Welcome to our Autumn newsletter where you can read about our new Chairman who takes up the post on 1 October. Our teams around the business have been busy finalising the launch of our new business intelligence system which will bring together all our management information in a way not seen before. As clients and contacts of Fisher German, we hope you will see the benefit in the level of our service.

Fisher German are pleased to announce the appointment of Harry Cotterell OBE as Chairman, he will take up the role with effect from 1 October 2015. Harry was president of the CLA from 2011-2013, before joining Fisher German as a consultant in February 2014.

Harry provided Fisher German with political and public affairs advice for the rural sector and the wider business, and the relationship has flourished to the extent that he has now accepted the position of Chairman of Fisher German as they embark on their next phase of growth and development.

Harry takes over from Barry Gamble, who was the first non-executive Chairman of Fisher German. Barry served for over 5 years and he guided the firm through some difficult structural changes following the death of Henry Sale, our Joint Managing Partner.

Andrew Jackson, the Managing Partner comments “we are delighted that Harry has agreed to join us as Chairman following his experience at the CLA and with the firm. We would also like to thank Barry for all the help and guidance he has given us through our period of unprecedented growth in the last few years”.

Harry adds “I am delighted to be taking on the role of Chairman of Fisher German. I have held the firm in high regard for several years and I have greatly enjoyed my consultancy work, which has helped me really understand how the firm operates. Fisher German is a highly professional business with creativity, dedication and ambition. They deliver to the highest standard both in traditional land and property management as well as in the more technical fields of planning, development, energy and utilities and I look forward to the challenge of chairing them over the coming years.”

Several months on from the Election we have seen a different housing market than we predicted. We were hoping for a good surge in new instructions as an unexpected majority Government was formed, having had a few quiet months whilst pre-Election fever took over. Uncertainty in the market was likely to evaporate we thought and a raft of new properties would come to the market in the late spring and early summer. Instead the market has been what you can only describe as ‘steady’ over June, July and August.

Some of this lethargy is the usual fall in activity due to the summer holiday period but continuing economic uncertainty in Europe, tight funding restrictions and resistance to (Stamp Duty dominated) costs of moving have held many people back. Month on month the Land Registry figures show that for our region the volume of transactions is down about 16% on 2015 which is far from insignificant.

The market has undoubtedly improved but many people remained spectators rather than players, choosing to observe whether the momentum of a strengthened housing market would continue or whether jitters in world stock markets and a slowdown in the Greater London property market would undo the progression of the market in the rest of the UK.

RICS have just released their August 2015 Residential Market Survey which reaffirms the shortage of housing for sale across the country. The report suggests that this shortage is driving house prices higher and are set to rise by 6% during the remainder of 2015. Whilst we see this prediction as rather optimistic, and we are not seeing price rises in all the areas we operate in, we are certainly noticing a shortage in stock levels and the best houses are certainly achieving some exciting prices.

Data shows that, despite the summer holidays, agreed sales have continued to increase for the fourth month in a row. As such we anticipate a significant shift in the Land Registry house sale volume statistics as the year progresses. It is estimated that around two-thirds of buyers are dependent upon a mortgage with August seeing mortgage approvals up by 9.3% on the same month last year – an 18 month high and another positive indicator for the rest of this year.

September marks the start of the ‘autumn market’ and activity has already increased since children have gone back to school. Although there is a nervousness about the European and Chinese economies and a possible rise in interest rates here in the UK, we feel that as long as expectations are realistic, we will see plenty of completions before Christmas. The sluggish first half of the year is behind us and 2015 looks set for a happier ending for house sellers, house hunters and house agents!

Click here to find our latest properties for sale

We act for a great number of management clients with commercial properties. On the whole most tenants will pay their rent on the due date but occasionally payments are missed. Part of the roll of the management company is to collect the rent and endeavour to ensure tenants pay. This requires active management, failure to address non-payment quickly often leads to the problem getting worse. We are regularly asked to manage properties where tenants are already in arrears.

So what are your legal options if the tenant is in arrears?

Secure goods in the premises

For any properties let by way of a lease the Commercial Rent Arrears Recovery (CRAR) procedure applies. A Landlord can instruct an enforcement agent to carry out the recovery of rent arrears once they have been outstanding 7 days. It should be noted that only the net rent can be recovered, this does not include rent or service charges. The enforcement agent must then give the tenants 7 days’ notice of their intention to take control of their goods. This could be by way of securing goods in the premises, entering into a written agreement with the tenant not to remove goods or to remove the actual goods.

This usually results in the tenant paying all monies owed or the goods being sold to recover the monies owed, subject to the value of the goods being high enough to pay the arrears.

Forfeiture of the lease

The landlord usually has the right to re-enter the premises and end the tenancy if the tenant has breached a covenant expressly stated under the terms of their tenancy. This can be done by issuing proceedings or peacefully re-entering the premises; often enforcement agents act on behalf of Landlords to peacefully re-enter the premises.

It should be noted that forfeiture of the lease is not an option if the CRAR Procedure has been applied. In addition, if the landlord still demands the rent after the right to forfeit has arisen the option of forfeiture is waivered. Although the right to forfeiture will rise again if the breach continues.

Take court action against the tenant to recover the rent

This can take time and be an expensive course of action especially if the amount owing is above &5,000. If the lease is forfeited the tenancy comes to an end and the landlord then takes control of the property. Separate action needs to be taken to recover the monies owed.

Issue the tenant with bankruptcy proceedings

If the sum owed is greater than &750, then bankruptcy proceedings can be commenced (this threshold amount increased from &750 to &5,000 from 1 October 2015 for new cases). The drawback with this option is that if the tenant is declared bankrupt the landlord will become an ordinary creditor and the chances of receiving all the monies owed is likely to be extremely low.

It is recommended that advice is taken from your solicitor before taking the above action. The best option is to address the non-payment of rent early. Speak to the tenant as soon as payment is not received and ensure payment is made swiftly thereafter.

Click here for more information about our commercial property services

Continuing with Fisher German’s commitment to training, the regular half yearly training day was held on 3 September 2015 for all employees involved with pipeline management contracts. Approximately 45 people attended including a representative from each of the pipeline companies that Fisher German work on behalf of. The day was held at Locko Park Estate in Derbyshire, which Fisher German have managed for over 30 years.

The day started with an interactive presentation from Jason Charlton (Fisher German Safety, Health and Environment Advisor) on compiling an emergency rescue plan. This was then followed by two practical sessions, the first was to provide an appreciation and understanding of safe excavation techniques, which involved how to prepare an emergency plan in case unexploded ordnance is discovered when excavating.

The other practical session was to provide an understanding of immediate pollution control within a watercourse, which involved the construction of a dam using a variety of materials. Following this, ARCO – Experts in Safety visited to demonstrate their mobile confined space training facility and the range of personal protective equipment they can provide.

The day proved to be a fantastic opportunity to gain an understanding in different areas of pipeline operations and also allowed for the people involved with the different contracts to knowledge share. Overall the day was great success and everyone provided very positive feedback, which will be used to improve future training days. A huge thank you goes out to everyone involved in making the day a success.

Click here for further information about our utilities & infrastructure sector

Brace of land deals secured

Fisher German has secured a brace of land deals in recent weeks after agreeing terms on two North West Leicestershire sites with house builder Bellway. The firm’s Development and Planning team last month agreed the sale of a site in Thringstone with outline planning permission for 85 units, and has this week sold a 43 acre site in Ashby-de-la-Zouch with consent for 275 dwellings following a competitive period of marketing.

For more information about this project click here.

Conservation Area improved by design

Following an instruction from a public sector client to look at alternative uses for a redundant farm holding in Norton, the Fisher German Planning and Architectural teams worked closely with Wychavon District Council to design and secure planning consent for a sensitive residential scheme, hailed as being a rare example of development improving the character of a Conservation Area.

To read more about the outcome click here.

Click here to read more about our planning & construction services.

Following the General Election, the Government has reaffirmed its commitment to investment in infrastructure, with a planned &28 billion spend on roads by 2020-21, together with further spending on electrification of part of the existing rail network and of course HS2.

Help for clients 

Fisher German’s dedicated compulsory purchase team continues to represent clients across the country affected by infrastructure schemes. This includes both those assembling sites for major development projects and those affected by schemes. We continue to act for various statutory and non-statutory bodies in assisting with the delivery of schemes. On the other side, we have a large number of clients affected by major road schemes including the A556 Knutsford to Bowdon Improvement Scheme and A14 Cambridge to Huntingdon Improvement Scheme. In addition our specialist service sector continues to give professional guidance to those affected by both Phases One and Two of HS2, ensuring that appropriate levels of compensation are secured.

Compensation issues 

In the UK, our compensation provisions go back to when the first railways were built, and the Railway Clauses Consolidation Act 1845. The compensation code is a mix of statute and case law, with additional provision bolted on as and when required.

Unfortunately, these compensation provisions haven’t caught up as yet with the complexities of substantial modern schemes.
HS2 is a case in point, with many left in limbo due to the timescales involved. Those who eventually fall within the safeguarded area may be able to submit a statutory blight notice asking the Government to purchase their property. Others, outside of this area may be eligible for one of the Government’s discretionary schemes. These go some way to assisting those who can’t sell their property due to the scheme but invariably don’t go far enough, again leaving many with uncertainty.

Keeping you updated 

Our specialist knowledge of compensation matters makes Fisher German well placed to review the UK’s compensation provision. Indeed we have recently participated in a Government consultation exercise in regard to CPO matters and continue to monitor this closely.

Likewise, we continue to keep at the forefront of HS2 matters to help clients when any new measures are announced. The Government has recently proposed changes to Phase One of HS2 and we await safeguarding directions for HS2 Phase Two. If you are affected by HS2 or any other scheme then please call one of our compensation experts.

Click here to read more information about HS2

The stormy summer period for supporters of green energy in the UK continued recently with the Department of Energy and Climate Change (DECC) issuing yet another consultation document on 27 August 2015 – this time proposing new cost control measures under the Feed-in Tariff (FIT) scheme. The document cites a need to “put the scheme on an affordable and sustainable footing” amidst higher than expected renewable energy deployment and significantly reduced technology costs.

The measures proposed include revised tariffs, a more stringent degression mechanism, and deployment caps leading to the phased closure of the scheme in 2018-19. They are intended to limit the financial burden on consumers who ultimately pay for renewable energy subsidies through their electricity bills, and the review follows an earlier consultation spanning July and August 2015 outlining proposals to remove ‘preliminary accreditation’ for FITs, protecting bill payers against deployment surges. It has subsequently been announced that preliminary accreditation will be removed from 1 October 2015.

The new generation tariffs are based on fresh evidence about costs and rates of return, with DECC proposing a new cap on FITs expenditure of between &75m–&100m from January 2016 to the point of closure. The document suggests that if these cost control measures are not implemented then the only alternative would be to end generation tariffs for new applicants as soon as January 2016.

The proposed bandings and rates are as follows:

Solar 

Domestic solar PV will be hardest hit with a massive 87% reduction, whilst the other tariff bands for solar are proposed to go down by approximately 75%. If implemented these reductions will make a lot of solar projects financially unviable unless panel prices fall considerably, which is not expected to happen in the next 2-3 years.

Wind 

The tariffs for the most popular wind turbines (50kW-500kW) are proposed to reduce the by 25-40% meaning, unless situated in very high wind speed areas, they are unlikely to be viable. The Government’s recent announcements for onshore wind have made obtaining planning permission almost impossible, so these latest proposed changes could be the final nail in the coffin.

Hydro

Hydro projects look set to be hit less hard with average reductions typically between 25-30%.

AD 

Anaerobic Digestion (AD) plants are not proposed to be subject to tariff reductions but the Government are considering implementing “sustainability” criteria for feedstocks for new AD installations under the FIT scheme.

DECC has also proposed that full degression for all technologies should be quarterly. If the changes go ahead contingent degression will now be 0%, 5%, or 10% for all technologies depending on deployment rate and this will be in addition to default degression.

DECC have not proposed any change to the export tariffs in this review. However, they are consulting on options to ensure that the long term sustainability of the export tariff. The reason for this is that wholesale electricity prices have dropped and they want the future export prices to reflect the actual electricity market value.

Darren Edwards, a Partner in Fisher German comments “the implications of this latest consultation compound the uncertainty and instability already present in the renewable energy marketplace. If implemented, the proposed cost control measures threaten to trigger an immediate ‘lights out’ for a UK industry that has been buoyant through the recessionary period. A large proportion of our client base, some of whom have invested heavily in the FIT market over the last 5 years, will lose out should the Government make the cuts and some businesses will undoubtedly go under. Emerging technology, such as commercial scale lithium-ion batteries, offer some future hope for the renewables sector but again this is a few years away so such drastic Government cuts in the short term seem premature”.

Click here for more information about our renewable energy sector

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Fisher German has more than doubled in size over the last few years through mergers and organic growth. These mergers bring all kinds of legacy software and the natural next step is to now have all offices using the same systems. Fisher German is in the fortunate position of being able to invest back into the business and this has led to the implementation of a new time recording and finance system.

Fisher German have invested in the Access Group to optimise management control and visibility throughout the business. The system is in the final stages of testing and due to go live imminently.

Andrew Bridge, Chief Operating Officer for Fisher German, comments, “We have been searching the market for the right solution for over a year now. We are a diverse business and have a number of complex requirements which we think can be delivered through Access Group. It’s a huge project for Fisher German but one that will take us to the next level when we go live.”

With Access at the core of our operations, the business will have the ability to drill right down on key information, dramatically improving reporting capabilities and analysis with provision of tailored management information to drive forward business performance.

Andrew adds, “Access will provide us with a single standardised integrated financial and time recording system through Access’ Dimensions and FocalPoint solution that we will implement across the partnership. These are flexible configurable systems that meet all our system requirements, which we can manage and adapt to meet our diverse business needs.”

Piers McLeish, on behalf of the Access Group, comments: “We are delighted to be working with Fisher German, supporting their ambitious plans for growth.”

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