Going green

If you’re fed up of being encouraged to go green, my apologies. This week’s Rural Update is full of environmentally friendly news, from grant schemes that encourage people to get on their bikes or restore peatland, to beaver reintroduction and regenerative agriculture in Africa. That’s all well and good, but we also report on one of my pet hates - conflicting government policies. Domestic properties are a significant source of the UK’s carbon emissions, which the government has pledged to cut, but planning policy, it is claimed, is preventing millions of homeowners from making their homes more energy efficient. If you can get away with putting solar panels on King’s College Chapel Cambridge, one of England’s most architecturally stunning buildings (IMHO), surely planning authorities should take a more balanced view on less iconic properties?

Do get in touch if we can help you navigate through these interesting times. You can sign up to receive this weekly update direct to your email here

Andrew Shirley Head of Rural Research, Mark Topliff, Rural Research Associate

In this week’s update:

• Commodity markets – Grains volatile, meat dips
• Commercial property – EPC and ratings deadlines loom
• Peatland – Restoration cash soon available
• Agri-innovation – New grant funding announced
• Active travel - £200 million up for grabs
• Going green – Planning policy stymies homeowner efforts
• Solar power – Iconic chapel gains consent for panels
• Scottish planning – Streamlined framework announced
• Viticulture – Knight Frank wine garden partnership
• Out and about – Beavers, carbon, Kenyan regen ag
• Knight Frank Research – Farmland 2022’s top-performing asset
• Knight Frank Research – Benchmark staff salaries report
• On the market – 9,000-acre versatile NZ station for sale

Commodity markets – Grains volatile, meat dips

Recent chat has been generally bearish about grain and oilseed prices, but the market remains volatile. Both wheat and oilseed rape rallied slightly last week over concerns that Russia has over-egged its wheat forecasts, worries about the longevity of the Black Sea grain corridor and weather niggles in the US. Meanwhile, the AHDB says livestock prices could come under pressure this year as the cost-of-living crisis leads to a reduction in meat consumption.

Commercial property – EPC and ratings deadlines loom

Farms and estates with commercial buildings in their property portfolios need to be aware of two approaching deadlines. From 1 April 2023, The Minimum Energy Efficiency Standard (MEES) Regulations, which require buildings to have an EPC above band E, will apply to all existing leases as well as new leases. Before hitting the panic button, my colleague Zoe Coulson points out that several exemptions for agricultural buildings and smaller properties exist, but it’s probably worth checking these do apply to you. For example, listed buildings are not automatically exempt. Thanks to Eddie Holloway, another member of our Rural Consultancy team, for pointing out that business rates payers have until the end of March to review and submit correct information on their non-domestic properties before the new ratings list comes into force. The details are quite complex, but apparently you can save a lot of money. Ask Eddie for more details.

Peatland – Restoration cash soon available

Owners of English peatland will soon be able to apply to the third round of the peatland restoration programme. Grants of around £1 million to £2 million will be available to fund up to 75% of the cost of capital projects that have the potential to restore hydrological function and peat-forming vegetation on peat soils at least 30cm deep and with at least 50% soil organic matter content. The scheme is competitive and is likely to be open for applications this April with an eight-week window. For more information on funding peatland restoration please contact Zoe Coulson who helps manage a very large upland property in the north of England.

Agri-innovation – New grant funding announced

The second round of the Large Research and Development (R&D) Partnerships fund will open from 20 February, meaning agri-businesses, farmers, growers and foresters in England will be able to apply for a share of £8 million to improve productivity, sustainability and resilience. Given that projects will last up to four years and be valued at between £3 million to £5 million, plus an expectation that businesses will provide match funding, they are not aimed at individual farms or estates. However, our grants guru Henry Clemons says there is no reason why smaller business couldn’t get involved as part of a large collaboration.

Active travel - £200 million up for grabs

A new fund to help local authorities encourage active travel – that’s cycling or walking to you and me - has just been announced. Although landowners or farmers can’t apply for the cash directly, those happy to allow more access to their land or considering wider placemaking schemes might want to consider getting in touch with their local authority to discuss potential projects. Schemes could include creating more paths in rural areas, developing safer routes for children to walk to school and improved safety at junctions for people walking and cycling. Improving wheelchair and disability scooter access is also a priority.

Going green – Planning policy stymies homeowner efforts

Two new bits of research highlight how planning policy is effectively preventing the owners of certain houses from making them more energy efficient. As reported in the Financial Times, planning restrictions in conservation areas, such as restricting the use of double glazing or solar panels, are directly responsible for up to 3.2 million tonnes of excess domestic CO₂ emissions, according to research by Professor Thiemo Fetzer from the University of Warwick. A survey by the CLA and Historic Houses also reveals that 87% of historic building owners see the UK’s planning system for heritage as a major barrier to decarbonising their property.

Solar power – Iconic chapel gains consent for panels

Owners of heritage buildings finding their efforts to go green frustrated by planners might take heart from a controversial decision by Cambridge City Council. Despite its own conservation officers objecting, the council has granted consent for over 400 solar panels on the roof of the iconic King’s College Chapel. It said the visual impact of the panels, which will cover all of the building’s electricity needs, would be insignificant compared with the benefits of the renewable energy generated in the “context of a climate emergency”. If you’ve got roof space for panels, Knight Frank has access to a no-cost installation scheme that could cut your bills. Contact Robert Blake for more details.

Scottish planning - Streamlined framework announced

Farms and estates in Scotland will welcome a streamlined and more efficient process for gaining approval for renewable energy and rural housing projects under the National Planning Framework 4 (NPF4). The new framework, effective from 13 February, is expected to be positive for renewable projects and will provide more grounds for appeal against local authority refusals. The NPF4 will also bring an end to Section 75 restrictions, which only allowed new houses on or near farms to be occupied by farmers, retired farmers, or farm workers.

These restrictions made it difficult to obtain a mortgage, but the changes in NPF4 will remove this barrier.

A lack of a suitable grid connection is often seen as a barrier to new renewable energy projects, but this is not a planning constraint. Instead, the new framework will support plans for installing battery storage units, which can help overcome the challenges posed by grid connection limitations. NPF4 will be administered by local authorities, but guided by a structural plan for the regions, ensuring that it aligns with the Scottish government's net zero policies.

Viticulture – Knight Frank partners with wine garden

Under the experienced hand of Ed Mansel Lewis, supported by some nifty mapping and analysis work from our geospatial and data wonks, our new Viticultural team is building up a real head of steam. Ed’s latest coup is to secure the first property partnership with the Wine Garden of England, which represents producers accounting for 80% of Kent’s wine production. Contact Ed to find out if your farm or estate might be suitable for vines.

Out and about – Beavers, low carbon, Kenya regen ag

This week our travels have taken us to Stoneleigh where Mark attended the Low Carbon Show – he shares his key takeaways from satellite technology to hedgerow sequestration here - while I visited the Farmers Club in London for the first time in a while to discover how NGO Hand in Hand International is helping farmers in Kenya to adopt regenerative agriculture systems and talk to their local programme head Japheth Muli (watch out for the interview soon). Meanwhile, our Agri-Consultancy colleague Melissa Walker was in Cornwall checking out how beavers are helping the farmed landscape there. Find out more about her fascinating visit.

Knight Frank Research – Farmland 2022’s top-performing asset

As predicted, the latest results of the Knight Frank Farmland Index show that agricultural land as an investment beat inflation in 2022 and outperformed other asset classes, including mainstream house prices, luxury London house prices, the FTSE 100 share index and even gold. According to our index the average value of farmland rose by 13% over the year to hit over £21,000/ha, a record high. A shortage of supply and continued strong demand from a wide range of buyers underpinned the market. Download the full report for more facts and figures.

You can also hear some thoughts from my colleagues and me on the outlook for property markets in 2023 in the latest edition of Intelligence Talks, our research podcast.

Knight Frank Research - Benchmark staff salaries report

Just a reminder that the latest edition of the Knight Frank Estate Staff Salary Survey has recently been published. The report reveals the average salaries paid for a wide range of rural estate and farming roles and level of wage increases being offered by rural businesses. Also highlighted are the key employment issues facing the rural economy. Download your copy here or get in touch with Chris Terrett for more details.

On the Market – 9,000-acre versatile NZ station for sale

If you want space to farm, our New Zealand associate Bayley’s is selling a scenic, yet highly commercial large-scale livestock enterprise. Waipaoa Station, near Gisborne on the east of North Island, and pictured above, includes four adjacent farming operations accumulated over recent years, linked by a 'farming superhighway' through the centre of the properties. Just over 500 acres have consent for irrigation with 290 acres under a centre-pivot system. No guide price has been issued and tenders close on February 15th.