east midlands autumn 11

reviewEast Midlands

Summer 2011

chestertonhumberts.com

I hope you will enjoy our review highlighting aspects of Commercial, Residential and Rural markets. The spring edition highlighted the difficult market we had experienced in 2010. The early part of 2011 appeared to bring some confidence back to the market but this has been somewhat short lived and the sector

remains difficult as our residential report highlights.

The Commercial property sector similarly has found the market challenging although transactional levels have increased and to a degree some confidence has returned.

continued ....

This Edition

Grantham14 Finkin StreetGrantham, Lincolnshire NG31 6QZ

T: 01476 514514F: 01476 571750E: [email protected]

Lincoln4 Eastgate, Lincoln, Lincolnshire LN2 1QA


Nottingham CommercialOxford House, Oxford StreetNottingham NG1 5BN

T: 0115 947 6236

Nottingham Residential8 Oxford StreetNottingham NG1 5BH


Stamford5 Ironmonger StreetStamford, Lincolnshire PE9 1PL


SOLD - South Lodge, Ropsley.


The strengths we had reported in our spring edition with regard to the rural sector and farmland values particularly have remained with prices continuing to grow as a result of high demand and with levels of commodity prices being enhanced and maintained.

We are pleased to report the purchase of the Nottingham based chartered surveying firm of Robert Clarke as part of the Chesterton Humberts ongoing expansion of its network and particularly its commercial property team.

Commercial Market Overview“So what’s the market like?”, everybody asks. Well, better than it was. There is an encouraging level of activity in some sectors. There is no shortage of appetite and the opportunities are out there. The tightness of the credit market is, however, still a significant problem, and is a well aired debate elsewhere.

Our outlook, though, is positive. We have a raft of new properties coming to the market. We are working on a series

of trade warehouse acquisitions which could total 60,000 sq ft and have just acquired 20,000 sq ft of industrial space for clients on Blenheim Industrial Estate, just off junction 26 of the M1. Former public houses continue to sell well, usually for new uses.

We continue to provide proactive and realistic advice and support to Insolvency Practitioner clients, disposing of a range of sometimes awkward or complicated assets. Deals currently with solicitors in that sector include a 40 acre ground lease of a business park in north Nottinghamshire and the former William Woodsend Ltd premises and site, opposite The Nottingham Park Estate in Nottingham City Centre.

Following the acquisition of Robert Clarke the East Midlands Commercial office now has residential, rural and enhanced investment services, expertise and contacts available, in addition to the established commercial core.

commercial agencyChesterton Humberts has acquired Nottingham based chartered surveying firm Robert Clarke as part of its ongoing expansion.

The firm of Robert Clarke was formed in 1923 and is based in the centre of Nottingham. The 15 strong team operates both locally and nationally in all aspects of commercial property including investment agency, business rates, management, professional services and lease consultancy and additionally is able to give advice in the licensed property sector.

As the acquisition looks to establish Chesterton Humberts as a major force in the property sector in the East Midlands which follows the recent expansion in Stamford and Lincoln of their Residential and Rural teams.

This Edition ... continued

Steve Holland, Nottingham Commercial

We will be sponsoring a fence at the Burghley horse trials in Stamford from 1st to 4th of September.

We will be renewing our association with the Southwell & District Agricultural Society’s ploughing match to be held this year at Kneesall in Nottinghamshire on the 24th September, again we look forward to welcoming clients and friends alike to our stand on that day.

We are pleased to announce that we will be continuing with our sponsorship of Team Chasing. We will be supporting the Cotswold Team Chase on the 30th October and the National Finals at Tur Langton, Melton Mowbray in April 2012.

Dates for the Dairyburghley horse trials ploughing match team chase1st - 4th September 24th September 1st April 2012


The property market in the East Midlands has continued to be challenging. London remains the only region where house prices have grown over the last year. The Chesterton Humberts Poll of Polls monthly house statistics show that prices in the East Midlands has seen a fallback year on year by some 4.2%.

Low activity levels and confidence has kept a cap on price growth and the divergence of economic growth and employment between London and the regions has

affected the performance. Restrictive mortgage lending has also affected confidence although there remains hope that activity in the mortgage sector will improve and improved economic conditions will return.

As we analysed in our spring edition there is potential for the volume of transactions to increase with a good range and number of properties being available in all sectors of the market.

Buyers continue to expect realistic values. Quality of presentation and the pricing of property to reflect correct levels of value is producing results particularly in the Period house and country property sector but the market is extremely price sensitive and over pricing continues to be a problem.

East Midlands Residential Report

SOLD - A selection of properties recently sold across the region.

Peter Mills, Area Director Residential


The Farmland MarketIt is pleasing to note that the farmland market in the East Midlands has continued to move forward during the early part of 2011.

Demand for commercial farmland with or without houses has increased, driven partly by improving commodity prices and lack of supply. The security which land offers, the improved returns which can be achieved, level of interest rates

and the advantages which land can offer from a tax perspective have continued to influence the market.

We are seeing the possibility of an increasing supply of land coming forward as many landowners and farmers consider it to be a good time to sell to take advantage of high values particularly if they are considering retirement or downsizing.

Chesterton Humberts are able to offer our clients, national, regional and local exposure and have considerable experience in the farmland market sector.

Chesterton Humberts are prepared to undertake free market appraisals to owners who are wishing to consider their options in this very buoyant market.

equestrian salesThe Rural Department in the East Midlands has concluded sales of two substantial equestrian properties. South Lodge, Ropsley which has a principal house, cottages, stabling and 60 acres of land successfully sold in the spring to a private buyer. Laughton Manor an equestrian centre at Folkingham which included a Grade II listed manor house and extensive competition livery facilities with 86 acres

of land again sold quickly in the spring of 2010 to an institutional buyer who will take forward further development of the property for competition and educational purposes.

These two sales possibly are the most significant in the East Midlands in recent years in this sector of the market.

Andrew Pearce, Rural, Lincoln

Stuart Paton, Rural, Stamford

SOLD - Laughton Manor & Equestrian Centre


Expanding Rural DepartmentChesterton Humberts is continuing to expand its rural practice with the recent appointment of Harry Baines as a director in the Stamford office.

He is a highly regarded estate and land manager with over 18 years experience at Carter Jonas’s Peterborough office and at Strutt & Parker’s Cambridge and St Albans offices. Chesterton Humberts has appointed Harry as part of its continuing strategy to strengthen and grow the rural division across this region and in the rest of the UK.

Harry grew up in Rutland and attended Oakham School and will bring extensive local knowledge and contacts to the role.

With land continuing to outperform any other asset class, demand for farmland across the UK is continuing to increase. Whilst demand outstrips supply, we are expecting prices to continue to rise. With this in mind, Chesterton Humberts is expanding the rural division to service this increasing demand.

taxation & the budget

The Chancellors budget in the spring did not affect or bring benefit to any major degree to the property sector.

The most fundamental change this year was the increase in the lifetime limit for Capital Gains Tax, Entrepreneurs Relief from £5m to £2m and the small business relief holiday will is extended for a further year.

The establishment of the green investment Bank will benefit renewable energy investors and the review of Capital allowances for expenditure on plant and machinery may also rise to beneficial allowances.

The budget included a provision that there will be a presumption in favour of sustainable development and a twelve month limit for considering planning applications including any appeals in future legislation.

Planning consent for converting commercial property to residential use should also become more possible under measures which will be brought forward by the Government.

We will closely monitor whether these initiatives filter down to the Local Planning level.


TYPICAL SOLAR FARM


The feed-in tariff commenced on the 1st April 2010 and provides financial support for the production of renewable electricity from renewable resources – wind, anaerobic digestion (AD), hydro and solar photovoltaic.

When first introduced the rates payable per unit of electricity (kWh) were well in excess of 20p. From the 1st August 2011 the rates will be reduced considerably and a summary is shown below.

The cut in the Renewable Heat Incentive (RHI), particularly for installations of over 50kw has severely limited investments in larger scale projects, particularly AD where entry level systems cost in excess of £2m. Although some Banks, including NatWest, have launched specific products for renewable energy projects they are still difficult to secure borrowing on, and often will not allow the income to count towards serviceability. .

the renewable heat incentive Details were finally released on the 10th March 2011, however they left a lot to be desired and were short on practical detail. The incentive gave support for heat production by commercial businesses or community schemes including charities and will commence from the 1st October 2011.

In the past District Heating Systems and other projects have fallen at the last financial hurdle and the RHI should provide the necessary support to clear that hurdle. Anaerobic digesters remain a very specialist area and crucially require a constant supply of material combined with disposal of

digestate. The Government has indicated that it does not wish to see large areas of agricultural land taken out of food production and it is difficult to secure supply contracts for food waste beyond 2 or 3 years.

It is very regrettable that the Government has decided not to extend the RHI to individual houses although the Government scheme, the Green Deal, is due to commence in 2012. It is recommended that anyone considering a project of this nature delays any decisions until the details are known, probably towards the end of 2012.

summary Renewables will continue to evolve very quickly both in terms of the technology available and sources of funding and Government support. As with any evolving area of practice, those who decide to go quickly down one route may repent at their leisure, such as those who spent much time and money in the summer/autumn of 2010 pursuing solar farms.

Our strong advice is to firstly review your energy needs, source and current cost. Secondly investigate available alternatives and their suitability to your farm/estate/residential property. Thirdly research whether the system you intend to install already exists and ensure you go and see it and find out as much information as possible. Finally ensure that whatever route you decide to take you can be sure it will perform as expected and as claimed by the suppliers.

Renewable Energy – All Hot Air?the feed-in tariff

Generation tariffs

solar pv

50 – 150 kW: total installed capacity = 19p/kWh150 – 250 kW: total installed capacity = 115p/kWh250 kW – 5MW : total installed capacity = 19p/kWh

anaerobic digestion

Less than or equal to 250 kW: 14p/kW

>250 – 500 kW : 13p/kW

Harry Baines, Rural, Stamford

chestertonhumberts.com chestertonhumberts.com

Our east midlands offices

Grantham14 Finkin StreetGrantham, Lincolnshire NG31 6QZ


Lincoln4 Eastgate, Lincoln, Lincolnshire LN2 1QA


Nottingham CommercialOxford House, Oxford StreetNottingham NG1 5BN

T: 0115 947 6236

Nottingham Residential8 Oxford StreetNottingham NG1 5BH


Stamford5 Ironmonger StreetStamford, Lincolnshire PE9 1PL


east midlands autumn 11

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