Rural Report 2017: The legislative & policy changes rural estate owners need to know

Compulsory purchase

Tim Broomhead 

One of the biggest difficulties with the process and practice of compulsory purchase, is that there is no single rule book. Although the entire system is well overdue for wholesale reform, no government has tackled the issue and put forward clear rules. The method in recent years has been to add compulsory purchase elements to other acts of parliament – since 2008 this has happened five times.

Changes introduced as part of the Housing and Planning Act last year were welcome for landowners and claimants. Among other measures the Act has reformed the 90% advance payment system streamlining the request for payment. It has also endeavoured to deal with the 0% interest on late payments of compensation that currently exists. The proposal is to levy a penal rate of interest to encourage acquirers to settle early. The latest changes are currently being debated as part of the Neighbourhood Planning and Infrastructure Bill. The proposals are described as “intending tomake the compulsory purchase process clearer, faster and fairer”. Here’s hoping.

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Energy efficiency

Edward Holloway 

Minimum energy efficiency standards (MEES) were introduced in March 2015 by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. These make it unlawful to let domestic and commercial property in England and Wales from 1 April 2018 if the EPC rating is below level E, unless exemptions apply. Furthermore, all rented property (both new and existing lets) will need to achieve level E by 1 April 2023.

With the date for compliance fast approaching, it is crucial for landlords of domestic and commercial buildings to identify how best to manage their portfolio in order to comply. This should involve an assessment of the status and occupation of buildings, as well as looking at where the responsibility for meeting the regulations lies, and determining if any exemptions apply.

The MEES are expected to evolve and increase over time and therefore consideration should also be given to undertaking more in-depth renovation beyond the minimum required level to ensure longer term compliance.

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Employment issues

Angus Harley

As part of his March Budget, the Chancellor Philip Hammond announced a consultation on the tax-treatment of accommodation provided for employees. This is currently tax exempt if it is required to help the employee

to properly perform their duties or do so more efficiently. However, the government thinks this approach is outdated. Removing the tax exemption could have implications for many farms and estates as it could put upwards pressure on wages for estate and farm workers or domestic staff. Other exemptions are also being examined.

Country house and estate owners will also have followed with interest the Uber and Pimlico Plumbing rulings setting the latest precedents in the age-old conundrum of employed versus self-employed. These cases serve as a reminder that it is the reality of the relationship not the purported one that governs whether a provider of services, irrespective of their HMRC status, has a right not to be unfairly dismissed or discriminated against, and to receive holiday pay and so on. The tests have always been the same.

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Health & Safety

Alastair Paul

A big bonfire of bureaucracy was one reason many people voted for Brexit. In fact, the “Great Repeal” Bill will simply transfer EU laws onto the UK’s statute books en-masse ready to be reviewed at “some point” in the future. However, it is unlikely that legislation concerning healthand- safety issues will be relaxed. Given the complexity and range of legislation, not to mention the increased penalties, including incarceration, that can be levied on landowners in breach of any rules, it makes sense for all rural property owners to conduct a thorough review of their own practices as deaths on farms and estates are all too common – there were 10 in February this year alone.

A Staffordshire farming partnership has just been fined £60,000, with cost of almost £30,000, following the death of its farm manager who fell from a fragile roof while dismantling farm buildings in 2014. The partnership had told the court it assumed their manager’s day-to-day running of the farm meant he was ultimately responsible for health-and safety matters, when in fact they were the duty holders with responsibility for their employees.

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Planning

Sophie Watkin 

In February the government revealed its highly anticipated Housing White Paper, with the minister Sajid Javid, promising radical and lasting reforms to the UK’s housing system. The paper aims to provide a long-term strategy to deliver the homes the UK needs. Among the measure proposed, local authorities will come under greater pressure to ensure an up to date Development Plan is in place, which should be reviewed at least once every five years. This could create opportunities for farms and estates, but contrary to speculation existing Green Belt protections will be maintained and boundary amendments will only be permissible where authorities can evidence they have fully examined other reasonable options. Offsetting will be required where land is released from the Green Belt, which may include higher developer contributions being sought. Overall, the White Paper did not meet the hype created by the government and lacked the radical reform that was promised. However, a number of measures are proposed that will have implications and it will be important to monitor how these are brought forward in future legislation. Public consultation on the paper ends on 2 May.

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Rights of way

Michael McCullough 

Landowners can now prevent third parties from claiming rights of way over their land by simply erecting a sign,

following a landmark decision by the Court of Appeal relating to the creation of rights of way by prescription – when individuals have enjoyed continuous access for 20 years. Until recently, landowners had to tell individuals they had no right of access, or lodge a declaration with the county council.

However, the decision involving a dispute between a chip shop and its neighbour means landowners simply have to erect prominent and legible signage stating access is not permitted. The shop’s patrons used the neighbour’s car park, despite the erection of a private car park sign. No further action was taken until the chip shop went to court, claiming it had acquired the right to park on the land.

But the court held that the erection of the sign was sufficient to show that the use of the car park was contentious. The neighbour did not have to install physical barriers, lodge a declaration with the council, or resort to physical confrontation.

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