NEWS

Inaccessible Woodland?

Anyone with under-managed or inaccessible woodland can take advantage of the Woodfuel Woodland Improvement Grant (WIG), designed to support the sustainable production of woodfuel and wider timber produce.

£10m will be available across England over the next two to three years to help woodland owners with the costs of harvesting timber. The focus will be on improving infrastructure by creating access roads and tracks or new loading and turning areas to increase vehicle access to the woodlands. Funds will also help towards costs associated with preparing for and managing harvesting contracts.

To be eligible for the grant, the woodland must have an approved Management Plan providing evidence of under-management, or of a barrier to sustainable harvesting, as well as an estimate of timber production. The level of grant support is based on 60% of costs, with a generous cap assessed against the proposed quantity of extracted timber.

Athole McKillop, Director of Land Factor, said: “There is no doubt that this new grant, part of the English Woodland Grant Scheme (EWGS), could be a real boost to anyone with areas of underused and inaccessible woodland as it will give them the financial support often required to help harvest that wood and to sell it for fuel as well as supplying other traditional timber markets.

“However, as with any grant, there is a considerable amount of paperwork and this includes, in this instance, a Woodland Management Plan, if not already in place. We would urge anyone who feels they may want to take advantage of the grant and feels they are eligible, to get in touch with us so we can take them through every step of the application process.”

As well as managing a wide variety of forestry estates, from commercial conifer plantations to major traditional estates and small farm woodlands, Land Factor also offers advice to landowners across the North of England and South Scotland on a wide range of rural issues including wider renewable energy opportunities.

For further information about the Woodfuel WIG, the wider EWGS and the full range of services offered by Land Factor contact Athole McKillop athole.mc@landfactor.co.uk or call 01661 843 168.

Bemused by Renewable Energy?

Are you bemused by the plethora of Renewable Energy initiatives? Endless acronyms: RHI. FiT, EPC? Multiple technologies: wind, solar, water, air? Should you be investigating all of this and if so, how and through whom? Do you want to get rich or save the world?

Getting these decisions wrong is high risk. Will you get the right turbine? Will you put the solar panels in the right place? Will the grid connection be at the correct voltage? Will the subsidies be sustained? Will the tax breaks continue? Will the stellar returns on investment actually come to fruition when interest rates rise and wind speeds fall?

Instead of investing directly in new technology, it could be that landowners might be better advised to ignore the get-rich-quick route and plan for the long term marketability of their properties, using limited capital resources to best effect for the future.

Landowners need to beware of the looming sanctions which are proposed on renewable policy. The Energy Act 2011is threatening to make it illegal to let thermally inefficient properties after 2018 – only seven years away. It will be difficult for a significant proportion of country dwellings to meet this challenge – single glazing, lack of insulation, stone walls, floors and roofs, non-condensing boilers, all serve to drag down performance. You only need to go into a newly-built or converted building to realise the benefits of modern insulation – the contrast is self evident.

The Government is, however, also trailing its “Green Deal” as an incentive open to all householders to invest in energy-saving measures. In essence, this offers them £6,000 to invest in the property, provided as a loan, to be repaid over 20 years. It is open to all occupiers, but is charged against the property. In theory, the "Golden Rule" is that expenditure should always provide a better return in terms of energy saved, but clearly this may not always be the case.

The landlord is therefore left vulnerable, in that the tenant can spend the money badly, then leaving the landlord with the liability to repay. Landlords may not be able to resist tenants’ applications to go down this route, so they would be well-advised to take the initiative and have a well-thought through policy to deal with the requests when they arise.

Whether or not some or all of these measures actually reach enactment or enforcement, the policy thrust is clear - energy usage needs to be squeezed and when it is, running costs will be reduced.

We believe that prudent landlords should be carrying out an audit of their existing housing stock in order to evaluate the potential works which need to be done. They can then plan ahead for a phased scheme of investment and take best advantage of the incentives available.

Land Factor are working closely with a firm of experienced energy advisors to develop a simple, but comprehensive report for landowners, which will help to manage the way through this potential minefield

Roddy Findlay - Director

Land Factor is strengthening its Board with the appointment of Roddy Findlay who joins the three founding Directors, Tom Warde-Aldam, Athole McKillop and Peter Combe.

“We are delighted to welcome Roddy to the Board “said Tom Warde-Aldam, “he has extensive experience across the business particularly in Estate Management and Renewable Energy.  We feel that he will make a great contribution to the business as it continues to develop”.

Roddy, 38, joined Stocksfield-based Land Factor in 2004. He qualified with the Royal Institution of Chartered Surveyors in 1998 and with the Central Association of Agricultural Valuers in 1999, having trained with a firm in the East Midlands.

A graduate of Aberdeen University, Roddy grew up in Southern Scotland and has lived in the North East for the last 11 years.  He currently lives in Hexham with his wife Lindsay and 2 daughters.

Roddy has worked across a wide range of projects for Land Factor and last year worked extensively on the sale of Seaton Delaval Hall to the National Trust, on behalf of Lord Hastings.

Commenting on his appointment Roddy said “I am very pleased indeed to be asked to become a Director of Land Factor. It is a very exciting time for the business and we are working on a wide range of projects for our many clients. Independent and professional advice and a real understanding of our clients’ needs lie at the heart of the Land Factor culture and it is something that I know will continue to drive our success in the future”

The River Tyne - A Continuing Success Story

Recent Environment Agency statistics have endorsed the River Tyne system as the most productive river in England and Wales, with over 7,500 salmon and sea trout caught last season.

At Land Factor we are involved in the management of more beats up and down the river than any other firm of agents.  We handled the last sale of fishing rights on the river at the Acomb Watersmeet in 2008.  We have an immense depth of expertise within the business which covers lettings, valuations and project management.

Salmon fishing has developed into a major draw for tourism in the North East, with packages now available on a daily or weekly basis in a season which extends from February through to the end of October.  This provides much needed employment for ghillies and other maintenance staff, as well as supporting overnight accommodation, local fishing shops and the wider rural economy. 

Over recent years, both capital and rental values have continued to grow, through a combination of increasing catch records and a continuing scarcity in the marketplace.

The re-emergence of the Tyne as a salmon river was initiated by the general clean up of industrial pollution downstream.  However, the development process has only been possible through high levels of management at every level; from the creation of a fish hatchery as part of the Kielder Reservoir project, through to the setting up of the Tyne Rivers’ Trust to promote and safeguard the interests of the river. 

At Land Factor we have a unique insight into the workings of the river which comes through our involvement in the management of numerous riparian estates.  We deal with fully supervised daily lettings through to long-term rental agreements to individuals and syndicates.  In the background to the actual catching of fish, we are also immersed in habitat management through sensitive general husbandry and in setting up habitat-improving agri-environment schemes.

Hugo Remnant has wide experience in all aspects of fishing through his work in managing riparian estates, overseeing environmental schemes, as a trustee of the Tyne Rivers Trust and as a fisherman.  If you need any advice about fishing, please do not hesitate to contact Hugo Remnant  who would be happy to discuss any issues you may have.

Timber - It Might Be Worth More Than You Think

The timber market has gone from strength to strength over the last couple of years and although the strong price improvements have now steadied, the outlook for 2011 continues to look healthy.

At Land Factor we can help you review how your woodland should be worked this year as there is real potential to generate significant income from timber sales and we can advise you on the grants that are available.

Strong demand for home grown timber is being driven by a range of timber product markets from panel board, fencing and pallet manufacturers to sawmilling and the construction market. This has been greatly helped by the weakness of the pound, particularly against the euro, and recent significant investment in the sawmilling sector.

The emerging biomass market is underpinning the demand for small roundwood and traditional markets have reacted by offering stronger prices to secure supplies. Although there has been recent press coverage decrying the governments encouragement to develop the biomass sector, there is no doubt that there is a place for the small to medium scale biomass market, locally based, to develop and add real (and realistic) value to a previously undervalued commodity. Even the traditional hardwood log market is extremely strong so it is important to make sure you are achieving realistic prices.

There will be further encouragement to bring difficult, undermanaged woodlands into management to add to the availability of timber to the biomass and traditional markets and to improve them to meet wider objects, enhance amenity and capital values. The Forestry Commission England is shortly to announce the launch of a new Woodland Improvement Grant aimed at encouraging biomass production. This will provide capital grants towards infrastructure and other capital works which will help to bring undermanaged woodlands into long term sustainable management.

Land Factor would be happy to discuss this with you in more detail and help towards preparing plans for the profitable operation of your woodlands.

Please contact Athole McKillop Director tel 01661 843168.

Crisis, What Crisis?

The last of the exceptionally cold weather which we experienced throughout November and December may now be a distant memory.. We are, however, still dealing with the aftermath of those arctic conditions.

Frozen pipes created mayhem, central heating systems failed and there was widespread damage to guttering on houses and farm buildings. We have dealt with issues ranging from panic about lack of oil to complete building collapses.

Land Factor provides a comprehensive service for our retained clients. Our staff have been working flat out over the last few months, solving problems quickly and with the minimum of disruption for clients.

We have developed an excellent, centralised system for dealing with these problems. We log the report, evaluate its impact and then provide a solution. We have a core team of knowledgeable, approved contractors on our database who can be contacted to solve problems at short notice. Our longstanding relationships with these companies and individuals means that our clients invariably receive excellent, speedy results, while others can struggle to secure any contractor, let alone a good one.

We also handle all the issues around insurance claims on behalf of clients and it is at times like these, that the value of a proven relationship with the insurance world pays dividends.

Land Factor Director Tom Warde-Aldam said “This winter we have been extremely busy with repairs and emergencies on behalf of our clients and the team have worked extremely hard to make sure we solve problems quickly and efficiently. This has been a whole team effort and I would pay tribute to that team. It is a key part of the service we offer to our clients at Land Factor”

Money Really Does Grow On Trees

The Government has, at last, made their announcement on the Renewable Heat Incentive (RHI), which is intended to make renewable heat not just an environmentally sound decision, but also a financially attractive one.

They have decided to take a staged approach to the introduction.Non-domestic installations will become eligible soon after July 2011, with domestic ones being delayed until October 2012, subject to the results of a trial scheme in the interim.

Various technologies are covered by the scheme, but we believe that biomass boilers are probably the most relevant for Estate owners who control the fuel source. Biomass is the only sector where the tariffs for some installations are nominally higher than in the Consultation Paper.

Tariffs will run for 20 years and will be linked to the RPI. Payments for biomass heating will be made on a tiered basis to act as a disincentive to wasteful production.

Other points to note are that any installations installed after 19 July 2009 will be eligible, but any grant already received will need to be repaid. Those pioneers who installed apparatus before this date may have the opportunity to benefit from the scheme.

Importantly, non-domestic installations include district heating systems covering multiple residential properties.

Although it is disappointing that the RHI is not yet available for domestic properties, we believe that there are major opportunities for Estate owners to benefit from the non-domestic scheme.

We have commissioned and managed a number of existing biomass schemes. We understand the complex interaction between installation, wood supply and business structures to set up projects to the best effect.

For further information on the RHI or any other matters concerning renewables please contact Athole McKillop at the Bywell office on 01661 843168.

Money For Old Logs?

The cold weather and the recent severe spike in the price of energy, particularly oil, has left many of us counting the ever-increasing cost of heating.

But help may be at hand - the Government is about to announce the level of the Renewable Heat Incentive (or RHI) which is tailor-made for those with farms or estates and large heating bills - whether relating to residential, commercial or industrial property.

The RHI will be paid for generating heat from renewable sources and an announcement on the level of that payment is imminent, with the scheme commencing in June 2011. The scheme is designed to encourage installation of new heating systems with payments being based on deemed or actual use of heat. Indicators are that this will massively reduce payback times for the initial investment. All landowners will be well-advised to investigate the possibilities.

In the wider context, renewable energy offers a whole range of options which are not only good for the environment, but should also save you money. At Land Factor we have the expertise and the independence to advise you on the best approach for you, taking into account your particular property, your financial considerations and the marketplace generally.

Wind and hydro turbines, solar panels and thermal heat exchange pumps all have their own distinct characteristics and are subsidised to different levels. Careful analysis and consideration is needed to pick the right options for your own circumstances.

At Land Factor, we can steer you through the renewable energy maze from start to finish. We will always give you totally independent advice on each aspect on the process; directing you to the most appropriate advice for technical and planning, issues, through to legal, financial and tax guidance to create a scheme that is financially beneficial to you and good for the environment. For further information and to set up a meeting, please contact Tom Warde-Aldam, Athole McKillop or Peter Combe at Land Factor.

Energy Performance Certificates (EPC)

From the 1st October 2008 all residential and commercial properties that are marketed for letting purposes to new tenants, require an Energy Performance Certificate (EPC). This is the UK’s response to the Energy Performance of Buildings Directive (EPBD) that all EU member states are required to conform to by January 2009 and the EU’s response to the Kyoto Protocol.

A new EPC will last for 10 years, regardless of tenant turnover and provide an energy rating for a building which is based on the performance potential of the building and it’s services (heating, air conditioning and ventilation only). Two ratings are given on an EPC, both using a scale of A to G, with A being the best. Firstly, an energy efficiency rating for the building and secondly, an environmental impact rating that measures the properties carbon dioxide emissions. The EPC also gives a summary as to how cost effective measures can improve the energy rating of the property. The EPC must be produced by a suitably accredited Domestic Energy Assessor or Non Domestic Energy Assessor for commercial properties. It is the landlord’s responsibility for providing an EPC for a property unless it is a new build in which case it is the construction company’s responsibility. Any extensions that alter the fixed services of the building require the contractor to provide a new EPC.

For both commercial and domestic properties, an EPC must be shown to a perspective occupier on request once the property reaches the marketing stage. Trading Standards act as enforcement officers and can hand out fines for non compliance.

Tenancy Deposit Scheme

Land Factor are registered with the Tenancy Deposit Scheme (TDS).  This scheme has been developed to ensure that when deposits are lodged with registered members such as Land Factor, monies are protected and held in a separate Stakeholders Account during the tenancy.

When a tenancy comes to an end there is usually no disagreement about the return of the deposit, but sometimes there is, and this can cause inconvenience to both the landlord and the tenant.

When the letting agent cannot negotiate a settlement between landlord and tenant, the details of the dispute, along with the full amount of the deposit in dispute, will be sent to the Independent

Case Examiner (ICE) for expert, third party adjudication and a decision on the proper apportionment of the deposit.

The ICE, operating like an ombudsman, will then make his decision within ten working days and the deposit will be distributed no more than five days after that.

This guarantees the return of tenants' deposits that are due, pays the landlord monies that may be owed and removes the burden from letting agents of having to resolve irreconcilable differences of opinion between landlord and tenant.

For more information on the scheme please go to the TDS website