acres to be viable. Smaller 33kV connections (large wooden poles or small metal towers) can give smaller sites where planning is easier to obtain, but grid capacity at that voltage is much harder to come by. In addition, the site needs to have a reasonable chance of achieving planning, i.e. there are no flooding issues or heritage sites that could be affected. Expected rental values to be achieved by the landowner also need to be realistic.

In summary, solar development is not an easy process and partnering with a proactive developer is critical in progressing projects. If you think your land may be of interest for large-scale solar then we will more than happily assess a site to look at its potential for solar development.

1st February 2019

News

Leasehold Property

According to Propertymark research 94% of homeowners regretted buying a leasehold property. Having owned a leasehold property myself and worked as a property manager managing residential blocks, I can understand why this figure is so high. One of the most common problems amongst leaseholders is a lack of basic understanding of how a leasehold property works. 57% of the 1,000 leaseholders Propertymark interviewed admitted not understanding what being a leaseholder meant.

The biggest issue most people have with owing a leasehold property is paying service charge and ground rent. The ground rent is set out in the lease so should not come as a surprise when a landlord/managing agent sends a demand for this payment. Service charge, on the other hand, can be extremely unpredictable.

There are a lot of necessary items in service charge budget but there are savings that can be made. As a leaseholder you are entitled to question the charges set out within the service charge budget. The landlord/managing agent needs to be able to prove to the leaseholders that the charges are reasonable and competitive quotes have been gathered. If you, as a leaseholder, think that a cheaper alternative can be sought you are entitled to put this forward to the landlord/managing agent who will discuss the options with the Directors of the Resident Management Company.

15th December 2018

News

Is your land at risk?

We recently reviewed the status of protection a client has from the formation of new footpaths over their land. This protection is achieved via section 31(6) of the Highways Act 1980. Section 31(6) enables a landowner to deposit a statement accompanied with a map, followed by a declaration, with their local council, acknowledging any existing public rights of way across their land, at the same time as declaring that they have no intention to dedicate any further routes to the public. This puts a block on new footpaths or rights of way being created for twenty years.

How very dull I hear you say! This may be the case, but in truth it is very important and it’s important for the following reasons.

If you believe that your land may be developed in the future, you would want to know that third parties could not at that point inform the Council that they think there is an unregistered public right of way that cuts directly through one of the building plots.
Footpaths, whilst serving a public good, can be troublesome to farms and estates.

When we reviewed our client’s position it became apparent that they had made a submission to the council in 2004. At that time, the statement only lasted for 10 years and they were therefore at risk of having new rights of way imposed on their land. Needless to say, we are in the process of submitting a new declaration to protect the land for the next 20 years.

Whilst dealing with the Council, we reviewed their list of landowner declarations. We noted that there are various declarations submitted before 2008, with no subsequent declaration having been made, meaning protection from the creation of new rights of way will have lapsed. This exposes a property to the risk of a third party claiming a permanent right of way.

Do you know if you are up to date with your section31(6), or have you never done one for your land? If you are unsure, please give us a call.

Howie, Kent & Co are able to submit a declaration to the Council on your behalf, putting together the required statement, plans and declaration. If preventing the creation of any third-party rights of way over your property is of interest, please give us a call or send us an email and we will be happy to discuss how section 31(6) of the Highways Act 1980 works and how the advantages of being proactive in submitting a declaration can help protect your property.

15th September 2018

News

Rent reviews – or not?

September has come and gone and with it, the passing of Michaelmas Day on 29^th September. This is the term date for most arable tenancies, whilst Lady Day on 25^th March is often the term date for grass-based livestock tenancies. These dates represent decisions that need to be made by both landlords and tenants. The question behind that decision for both parties is whether you are happy with the rent.

Unhappy relations between landlord and tenant frequently stem from the level of rent being paid. If the right rent is not being paid, then one party will not be happy. This can be remedied by serving notice to review the rent in twelve months’ time.

In my time as a rural surveyor, I have seen the good, the bad and the ugly from both parties, from a landlord insisting on gaining the very last penny of rent but paying professional fees that outweigh any benefit, to a tenant that resisted any rent increase at all costs, despite knowing they were paying far below the market level. Somewhere in the middle, there is a fair deal to be struck, without either side being out of pocket.

Whilst still training, I was told that we are all rural people, all living together in the same community. For this reason, a rent review should take place every three years, in good times and bad. Even if the rent is not altered or a rent review notice is not served, a conversation should still be had. If everyone knows this is what happens every three years, a lot of animosity can be removed. If it is not a regular three-yearly event, then either side can perceive the other to be “cashing in” due to a sudden changing in farming fortune when one year, a notice is served out of the blue.

Like all negotiations, people come first. Understand what drives the other side and enter the negotiation with a rational state of mind; anger and frustration will get you nowhere!

If you feel that this is something you may need to address in the coming year, please pick up the phone to discuss. We can then decide if a notice should be served or a conversation should be had before this coming Lady Day or next Michaelmas.

26th August 2018

News

Are you charged?

In 15 years’ time, Britain’s road will look very different from today. Every now and then you may see a new electric vehicle (EV) on the road and for those that own them, they are no fashion or fad. In fact, last year of the 720,000 new cars registered on the road in the UK, 5% (9,356) of them were EVs. However, for most us that do not own an EV, we will soon have to get used to them as the Government is set to ban the sale of diesel and petrol cars by 2040. The National Infrastructure Commission anticipates that by 2027, 30% of the cars on the road will be EVs.

All very dull, I hear you say…. but change brings opportunities and there will be many for farmers and landowners in the right locations.

The first issue is there are physically not enough charging points on the road network for drivers on long journeys. Zap Map estimates that there are 16,873 public charging points in the UK and this number cannot sustain the estimated increase in the numbers of EVs.

In addition, the maximum range of an EV is 304 miles. If you are on a journey and need to recharge, you will want to charge the car very quickly. At peak rate on a ‘rapid charge’ the EV will be drawing 120kW. That is a lot of power and potentially more than the supply to an industrial unit or farm.

To compound this problem, there is talk that future models of EVs will be able to draw 300kW or more on a ‘rapid charge’. Therefore, if you had ten EVs on a forecourt carrying out a 45 minute ‘rapid charge’ they would be consuming the same energy as a whole town.

This kind of additional capacity cannot be shoehorned into the forecourt of your local fuel station. Bespoke cabling will be needed so that volumes of power can be delivered to new forecourts from large substations. In addition, while you are sat waiting for your car to charge, more than the normal retail offering of a greasy burger, bland sandwich and coffee will be required.

At Howie, Kent and Co we are instructed by the leading developer of EV rapid charging forecourts to secure sites. If we haven’t already written to you and you have a site near to a large substation and a busy road junction then please give us a call to see if your land may be a suitable location for such a site.

22nd August 2018

News

Renewable revolution is not dead

Ten years ago, almost no power was produced by renewables (apart from hydro-electricity) and today it is nearly 25% of national generation. It is a remarkable feat that this country has managed to reach this milestone. In April this year, the UK operated for three days in a row without coal power, something that hasn’t happened since the introduction of the National Grid.

Now that most subsidies have been removed form renewable generation, many people feel that from an on-farm perspective there is no more that can be done with renewables. However, this is not the case and there are still opportunities for farmers and landowner to obtain additional income or significant cost savings from energy projects. The renewable revolution is not dead, in fact far from it.

If you have been in the unfortunate position of having to renew your electricity contract recently, you will have first-hand experience of how energy prices are starting to effect business. Energy prices will continue to increase, and on-site renewable generation continues to seem very appealing. If you have a high electricity usage, it will be profitable for you to install solar panels with returns on capital still in the region of 10%. This is only possible if the consumption of electricity takes place on site. The basic sums are you produce electricity at approximately 4p and sell or consume for approximately 14p. However, it is often only owner-occupiers that are progressing with these projects. Many commercial industrial estates or landed estates with let industrial/office space are missing a profitable income stream from selling on-site generated renewable electricity to tenants.

If we take this concept one step further, if you have land near to a high energy-using neighbour, you could look at agreeing a power purchase agreement (PPA) with them and sell electricity generated on your land. It may sound farfetched, but many farmers are already doing this. In addition, developers are already looking at large bespoke solar farms to be constructed for high energy users such as heavy industrial plants, large refrigeration sites etc.

If you have land near a large energy user and if both parties are keen to progress, it will be worthwhile to seek advice. For example, what value should be attributed to a rent for the land; who pays for the development costs; what happens if the user does not use the electricity or goes bust. If you need any advice on this or any other energy matters, please do not hesitate to get in touch.

8th May 2018

News

Wake up and smell the coffee

For those of us in the farming industry, we may have preferred Mr Gove to take a more actively aggressive stance on food security and maybe not one that appears to be leaning strongly towards subsidies for enhanced environmental management. However, this is how he is leaning and there is no point kidding ourselves in thinking that the wider population do not share his views. It could be argued that food production as a national policy has been maintained in the UK by the French farming lobby. They have probably done a significant amount to guarantee the subsidies that UK farmers have achieved via Europe since we joined the Common Agricultural Policy. However, all of this is about to change.

Nearly two years ago we voted to leave the European Union and for many farmers, little has yet changed. We are currently in the fortunate position of having favourable exchange rates as well as a continuation of the subsidies which UK agriculture has historically relied upon. However, regardless of how we as individuals voted, the world is about to turn upside-down for UK agriculture and what is about to happen could be as fundamental as the repeal of the corn laws. We all need to look at our businesses, look at our budgets and strip out the Basic Payment that we currently receive. Anything we do get after we leave Europe will be a bonus, but we must assume there will be no government support for agriculture going forwards.

The removal of subsidies is only half of the picture. We must also be mindful of the current protection that the Common Agricultural Policy affords us as an industry. If we step out fully into the big wide world of open trade, there will be large knock-on implications for some sectors of UK agriculture. As an industry, we must remind the public that UK farming provides some of the highest standards of welfare and quality in the world and that it is worth protecting before our shelves are filled with chlorine-washed chicken and hormone-fed beef.

Many rural professionals feel that UK agriculture’s main problem is not having succession talks within farming families. I reassure you now that it will be the tip of the iceberg when subsidies are removed. If you don’t do budgets; do budgets. If you are not sure where your business is going; get a plan. There is a rough ride ahead, which we can all survive, but we must be prepared.

24th April 2018

News

What rights do utility companies have over your land?

Utility companies need to move power, water and gas around the country for the benefit of us all and they do so predominantly over farmland. For the majority of the time, these often-unsightly pieces of national or local infrastructure go unnoticed. However, issues can arise when they affect plans for development or extensions to farm yards, or when low power cables become an issue.

When alterations are needed, the first port of call is to establish under what rights the utility company occupies your land. Is it a wayleave or an easement, or is there no agreement in place at all? The utility company may have equipment installed on your property with no written agreement in place.

We have been involved in several cases recently where we have successfully buried 11,000kV cables, in one case due to an extension to a farm yard and in another case where a client was moving to boom irrigation from a rain gun. In both of these cases, we reviewed and established the rights the electrical company had over our client’s land and then successfully had the cables buried at minimal cost to our client – in one case by altering the wayleave agreement and in the other case, by the granting of a new easement.

If you have electrical cables that you would like to have moved or removed from your property, there is no silver bullet but we will happily help you establish what current rights the utility company has over your land and advise if and how your situation may be remedied.

On a separate note but still of significance, is monitoring the safety of electrical cables that are installed on your property. The Energy Networks Association’s ‘Safety Information for Farmers & Agricultural Contractors’ states that cables should be maintained at a height of 5.2m, however live equipment fitted to poles maybe as low as 4.3m. Cables hanging too low may only become apparent if there is a change in farming practise, for example a change of farming contractor where larger combines or forage harvesters are used that almost reach the 11,000kV infrastructure. Every year there are electrical incidents and thousands of near-misses which could have been avoided. It’s important to note that is a farmer’s responsibility for contractors and employees even if the cables are low.

If low cables are an issue, it is always best to discuss with the local DNO to try and resolve the situation. In Shropshire, the DNO is Western Power Distribution. Howie, Kent & Co are happy to advise and deal with your local wayleave officer on your behalf.

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