2014-12-31-莱坊-UK_Rural_Bulletin_Spring_2015_8页_744kb

Rural Bulletin Spring 2015 Summary

Overview

• The report discusses the implications of the UK General Election results (May 7, 2015), the state of rural property markets (farmland and country houses), agricultural updates, planning and renewable energy policies, and legislation.

Rural Property Market

• English Farmland: Average price broke £8,000/acre barrier, recording a 10% year-on-year rise. Market polarisation seen between large (over £12,000/acre) and smaller quality arable land. Long-term interest in farmland as a "safe haven" remains. Expected 5% annual growth over next years.
• Scottish Farmland: Average price £4,416/acre. Best quality arable land values higher than England, drawing southbound demand. Prices steady for most land types in 2015.
• Country House Values: Prices saw slight increases in Scotland. Lower growth in England largely due to uncertainty/election, higher mortgage lending criteria, and continued General Election uncertainty.

Agriculture

• Commodity Prices: Milk and soft commodity prices fell significantly. Beef prices projected positive for remainder of 2015. Pork producers face margins below break-even; global demand weak.
• CAP Reform: Failed rollout of online BPS system fueled concerns about subsidy delays. New Countryside Stewardship Scheme (CSS) planned, with fund allocation over 5 years. Hesitancy over immediate details and potential cut in CAP payments.
• Farming Income: UK farming total income fell by 4.4% in 2014 (to £5.4bn). Reduced contributions from commodity prices and stronger £ led to decrease.
• Electoral Effects: Conservative victory supports further EU negotiations, with possible departure pivotal for agriculture. Concerns about CAP reform negotiations and environmental schemes.

Planning and Renewable Energy

• Solar PV: Change in policy removes grants for smaller standalone schemes (£6.16 p/kWh cut by 8 p) and delays larger capacity projects under Contracts for Difference (CfD). New permitted development right for rooftop schemes (up to 500 sq m) extends to June 15, 2016.
• Government Policy: Conservative manifesto pledged end to public subsidies for onshore wind; extension of permitted development for conversion of farm buildings to residential use announced.

Legislation

• Landlord and Tenant Rights: Scottish review proposes widening secure tenancy right-to-buy and certain secure succession. Welsh 1991 Act tenancy review also recommended for reform.
• Business Taxation: ATED expands to properties worth over £1m (April 2015). New AIA investment allowance restores tax relief on certain plants to £250,000 (though extension date unclear).
• Other Legislation: Deregulation Act allows profit averaging for farming partnerships/traders; Minimum wager rise due October 2015; ATED considers different occupier classes.

Conclusion

The bulletin highlights a period of transition and uncertainty across the rural sector, particularly with the potential for further EU negotiations and the key implications of the Conservative, Labour, SNP, and UKIP parties' policies in the UK and Scotland. Market volatility is expected due to these political and economic factors.