Property Rural sector still attractive to overseas buyers
values remained below £10,000 per acre.
New data from our in-house EXPERT VIEW
Hotspots remain despite a dip in farmland values, says Jack Cook
F
armland values in East An- glia and the Midlands re- corded a slight decrease in
the fi rst quarter of 2017 – in line with most other regions across the UK where average arable land
research team suggests the fi rst three months of the year were rel- atively quiet in terms of sales ac- tivity. This refl ects the seasonal nature of the sector, as well as the impact of economic and political uncertainties on the market. Hotspots in both regions are evident however – and some mar- kets are exceptionally localised re- sulting in certain assets gener- ating more interest than similar holdings in the same areas. Rollover relief funds are play- ing an increasingly signifi cant role in the Midlands as more land- owners benefi t from an upsurge of development land sales. Rollover is a relief from pay- ing capital gains tax. Anyone who obtains planning permis- sion on their land which is then sold for development can delay paying the tax and roll over the capital gains tax liability
into a qualifying assets. Because of this, we have seen reinvesting
more landowners
their gains back into farmland across the Midlands. This trend is less marked in East Anglia, though it will likely increase as development sites come on stream and landowners actually have the capital available.
Fluctuations Over the fi rst quarter, commodity prices have continued to be driv- en by fl uctuations in the curren- cy market, with output prices re- cording an average annual growth of over 25%. Milk, in particular, saw the greatest increase, with prices rising by 7.5% over the last quarter. Having fallen throughout
perhaps
2016, the price of ammonium ni- trate fertiliser bounced back to its mid-2015 peak, reaching £241.5/ tonne, up 38% on the last quarter. With Brexit beckoning, it is understandable
that
some landowners are adopting a ‘wait and see’ approach to busi- ness decisions. However, with farm incomes steadily strength- ening over the last eighteen months, we are confi dent that rural holdings still represent a solid investment. Additionally, the rural sector as a whole still holds strong ap- peal for international investors, with European buyers in particu- lar looking to capitalise on weak- er Sterling.
Despite the small drop in land
prices, the fundamental factors supporting the value of UK farm- land remain, supply is at an all- time low and there are a number of key ownership motives that still support farmland value growth. We expect activity across both the East and the Midlands to in- crease a more farmland to come to market over the next few months. Jack Cook is a surveyor at Cart-
er Jonas, Cambridge. For details, visit
www.carterjonas.co.uk
NEIGHBOURHOOD PLANS FIGHT BACK, BROWNFIELD NEWS, HOUSING SUPPLY V DEMAND
BROWNFIELD REGISTER The government has released details of a new tool that allows councils to speed up development of derelict and underused land for new homes. Gavin Barwell, Housing and Planning
Minister, announced that before the end of 2017, local authorities across England will have to produce and maintain up-to-date, publicly available registers of brownfield sites available for housing. According to a government statement,
the new registers will assist housebuilders to identify suitable brownfield sites quickly to unlock land for “thousands of new homes“. A new, separate Order means that these
sites will be granted ‘permission in principle’ for the housing-led development described in each individual entry. Only time will tell if these registers actually assist in housing delivery.
NEIGHBOURHOOD PLANS BEAT LACK OF 5 YEAR HOUSING SUPPLY A Judge rejected an application for 100 houses in West Sussex even though the local council had less than 5 years of supply. The case built on a previous judgment and attached great importance to the concept in the National Planning Policy Framework, that “neighbourhood plans will be able to shape and direct sustainable development in their area.” In the Judge’s view, this was more than a statement of aspiration and should be “upheld as an effective means to shape and direct development in the neighbourhood planning area in question.” This reasoning led to the conclusion that the proposal’s conflict with the neighbourhood plan has to be given “very substantial negative weight”, which was sufficient to significantly and demonstrably outbalance the benefit of additional housing.
WILL SUPPLY EVER MEET DEMAND? Recent research by Reading University concludes that without a step change in current planning policy and house building, supply is unlikely to meet demand. The report says “Although higher levels of house building are certainly desirable, the paper shows that there is a limit to what can be achieved by this route”. Government should take note of the
report’s view that “If reliance on supply expansion is inadequate, then this implies the need for more integrated housing policies, where housing issues play a wider role in macroeconomic policies.”
If your land has development potential or you have been approached by a developer offering an option or promotion agreement, please contact us for an impartial opinion.
Nick Harper is Managing Director of Hawkspur Chartered Surveyors. Contact Nick on 07528 089419 or email
nickharper@hawkspur.co.uk;
www.hawkspur.co.uk
Land with Development Prospects?
Chartered Surveyors and Development Specialists
For specialist advice on • Land Sale Values • Option Agreements • Promotion Agreements • Joint Ventures
70 ANGLIA FARMER • JUNE 2017
Nick Harper FAAV MRICS 07528 089419 01787 469361
nickharper@hawkspur.co.uk www.hawkspur.co.uk
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