All shapes and sizes

When is a corridor not a corridor?  When it’s an arc. What’s the difference between a cluster and a hub? Nothing material.

The terminology used to characterise what’s going on in any one area of our eastern region serves only as useful shorthand. What matters is what is actually going on inside this corridor, arc or even valley. And the past summer has seen some action in this regard.

The London-Stansted-Cambridge Consortium has been focusing on how the devolution of powers could contribute to pumping-up and serving the growth potential of this corridor to and from London in the coming 20 years.

The London School of Economics (LSE), in suggesting a serious review of the Green Belt around London, referenced the London-Stansted-Cambridge corridor as a pilot for the LSE’s idea of complementing growth corridors with green ‘wedges’ as part of a new view of the Metropolitan Green Belt.

Meanwhile the National Infrastructure Commission (NIC) – which was launched last November – sees a corridor of growth between Cambridge, Milton Keynes and ‘the Other Place’: Oxford.  With a focus on the disjointed road and rail connections between these three key locations, the NIC is charged with recommending improvements and solutions that will assist in supercharging transport links to reconcile the two old and the one new city.

Taking Cambridge alone, the ‘growth but where?’ debate has continued over the summer – and will doubtless do so well in to the coming if, somewhat stalled, autumn season.  The City Deal has been considering how best we can transport the current and future population of Cambridge through and around its historical, geographic boundaries.

All these august bodies are taking a strategic view for future growth. Meanwhile, over the summer, growth is actually going on with new development either rising up out of the ground or taking firmer shape through the planning process.

A round-up of summer site action reveals housing as key to unlocking support for developments on a number of projects.

Jesus College’s proposal for a new business park ‘Cambridge South’, on the city’s southern fringe by the M11 motorway, includes a significant housing element.

A new sporting village in Trumpington – promoted and proposed by Grosvenor Estates - includes plans for 520 new homes, of which over half could be built in the coming five years.

Plans for the re-purposing of Waterbeach barracks as the basis for a new settlement - on the same lines as Northstowe - have moved a step forward over the summer.  Homes for occupation as early as 2019 are being mooted by the promoting developer, Urban & Civic. 

Meanwhile over at master developer Gallagher Estates’s Northstowe, housebuilder Bloor is on schedule for completions on the first phase of brand new homes in early spring 2017.   The school building at Northstowe has had life breathed in to it this autumn term by primary school pupils from nearby Longstanton whose own school is being extended and renovated to cope with a growing roll-call in the catchment area.

And, as schools returned, Brookgate revealed its plans for homes as part of a mixed use’CB4’ development to complement the new railway station at Cambridge North.

Perhaps the biggest of all the summer developments front – although without a residential housing element - was the granting of outline planning consent of the second phase of 23 acres at the Cambridge Biomedical Campus.

Call it a cluster a hub, an arc or a corridor, this summer has seen the next chapter in the history of this ancient city and its sphere of influence take shape.

Will Mooney MRICS
Partner
Commercial, Cambridge

EU referendum - Impact on the land market

Arable farmers in particular are desperate to see more sun because sunshine at this time of year is so important to help their crops yield heavily.

June was a relatively dull month and July did not look summery till this week so there are concerns that yields will be down on last year, which is almost inevitable because last year was in general a bumper harvest - albeit crop prices were low. 

On the upside the weakening pound following the EU referendum has helped protect UK farmers from recent falls in wheat prices on world markets as UK wheat has become comparatively cheap. 

This weakening of sterling on the foreign exchange markets is generally good news for farmers because it makes imports more expensive and UK exports more competitive.  This has generally helped UK commodity prices such as beef, lamb or cereal. 

Indeed the exchange rate is probably the single most important factor impacting on the profitability of farmers in the UK and so in the short term at least, the effect of the referendum is good news although the longer term impacts of an exit from the EU is far more difficult to predict.

So what impact is all this uncertainty having on the land market?  Well, early indications are that Brexit has had little if any immediate effect.  Having seen a surge in land values over the last decade, farmland prices had started to ease a little over the last six months as the impact of the massive slump in commodity prices affected farm incomes. 

But with commodity prices firming a little and concern that other commercial and residential asset values are likely to slip, farmland may once again become a more attractive investment for farmers and investors alike.

And with interest rates looking destined to fall this is making borrowing money as cheap as I have ever seen.  For example fixed term rates of up to seven years offered by the Agricultural Mortgage Company have fallen below the Bank of England Base Rate, which must surely indicate that the money markets are anticipating a rate cut.

So, in the short term the outlook for farming has become a little brighter and lets hope our late arriving summer weather stays.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

The Brexit debate at the Bath and West Show

Whether you are in or out the Bath and West Show was the place for extremely high calibre debate on the issue of Brexit.  The show kicked off with the Country Land and Business Association breakfast where four South West MPs passionately argued their respective cases.

The debate was introduced by CLA deputy Tim Breitmeyer who said: “We face a defining moment in history – it will shape our future and our children’s future.”

With those words still ringing in our ears Neil Parrish, MP for Tiverton and former South West MEP spoke from the heart on why he believed leaving the EU would be detrimental for British agriculture in particular.
From his experience as an MEP, where he chaired the committee on Agriculture and Rural Development, he explained that compared to this country, agriculture is still regarded as a very important industry throughout the rest of the EU.  Consequently he believed that UK farming interests would be better protected within the EU.

North East Somerset MP Jacob Rees-Mogg responded with an amusing and eloquent speech focusing on higher level sovereignty issues and the undemocratic nature of the EU.  He proffered an intellectually rigorous argument why he felt the UK would be better off out of the EU, taking back control of its own laws under a democratically elected UK government.

Then Farming Minister George Eustice summed up for the Brexiteers.  His opinions have obviously been influenced to a degree by his frustration of having to deal with the implementation of EU rules in his role at DEFRA.  

He also emphasised that the government would support farmers in a post Brexit world, although his reference to the Environment Agency and RSPCA being two of the organisations earmarked to help run the domestic schemes did raise eyebrows.   

Rebecca Pow, MP for Taunton, then summed up for the Remain supporters, emphasising some of the important benefits that have come out of the EU such as environmental legislation as well as the huge benefits of free access to the biggest single market, the withdrawal from which she argued could have a devastating effect on the trade of certain agricultural produce such as British lamb.

I am not sure whether many in the audience had their opinions swayed by this first class debate but if we do vote to leave on June 23 it would certainly be fascinating to have those same speakers back in five or ten years to review the consequences of what actually does happen.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

DEFRA and red tape

It seems hard to credit that farmers were until recently banned from carrying out simple maintenance of ditches without applying to the Environment Agency for consent.

This is an example of the ridiculous red tape that can be imposed without understanding the consequences and I welcome the news that DEFRA secretary Liz Truss has seen the error of this crazy policy.

As a result farmers across England can now undertake low-level work on their own land without needing to seek EA consent. DEFRA recognised the paperwork was an unnecessary burden on farmers and this would allow the EA to focus their efforts on wider strategic flood-risk management.

The exemption only applies to man-made ditches, land drains, agricultural drains and previously straightened watercourses but it does not apply to natural rivers.  This will be particularly welcome on the Somerset Levels where the maintenance of ditches is vital to the farming systems.

The new flood risk activity permits allow farmers to dredge and maintain ditches up to 1.5km long without needing to fill out extensive forms.

Liz Truss said the government wanted to ensure farmers had the right conditions to thrive, which would include providing them with the means to protect their land from flooding.

“That is why we are cutting red tape for our hard-working farmers,” she said, “reducing flood risk and allowing them to do low-level maintenance work without unnecessary paperwork.”

DEFRA are keen to emphasise that this empowers local people with the best knowledge of local risks of flooding to clear waterways themselves.

However, strong safeguards will still be put in place to limit the impact of some activities – for example protecting Sites of Special Scientific Interest and spawning fish.

The move to relax the rules follows successful pilot schemes run over the last couple of years which showed that farmers and landowners can carry out this work in an environmentally sensitive way.

So we have a sensible relaxation of unnecessary red tape destined to achieve very little for anyone and no doubt the EA do not have the staff to enforce such rules.


James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Our lettings team shortlisted for Best Letting Agency Group in ESTAS Awards 2016

I have pleasure in announcing that our national lettings team has reached the final stages of the ESTAS Awards 2016, having been shortlisted for the Best Letting Agency Group. 

In the ESTAS regional categories, the Carter Jonas Barnes, Bath, Cambridge, Newbury, Wandsworth Common and Winchester offices have also been shortlisted. The ESTAS are one of the largest and longest running awards in the UK property industry and winners are decided purely on ratings provided by a firm’s clients. This year, the shortlist was announced based on the biggest-ever number of customer surveys. 

To be shortlisted for these awards is a real honour for our national lettings team and is testament to the hard work that we put in to ensure our clients receive the best possible service.  We’re extremely proud to be rated so highly by our clients and thank them for this. 

Since we began our lettings service to operate alongside our residential sales offering, it has been our aim from the outset to be included among the best national lettings agents, and so we are delighted to be recognised in this way. 

The winners of all categories will be announced at the annual ESTAS Ceremony held in April at the Grosvenor House Hotel in London. 

Lisa Simon, 

Partner Head of Residential Lettings

T: 020 7518 3234 

E: lisa.simon@carterjonas.co.uk

George Osborne’s Autumn Statement

There is some good news and some bad news for the property industry in George Osborne’s Autumn Statement delivered to the House today. Another £5 billion of infrastructure funding on top of the £1.3 billion already promised, and a possible further £20 billion of funds from UK Pension Funds will certainly provide a boost to the economy not only from the work they generate, but also from the increased accessibility that will result for the regions which benefit. Couple that with the intention to make planning appeals faster and more transparent and we might actually get to see some of these projects starting on the ground. The rural Growth Networks and the already announced Growing Places Fund of £500 million will also help to deliver new much needed housing. Enterprise Zones have worked in the past and should help to stimulate growth but only if businesses are strong enough to take advantage of the opportunities.

Not such good news though is the end of the stamp duty concession for first time buyers. Whilst Osborne is convinced that the concession did not have much effect, it certainly did ease the path for those buyers who were in a position to enter the market and it remains to be seen whether the Government mortgage guarantee scheme to enable buyers of new homes to get a 95% mortgage will be any more effective. And somewhat pie in the sky is the Government’s affirmation that it will support new locally-planned large scale developments ‘which have clear local support’. The abolition of the Regional Spatial Strategies has removed what was a convenient policy for local and national politicians in favour of development to hide behind should vociferous parts of their electorate oppose development. Now they have no option but to listen to those voices – and that coupled with the Coalition’s slavish adherence to the Green Belt, much of which was set out in the 1940’s and ‘50’s and now totally anomalous, is not going to make development any easier.

The Chancellor has a difficult tightrope to walk, to provide what stimulus he can to our struggling economy on the one hand, whilst continuing to reassure our funding partners that we are serious about tackling the deficit. He has probably succeeded in that aim but it is still going to leave us with a challenging 2012 and beyond.

Chris Haworth
Head of Commercial Division
Commercial, Cambridge

T: 0207 016 0729
E: chris.haworth@carterjonas.co.uk