Fisher German newsletter June 2015


Welcome to our third newsletter which contains interesting sector news and announces the latest edition of the Fisher German magazine. Our rural and renewable energy teams had a great couple of days at Cereals - the weather was kind and we had lots of visitors! If you were not able to go, we hope to see you at the other events we will be at around the country over the summer. 



Fisher German magazine

The summer edition of our magazine may have already hit your doormat.

In addition to the feature article by guest contributor Adam Henson, there are articles by Harry Cotterell on the post election impact on the rural economy, planning successes and the future for renewable energy.

Twycross Zoo is featured and the development project Fisher German have undertaken there and we investigate the wide range of properties being handled by our network of agency offices.

You can read the magazine online here.


Click here to read Fisher German magazine.



Property and the Election result

 

With the Election and May half-term now behind us the property market will hopefully benefit from the lack of uncertainty during the first quarter of the year.

In general there has been a sigh of relief from property owners across the country that we have the Conservatives at the helm for another five years. Buyer enquiries and house sales flat-lined in the first quarter of the year due to the uncertainty of the election outcome. Land Registry’s transactional figures in that period are down on completed sales across the country in all price brackets, year on year.

The London market saw a frenzy of buying immediately after the results were announced. Properties were put on the market and bought within a matter of hours. With the threat of the Labour-imposed Mansion Tax put to one side wealthy buyers swooped in to buy at the luxury end of the market.

It was already clear that property played an important role in the election result – voters wanted economic stability and their houses to be safe from a Mansion Tax.

Of course the property market works at a much slower pace outside London. Potential buyers have had very little to choose from as vendors have waited for the Election result before deciding what to do. Pre-election jitters, according to This is Money, prompted asking prices to drop by 0.1% in the month leading up to polling day.The good news is that Rightmove reported a 17% increase in properties coming to the market in the three month period after the last General Election in 2010. It is too early for us to be more accurate but across the firm, despite the half-term break, we are seeing viewings and numbers of market appraisals going up.

RICS has recently highlighted the biggest shortage of available properties for sale in the last 6 years. The new government has promised to help first time buyers get onto the property ladder and they are committed to building more houses, including more affordable housing. This won’t have an immediate effect on the market but the renewed energy in London should impact reasonably soon with buyers realising the value for money they get when moving to certain areas of the country.

We expect a more free-flowing market but things are by no means going to be easy for the foreseeable future. Location is always a factor and we can clearly see from activity in our 15 offices that those closer to London are selling houses much more quickly than those further to the north.

Click here to view all the properties we currently have on the market 


   

 



Increase in land on the market

 

Data published at the end of May in property analyst IPD’s Rural Property Index confirms that the value of agricultural land continued to increase in 2014, with capital growth at 8.6% for the year ending 31 December 2014. Despite the recession, the agricultural sector has performed well with annualised total returns outperforming both commercial property and residential market lets over 10 years.

On average over the last decade the value of agricultural land has increased by 11% per annum.

Performance of the agricultural sector has been influenced by a variety of factors in addition to which farmland for sale has been at a historically low level; as potential vendors have sought to hold land in a rising market. As the UK property market has stabilised however, the rate of capital growth appears to be slowing and though demand for land continues to outstrip supply there is a gentle increase in the volume of land coming to the market.

New to the market

June sees the launch of seven agricultural holdings through Fisher German:

  • Bradley Estate - Bradley in the Moors, Staffordshire
  • Lodge Hill Farm - Church Broughton, Derbyshire
  • Redhouse Farm - Waddingworth, Lincolnshire
  • East Flass Farm - Deerness Valley, County Durham
  • Hayes FarmHarecombe, Gloucestershire.
  • Marley Hill - Gateshead, Tyne and Wear
  • Land to the north of Cockermouth - Cumbria

Ranging in size from 170 to 760 acres and each with a residential element (except the land at Cockermouth which has some potential for redevelopment), we believe that all will generate a high level of interest.

There is significant diversity in the market with quality of land and location being key to securing the highest values. Large parcels of prime agricultural land and high quality residential farms continue to realise premium prices outperforming other agricultural holdings with some potential purchasers looking to roll over development gains as well as traditional landed buyers in the market, but lower quality land can also command a good price if supply is low and there is high demand from local farmers, here marriage value is a factor. Land continues to be a valuable asset to hold as part of an investment portfolio.


To see all properties currently available through Fisher German, click here



Hot tapping

 

Within the Fisher German Utilities and Infrastructure sector, approximately 1450km of refined fuel pipelines are managed on behalf of corporate clients across the country. Fisher German has successfully retained these management contracts for over 30 years and as a result has extensive knowledge in the field.

Management of the pipelines involves the physical maintenance out on the ground by a dedicated team of 25 pipeline technicians who you may see travelling along the pipeline routes in branded Fisher German vans. There is also a team of land agents and support staff who deal with the day to day management from the office and in the field.

More recently, however, the team's knowledge has been put to the test following a series of illegal thefts directly from our clients’ pipelines. This is obviously extremely dangerous with the pipelines running at up to 100bar (1500psi) in pressure. A range of techniques are being used but any attempt represents a significant chance of fuel leaking from the pipeline, which can pose a risk of explosion and significant environmental consequences.

Even a small leak can contaminate the surrounding land, which not only takes a lot of resources to clear up but can also cause years of disturbance and inconvenience to land and property owners, as well as to the local community.

The criminals are fitting specially designed equipment onto the pipelines using a technique known as 'hot tapping'. They then run high pressure hoses to locations that are easily accessible, where they fill modified vehicles with fuel. These hoses can run for hundreds of metres so the main area of activity may not be near the pipeline. The images above show how the hoses can be laid under or over the surface of the ground to avoid detection. On most occasions these hoses will fill tanks, usually Intermediate Bulk Containers (IBCs) in vehicles, directly from the pipeline but on others they have stored product in tanks that are either buried or situated in buildings or land which is being rented or illegally occupied.

There have been a variety of ways in which these hot taps have been discovered, which can vary from specialist pipeline monitoring technology to a member of the general public discovering it while walking their dog. As soon as Fisher German have been made aware of these incidents, an emergency response procedure is followed to ensure the pipeline is repaired as quickly and safely as possible to protect both people and the environment.

Fisher German is working closely with the pipeline operators to raise awareness of this issue to ensure that any new theft sites are identified as soon as possible to ensure that the pipelines can be operated safely. Should you identify any suspicious activity around a fuel pipeline it is essential that you call the 24 hour emergency telephone number that is printed on all pipeline marker posts. The pipeline operator can then co-ordinate a quick and effective response.

 

For further information contact Sam Parton on 01530 410867 email here

Click here to read more about the work of our utilities & infrastructure team



Planning our teams

 

New dedicated teams

We have restructured our planning, development and building consultancy teams to ensure that dedicated, focused teams are in place to deal with the firm's geographical expansion. Some of the core services we can confidently supply you with are:

Building consultancy

We can offer practical advice on a wide range of property issues to private and commercial clients. Early advice is often key to dealing with issues such as building surveys, defects and maintenance liabilities and can save you thousands of pounds in the long run. The team can design and manage your projects, including the provision of autocad drawings, specifications, contractor selection and contract administration. We work hand in hand with other Fisher German teams to provide a comprehensive service.

General practice planning 

Kay Davies heads up our general practice planning team who work with the teams across our entire office network to deliver maximum results to our clients with a flexible approach. If a project has been challenging, the team are often able to breathe new life into a planning application and have successfully taken several to appeal. Our success rate in achieving planning permissions remains higher than the national average at 95%.

Utilities & renewable energy planning 

This team, led by Alan Hardwick, has developed considerable expertise in schemes ranging from oil pipelines to dark fibre, sewage treatment works to wind turbines. A proactive approach ensures that our clients benefit from the full range of permitted development rights available. In taking forward planning applications we are able to provide comprehensive advice regarding the full range of potential issues, taking account of the often sensitive location of such developments, advising on the best strategy and working closely with third parties and local residents to maximise chances of securing planning consent.

Development planning

The team advises on residential and mixed use developments to secure the best possible increase in value, working for a range of landowner, development and commercial clients. Where landowners are able to fund the promotion of their own sites, Liberty Stones heads up a team of planners who will represent the landowner's interests promoting the site through the Local Plan stages. When an opportunity arises for the landowner, the team will submit a robust planning application designed to secure a successful result.

Where a landowner does not want to risk the cost of a planning application, Ben Marshalsay's team can advise on the best possible route to progress to planning permission which in many cases may involve taking on a development partner. The team works with other colleagues on strategic land searches to make certain no opportunities are missed.
Once a planning permission has been achieved, the team also have vast experience of selling these sites to builders and developers.

For more details about any aspect of our work, please contact

Richard Benson - 01530 567466 email here

Kay Davies - 01530 567476 email here

Alan Hardwick - 01530 567471 email here

Liberty Stones - 01530 567478 email here

Ben Marshalsay - 01530 567465 email here

 

Click here to read more about our planning and construction sector or meet the whole team here

 



What goes around comes around

 

The Conservatives’ Manifesto said that they were keen to develop nuclear power and also promote fracking. They also stated that large onshore wind farms should be decided by local people. These proposals left many within the renewable energy industry pondering – do we have a future?

Following the Conservatives’ Election victory they have now produced an Energy Bill saying that they will remove the need for Secretary of State to give consent in future for any onshore wind farms over 50MW, thus planning will be determined at a local level in England and Wales. They also gave a commitment to end subsidies for onshore wind farms. The new Secretary of State for Energy, Amber Rudd, has been a long-time supporter of renewable energy but she will want to carry through the promises made within the Manifesto so the picture remains hazy.

Uncertainty for wind energy

Last week's news that the Renewables Obligation (RO) will close from 1 April 2016 - a year earlier than planned - has cast a shadow on the wind energy sector.

The RO has been the fiscal driver for commercial scale onshore wind development for the past 13 years since its introduction in 2002. The supporting legislation has contributed to the erection of 5,061 onshore turbines in the UK which in 2014 generated over 18,000 gigawatt hours of electricity for the distribution network. This is the equivalent of 5.6% of the country’s electricity needs and is enough to supply 5.5 million households for a year.

The move follows the Conservative manifesto commitment to end support for new onshore wind projects and whilst not unexpected, represents a controversial early decision for recently appointed Energy Secretary Amber Rudd MP.

In a second blow to the industry, the Department for Communities and Local Government (DCLG) has announced how it intends to ‘give local people the final say’ over onshore wind farm applications. This has involved immediate changes to guidance published in the National Planning Policy Framework (NPPF) and will apply to applications comprising a single turbine upwards.

DCLG suggest local planning authorities should only grant planning permission if the site is in an area identified as suitable for wind energy development as part of a Local or Neighbourhood Plan, and following consultation, the planning impacts identified by affected local communities have been fully addressed and therefore has their backing.

Darren Edwards, Partner and renewable energy consultant, said: “today’s news is undoubtedly a blow to wind turbine developers in the UK and the implications are widespread – from the big six energy suppliers wanting to develop multi-megawatt schemes for national supply to the small farmer looking to combat rising electricity costs with a single turbine. We will be working closely with clients over the coming weeks and months to re-assess planned wind energy projects and determine whether or not they remain both feasible and viable in light of these announcements”.

Solar opportunities

For solar, 5MW parks are currently in demand but the Government have already announced cuts in the Feed in Tariff of 28% from 1 July 2015 and because of this demand we expect that there could be substantial reductions after March 2016 in the RO support price. There are still good opportunities in roof top solar projects and these are keenly promoted by the Government.

Potential for AD

Opportunities for renewables are now dwindling but one area where there is still potential is for anaerobic digestion (AD) plants. Often the grid connection capacity into the electricity network is full but there are opportunities to go into the medium or high pressure gas main network with a ‘gas-to-grid’ scheme. Gas sales from AD are supported by the ‘Renewable Heat Incentive’ but this may stop at the end of March 2016, so again this opportunity may be short lived.

Mark Newton concludes: “Although The Government says it is committed to a low carbon economy, the outlook for some renewables in the UK is uncertain, but with the costs of renewables and particularly solar shortly coming down below the costs of conventional fossil fuels like coal, then the future on renewables must be green.”


for further information contact Mark Newton on 01858 411215 or email him here

 

Click here to read more about our renewable energy services



Will it be easier to relocate?

 

With the economy now growing, albeit at a slow rate, and the political uncertainties of the last few months now laid to rest, there is a renewed confidence in the development market to bring schemes forward to be developed out. When planning such schemes, however, many landowners are faced with the prospect of having to either seek to relocate or entirely remove a telecoms operator or operators from their land or buildings.

If not planned properly, this can lead to significant delays in bringing forward schemes, as well as substantial costs in seeking the full removal or relocation of telecoms equipment caused by security of tenure provisions, both under the 1954 Landlord and Tenant Act and Electronic Communications Code.

Reducing the risk of delay

Early negotiations and discussions followed by the timely service of contractual and statutory notices at lease end or in exercising break/relocation options will avoid unforeseen costs and delays to schemes. The key to ensuring timely resolutions of such matters is understanding who to approach within the telecoms operators to get early negotiations going, how to approach such negotiations and more importantly how to get the telecoms operator to help the developer, so both sides aims and objectives are met with minimal time delay and cost.

Relocation v removal

When thinking about schemes it should, where possible, be borne in mind that it is far easier to relocate a telecoms operator to an alternative area of a rooftop or a piece of land than to seek full removal and resultant vacant possession. This will apply especially to town or city centre sites where the availability of alternative rooftop sites are few and far between and operators will fight hard to retain their existing sites rather than have to try and find alternative ones.

Relocation rather than full removal takes an average up to 12 months, whilst full removal of equipment can take between 24 and 36 months. Full removal can also lead to costs of between &150,000 and &200,000 per operator, payable by the developer. For example, Christopher Hicks undertook work recently in Bristol with a developer who sought the removal of four telecom operators from a rooftop. When Chris reviewed the options available with the developer, including the relocation of the telecoms equipment to facilitate the development of five penthouses, he opted to go with the relocation scheme, saving a considerable amount of time and money. In bringing forward this scheme, it ensured the retention of a very healthy income from the telecoms leases. The icing on the cake was that the equipment was cleverly designed and relocated, meaning it was very hard to actually see.

Unfortunately, however, it is not always possible to relocate telecoms equipment and full removal is the only viable option. Recently, in Chiswick, London, a developer bringing forward a resi scheme sought the removal of Everything Everywhere, H3G, Vodafone and Telefònica all from the same rooftop to facilitate a building being pulled down. With the help of Christopher Hicks and a lawyer well versed in the removal of operators, and manoeuvring their way around the intricacies of the Electronic Communications Code and Landlord and Tenant Act through the service of notice under both sets of the legislation, vacant possession was achieved in 18 months with minimal cost to the developer. Without that understanding of the legislation and the workings of the operator, the developer could quite easily have faced a bill approaching &500,000 to remove them.

Electronic Communications Code consultation

The Electronic Communications Code is currently being consulted on with a view by parliament that it will be reformed. As Head of Telecoms at Fisher German, Christopher Hicks is working with the Law Commission in an advisory capacity on the reform. As an outcome of this reform, it is likely that it will be made easier for landlords to seek the removal or relocation of telecoms equipment where currently workings of the Electronic Communications Code and Landlord and Tenant Act make the process time consuming, cumbersome and expensive. Key to the revised Code is the need to ensure the future connectivity of electronic communications in the interests of the economy, business and the community. The new code contains vastly improved provisions covering redevelopment together with a quicker dispute resolution process.

For further information contact Christopher Hicks on 01858 411202 or email here 

Click here for more details about the range of telecoms services we provide for landowners. 



Land development opportunities

 

As a landowner, you may have been thinking about land you own which could be used for development or perhaps you already have planning permission. We have a very proactive development and planning team working specifically to help you. They are experts in all aspects of land development from strategic agreements and planning permissions to disposal of land.

In the past year we have helped clients to realise substantial capital gains by promoting and selling land which is not currently working for them.

Click below to see some of our recent projects.



This may give you some ideas about your own land and how we could work with you to maximise its value. If you would like to discuss any potential opportunities, please contact one of the team.



Ben Marshalsay 07771 974322 – email here

Luke Brafield 07468 860081 – email here

Liberty Stones 07918 628991 – email here

 

Click here to read more about our other planning and building consultancy services.

 



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