No human sense can detect it, yet very quickly it can overcome its victims with disastrous consequences. It kills 50 people in the UK every year.
Carbon monoxide detectors are now a legal requirement in Scottish lettings properties, where new boilers or gas appliances are installed, but not in England. It’s a curious situation where someone in Gretna is legally protected, yet their friend in Carlisle currently legally neglected!
The Government has just added enabling powers to the Energy Bill, during its passage in the Lords, to introduce a requirement for carbon monoxide and/or smoke alarms in private rented properties and a review is promised not only of whether smoke or CO2 alarms should be mandatory but also of minimum standards for private rented properties.
A Derby landlord was recently prosecuted after a tenant who had reconnected a condemned gas boiler was subsequently killed by the fumes it gave off. During tests after his death, so much carbon monoxide was present that four neighbouring properties had to be evacuated.
Gas appliances had not been tested subsequent to a test arranged by the agent who introduced the tenant. The agent was not contracted to manage the tenancy and no further tests were carried out.
Landlords are culpable if tenants die in their properties from a defect that could have been foreseen or prevented, such as carbon monoxide build-up.
Here at Carter Jonas, we have taken the decision to advise landlords to adopt best practice and install carbon monoxide alarms. New appliances should already go some way towards protecting tenants, often it’s older appliances that cause the problems. The only way to manage this risk is to eliminate it by use of alarms.
Combustion appliances fuelled by solid fuel, oil, or gas all have the potential to cause carbon monoxide poisoning if they are poorly installed or commissioned, inadequately maintained or incorrectly used. As of 1 October 2010 alarms have been mandatory for newly installed stoves but this does not extend to every potentially dangerous situation.
As part of our management service for landlords, we are recommending and arranging for carbon monoxide alarms to be fitted in their properties over the next few months to both protect the occupier and give our clients peace of mind.
Lisa Simon,
Partner
Head of Residential Lettings
T: 020 7518 3234
E: lisa.simon@carterjonas.co.uk
A property blog written and authored by our specialist blogging team, discussing all and any matter relating to the residential, rural and commercial property markets.
Showing posts with label agency. Show all posts
Showing posts with label agency. Show all posts
Friday, 10 January 2014
The Future of Farming
With farmland prices at an all time high, now may just be the time to think about selling land if you are looking for a better return on capital value.
Farmland tends to provide a yield of not much more than 1-2% which reflects the low risk nature of farmland compared to many commercial property investments. But in recent years the total return from farmland has been bolstered by significant capital growth and the big question is whether this capital growth will continue as the wider economy recovers which may attract non farming investors in particular to search for higher yields elsewhere.
However, farmland does still have very significant tax advantages as compared to many other assets. For instance let land qualifies for Agricultural Property Relief which can provide up to 100% relief from Inheritance Tax on the agricultural value of the land. This can be a significant driver for many cash rich individuals who may be prepared to accept a low return on capital in order to shelter their money in the long term from the tax man.
There are then farmers themselves who are generally feeling optimistic about the future of farming following some more profitable times in recent years. Having said that it is still difficult to justify the price some farmers are prepared to pay for land considering the relatively modest profit that will be generated from farming the land.
But land is an unusual asset in that unlike shares for example, “they are not making any more of it” and there may be one off opportunities that arise which may not have been anticipated at the time of purchase. For instance, if one had purchased an area of poor quality land on some windswept hillside twenty years ago you would probably not have anticipated the renewable energy opportunities which are now available which could liberate both capital value and significant revenue generating opportunities. Clearly if you don’t own the land such opportunities would not be available to you and although it is difficult to quantify this in terms of value I believe owning land does bring opportunities which owning other assets may not.
So, there are conflicting forces at work although if my firm, Carter Jonas is anything to go by we did see an upturn in farmland sales last year where we offered over 18,000 acres of land in to the market across the country. This does perhaps indicate that some large landowners are now prepared to consider rebalancing their property portfolio by selling at least some of their agricultural land to take advantage of the record prices currently being achieved.
So what are the prospects for 2014? Well, it seems to me that demand is still likely to outstrip supply but the market is patchy with good sized blocks of arable or dairy land likely to attract premium prices while smaller blocks of secondary quality land are attracting less predictable demand and consequently, on average lower prices.
Anyone interested in discussing either the sale or purchase of farmland is welcome to contact me in Wells or Kit Harding in our Bath office who heads up our farm agency team in the South West.
James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk
Friday, 3 January 2014
Environment & Rural Growth
The farming industry in general has welcomed DEFRA secretary, Owen Paterson’s decision to reduce the proposed 15% shift in payments from direct payments to farmers to the environment and rural growth. It had seemed the government was committed to the 15% shift in their consultation document on CAP reform published earlier in the autumn, but they have listened to what the respondents to this document have said which is gratifying.
As a consequence Paterson has announced that instead of transferring 15% of payments away from direct support they will now only transfer 12%. Many farmers had been hoping the shift would have been even less than this but even so this move has been generally welcomed by many.
Mr Paterson said, “England’s £15 billion Common Agricultural Policy must deliver real benefits to farming, rural businesses, the countryside and the taxpayer. Today’s decision will see £3.5 billion invested in the environment and rural development schemes over the next seven years. This is a significant change in the way we allocate CAP money and even with a smaller overall CAP budget, the Government will be spending a bigger share of the budget on the environment than before.”
In response to this announcement the Country Land and Business Association president Henry Robinson said: “We are pleased that DEFRA secretary Owen Paterson has listened to the industry and moved 12% from Pillar 1 to Pillar 2 rather than choosing the maximum figure allowable of 15 percent. He has struck a reasonable balance between supporting the environment and rural development and ensuring that farmers in England get a fair deal.”
These sentiments were also echoed by NFU deputy president Meurig Raymond who said: “I am delighted Mr Paterson has decided to keep the rate of modulation below the maximum for the four years until it is reviewed.”
I suspect many farmers will still question why as much as 12% of “their” payments are to be siphoned away from money that in their minds is rightly theirs but I think if such payments are to continue to receive any degree of public support they need to be seen to be delivering wider public benefit than simply income support for farmers. So, it appears this is probably a compromise which will not keep everyone happy but at least it shows the government are willing to listen to reasoned argument when it is presented to them.
However, the next big challenge will be for the policy makers to ensure the schemes which will be formulated to deliver the £3.5billion are put in place as soon as possible. The rules will also need to be simple because if my experience of the roll out of similar schemes is anything to go by, there is likely to be a significant pregnant pause before any of this money hits the ground which in my view has been one of the biggest weaknesses of rural development programmes in the past.
As a consequence Paterson has announced that instead of transferring 15% of payments away from direct support they will now only transfer 12%. Many farmers had been hoping the shift would have been even less than this but even so this move has been generally welcomed by many.
Mr Paterson said, “England’s £15 billion Common Agricultural Policy must deliver real benefits to farming, rural businesses, the countryside and the taxpayer. Today’s decision will see £3.5 billion invested in the environment and rural development schemes over the next seven years. This is a significant change in the way we allocate CAP money and even with a smaller overall CAP budget, the Government will be spending a bigger share of the budget on the environment than before.”
In response to this announcement the Country Land and Business Association president Henry Robinson said: “We are pleased that DEFRA secretary Owen Paterson has listened to the industry and moved 12% from Pillar 1 to Pillar 2 rather than choosing the maximum figure allowable of 15 percent. He has struck a reasonable balance between supporting the environment and rural development and ensuring that farmers in England get a fair deal.”
These sentiments were also echoed by NFU deputy president Meurig Raymond who said: “I am delighted Mr Paterson has decided to keep the rate of modulation below the maximum for the four years until it is reviewed.”
I suspect many farmers will still question why as much as 12% of “their” payments are to be siphoned away from money that in their minds is rightly theirs but I think if such payments are to continue to receive any degree of public support they need to be seen to be delivering wider public benefit than simply income support for farmers. So, it appears this is probably a compromise which will not keep everyone happy but at least it shows the government are willing to listen to reasoned argument when it is presented to them.
However, the next big challenge will be for the policy makers to ensure the schemes which will be formulated to deliver the £3.5billion are put in place as soon as possible. The rules will also need to be simple because if my experience of the roll out of similar schemes is anything to go by, there is likely to be a significant pregnant pause before any of this money hits the ground which in my view has been one of the biggest weaknesses of rural development programmes in the past.
James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk
Tuesday, 5 November 2013
A con that can legally steal your house
It can happen. Section 58 of the Land Registration Act 2002 provides that if a person is listed as the proprietor of a legal estate with HM Land Registry it is conclusive evidence of ownership.
Imagine losing your house after it was effectively stolen because the law favours a third party.
Case law (Barclays Bank plc v Guy 2008) dictates that while the rightful owner can restore his or her name as owner, if the mortgage was granted through the lender relying on indisputable title, albeit one effectively stolen, the mortgage charge remains and must be repaid.
Worse still, if the house had been sold to a third party everything would be lost.
The case law involved a house where a tenant registered the title fraudulently and used it to obtain a mortgage from Barclays. The owner wanted complete ownership of his house returned but only managed to re-register the title. Barclays kept its charge on the property so the money would have to be repaid when the house was sold – unless the fraudster could be found with the money.
You can prevent becoming a victim by popping in the post a simple form ‘COG1’ (Up-dating Registered Owners’ contact address) with evidence of identity. It tells HM Land Registry to amend the record for your property to provide your current address for correspondence. You post the form with evidence of your identity and its job done.
For more information visit the Land Registry website
Lisa Simon, Partner
Head of Residential Lettings, Mayfair
T: 020 7493 0676
E: lisa.simon@carterjonas.co.uk
Imagine losing your house after it was effectively stolen because the law favours a third party.
Case law (Barclays Bank plc v Guy 2008) dictates that while the rightful owner can restore his or her name as owner, if the mortgage was granted through the lender relying on indisputable title, albeit one effectively stolen, the mortgage charge remains and must be repaid.
Worse still, if the house had been sold to a third party everything would be lost.
The case law involved a house where a tenant registered the title fraudulently and used it to obtain a mortgage from Barclays. The owner wanted complete ownership of his house returned but only managed to re-register the title. Barclays kept its charge on the property so the money would have to be repaid when the house was sold – unless the fraudster could be found with the money.
You can prevent becoming a victim by popping in the post a simple form ‘COG1’ (Up-dating Registered Owners’ contact address) with evidence of identity. It tells HM Land Registry to amend the record for your property to provide your current address for correspondence. You post the form with evidence of your identity and its job done.
For more information visit the Land Registry website
Lisa Simon, Partner
Head of Residential Lettings, Mayfair
T: 020 7493 0676
E: lisa.simon@carterjonas.co.uk
Monday, 28 May 2012
Big news in farming
The big news in the farming world last week was the announcement of a proposed merger between Milk Link - the nation’s leading dairy farmer co-operative - and Arla Foods amba, one of the largest and most successful European dairy co-operatives, based in Denmark. This is one of the first mergers between a UK and foreign co-operative and if completed, the new business will be the biggest player in the UK dairy market.
The merger is the latest and most significant sign of the rationalisation in the dairy sector which has recently seen Robert Wiseman Dairies taken over by Muller, the collapse of Farmright and Rock Farm Dairies, being two small dairy companies based in Devon and Durham respectively and the restructuring of Dairy Crest.
Milk Link chief executive Neil Kennedy said the merger would improve returns for members and, after a three-and-a-half year transitional period, see them get the same return as Arla owners who have been paid on average 10% or 2-3p per litre more over the last five years than Milk Link members.
Information on the merger was due to arrive with Milk Link’s members at the end of last week and then there will be a series of meetings to discuss the merger proposals after which the members will vote on the proposal. If the merger is approved by the two co-operatives, it will also require the approval of the Competition Commission because of the size of the proposed new business.
The details of the merger are only just emerging but what appears to be known to date is that if successful, Milk Link’s standard litre price will rise by 1p per litre for three months from 1st July. From 1st October Milk Link’s price will be linked in a rather complicated manner to Arla’s “On-account” price and from 1st January 2016 Milk Link’s members will be entitled to receive the same price and bonuses due to full Arla amba members.
As far the capital held by existing Milk Link members is concerned, this will be transferred across to Arla Foods amba, up to a maximum level of 5p/litre. No interest payments will be made in respect of this capital during the transition period between 1 July 2012 and 31 December 2015, although each Milk Link member will receive a one-off compensatory cash payment of 57p for every £1 invested in their capital account. Any member that has invested more than 5p/litre will have the excess bought back on a £1 for £1 basis. Founder members of Milk Link with so-called "double rights" will receive a cash payment of around £1.14 per £1 of qualifying loan.
Clearly these are very early days in what looks like being a complicated merger process and as much as anything it indicates that the dairy industry is in the midst of some very significant restructuring which it is hoped will drive efficiencies out of the supply chain to the benefit of the dairy farmers in the long term.
James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk
The merger is the latest and most significant sign of the rationalisation in the dairy sector which has recently seen Robert Wiseman Dairies taken over by Muller, the collapse of Farmright and Rock Farm Dairies, being two small dairy companies based in Devon and Durham respectively and the restructuring of Dairy Crest.
Milk Link chief executive Neil Kennedy said the merger would improve returns for members and, after a three-and-a-half year transitional period, see them get the same return as Arla owners who have been paid on average 10% or 2-3p per litre more over the last five years than Milk Link members.
Information on the merger was due to arrive with Milk Link’s members at the end of last week and then there will be a series of meetings to discuss the merger proposals after which the members will vote on the proposal. If the merger is approved by the two co-operatives, it will also require the approval of the Competition Commission because of the size of the proposed new business.
The details of the merger are only just emerging but what appears to be known to date is that if successful, Milk Link’s standard litre price will rise by 1p per litre for three months from 1st July. From 1st October Milk Link’s price will be linked in a rather complicated manner to Arla’s “On-account” price and from 1st January 2016 Milk Link’s members will be entitled to receive the same price and bonuses due to full Arla amba members.
As far the capital held by existing Milk Link members is concerned, this will be transferred across to Arla Foods amba, up to a maximum level of 5p/litre. No interest payments will be made in respect of this capital during the transition period between 1 July 2012 and 31 December 2015, although each Milk Link member will receive a one-off compensatory cash payment of 57p for every £1 invested in their capital account. Any member that has invested more than 5p/litre will have the excess bought back on a £1 for £1 basis. Founder members of Milk Link with so-called "double rights" will receive a cash payment of around £1.14 per £1 of qualifying loan.
Clearly these are very early days in what looks like being a complicated merger process and as much as anything it indicates that the dairy industry is in the midst of some very significant restructuring which it is hoped will drive efficiencies out of the supply chain to the benefit of the dairy farmers in the long term.
James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk
Tuesday, 8 November 2011
New “Small Capital Grants Scheme” for Farmers in England poised to be launched
Following the coalition government’s decision to abolish Regional Development Agencies (RDAs) the England Rural Development Programme (ERDP) has been in turmoil.
The ERDP forms part of the Common Agricultural Policy and elements of the programme had been developed and administered at a regional level by the RDAs. Thus their abolition has left a vacuum and threatened the delivery of European funds for the remainder of the programme which runs to the end of 2013.
However the government has recognised this problem and has taken the scheme back in hand to be administered by DEFRA. What this means is that they have done away with the regional delivery programmes and developed and national programme so there is now conformity across the country.
To my mind this makes a great deal of sense because under the old scheme, whether or not a farmer or rural business qualified for grant aid depended on the programme which was developed by the various RDAs. This lead to unfairness on occasions where for instance a business in Hampshire may have qualified for grant aid whereas across the regional and county border in Wiltshire, a very similar business may not have.
As you can imagine, the process of harmonising the various regional schemes has taken time and some difficult decisions have had to be made on what schemes to drop, although the national programme is now just getting up and running. The first of the new schemes which is about to be launched is called the “small capital grant scheme”.
This is an exciting opportunity for farmers although funds are likely to be limited and so farmers and foresters should be ready to make an application the moment the grant scheme opens which it is believed will be sometime in mid-November.
The scheme will initially be open for about eight weeks before it closes to allow the applications to be assessed and then the scheme will open again for another eight weeks and so on until the funds are exhausted.
The grant aid will vary from £2,500 to £25,000 although until the rules are published it is difficult to be precise as to exactly what investment proposals will qualify but in broad terms it is understood the money will be targeted at increasing the competitiveness of the agricultural and forestry sectors.
James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
The ERDP forms part of the Common Agricultural Policy and elements of the programme had been developed and administered at a regional level by the RDAs. Thus their abolition has left a vacuum and threatened the delivery of European funds for the remainder of the programme which runs to the end of 2013.
However the government has recognised this problem and has taken the scheme back in hand to be administered by DEFRA. What this means is that they have done away with the regional delivery programmes and developed and national programme so there is now conformity across the country.
To my mind this makes a great deal of sense because under the old scheme, whether or not a farmer or rural business qualified for grant aid depended on the programme which was developed by the various RDAs. This lead to unfairness on occasions where for instance a business in Hampshire may have qualified for grant aid whereas across the regional and county border in Wiltshire, a very similar business may not have.
As you can imagine, the process of harmonising the various regional schemes has taken time and some difficult decisions have had to be made on what schemes to drop, although the national programme is now just getting up and running. The first of the new schemes which is about to be launched is called the “small capital grant scheme”.
This is an exciting opportunity for farmers although funds are likely to be limited and so farmers and foresters should be ready to make an application the moment the grant scheme opens which it is believed will be sometime in mid-November.
The scheme will initially be open for about eight weeks before it closes to allow the applications to be assessed and then the scheme will open again for another eight weeks and so on until the funds are exhausted.
The grant aid will vary from £2,500 to £25,000 although until the rules are published it is difficult to be precise as to exactly what investment proposals will qualify but in broad terms it is understood the money will be targeted at increasing the competitiveness of the agricultural and forestry sectors.
James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
Monday, 5 September 2011
September beginnings
September is an exciting month. Families wring every drop out of the holidays, returning to schools and workplaces with tans still fresh from a mad drive up from some foreign port, the day before term starts. Children commence new academic years with the mixed emotions of catching up with missed friends and the fresh challenges of being another year older and just that little bit more grown up.
In Winchester, our September starts with the Alresford Show. A wonderful agricultural show which allows us to launch September sales and greet clients, old and new. It is lovely that in a business where over 80% of new clients commence their search via the internet, there is still a place for a chat in a field with a glass and a nibble. Each year, we seem to help more and more clients in this way.
Harvests are safely gathered in and the countryside sports stubbled fields in the gentile manner that gentlemen “forget” to shave on a Saturday yet get away with it with a smart shirt. There is a wonderful market at this time of year, whether it is an Indian summer or an early autumn. Buyers busy themselves, as does the rest of nature – hoping to have everything buttoned down before the winter. Salmon race up chalk streams towards their redds, squirrels bury acorns in lawns that are never to be found, gamekeepers prepare for early season partridge and agents prepare to launch post summer sales.
Seasonality has largely been lost in the housing market as a continued shortage of prime property has eroded the traditional “closed seasons” of the school summer holidays. Whilst it is true that many fathers will spend more time away with their families, this does not replace the desire to find the right property. Conversations around holiday supper tables are no less property orientated than weekend dinner parties in town or country. We have experienced consistent markets throughout the year in this respect. Yet the sea change in buying activity is as arbitrary and unpredictable as the seasons themselves. We have sold houses in April heat waves and August monsoons. A remarkable result in the last round of snow, earlier in the year, was a 17% premium achieved for perhaps the most neglected property we have sold.
Continued historically low interest rates have given way to some very cheap mortgage deals. It is essentially cheaper to buy than rent. Stock markets are within pre credit crunch ranges and sovereign debt has arguably been a feature of western economies since they came off the gold standard. It is the differential that is important, what you sell for is only important in relation to what you pay for the next property. In this market, there has arguably never been a better time to trade up.
A 15% premium was achieved in the recent sale of a village house; following 38 viewings, another recently achieved a 12.2% premium after 42 viewings and 23 offers generated over 10 days of marketing. A current sale of a house in Winchester launched last Thursday has generated 44 viewings, 3 offers and 12 notes of interest so far. The market is of short of good properties; therefore it is a sellers market, with great opportunities for our clients to achieve some impressive results.
I can only look forward to the unfolding sales season the onset of autumn with leaves turning to shades that make the whole countryside appear on fire and all that this lovely time of year has to bring. I have packed away my summer marketing skills set, along with my trout rod. My wellingtons and shooting coat are resident in my car. I have a diary full of property appointments and shoot dates. I am excited by all this new season has in store!
Matthew Hallett
Partner
Head of Residential Sales, Winchester
In Winchester, our September starts with the Alresford Show. A wonderful agricultural show which allows us to launch September sales and greet clients, old and new. It is lovely that in a business where over 80% of new clients commence their search via the internet, there is still a place for a chat in a field with a glass and a nibble. Each year, we seem to help more and more clients in this way.
Harvests are safely gathered in and the countryside sports stubbled fields in the gentile manner that gentlemen “forget” to shave on a Saturday yet get away with it with a smart shirt. There is a wonderful market at this time of year, whether it is an Indian summer or an early autumn. Buyers busy themselves, as does the rest of nature – hoping to have everything buttoned down before the winter. Salmon race up chalk streams towards their redds, squirrels bury acorns in lawns that are never to be found, gamekeepers prepare for early season partridge and agents prepare to launch post summer sales.
Seasonality has largely been lost in the housing market as a continued shortage of prime property has eroded the traditional “closed seasons” of the school summer holidays. Whilst it is true that many fathers will spend more time away with their families, this does not replace the desire to find the right property. Conversations around holiday supper tables are no less property orientated than weekend dinner parties in town or country. We have experienced consistent markets throughout the year in this respect. Yet the sea change in buying activity is as arbitrary and unpredictable as the seasons themselves. We have sold houses in April heat waves and August monsoons. A remarkable result in the last round of snow, earlier in the year, was a 17% premium achieved for perhaps the most neglected property we have sold.
Continued historically low interest rates have given way to some very cheap mortgage deals. It is essentially cheaper to buy than rent. Stock markets are within pre credit crunch ranges and sovereign debt has arguably been a feature of western economies since they came off the gold standard. It is the differential that is important, what you sell for is only important in relation to what you pay for the next property. In this market, there has arguably never been a better time to trade up.
A 15% premium was achieved in the recent sale of a village house; following 38 viewings, another recently achieved a 12.2% premium after 42 viewings and 23 offers generated over 10 days of marketing. A current sale of a house in Winchester launched last Thursday has generated 44 viewings, 3 offers and 12 notes of interest so far. The market is of short of good properties; therefore it is a sellers market, with great opportunities for our clients to achieve some impressive results.
I can only look forward to the unfolding sales season the onset of autumn with leaves turning to shades that make the whole countryside appear on fire and all that this lovely time of year has to bring. I have packed away my summer marketing skills set, along with my trout rod. My wellingtons and shooting coat are resident in my car. I have a diary full of property appointments and shoot dates. I am excited by all this new season has in store!
Matthew Hallett
Partner
Head of Residential Sales, Winchester
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