Super Suffolk – in a class of its own

Every year Carter Jonas takes part in the Hadleigh Show; we run the “Guess the Weight of the Bullock” competition with the bullock always provided by the lovely farmer, Bob Mannings - it’s a great fun event and good to see so many people taking part, with the farmers and their children taking their guesses more seriously then most!  We love the day and I believe the show encapsulates Suffolk at its best with such a mix of people, animals and events all blending perfectly in the melting pot.

This is one of the earlier country shows of the year in our region and held at, what I believe to be, the most beautiful time of year.  I think it’s hard to beat Suffolk in May and June.

A question I am frequently asked by national journalists, as well as by those in the early stages of considering a move here, is “Why Suffolk?”. It’s easy to know where to start, and difficult to know where to stop, but here goes:

Suffolk is the secret jewel of East Anglia.  It’s the seventh biggest county in England sandwiched between Essex, Norfolk and Cambridgeshire while stretching out to 45 miles of National Heritage Coastline.  Our rivers are muddy and rugged and utterly charming as they flow down to our colourful coastal towns and villages.  The rich farmland and gently rolling countryside is not infrequently described as voluptuous and a journalist, who once described Suffolk as having “roses in her cheeks” got it pretty bang-on I’d say!

It’s no surprise that artists, actors and the media are drawn in by the bucolic scenery, rural tranquility, laid-back lifestyle and discreetness of Secret Suffolk.  Just to name a few: Griff Rhys-Jones, Clive Owen, Bill Nighy, Ralph & Joseph Fiennes, Twiggy, Judi Dench, Nick Robinson, Anthony Horowitz, Stephen Fry, Ed Sheeran and Claudia Schiffer. The vibrancy of our arts and entertainment can also be enjoyed in highly popular venues such as Snape Maltings and at the Aldeburgh Festival.

What more?  We have excellent private and state education; we’re one of the safest and greenest counties in the UK; no motorway crosses our county; Stansted Airport is conveniently close without the noise impact; sell-out musical festival of Latitude; about 20 golf courses; brilliant sailing; horse racing at Newmarket; superb farm shops; food and drink festivals; excellent restaurants and pubs; picture book villages and stunning historic towns.

Our architecture varies from the traditional medieval timber framed houses, to brick and flint Victorian houses, to thatched cottages, to the rarer Georgian gems as well as stunning and daring contemporary designs.  The village of Lavenham has at least 340 listed buildings and Nikolaus Pevsner had two architectural volumes dedicated entirely to our county.

Suffolk has been voted for its best quality of life of any rural area in Great Britain; for its longest life expectancy and we’re the driest county with two more hours of sunshine each week than the national average.

It’s not just about community and culture though - we’re highly commutable too, especially along the Essex/Suffolk borders.  Manningtree Station was nominated as one of the most popular and friendliest commuter stations in the UK last year.

The prosperity of Cambridge ripples out to us and we have the lowest house prices within a 60 mile radius of London. Londoners often start off with a second home in our region, spend more time here, are seduced and change to a London bolthole instead.  We’re quite an addictive cocktail!

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Demand in milk and prices

Arla Foods have announced yet another milk price reduction with their UK standard price per litre dropping by a penny to 19.12 pence. This is well below the cost of production for almost all farmers and does not bode well for the coming months.

The market continues to be impacted by the global imbalance between milk supply and demand.  Commodity stocks are high and the market is extremely competitive which is continuing to generate further downward pressure on prices.

Arla Foods Farmer Board director Johnnie Russell said: “Recent data suggests that the global growth in milk production is levelling off, which may lead to volumes stabilising later in the year.  However, it is too early to predict whether this trend will continue over the coming months.”

This potential change in sentiment is reflected in the New Zealand co-op Fonterra’s forecast for the coming year where it raised its predicted price to 14.6p/litre.  But this remains a pitifully low price. Only two years ago Fonterra was paying farmers 29p/litre.

Fonterra’s very modest optimism is not based on an increase in demand for milk but rather on the expectation that farmers will start cutting production across the world due to the poor returns.

This optimism was reflected in the Global Dairy Trade auction which saw prices rise by 2.6 per cent - the third increase in four sales.  But despite this, prices remain stubbornly low with no consistent pattern of sustained price rises.

Having said that, the Dutch dairy board has also raised its official prices for butter, milk powder and cheese for the first time in over a year which lends support to Fonterra’s cautious optimism.

However with EU milk production 7.2 per cent higher on the year in the first quarter of 2016 and world production also up 3.9 per cent over the equivalent period it is clear that something dramatic is needed to rebalance supply and demand.

The hope is that the rate of increase in production will moderate if not fall and this is reflected in the EU’s milk market observatory board’s prediction that EU production is expected to rise by only 1.4 per cent over the whole year.

But it does not take a genius to work out that if demand does not also pick up by at least that amount, there is limited hope of a serious increase in milk price for at least the rest of 2016.

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

Positive new measures in the Housing and Planning Act 2016

The Housing and Planning Act 2016 has now passed into law, and while it needs secondary legislation to implement its various measures, it is good to be aware of what it is likely to bring. Whilst it is not due to come into force until April next year, other measures may be added in the interim to enable legislation, so it is advisable to be aware of changes as they develop.

Below is a summary of some of the Act’s measures and my thoughts on how these will impact the industry.

Electrical safety standards

Landlords are likely to find they will have to adopt positive measures to ensure electrical safety during a tenancy, possibly by way of annual checks. New safety standards are likely to apply not only to the electrical system in the property but also to electrical fixtures and appliances supplied by the landlord.

It is expected that to satisfy the requirement, an electrician will be required to make an inspection, and while it is uncertain as to whether or not a copy of the certificate will need to be supplied to the tenant, it would seem to be good practice to do so, especially with the changes to Section 21 rules on notices for possession and the possible ability to avoid them by the tenant requesting repairs.

The law is likely to be backed up by penalties, possibly financial, and as these are safety issues local authorities could be given the power, with the tenant’s consent, to enter the premises and rectify any failures.

I am fully in favour of improvements to the electrical safety standards guidelines, as the current legislation requires a landlord to ensure the electrics are safe, but there are no physical guidelines to show how to go about this and what can be used as evidence to demonstrate this has been done.

Banning orders

Both landlords and letting agents could be made subject to banning orders under Part 2 of the Act, made by the First Tier Tribunal (FTT) on the application by a local authority. Those subject to an order would not be able to undertake letting agency or property management work or let houses, although it is unclear at present exactly what transgressions would lead to an order.

Orders will endure for at least 12 months and, if the ban is breached, there are some serious penalties enshrined in the new law. Summary conviction could bring a ban of no more than 51 weeks and / or a fine not exceeding £30,000 with a banned person not permitted to hold an HMO licence. This would clearly have serious implications for both our clients and ourselves and should at all costs be avoided.

Rent repayment

The FTT will also have the power to make rent repayment orders where a landlord has received rent from a tenant or local authority through universal credit.

It is likely the FTT will make an order if a landlord has:
1.    Failed to comply with an improvement or prohibition order or
2.    Evicted or harassed a tenant or
3.    Has control or management of an unlicensed HMO or house or
4.    Has breached a banning order.

Either tenants or local authorities can apply for an order but the making of an order can only be made if it is beyond reasonable doubt that the landlord has committed the offence. The amount to be repaid is limited and cannot exceed the rent paid by the tenant over a 12-month period during which the offence was being committed by the landlord.

Whilst this could be positive news for tenants in properties that are not being properly maintained by their landlords, I am concerned that it could be abused by some tenants who could attempt to claim back rental payments when a landlord has in fact been fair and maintained their property well.  I imagine that as a result of this new order written correspondence between landlords, tenants and agents and detailed records will become even more important for dealing with potential claims in the future.

Database of rogue landlords and property agents

The Act will establish a database of ‘rogue’ landlords and property agents, which will be operated by the Secretary of State but updated by local authorities.

The information held will include:
(a)        the person’s address or other contact details;
(b)        the period for which the entry is to be maintained;
(c)        details of properties owned, let or managed by the person;
(d)        details of any banning order offences of which the person has been convicted;
(e)        details of any banning orders made against the person, whether or not still in force;
(f)        details of financial penalties that the person has received.

This information will be disclosed on application in redacted form and local authorities will have access to the database. This is an important move for the industry in which ‘rogue’ landlords and agents can tarnish the reputation and perception of the vast majority who operate reputably. This will certainly help to crack down on repeat offenders and hopefully weed out such individuals.

Overall, the new measures proposed in the Act are welcome changes for the industry that should improve efficiency and transparency in the residential lettings process. Whilst, as with any change to legislation, there will be new risks and potential loop holes created, these measures look to further protect tenants and landlords alike and also provide further support for agents.

The full details of the Housing and Planning Act can be viewed here.

Lisa Simon, 

Partner Head of Residential Lettings

T: 020 7518 3234 

E: lisa.simon@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

Don’t fall foul of new residential tenancy rules

Don’t fall foul of new residential tenancy rules is the message coming loud and clear from the Central Association of Agricultural Valuers’ spokesperson, Kate Russell.

With rental income from cottages and converted farm buildings becoming an increasingly important financial lifeline for many farmers, they need to take heed of these latest developments.

In the main, the new rules are being put in place to protect tenants from unfair treatment but landlords who may have behaved perfectly reasonably can be caught out by the new legislation.

Probably the most important new rule in 2015 was the introduction of prescribed legal requirements for Section 21 notices, which have to be served to terminate an Assured Shorthold Tenancy.

For tenancies beginning after October 1, 2015, landlords may not serve a Section 21 notice to terminate a tenancy unless the tenant has been provided with:

•    A free and valid Energy Performance Certificate (EPC)
•    A copy of the gas safety certificate for the property where appropriate and
•    A copy of the government’s guidance note: How to Rent: A Checklist for Renting in England

Other new rules include Right to Rent checks.  Since February 1, 2016, landlords must check that their tenants (and any adult living with them) have the legal right to rent in the UK. Penalties for failure to conduct such checks can result in fines of up to £3,000.

In order to comply, landlords or their agent must check original documents such as a passport or birth certificate in the presence of the document holder and then keep copies of them for a year after the tenancy ends.

In addition, all landlords must ensure there is a smoke alarm on each storey and a carbon monoxide alarm in every room with a solid fuel burning appliance, including wood burning stoves, open fires and Agas.  Failure to comply with these rules, which cover both residential and agricultural tenancies could ultimately lead to a fine of £5,000.

Then there are restrictions on landlords serving termination notices in response to tenants who may have complained about the condition of the property and the Landlord has failed to respond adequately.

And from April 1, 2016, a landlord cannot unreasonably refuse a tenant’s demand for energy efficiency improvements if they can be carried out without cost to the landlord.  While from April 1, 2018, a domestic private rented property cannot be let on a new tenancy if it has an EPC of F or G. This will also apply to existing tenancies from April 1, 2020.

However, where a property does not comply, landlords who have done everything they can to improve its energy efficiency (at no cost to themselves) can apply for a five-year exemption every five years.

So the message is that regulations concerning renting out properties are becoming more and more stringent and landlords either need to get clued up on the new legislation themselves or employ professional help to ensure their rental properties do not become an unexpected financial burden.

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

Visit us at The Bath and West Show

The arrival of Rupert Cox as chief executive of the Royal Bath and West Society has proved most welcome.

On taking charge in January last year Rupert said: “Who would have thought that when I started stewarding in the sheep section of the Bath and West Show as a teenager some 35 years ago, that I would return to lead this iconic and highly regarded institution?”

Who indeed? But the show is now benefitting from the older Rupert’s considerable business experience, wealth of contacts, love of the countryside and likeable personality.

Rupert also comes from an agricultural background and I am delighted to see that under his leadership the Bath and West has regained more of its agricultural show character while enhancing its wider appeal for the whole family.

It offers consumers a rare opportunity to meet the producers of the food they eat – and increase their knowledge of today’s farming industry.

Our farmers need the public’s understanding and support, especially when so many are struggling with commodity prices below the cost of production and the disturbing failure of the Basic Payment Scheme to pay farmers their due in time and without a scary number of errors.

So I am pleased that this year’s Bath and West Show will feature a new, dedicated food and drink area showcasing some of the UK’s finest producers, running in conjunction with the British Cheese Awards and the British Cider Championships.

Visitors will also see more than 4,500 livestock and 2,000 horses, sheep shearing and a display of farming machinery from the past to the latest farming technology.

The Bath and West is the only four-day royal show in the country, with a history dating back to 1852.

This year its evolution continues and 2016 promises to be a show of transformation with changes to both features and layout.

One innovation comes courtesy of Michael Eavis, president of the Royal Bath and West of England Society, and perhaps better known as the founder of the nearby Glastonbury Festival.

Unsurprisingly, Mr Eavis’s addition to the show is a new music area with him sourcing the acts. Music will take place throughout the day and into the early evening, bringing a festival feel to the showground.

My firm, Carter Jonas, will be in the CLA stand at the show and we will be pleased to see you there.

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

DEFRA must get a grip on this payments shambles

Defra secretary Liz Truss must deal with the shambles that is the Rural Payments Agency and make it fit for purpose.

As the deadline for submission of 2016 Basic Payment Scheme applications has passed it has become clear that although the new online application system has been reasonably effective where all the field information is correct, there are significant problems where errors have occurred over last year’s claim. 

Consequently some farmers have still to receive any payments from last year and many of those who have received payments have been given the wrong sum.

Most of the problems seem to stem back to the fact that for one reason or another land parcels do not seem to have been properly connected to the farmers who claimed against them in 2015.  This may be because the Rural Payments Agency has not yet processed the many land changes which were notified to them almost a year ago, or because of human error or technical glitch.

Whatever the reason, the result is that some farmers have had to submit this year’s claim based on information submitted last year but not updated on the RPA’s online mapping system, which is going to compound the problem in processing this year’s claims. 

Also many farmers are having to submit their claim partly online and partly on paper where the land is not shown properly on the digital plans.  I can only imagine the chaos this will cause trying to re-unite these two parts of the same claim.

This leaves many farmers feeling vulnerable to problems that may arise as a result of errors that should have been addressed last year but which may now have a hangover effect on this year’s claim as well. 

I hope that if errors from last year affect this year’s claim through no fault of the applicant, the RPA will take a pragmatic view and just get on and sort out the problems without penalising the farmer. Sadly there is no guarantee this will happen. 

In the past it was often “heads we win” and “tails you lose” as far as such problems are concerned.

It is also clear that a lot of errors have occurred in relation to the number of BPS entitlements held by farmers. 

To make a successful claim a farmer needs to match one entitlement with one hectare of eligible land.  However, my experience is that following last year’s claim a significant minority of farmers have found that the number of entitlements they have been paid on is less than the number of hectares they declared in 2015 and in turn the number of entitlements carried forward into 2016 has been similarly reduced.

This is a double whammy as these farmers have not only had their 2015 claim reduced but they are in danger of being paid less going forward in 2016 and beyond unless the original problem can be rectified.

These are just a few of the many examples of problems and glitches which have ocurred in the new online system for which one can obtain no logical explanation from the RPA.  They now have their work cut out to sort out the many problems that remain from 2015 before the 2016 payment window opens on December 1, which must seem worryingly close already for those in the RPA responsible for making the BPS system work.   

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