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Rural Report Winter 2025

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THE RURAL REPORT

WINTER 2025

Seasons Greetings

Welcome to the Christmas instalment of the Howie, Kent & Co Rural Report. We hope that this gives you a bit of a snapshot of what the team have been up to and how we may be able to help you as either a developer or a landowner. The last year has seen many ups and downs with the economy and with all businesses there is reasonable hesitation about what lies ahead over the year to come

We must stay positive and deal with what is within our control and that is certainly what we have been getting on with over the last year We have extended the office, recruited more great team members, and been able to deliver great service for you, our clients. Thank you for all your support, Merry Christmas and have a relaxing Christmas break.

| OPINION

The Tale of Three Quotes

Much is being written about the perilous state of UK agriculture. On the standard UK farm, outputs are not enough and inputs are too high to make a profit. This gap that was historically cushioned by subsidies has been fully removed Seismic enough on its own, it is dwarfed by the soon to be ‘Family Farm Tax’ Upon death, the farm will soon be taxed handsomely, and will now include silage in the clamp, grain in the shed and machines in the yard. It is a double whammy of loss of subsidies and a tax raid

Being starved of cash and with the metaphorical tax bandits on the horizon, it is a circling of the wagons moment and there will be some casualties! To brood on these changes I draw on three quotes as a way of considering the changes ahead.

Quote one

‘The crops realised thirty-six pounds an acre, which was at least three times the freehold value of the land’ - This is from Farmers Glory by A G Street (published 1932) but the quote recounts the sale of vetch in 1918.

We need to consider that it has only been since 2008 that we have had a massive spike in land prices I’m not saying they will drop but to compare the above quote to today’s prices, it would mean wheat would be circa £7500/t The point to consider is that things change and how many factors are holding land up at the post 2008 values?

Quote Two

‘Holland produces a Gross Value Added from agriculture roughly equivalent to the UK from a tenth of our farming area. It is the world’s second largest food and drink exporter after the USA It is also one of the most urbanised nations with a much lower proportion of rural land than the UK. Yet, Dutch farming’s 1.6 per cent of GDP is three times that of the UK’ - Jeremy Moody. Secretary of the CAAV blog 30 May 2025 th

The point to ponder is, can total output really be pushed by driving arable yields? What else could we do with the land? Are we able to lift output from farm (and in this context let’s not just consider food stuffs) and if we, the owner/occupier are unable to, can others with specialist skills and access to capital utilise the land to a greater extent I’m not saying sell up, but what other higher value activities can be yielded from the current farm asset and who is best to do it? This could be specialist poultry, glamping, renewables, or commercial tenants.

Quote Three

‘Be cautious when others are greedy and be greedy when others are cautious’ is the famous quote attributed to Warren Buffet

At Howie, Kent & Co we are uniquely placed to help farmers, to be the bridge to developers and tenants who want to get to land and buildings. Now is the time to make the bold moves and do what needs to be done to keep the farming business alive. If you have something that’s profitable (or just about profitable) then double down on it as there are cautious waters ahead

This sadly is my rather gloomy end of year reflection for our Christmas Rural report, but hopefully a couple of thoughts to contemplate!

Merry Christmas all

| WELCOME TO THE TEAM

We would like introduce three new team members to Howie, Kent & Co.

Joe Langley and Dan Casey Ford join us as our new Graduate Surveyors

Originally from South Wales, Joe grew up with strong ties to the countryside and a passion for sport. After completing a BSc in Sport and Exercise Science at Leeds Beckett University, he pursued his growing interest in rural and property sectors with a Master’s degree in Rural Estate and Land Management at Harper Adams University.

During his studies, Joe has gained a solid grounding in rural surveying and hands-on agricultural experience through volunteering on a local farm

He is working towards his RICS APC to become a Chartered Surveyor and is a Probationer Member of the CAAV, aiming for fellowship. Outside work, Joe enjoys rugby, the outdoors, and exploring his new home in Shropshire

Dan joins us fresh from the Royal Agricultural University. Originally from County Durham, he gained extensive hands-on agricultural experience working on hill farms, mixed farms, and with a contract farming company in the Scottish Borders.

He studied agriculture at Askham Bryan College before completing his BSc (Hons) in Rural Land Management at RAU, where he was chairman of the shooting team and a course representative. Dan’s blend of practical farming knowledge and academic training positions him well to

support clients while continuing his professional development. He is working towards his RICS APC to become a Chartered Surveyor and is a probationer member of the CAAV, aiming for fellowship within two years

At Howie, Kent & Co he is quickly building expertise amid ongoing policy and legislative changes in the environmental sector. Outside work, Dan enjoys shooting, socialising, and exploring his new life in Shropshire.

Emily Cobb has joined as our 2025/2026 placement student, also studying at Harper Adams University

Originally from Oxfordshire, Emily began studying Veterinary Nursing before shifting to Rural Enterprise and Land Management after developing a strong interest in the countryside

Her role at Howie, Kent & Co is her first within land agency, but she has integrated quickly into the team. Emily primarily supports the commercial property department, helping to advertise and let new commercial assets She is working towards becoming a Chartered Surveyor via the RICS Rural pathway and is also preparing for CAAV fellowship, supported by colleague and Training Officer Becky Evans.

Outside work, Emily enjoys rural life riding her horse, attending equestrian and countryside events, and exploring the Shropshire countryside

All three new recruits are supporting our renewable energy projects and land agency projects identifying sites for wind, solar, battery storage, and poultry developments and assisting with commercial lettings by handling enquiries and landlord communication They are getting stuck in to their new roles, out visiting clients and answering call so please please join us in giving them a warm welcome to the team when you speak to them!

| OPINION

Rural Commercial Lettings: Why Landlord Flexibility Is Key in Today’s Market

There is no doubt that as the wider economy cools and the commercial property market adjusts, letting our clients’ rural commercial spaces has become more challenging

However, let’s stay positive and our key take aways are that flexibility and a proactive approach are the most effective tool landlords can use to secure tenants and maintain income

The market backdrop, in a nutshell, is that tenants have more choice and therefore have less urgency to close a deal That said, we are seeing that for the right property, some will still act very quickly if it is an opportunity their business can’t pass on.

For landowners and farmers this means potential commercial tenants now have greater choice and stronger negotiating power. Units that might have let quickly two years ago can now sit on the market longer unless pricing, presentation and terms are adjusted.

With increased supply and slower demand, landlords who can adapt are letting space faster.

We see that successful strategies include:

| Flexible lease terms

Shorter commitments or tenant break clauses reduce perceived risk for occupiers.

| Stepped or incentivised rents

Small rent-free periods or gradual rent increases can encourage early occupation.

| Realistic rent levels

Pricing should reflect both rural location and property condition, as appropriate.

| Smart yards

It may seem mundane but in a competitive market, tidy surrounding and smarter yards tend to win tenants over.

What we are still seeing a good demand for is yard space. This is routinely an underrated asset on many farms and presents a great opportunity However, even this segment is seeing slower uptake compared to last year Ensuring clear access, good surface condition, and secure fencing all make yard space more lettable and justify higher rents. At Howie Kent, and Co we understand the rural market’s unique balance of opportunity and constraint and we can help you position your property to attract and retain reliable tenants in today’s competitive environment. We regularly advise on small, costeffective upgrades that can make all the difference: insulation, lighting, security, and better site access are simple improvements that help rural buildings compete with purpose-built industrial estates

If you’re finding it difficult to let your rural buildings or yard space, the team and I are here for clear, practical advice. The summary is, there are still opportunities out there and we’re more than happy to pop out to meet with you to discuss how you can realise them

“We see that clients who show a willingness to negotiate attract better tenants and achieve more stable income in the medium term”

| PROPERTY

Some recent commercial lets successfully agreed on behalf of our clients

1,433

If you have a work space that you would like an income from - give us a call

INFRASTRUCTURE IMPACTS ON HYPERSCALE DATA CENTRE AND LARGE DEVELOPMENTS

“We need a cable from point A to point B and we are not sure who owns the land in between or how much it will cost, or if we can even get an agreement with them.” This is a question that HK&Co’s team of agents that handle infrastructure projects are increasingly being asked.

So many practical and legal questions start from this simple question. Fibre, power and water are key to the roll out of proposed Hyperscale Data Centres and other significant developments. While these are classed in planning terms as critical national infrastructure, it doesn’t always mean those developers can benefit from a Development Content Order (DCO) that would allow compulsory purchase of land rights (cable routes) needed. In nearly all cases it falls back to a negotiation between landowner and developer

Developers need to secure cable route easements prior to securing planning consent so that they know a project is viable Our team generally structure agreements so there is an option put in place to take an easement at a point in the future

Please give our team a call if this something you would like to discuss

5,000 sqft Storage Unit in Nazeing, Essex
sqft office to let on a prime rural site

NEW SITES NEEDED TO MEET POULTRY PRODUCTION DEMANDS

In the UK, there’s a significant change happening with chicken stocking density on broiler sites. The industry is moving from a standard of 38kg/m2 to a lower 30kg/m2. That means to produce the same amount of chicken, this country needs more chicken sheds!

Using our Geographic Information System (GIS) we’ve been able to identify the suitable locations for potential new poultry developments We have been instructed by a client to find sites for the development of new sheds. Our client is seeking to develop cutting edge poultry sheds which are at the forefront of British farming, with world leading welfare standards and meat quality production.

We took our client’s requirements around planning constraints, developed a custom GIS model, identified the suitable land from the remaining data, engaged with the landowners, and our team are now working the process through to get options to purchase agreed.

| INCREASED APPETITE IN POWER PURCHASE AGREEMENTS

As the availability for viable grid connections become increasingly scarce, opportunities around private wire projects, known as Power Purchase Agreements (PPA’s) are becoming increasingly more interesting for landowners, high energy users and developers.

Projects can range from 500kW (circa 1.5 acres) to 20MW (circa 60 acres) and can be solar and battery or just solar Many are also looking to utilise wind as this has higher output per MW installed but is much harder to obtain planning approval.

At HK&Co we work with developers that are driving this industry forward with projects progressing across the country

PPA projects are a great way for landowners to progress renewable projects even if there is no grid available. The key factor is the need to have a high energy user within close proximity of land that is viable in planning terms.

The driver for PPA projects is that the off-taker can access power below normal retail power prices and the developer can sell above the wholesale export price.

Likewise some high demand energy users who have their own land can seize this opportunity If they partner with a PPA developer, the developer can handle all planning risk, funding, build-out and operational maintenance and provide to the customer a private supply of cheap power. Pension funds are keen to invest in this relative passive form of investment and we foresee a significant roll out of PPA’s over the coming years

| CASE STUDY

When Relode approached Howie, Kent and Co in early 2024 to find multiple sites to kick start their network of Power Parks, it was the beginning of a fast paced, and successful partnership.

In just over a year, Howie, Kent & Co had delivered and signed options on the full brief – identifying five sites in Relode’s proposed search areas with great access to major transport corridors

This project was something that no energy developer in the UK has done before; built on trust and a “can-do” approach, the brief had its challenges, but the Howie, Kent & Co team delivered.

The Brief

Relode is building a network of Power Parks to help energy hungry businesses electrify at the speed and scale needed for the UK to compete globally.

They approached Howie, Kent & Co for our expertise in land acquisition to support their rapid expansion plans, with key objectives including:

Site identification and securing of land suitable for Power Parks, located close to target substations with easy access from major transport routes, specifically to support public eHGV charging hubs

Ensure sites could be developed in time for NESO (National Energy System Operator) deadlines. Heads of terms needed to be agreed within 2–6 months, with legally binding option agreements completed within a matter of months.

The Outcome

By summer 2025, five strategic Power Park sites had been successfully identified across the UK. All sites are now awaiting confirmation of accelerated dates in NESO’s connections reform process with preapp planning discussions underway. Relode aims to have its first Power Parks live from 2030

Relode Reflections

Clare Horgan from Relode described the Power Park search as “an ambitious and completely new undertaking,” one that required close collaboration and a shared willingness to explore unfamiliar territory

Clare emphasised that openness, flexibility and trust were central to the partnership’s success “The level of trust we have with Howie, Kent & Co is huge,” she noted “They thrive on challenging projects and working with their small team really gave us an advantage” The relationship was strengthened by genuine communication and accessibility.

“I love that I can just pick up the phone to James or Duncan - it’s that simple,” Clare said. “Culturally, our organisations are very similar. We both want to nurture professional and personal relationships, and it’s easy to take that for granted.”

One of the standout moments was the team’s success in meeting a critical deadline over the summer. “Howie, Kent & Co’s can-do attitude made all the difference,” Clare recalled. We got five out of five options signed in a matter of months. It was an incredible achievement for everyone involved.

Looking ahead, Clare noted that while there’s more work to do as the projects move into the next stage, the foundations Relode have built with Howie, Kent & Co gives them confidence to advance to their next goal – 10 more Power Park sites across the UK

Celebrating Success: The teams get together in London to mark their achievements.
Tom Ashton and Peter Rattray attend the Green Energy Awards
Boda Tizzy Pepper and Tigger

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