CASHFLOW MANAGEMENT: Key to Profitable Farm Businesses
WHY FARMERS SHOULD PLAN FOR PROFITABILITY, NOT TAX
GRID REFORM COULD UNLOCK NEW ENERGY OPPORTUNITIES FOR FARMERS
FARM BUSINESS ADVICE SERVICE: What Next?
WHY WE NEED TO CONNECT WITH THE NEXT GENERATION ON FARMING AND SUSTAINABILITY
THE EMPLOYMENT RIGHTS BILL: The Impact on Rural Businesses
THE BATTLE OVER LOST RIGHTS OF WAY: A Growing Challenge for Landowners
LOCAL NATURE RECOVERY STRATEGIES: What Landowners Need to Know and How to Get Involved
GREY BELT’S CONTRIBUTION TO UNLOCKING RURAL DEVELOPMENT
THE FARMLAND MARKET IN THE NORTH OF ENGLAND: Projections for Post Budget Market
RESIDENTIAL PROPERTY MARKET: Recent Trends and Prospects for the Year Ahead
PROPERTY ROUND-UP
WHAT DOES LABOUR MEAN FOR THE RENTERS’ REFORM BILL?
CHAIRMAN’S CLOSING REMARKS
EXPANSION OF OUR SENIOR MANAGEMENT TEAM
WELCOME
Welcome to the ninth edition of the GSC Grays magazine. In our last edition, we explored the uncertainty surrounding a potential change in government. This edition addresses the reality that has since unfolded.
The Labour Government’s arrival has brought little stability for landowners, estate managers, and farming businesses. Quite the opposite, it has introduced new challenges to manage.
The Autumn Budget revealed a government that appears to be retreating from its pre-election promises of support for the farming sector. Amid an already volatile agricultural landscape, downward pressure on farm business profits is being compounded by rising employers' National Insurance contributions and deeper than expected reductions in Basic Payment Scheme payments.
While the proposed changes to Inheritance Tax are not yet in effect, the anticipation of this added financial strain is already forcing many farming businesses to reassess their long-term viability. This is creating significant uncertainty and anxiety across the sector, which feels increasingly overlooked and undervalued.
The response has been swift and impassioned, with protests in Whitehall highlighting the depth of discontent.
Will the Government take notice? The outlook so far is not encouraging.
For now, rural businesses must focus on what they can control. The proposed legislation around APR and BPR is not expected until Spring / Summer 2025, leaving a window of opportunity to prepare before the anticipated changes are implemented in April 2026.
We strongly advise taking a proactive approach: consult your legal, financial, and business advisors, bring everyone together, and develop a strategy to manage the challenges ahead. Businesses that take the time to plan now will be better positioned to navigate the changes and optimise their profitability. Read more of my advice on page 6.
In this edition, you will find practical advice and strategic insights designed to help you prepare for what lies ahead. We also explore opportunities for alternative revenue streams you may wish to consider. If you need further guidance on any of the topics covered, do not hesitate to get in touch.
GUY COGGRAVE CHIEF EXECUTIVE OFFICER
01748 897606
gsc@gscgrays.co.uk
FARM BUDGET DATA COLLECTION: KEY TO CONTROLLING RISK
Farming is currently under pressure from many different directions and in the North East, we endured the worst harvest I can remember in my 35 year career.
When you add in the lower grain prices, reduction in BPS payments, high interest rates and the uncertainty about the future direction of the various environmental schemes, many farmers feel like they are no longer in control of their businesses.
As an industry we have always had to deal with factors outside our control – the weather, input prices and sale prices to name a few - and all too often I hear “there is nothing I can do about this.” That thought process needs to change as there are areas where farmers can take back control, reduce their risk, and increase their resilience going forward.
IMPROVING DECISION MAKING ON FARM
First and foremost, the production of a farm budget is an essential tool for business planning in both the short- and long-term. A budget is a forecast as to how the business will perform if you achieve the targets you set for yourself. If the budget indicates you are likely to generate sufficient profit, and (more importantly) cash, to meet your obligations, then you immediately have a structure to work around. It should be a live document that is regularly reviewed and adapted depending on what changes occur over the year.
Secondly, gathering data that is appropriate for your business is key to supporting decision making. However, as most farmers are time poor, gathering data needs to be a simple process and provide information in a form which allows you to utilise it easily.
Bringing both the above aspects together enables businesses to make better decisions when looking at ways to:
1. Increase the income generated from the business, whilst maintaining or reducing the existing cost structure.
2. Reduce the costs incurred in running the business whilst maintaining or increasing the existing income.
3. Generate additional income from new enterprises developed by the business (most likely some form of diversification).
I will always look to points 1 and 2 as the solution to improving farm resilience and profitability before looking at diversification opportunities.
IN MY EXPERIENCE, MOST FARMERS ARE IN FARMING TO FARM - MANY DO NOT HAVE THE EXPERTISE OR ENTHUSIASM TO SUCCESSFULLY DIVERSIFY AWAY FROM THE CORE BUSINESS, LET ALONE THE APPROPRIATE LOCATION.
Using a budget alongside gathering data provides the structure to make better decisions which will reduce risk and ensure a financially viable business continues.
HOW CAN THIS WORK IN PRACTICE?
If you take livestock as an example, measuring growth rates in suckled calves helps determine which bloodlines achieve the best growth rates from pasture. Utilising these bloodlines will hopefully result in cattle being sold sooner at the same value, and/or reducing hard feed costs, both resulting in improved margins.
For an arable business, using yield and input data will allow you to determine whether the land is generating an acceptable margin for each crop grown. If it is not, then you can look at alternatives such as entering it into a SFI option or dropping a crop from the rotation.
This is where the budget comes in. Feeding in the data generated for ‘what if scenarios’ (such as those above) will immediately show the effect on the profitability of the business and cash availability and allow improved, evidenced based, decision making.
In recent months, many businesses have looked at using rotational SFI options to reduce the risk within an arable rotation. When these changes are fed into the farm budget it is often found that profitability declines. The gross margins generated are often less than the equivalent crop gross margins. Therefore, to ensure profitability is maintained, there is a need to reduce costs elsewhere in the business - normally labour and machinery costs. A decision needs to then be taken as to whether this is achievable and if not, is going down the SFI route the right option?
DATA IS KEY TO CONTROLLING RISK
One of the main objectives of any business is to generate sufficient profits and cash to meet their obligations. To achieve this a business needs to question if what they are doing is appropriate for the current situation. Gathering data and feeding this into a farm budget will help farmers see the likely impact of any change prior to making it. This will allow better decisions to be made and ensure farmers are controlling the business, not the business controlling them.
ROBERT SULLIVAN DIRECTOR
CASHFLOW MANAGEMENT: KEY TO PROFITABLE FARM BUSINESSES
Turnover is vanity, profit is sanity and cash is king – as the old adage goes. Cash is the life blood of any business and whilst the flow can be quite different to that in other industries, agricultural businesses are no different.
Even within agriculture, the regularity and predictability of in- and out-flows can vary significantly between sectors. For the likes of all year-round dairy producers and laying hen units, payments and receipts often follow a rigid monthly schedule, whilst more seasonal businesses such as arable or beef and sheep producers will often go for many months with cash moving mostly in one direction.
Having the ability to settle outstanding accounts and loan repayments on, or even in advance of, the due date is crucial to developing and maintaining positive inter-business relationships with key suppliers and can result in preferential terms or rates being offered. Failing to do so will almost certainly result in additional cost for the business, either due to the opportunity cost of missed discounts, or higher borrowing rates, thus reducing business profitability. As such, managing cashflow is a vital skill for any agricultural business manager.
KNOWING WHERE YOU STAND
To manage any aspect of a business effectively it must be measured, and whilst all but the most remote hill farmers will have access to their current bank balance at any given moment via a banking app, that information alone is insufficient to truly understand the current cash position and its short-term outlook. When are the next payments due to be received and how much will they bring in? What bills are overdue and when will funds be available to settle them? Are there sufficient funds available to see the business through to next harvest? These are all questions that cannot be answered from that one number in isolation.
That said, the preparation of management accounts is not a common practice amongst farm businesses, with only 31% of businesses regularly preparing financial accounts according to the results of the 2022/23 Farm Business Survey. When this statistic is analysed by farm performance, just 22% of low-performing business regularly prepare financial accounts compared to 45% of high-performing businesses.
With cloud-based accounting packages now available for very little cost, the ability to produce these management accounts has never been easier and with the right system this can be done on-the-go from a smartphone. Having these systems in place can help answer the first two questions above. However, the
third requires an additional element – a carefully prepared and detailed farm budget, crucially complete with a cashflow projection. Implementing these two business management practices can provide the tools to maximise the benefits when things are going well, to address potential issues before they fully develop and to resolve problems that have already taken hold.
COMMUNICATE & BE PROACTIVE
When things do go awry, maintaining communication with creditors and finance providers is key to maintaining those positive working relationships. When the stoppers are likely to be hit, communicating with the bank manager proactively may reduce the likelihood of payments being bounced and facilitate an uplift in overdraft facility to provide the required additional working capital through the tricky period. Being open with suppliers will often make them more willing to offer alternative payment terms, such as staged payments, potentially without accruing interest or additional charges. Keeping quiet until the statements begin to stack up will most likely disillusion suppliers and ultimately make it harder to maintain production which is critical to keep cash coming in and avoid an overdraft spiral.
CONSIDER PAYMENT STRUCTURES
Choosing the right structure for payments for the likes of contractors’ services, subscriptions or loan repayments can make a real difference to the likelihood of cashflow issues emerging. When income is received reliably on a monthly basis, like a milk cheque, it can make good sense to make monthly payments towards large bills such as contractors’ fees or fertilisers. Equally, when income is highly seasonal, structuring payments for the likes of loans and HPs to correspond with expected sale periods can reduce the cost of overdraft or credit charges.
ENTERPRISE REVIEW
Reviewing the structure and operation of farm enterprises can also offer solutions to a shortage of cash within the business. In arable enterprises, altering the crop marketing strategy to spread sales
throughout a wider period of the year can help to smooth the peaks and troughs in cashflow throughout the year. For beef producers, the growing range of options offered by integrated schemes, such as Bed & Breakfast contracts or livestock finance arrangements, can allow enterprises to operate or be expanded with lower working capital requirements. These arrangements may reduce profitability on a per head basis, but allow greater economies of scale to be achieved and increase profitability overall.
AS THE AGRICULTURAL INDUSTRY ADAPTS TO THE NEW ECONOMIC REALITY OF QUICKLY REDUCING DIRECT SUPPORT PAYMENTS, A GROWING NEED FOR COMMERCIALITY, AND POTENTIALLY INCREASED TAX LIABILITIES TO SERVICE, EFFECTIVE CASHFLOW MANAGEMENT WILL ONLY GROW AS A VITAL FEATURE OF PROFITABLE FARM BUSINESSES.
JAKE NIXON SENIOR FARM
BUSINESS CONSULTANT 07399 136304
jrn@gscgrays.co.uk
WHY FARMERS SHOULD PLAN FOR PROFITABILITY, NOT TAX
The Autumn Budget’s proposed Inheritance Tax (IHT) reform has understandably sparked outrage among farmers who fear the increased financial burden will result in the need to sell land to meet tax obligations, and call time on the guaranteed ability to pass down farms to the next generation. It has inevitably led to many conversations and meetings with clients worried about what to do next.
From 6th April 2026, a 20% inheritance tax will apply to combined agricultural and business assets valued over £1 million. Previously, these assets were largely exempt thanks to Agricultural Property Relief (APR) and Business Property Relief (BPR). These agricultural reliefs have protected farm businesses from being
broken up at the whim of death, be that from old age, poor health, or worse a tragedy, since 1992.
SUCCESSION! SUCCESSION! SUCCESSION!
While we are steadfast promoters of the need for farm businesses to plan for succession - something traditionally some farmers have been averse to do - the Budget has provided an ‘urgency’ for many to start.
However, it is important to acknowledge that kneejerk reactions could lead to regret further down the line, if sufficient planning - including taking specialist advice - is not put in place.
In some cases, the available competent and compatible family members to involve in the business will force hard conversations, including whether succession outside the family, as by letting the land, is a better answer. Or an acknowledgement that the land, business or both will need to be significantly restructured to accommodate the abilities and interests of the family members involved.
CONSIDERATIONS AND RISKS
Potentially Exempt Transfers (PET) are often cited as the way to mitigate IHT liabilities, essentially gifting the farm business to the next generation. Much has been said about the ‘7-year rule’, and tapered relief that this provides. While this is high on the list of options, and does offer some protection, it comes with inherent risks.
• When is the right time? Start it too early, and you risk falling foul of amendments to legislation deeming the PET unnecessary. Start it too late and the risk is that you do not live long enough to benefit from the relief. It is a tricky balance but there can be cases where starting the PET clock outweighs the risk of moving ahead of the legislation.
• Once an asset is gifted there must be a full transfer of ownership without a reservation of benefit. This means the original owner can no longer derive any benefit from it. The need for income and accommodation can limit the ability to comply with this rule. Market rate rents must be paid, or income/accommodation away from the
farm may need to be secured. Failure to do so may mean the gift will fail to meet the IHT rules.
• Some will need to afford the costs of care. How will this be factored into any arrangements once the business assets have been gifted?
• Farming is an inherently risky business and while reducing the risks of death’s roulette wheel, the young can (and sometimes do) die first.
HOW AND WHEN TO START
It must be stressed that we do not expect to see the legislation, in whatever form it may be enacted, until Summer 2025, which leaves a window of opportunity for informed planning before it comes into effect.
While uncertainty and risk remains, farmers should take this opportunity to give careful consideration as to their future plans. Whatever legislation is published in the summer, those who have spent time to consider their business strategy will be better placed to adapt and implement whatever steps they wish to take, in what will be a tight timeframe with a limited number of advisors available to help.
With this in mind, we are advocating clients consider a three-phase approach:
1. Preparation
Consider short, medium, and long term aims and objectives (both business and personal), including prior and anticipated financial performance. Consider what income you might need, how you would like assets to be distributed and when, how you would like certain scenarios to be managed, consider the ‘what if’ scenarios: health, death, debt, divorce etc. Consider what impact will this have on the business?
Collate current legal agreements - Partnership Agreements, Shareholders Agreements, Tenancy Agreements, Wills, LPA’s etc. Consider updating Wills as an interim measure to make the most of the IHT allowances.
Establish who owns what assets and prepare a statement of indicative values and liabilities by ownership – land, property, buildings, machinery, livestock, tenancy agreements including tenants’ improvements and fixtures, cash, stocks and shares, pensions, loans, overdraft, finance agreements etc.
2. Review Arrange a collaborative meeting with the land agent, accountant, and solicitor to discuss your strategy and review the options available to achieving your goals and in doing so mitigate your tax liability. An allparties meeting will be expensive but will be efficient and save money in the long run.
Review the financial implications and check if there are changes to the tax regime, or if the ‘what if’ scenarios arise, you are comfortable with the proposed changes.
3. Implementation Post the Finance Act (unless there are reasons to implement before) implement any restructuring needed, such as revised Partnership and Shareholders Agreements, Gifts, Trusts, Wills, LPA’s, Life Insurances etc. and arrange any formal valuations required.
PLAN FOR PROFITABILITY, NOT TAX
Businesses must accept that any decisions taken must be done so with the inherent risk that the legislation changes further down the line, whether by the incumbent government or with a change in political party at the next general election. As such, it is important that decisions should not be driven by the sole purpose of avoiding or minimising tax, and it is concerning that ministers have suggested this. Rather, business decisions should be taken to optimise the business, to boost profitability and the ability to pay any taxes due, as and when they arise.
Your land agent or farm business consultant will be able to support you during this phase and help facilitate family discussions.
This is best delivered by a collaborative approach between your land agent or farm business consultant, accountant and solicitor.
GUY COGGRAVE CHIEF EXECUTIVE OFFICER
GRID REFORM COULD UNLOCK NEW ENERGY OPPORTUNITIES FOR FARMERS
The Labour Government’s ambitious target for clean power by 2030, which includes doubling onshore wind and tripling solar power, is being supported by a major overhaul of the grid connection process.
This move could unlock diversification opportunities for farm businesses seeking long-term income stability in the face of continuing industry volatility.
CHALLENGES: THE GRID CONUNDRUM
Driven by Labour’s ambitious targets for clean power, the Government has relaxed planning rules for onshore wind power and there has been further easing within the updated National Planning Policy Framework (NPPF). This change is mirrored by the Secretary of State, Ed Miliband’s, approval of a number of contentious solar projects previously delayed under the Conservative leadership. However, the thorn in the side of these ambitions is that UK grid infrastructure has persistently struggled to absorb the growth of renewable power.
This has led to a phenomenon known as ‘curtailment’ – where excess energy generated in areas of low demand cannot be efficiently transmitted to areas of high demand. In some cases, wind and solar farms are paid to shut down or reduce output simply because the infrastructure is not in place to carry that energy to consumers.
THE REALITY FOR NEW SCHEMES IS THAT EVEN WHEN CONSENTED, THE TIMEFRAMES FOR DELIVERY REMAIN CONTINGENT ON WHEN A VIABLE GRID CONNECTION CAN BE MADE.
As a result, many consented projects face yearslong delays, with current connection offers regularly stretching into the 2030s, if they can be secured at a financially viable level at all.
BRIDGING THE GAP: GRID REFORM
To address this, the National Energy System Operator (NESO) has recommended a change of approach. The ‘first ready, first connected’ plan is being enhanced to align with Clean Power 2030, ensuring generation and storage are also being delivered where they are actually needed.
In practice, this means that historic firm connection offers will be withdrawn where developers cannot show progress. These connections will then be reissued to projects with land rights secured and where planning is being actively pursued. The changes are to be implemented at a transmission level (where connecting to National Grid Infrastructure), but are expected to filter down to distribution level connections as well.
The proposals were to be implemented from the beginning of 2025, but this has recently been pushed back to Q2 2025 which has taken the pressure off developers to some degree. However, there is still an incentive to get to the ‘ready-to-connect’ stage as there are circumstances where the ‘first ready, first connected’ approach is already being implemented.
CAPITALISING ON RENEWABLE ENERGY OPPORTUNITIES
2025 could see new opportunities for landowners unlocked, whether this be accelerating the programme for an existing project or freeing up capacity for new projects in certain locations.
In most cases, the farmer is not involved in running, managing, or building renewable energy projects. Instead, the opportunity comes in the form of granting a developer the ability to take a long-term lease on the land. If the project is consented, grid is secured and the lease is taken, the developer will start to pay a rent for the site. This is usually structured as a
minimum £/acre figure for solar and a £/MW figure for wind and battery, with a revenue top up paid in addition if the site is performing particularly well. These lease agreements are usually for a term of 40 years, after which, the planning conditions and lease will require the land to be reverted to the condition pre-development.
In a bid to circumvent the need for grid, developers are also looking for opportunities to supply high energy users directly, with these schemes known as ‘direct wire’ or ‘behind the meter’. If located within close proximity of high energy users, this is an excellent opportunity for otherwise suitable sites which are constrained by grid availability or a smaller acreage.
MAXIMISING BENEFITS WHILE PROTECTING INTERESTS
The income provided by these lease arrangements can provide long-term stability in an otherwise volatile industry.
WHILST IT IS IN THE INTERESTS OF ALL PARTIES TO MOVE QUICKLY WHEN OPPORTUNITIES ARISE, THE LASTING NATURE OF THE AGREEMENTS MEANS THAT THE NECESSARY DUE DILIGENCE MUST NOT BE OVERLOOKED OR RUSHED.
Taking expert advice ensures landowners understand the long-term financial and operational implications of these agreements. To touch on a couple of key considerations:
• Tax Planning
Capital Gains Tax on disposals, the change in Inheritance Tax (IHT) position and the tax treatment of income must all be considered.
The Autumn Budget's reform of IHT reliefs may make renewable energy projects more appealing than previously. Whilst the IHT position on land leased for
energy developments has not changed and will still be deemed an investment asset rather than agricultural, (therefore taxed at 40% on death), the effective tax rate of 20% for agricultural land from April 2026 may mean landowners view the income generation potential more favourably when balanced against the shift in IHT liability.
• Decommissioning Clauses
Because of the long term nature of these agreements, the land use change which results and the infrastructure which will be installed, it is imperative that landowners take professional advice to ensure the income generated is not eroded by unfavourable terms.
Lease agreements must clearly define the developer’s obligations regarding decommissioning and reinstatement, together with the protections for the landowner if the obligation is breached. Without such provisions, landowners could be left with significant costs to dismantle infrastructure, dispose of materials, and remediate the site.
THE LONG TERM VIEW
Labour’s renewable energy targets offer exciting opportunities for farmers to diversify income and contribute to the UK’s clean energy transition. As technology advances and grid challenges are addressed, the landscape for energy developments will continue to evolve. By embracing the opportunities with strategic planning and expert support, farmers can ensure they reap the benefits while protecting their interests for the long term.
FARM BUSINESS ADVICE SERVICE: WHAT NEXT?
The GSC Grays Farm Business Advice Service (FBAS), as funded by DEFRA’s Future Farming Resilience Fund (FFRF), is nearing its conclusion.
Guided by our mission to deliver specialist, bespoke advice that supports and strengthens farm businesses during the agricultural transition, we have taken time to reflect on lessons learned, notable achievements, and plans for the service after the FFRF funding ends on 1st March 2025.
HOW HAVE WE DONE?
Launched on 3rd October 2022, the Government’s FFRF project aimed to help 32,000 farm businesses navigate the agricultural transition. FBAS was one of 17 funded projects selected to help achieve this goal, with a target of providing free advice to 1,459 farming businesses across the North of England.
Since its launch, FBAS has made a significant impact and is on track to meet our commitments to both farming clients and DEFRA. This effort has required substantial resources, but the results speak for themselves.
As the project draws to a close, we have completed 1,322 on farm business reviews, with 83 in progress, and only 54 places remain for new clients. To
date, FBAS has supported 1,405 farm businesses, representing 9% of DEFRA’s total participation.
WHAT HAVE WE LEARNED?
Working closely with farmers across all sectors has been a privilege. Reviewing the financial accounts of so many farming businesses through the on-farm business reviews has underscored the significant impact of the loss of the Basic Payment Scheme (BPS) on farm profitability.
WHILE FARMING REMAINS A WAY OF LIFE FOR MANY IN THE INDUSTRY, THERE IS GROWING RECOGNITION THAT THIS IS NOT ENOUGH.
We have been encouraged by the number of FBAS clients who are “in the business” of farming and are actively seeking ways to increase profitability and manage industry volatility.
Most of the specialist follow-on support we have delivered has included support with budgeting, cash flow management and financial planning. We have helped clients understand the costs of production and the profitability of their enterprise mix, using this information to identify opportunities for restructuring, growth or diversification. Our support has given some clients confidence when dealing with lenders to turn their plans and aspirations into reality.
“Thoroughly professional and helpful. A great help with dealing with the bank and making the plans into a reality. Reassurance for the bank and personally that it was the right thing to do.”
“FBAS was exceptionally well timed for us as we were looking to secure a new tenancy. The budgets were very helpful, and our consultant made sure that we understood the figures and were able to talk about them. Without the help we would not have been successful.”
FBAS has also played a crucial role in supporting the adoption of the Sustainable Farming Incentive (SFI).
Through farm walks across the North of England, we shared insights and practical strategies. In October 2023, we gained DEFRA approval to provide an SFI focused half day review, designed to help farmers identify the most advantageous SFI options based on their business objectives and farming practices.
“The advice we have been given has been very valuable and with SFI it has helped to make a massive subject area much more manageable and understandable.”
“Very, very helpful. Helped us to understand our options - we are in HLS - and how these dovetail into the new schemes and how best to structure things.”
We encouraged everyone with an interest in the future of the farm to be present at the initial business reviews.
IT HAS BEEN ENCOURAGING TO SEE YOUNGER GENERATIONS BECOME INCREASINGLY INVOLVED IN THE MANAGEMENT OF FAMILY FARMING BUSINESSES.
This shift may be driven by technology and data playing larger roles in strategic decision-making, the need to adopt new farming techniques, or the introduction of specialised areas to enhance returns. Following the Autumn Budget, this is likely to move higher up the agenda for many farm businesses.
“The loss of BPS is one of our greatest concerns. The free advice we received from GSC Grays has been
a huge catalyst for conversations within the family business. We are now looking to make positive changes to the farm that will undoubtedly support us for years to come.”
WHAT NEXT?
We are proud of the service we have provided, empowering farmers to make decisions that will build resilient businesses for the future. Our independent perspective - acting as a "fresh pair of eyes" - has proven invaluable. Yet, the industry continues to face critical challenges, and independent, expert advice remains essential.
SO, AS FFRF FUNDING CONCLUDES, WE REMAIN COMMITTED TO SUPPORTING FARM BUSINESSES THROUGH THE AGRICULTURAL TRANSITION AND BEYOND.
We will continue to provide a complimentary (two hour) initial consultation for new clients to understand their business and goals to ensure any advice we provide thereafter provides tailored, effective support.
ANGELA HORNER
PROJECT MANAGER
01748 829468
ahh@gscgrays.co.uk
WHY WE NEED TO CONNECT WITH THE NEXT GENERATION ON FARMING AND SUSTAINABILITY
When facing a challenge, it is often helpful to look back and review what happened at the start.
The ability to change our actions and strategies at the source has a compounding effect on how to navigate a way out. One such challenge for the agricultural sector is the idea that supermarkets produce the food we eat.
Many consumers are unaware of the true origins of their food, leading to misconceptions such as carrots growing pre-washed and packaged in plastic bags. The source of our food is not something everyone will consider when picking brightly coloured, attractive packages from the supermarket shelves. It is crucial that as an industry we strengthen the connection between producers and the public to foster a better understanding of food production.
WHERE BETTER TO START THAN WITH THE NEXT GENERATION?
Each spring, the Glendale Agricultural Society host a Children’s Countryside Day, an annual event that sees some 1,600 children from 32 schools descend on a grass field in north Northumberland to learn about food, farming and the environment.
Having volunteered to steward at the past four events, I am always amazed by the enthusiasm, interest, and joy of the children. As a nose-to-tail convoy of buses arrives at 10am, flocks of children rush towards the tents and exhibits, eager to participate in the activities, shows, demonstrations and displays set up for the day.
Children excel at learning by using their senses. Touching a spikey straw bale, hearing traditional music or smelling the sheep and goats. Watching a carcass being cut up and tasting freshly cooked produce within just a few metres is an experience few children will forget. Literally, education from farm to fork.
Underlying the day is the support this shows for British farming and the countryside, building the concepts of food production, environmental management and sustainability that we do so well. Telling the story of the work that goes into growing wheat for bread, conserving vulnerable species and understanding our river catchments for flood management.
BUILDING CONNECTIONS BETWEEN RURAL AND WIDER COMMUNITIES
It’s been well documented that rural employment opportunities are unfilled, and the detrimental effect labour constraints are having on businesses. The draw
of a stable 9-5 job. But what if days like this can spark a career in farming and the rural sector for those without an existing connection to the countryside, and the benefits to the wider community that could bring? Perhaps more children in local schools, greater healthcare facilities and more people to use the bus service?
The line of children I saw, staring wide eyed at the combine header, fired up with flashing lights shows this is entirely possible.
EARLY ENGAGEMENT IS SO IMPORTANT AND OFFERING THE OPPORTUNITY TO THOSE WHO WOULD NOT NORMALLY HAVE ACCESS TO THESE EXPERIENCES IS KEY TO GENERATING THAT.
Many schools drive for over an hour to attend. One teacher told me that 50% of the children at their semiurban school will not leave the town, citing socioeconomic reasons such as lack of means to own a private vehicle and poor availability of public transport. A shameful figure. If we can’t build this connection to the countryside in rural Northumberland, where can we do it?
By 2.30pm all the buses are gone, and the tidy up begins. This a true community effort from local businesses and volunteers that planned and put together exhibits, transported their animals, hosed down muddy equipment and loaded it into their pickups, kept the handwashing stations filled, set up and took down the tents, completed the risk assessments, and generally gave up their time.
This concept works, evidenced by the hundreds of happy, tired children clutching their drawstring bags full of leaflets, hand-made wildflower seed packets, badges and stickers ready to show those at home what they learned.
JENN NEILL
RURAL ASSOCIATE
01665 568317
jmn@gscgrays.co.uk
THE EMPLOYMENT RIGHTS BILL: THE IMPACT ON RURAL BUSINESSES
A major shake-up of employment law is in the offing. The Employment Rights Bill had its first reading in the House of Commons in October 2024.
The introduction to the bill makes it clear that the Government intends to force a shift of rights away from employers and towards employees.
The proposed changes had been widely publicised as part of the Labour Party’s manifesto and some are more controversial than others.
There are niche areas of little relevance to the rural world – such as closing the maritime redundancy notification loophole to avoid a repeat of the P&O Ferries saga – but the headline areas of change will affect all employers and all sectors. Not only that, but they have the potential to pile extra pressure on business already expecting to struggle in the aftermath of the 2024 Autumn Budget.
The provisions are extensive and are not likely to come into force before 2026, but those most relevant to the land-based business sector are likely to be:
Under the heading of addressing ‘one-sided flexibility’ the bill will:
• Ban zero hours contracts and introduce additional rights around reasonable notice of shifts and cancellations.
• Provide a ‘Day One’ right to protection from Unfair Dismissal (though statutory probation periods will apply).
Under the heading of family friendly rights, the bill will:
• Make existing entitlements to Paternity Leave and Unpaid Parental leave available from ‘Day One’ of employment.
• Introduce a new right to unpaid Bereavement Leave, allowing employees to take leave from work to grieve the loss of a loved one.
• Strengthen the existing ‘Day One’ right to request flexible working, by requiring employers to explain the grounds on which they’ve denied a request.
Other provisions include a duty on employers to prevent sexual harassment of their employees by other employees and third parties, lowering the Lower Earnings Limit for Statutory Sick Pay and the introduction of a new Fair Work Agency to enforce employment rights.
THE ADDITIONAL BURDEN POTENTIALLY FEELS LIKE
YET ANOTHER THING FOR BUSINESSES TO CONTEND WITH, BUT WHAT IS THE PRACTICAL IMPACT ON FARMS, ESTATES AND RURAL
BUSINESSES?
The most obvious area of concern is the right to ‘Day One’ protection from Unfair Dismissal, instead of the current two-year period. The ability to dismiss an employee who isn’t performing to the appropriate standard is crucial for small businesses on tight margins, such as farms and hospitality businesses. Similarly, small family businesses and private employers who have employees working within the home or in close proximity to it will be alarmed that a more drawn out process will exist than the current swift route to ending employment. The latter will certainly be a legitimate concern, but the Government’s factsheet does state that the changes ‘will not prevent employers fairly dismissing employees’ and that the intention is that a statutory nine-month-probationary period will apply, during which a process will be in place for the dismissal of employees who ‘are not right for the job’.
The changes to Zero Hours contracts may also be of concern, particularly to diversified businesses or those relying on seasonal labour. The Government’s intention is to introduce provisions for guaranteed hours (at a level to be confirmed but which will be meaningfully greater than zero hours), a right to reasonable notice for the cancellation of shifts and a compensation mechanism where shifts are cancelled, rearranged or curtailed at short notice.
HOW TO PREPARE
The bill is currently at Report Stage and its 3rd Reading in the House of Commons before moving on to the House of Lords, so detail may yet change anyway. Either way, it is recognised that all businesses will need to review employment policies, contract templates and procedures. There will certainly be a need to be familiar with and follow the correct approach to dismissals.
The zero hours change is subject to a consultation on almost every aspect, including which workers are in scope, what is reasonable in the context of minimum guaranteed hours and cancellation periods. As a result, beyond appreciating that changes are coming, there is little that employers can do in the way of planning.
However, it would be prudent for those using such contracts to look carefully at how their current operation works and identify whether they will have to implement meaningful changes, as there will certainly be many employers using zero hours contracts for ease without engaging in the practice that the legislation seeks to stamp out.
FINALLY, AND
AS EVER,
FORWARD BUDGETS
AND CASHFLOW FORECASTS WILL BE NECESSARY TO PREDICT AND THEN MITIGATE THE FINANCIAL PRESSURES IMPOSED BY THE COMBINED IMPACT OF THESE CHANGES AND THE COSTS OF EMPLOYING STAFF AFTER THE 2024 AUTUMN BUDGET.
FRAN BARRIGAN DIRECTOR
01748 829200 fcsb@gscgrays.co.uk
THE BATTLE OVER LOST RIGHTS OF WAY: A GROWING CHALLENGE FOR LANDOWNERS
For farmers, landowners, and rural businesses, the issue of reestablishing historic 'lost' rights of way (ROW) is a mounting concern (again!) thanks to the recent government decision to scrap the deadline for ROW claims.
Whilst access to the countryside is important, the implications of historic ROW claims extend far beyond a simple debate about access. These claims bring real risks and challenges, from farm security to operational costs, and even public safety.
UNDERSTANDING THE HISTORICAL CONTEXT
The roots of the ROW debate lie in the Countryside and Rights of Way Act 2000, which initially set a deadline of 1st January 2026 for recording ‘lost ways’ on definitive maps. These maps, managed by local councils or unitary authorities, are the official record of public rights of way.
Under the original deadline, the ability to claim a historic ROW not recorded on these maps by 2026 would have been lost. This led to a surge of applications from groups such as the Ramblers Association and the British Horse Society which created significant backlogs for the relevant authorities.
Due to lobbying efforts from these groups, the initial deadline was repealed but later reinstated—this time with an extension to 2031—following further lobbying from organisations such as the CLA. This was seen as a compromise, allowing time for further applications whilst giving landowners some assurance that the process would not remain open-ended.
However, the current Labour Government’s decision to remove the deadline entirely, announced in late December, has reignited landowner concerns as it effectively leaves the door open for claims indefinitely.
RISING CHALLENGES IN THE COUNTRYSIDE
The resurgence of ROW claims comes against the backdrop of increasing pressures on the farming community. Dog attacks on livestock, for example, are a growing issue. NFU Mutual reports that in 2023 alone, these incidents cost farmers an estimated £2.4 million—a sharp 30% increase from the previous year. Alongside this, thefts from farms remain a persistent problem, and public liability concerns continue to grow as access to farmland increases.
Landowners face significant financial and operational risks when ROW claims are made. While some ROW applications may involve minor routes that connect existing networks, others can be far more disruptive. Paths crossing productive agricultural land can disrupt farming operations, reduce profitability, and lead to conflict when livestock are present.
Furthermore, the maintenance of newly designated paths often becomes the financial responsibility of the landowner, opening the door to further liability claims and expenses.
PRACTICAL STEPS FOR LANDOWNERS
The current system for defending ROW claims is complex and costly. Determining whether a historic ROW exists often requires the involvement of land agents, solicitors, and even archivists to analyse old maps and historical records. These processes can cost landowners thousands of pounds at a time when farming businesses are already under financial pressure.
However, there are some practical steps that can be taken to manage the threat of ROW claims. The Ramblers Association has created an online map which indicates all ‘lost’ ROW. This map, titled 'Don’t Lose Your Way', is a valuable starting point for landowners to assess the number, location and impact of potential claims that may affect their land.
Whilst it is unlikely that every route will be progressed by an application, where a potential ROW poses a considerable concern, landowners may wish to start gathering as much evidence as possible to defend an application, should it come forward. Historical maps, deeds, and documents showing the absence of a ROW can be crucial in contesting a claim. In some cases, pooling resources with neighbouring landowners to collectively defend a claim may help to spread costs.
We have seen instances where landowners have successfully worked together to challenge claims.
CALL TO ACTION
It is vital for landowners to take a proactive approach by writing to their MPs and lobbying for the reinstatement of a fixed deadline for ROW claims. A clear deadline would help reduce the uncertainty that currently exists. Simultaneously, landowners should consider taking steps to identify and prepare for any potential ROW applications that could significantly impact their business. Early preparation and a strong evidence base will be essential in defending their livelihoods against costly and disruptive claims.
PHIL SCOTT-PRIESTLEY DIRECTOR
01748 897616
psp@gscgrays.co.uk
LOCAL NATURE RECOVERY STRATEGIES: WHAT LANDOWNERS NEED TO KNOW AND HOW TO GET INVOLVED
England is widely considered to be one of the most nature-depleted countries in the world. Local Nature Recovery Strategies were established by the Environment Act 2021 to end this decline, restore nature and provide wider environmental improvements through targeted, co-ordinated and collaborative action.
Each Local Nature Recovery Strategy will be specific and tailored to its area but will contain two key components:
1. A Local Habitat and Opportunity Map: This spatial representation identifies irreplaceable habitats and designated sites within the Local Nature Recovery Strategy area and highlights areas where nature recovery actions could take place.
2. A Statement of Biodiversity Priorities: This outlines the key habitats, species, and threats to nature recovery in the region and identifies opportunities and actions for nature recovery.
WHAT DO THEY AIM TO ACHIEVE?
Put simply, these strategies aim to identify the best locations to support agreed nature recovery priorities. Key objectives include:
• Habitat Restoration and Creation: Building a network of sustainable and connected habitats across the region.
• Integration of Nature-Based Solutions: Supporting activities that provide environmental, economic, and social benefits, such as flood alleviation or carbon sequestration.
• Informing Policy and Decision-Making: Providing evidence for planning, biodiversity net gain, and funding priorities.
It is important to note that Local Nature Recovery Strategies are not delivery plans and do not impose obligations on landowners to make changes based on what is mapped or published. Nor do they introduce new protections for the habitats, species, or places identified. Instead, these strategies act as a guide to highlight what could be done, rather than what must be done, to support nature recovery. Action is encouraged through opportunities for funding and investment, although these are not guaranteed.
WHY GET INVOLVED?
Local Nature Recovery Strategies represent a significant step forward in addressing biodiversity loss while supporting sustainable land use. For landowners, they offer a chance to contribute to nature recovery while benefiting from targeted funding for initiatives, such as the Environmental Land Management Scheme, and enhanced land management opportunities.
Areas identified within a Local Nature Recovery Strategy may also gain enhanced biodiversity net gain metrics due to their strategic significance. Furthermore, initiatives that address flood management, soil health, or water quality may align with broader land management goals.
While strategies are non-binding, they will guide decisions relating to future land use and land management. By engaging with the Local Nature Recovery Strategy process, landowners can ensure that their voice is heard and that the local strategy is both impactful and achievable.
HAVE YOUR SAY
The Environment Act (2021) mandated the creation of 48 localised strategies across England by March 2025. The authorities responsible have been engaging with the public in their areas to gather people’s priorities, aspirations and concerns. Resulting draft strategies will then be available for public consultation.
To view the draft strategy in your area, contact the Local Nature Recovery Strategy team in your region.
GREY BELT’S CONTRIBUTION TO UNLOCKING RURAL DEVELOPMENT
The Government has an ambitious agenda for growth. Economic development is key to this, and the rural economy has its part to play.
A fundamental component to productivity is good quality, affordable housing, the supply of which matches demand. The average house price is currently £265,000, more than double the inflation adjusted price in 1975. In real terms the cost of housing has doubled during my lifetime, meaning it is now far harder for my children to own a home than it was for my parents. In many rural areas, the difference will be more acute.
In response, the Government plans to build 1.5 million new homes over the course of the Parliament at a rate rarely seen in the last 80 years. Not only is it trying to do this on the back of a history of under delivery, but it has also put some obstacles in its own path.
There is a window to April 2026 during which inheritance tax planning is going to be a focus for many landowners. This restructuring is likely to mean that the promotion of development land caught up in this process will be delayed.
In addition, the environmental impact of the planning reforms needed to meet the Government’s housebuilding targets will be examined by the Environmental Audit Committee which will consider how protection and enhancement of the environment,
the promotion of active travel, reduction of embodied carbon levels and implementation of local nature recovery networks is accounted for within the planning reforms. This process is unlikely to be quick and may open the door to judicial reviews, limiting the number of sites coming forward.
UNLOCKING DEVELOPMENT LAND
The Government has now completed an extensive consultation on the National Planning Policy Framework (NPPF) to ensure the housing target is prioritised and land for development can be unlocked. The changes, which were adopted on 12th December 2024, include a new standard method of calculating mandatory housing targets for local authorities which will deliver the ambitious 1.5 million new homes. In some areas this will double housing targets compared to current delivery rates. This will present a considerable challenge for local authorities who must demonstrate a 5-year land supply that is sufficient to meet the housing they will be obligated to deliver.
GREY BELT SOLUTION
Grey Belt, a Sir Keir Starmer invention, is one solution to unlocking land for development. Now defined as land which makes a “limited contribution” to Green Belt objectives, this may include land that contains substantial built development or is enclosed by built form, does little to prevent the coalescence of settlements, is dominated by urban land uses, or does not protect a historic setting.
As such it is likely to deliver more opportunities in rural areas than had originally been envisaged, and could open the door for residential, commercial and tourism development within the Green Belt that would otherwise have been prevented.
In my opinion, the blanket use of Green Belt has seen swathes of land overly restricted with limitations on much needed housing, employment and diversification opportunities. This has been a huge frustration to me over the years when I have seen great proposals squashed by unnecessarily strict planning rules and NIMBYism.
That said, Grey Belt is still down the pecking order when it comes to identifying sites which are suitable for development, with previously developed land and land outside the Green Belt still favoured.
UNLOCKING GROWTH OPPORTUNITY
With the roll out of fibre broadband to many hard-to-reach places, increased flexible working practices, more done online and generous permitted development rights, the commercial opportunities for development within the Grey Belt are significant. Better quality jobs in new sectors should diversify and strengthen the rural economy with the effect of increasing household incomes.
In addition, housing within the Grey Belt will have to deliver a greater proportion of affordable housing than sites outside the Green Belt. Originally, one of the “golden rules” linked to Grey Belt development was
that 50% of the housing must be affordable. While this provision has been watered down to be 15% above the local authority’s policy position, capped at 50%, and subject to viability, the combination of more affordable housing and better household incomes will be positive outcomes from the push for growth.
SEIZE THE OPPORTUNITY!
With pressures on farm incomes and associated impacts in the wider rural economy, it is vital that entrepreneurial spirit is fostered and enabled.
The countryside should be protected but not preserved in aspic and I hope that the Government makes good on its promises to deliver growth. If it does, rural businesses must be brave enough to think differently and capitalise on those opportunities as they arise.
CALUM GILLHESPY DIRECTOR
01833 694931
crg@gscgrays.co.uk
THE FARMLAND MARKET IN THE NORTH OF ENGLAND: PROJECTIONS FOR POST BUDGET MARKET
The farmland market across the UK is currently navigating a period of uncertainty, with several key factors influencing land values.
As always, supply and demand dynamics play a central role, but shifting economic pressures, policy changes, and evolving market trends are creating significant variability in how different types of land and farms will perform in the coming years.
SUPPLY OF FARMLAND: KEY CHALLENGES
The availability of land on the market is a critical driver of farmland prices, and the next 24 months could see increased supply, although this will not be uniform across all types of land.
Several factors are likely to push more land onto the market, including:
1 Reduced Profitability and Cashflow Issues
With rising input costs, tighter margins, and the growing financial strain on many agricultural businesses, some farmers may be forced to sell land in order to manage cash flow or reduce debt exposure.
2. Changes in Agricultural Support
The transition from the EU’s Common Agricultural Policy (CAP) to the new Environmental Land Management (ELM) schemes has led to greater uncertainty about the future of agricultural subsidies. Some farmers may choose to sell up or scale back operations rather than adapt to the evolving regulatory landscape, which could increase the supply of farmland.
3.
Tax and Inheritance Planning
The removal of Agricultural Property Relief (APR) and Business Property Relief (BPR) at 100% could influence decisions regarding the transfer or sale of family farms. As tax reliefs diminish, some families may opt to divest from land holdings, contributing to a higher volume of land hitting the market.
DEMAND FOR FARMLAND: MIXED PROSPECTS
While supply is expected to increase, demand for land will also continue to be a significant factor in farmland pricing, though it will not be uniform across all sectors. Different buyers are driven by a variety of motivations, which will determine the appetite for land in the near future.
1. Expansion of Farming Operations
Larger farming businesses and corporations may seek to expand their holdings, especially if the land is seen as productive or offers long-term growth potential. The desire to scale up operations remains a key demand driver in areas with strong agricultural productivity.
2. Capital Gains and Development Land Sales
For some landowners, farmland remains an attractive option for rolling over capital gains from the sale of businesses or development land. The ability to reinvest in farmland allows for tax advantages, which will continue to underpin demand in certain segments.
3. Mitigating Inheritance Tax (IHT)
With IHT still levied at a high rate of 40%, farmland continues to be an attractive vehicle for wealth preservation despite recent changes to APR and BPR. The ability to pass on agricultural land with IHT exemptions, now effectively 20% on sums greater than £1,000,000, is expected to attract demand among high-net-worth individuals looking for longterm investments.
4. Natural Capital and Environmental Opportunities
The growing interest in natural capital, including biodiversity net gain (BNG), carbon sequestration, nutrient neutrality, and woodland planting, is creating new opportunities for farmers and landowners. Farmland that can generate environmental credits or meet sustainability standards is in increasing demand from organisations seeking to offset their carbon footprints or enhance biodiversity.
5. Renewable Energy Sites
The push for net-zero carbon emissions and the growing demand for renewable energy sources will create a steady market for farmland with potential for solar farms, wind turbines, or other energy projects. As the UK government continues to focus on green energy, land suitable for renewable energy development will remain a sought-after asset.
REGIONAL VARIABILITY IN DEMAND
It is important to note that the demand for farmland will vary significantly based on its type, location, and potential use. While agricultural land with strong earning potential may continue to attract investors and farmers, the demand for more marginal or less productive land could see a reduction. On the other hand, land with development potential—whether for housing, renewable energy projects, or even amenity use—may experience stronger demand in certain areas.
LAND VALUES: A MIXED OUTLOOK
In conclusion, the future of the farmland market in the North of England is likely to see contrasting trends. In some areas, land values may decrease by as much as 10% due to an oversupply of lower-yielding or less productive land, as well as the economic challenges facing the agricultural sector. However, land with higher earning potential, development opportunities, or environmental value could easily see a price increase of 10% or more in the coming 12 months. This will lead to greater disparity in farmland prices across the region.
Ultimately, the market will remain dynamic, influenced by a complex interplay of economic, political, environmental, and local demand factors. Buyers and sellers will be well served by working with those with the expert local knowledge needed to understand these trends in order to navigate this evolving landscape.
JOHN COLEMAN DIRECTOR
01748 829203
jarc@gscgrays.co.uk
RECENT TRENDS AND PROSPECTS FOR THE YEAR AHEAD
The last 12-18 months have undoubtedly been eventful for the residential property market, influenced significantly by major political and economic events.
Extensive media coverage around the perilous state of the economy in the build up to the general election in July, anticipation for the first Labour Budget in 14 years at the end of October, and the USA presidential election in November have all played a key role in stifling activity in a year of under achievement for the market.
SUPPLY CHALLENGES AND SELLER HESITATION
In line with traditional market trends, activity in the housing market quietened in the run up to Christmas with the number of negotiated sales during this
period tapering off. By contrast, online buyer activity noticeably increased. This trend has continued into the New Year suggesting that while there is still some buyer uncertainty around macroeconomic events, others are more pragmatic and eager to proceed. However, this enthusiasm is being somewhat frustrated by the limited housing stock across the sector. The lack of supply is creating a ripple effect, with prospective sellers hesitant to list their homes due to difficulties finding suitable options for their onward purchase. And round it goes. Fortunately, history suggests such trends are temporary.
THE PROSPECT OF FALLING INTEREST RATES IS ENCOURAGING SELLERS TO ENTER THE MARKET AND THE OUTLOOK FOR
SPRING 2025 IS LOOKING CONSIDERABLY ROSIER.
IMPACT OF RECENT ECONOMIC POLICIES
There is no ignoring the decision of the new Labour Government to increase taxes in their search for growth has directly impacted the housing market. Increased employers’ National Insurance contributions is already stifling investment and putting pressure on inflation which has slowed the rate at which interest rates can be brought down. The direction of travel is clear, but the speed of change is slow. Nevertheless, there is a little more certainty which will improve market confidence.
GIVEN THIS, THE MARKET OUTLOOK LOOKS STABLE WITH WIDESPREAD EXPECTATION THAT HOUSE PRICES WILL HOLD STEADY DURING 2025, AND WITH SOME COMMENTATORS PREDICTING MODEST SINGLE DIGIT GROWTH OVER THE YEAR.
Direct taxation on the property market came in the form of a reduction in Stamp Duty Land Tax relief for first time buyers and the confirmed end of the Help to Buy scheme. While this will affect the new homes market more significantly than our mature rural housing market, its wider impact remains to be seen when the changes take effect in April.
HOUSING MARKET RESILIENCE
The UK residential property market has proved to be enduringly resilient of late. It is why home ownership in the UK is widely considered a prudent long-term investment. Despite recent challenges such as the pandemic and global political shifts, the market appears to be moving towards calmer waters, with buyers and sellers well positioned to make informed decisions in a recalibrated yet relatively benign financial environment. World events may yet have an impact, and we wait with bated breath to see what the new US administration brings to us all.
A RETURN TO CONFIDENCE
The UK housing market thrives on confidence like any other - and that confidence appears to be returning. Activity in the rural north of England has already started to improve, with requests for valuations and market appraisals ahead of where they were twelve months ago. As such we anticipate an active 2025, provided buyers and sellers approach the market with both confidence in its stability and realism about property values, accepting the froth generated in the post lockdown market is no longer there.
With annual growth expected to be modest, delaying a sale from spring to summer is unlikely to yield significantly different results with regards to the proceeds of sale. As such, we are advising our clients not to wait, ensuring they capitalise on early interest from eager buyers.
We are proud to offer an award-winning agency service to town, village and rural communities across the north of England. Our experienced teams, based in Barnard Castle, Boroughbridge, and Richmond, are well-equipped to navigate the evolving market. As we look ahead to 2025, we remain optimistic about the opportunities for both buyers and sellers in the residential property market across our region.
tajw@gscgrays.co.uk
PROPERTY ROUND-UP
From single fields to working farms, and from premium town houses to the finest sporting estates in the North of England, our property experts have the local knowledge, technical expertise and broad-based experience to ensure your sale runs smoothly and the best possible price is secured.
MILBOURNE HALL
NEWCASTLE UPON TYNE
An exquisite Grade I listed Georgian mansion house, designed by the Scottish architect John Paterson, with guest apartment and carriage houses, garaging, stabling and set within gardens and grounds of 24 acres.
OFFERS OVER: £3,150,000
CHATWYN HOUSE
HURWORTH
This elegant, 3 storey Victorian property in the popular village of Hurworth has 8/9 bedrooms, 5 bathrooms, a 2 storey rear wing and private garden.
GUIDE PRICE
£925,000
HEATH HALL WAKEFIELD
A Grade I listed English country mansion of approximately 15,000 sq ft, redesigned by famed 18thcentury architect John Carr. Located in West Yorkshire, it offers grand proportions and flexible use in a prime setting.
OFFERS OVER: £3,000,000
HEREFORD HOUSE STAINDROP
A stunning 5-bedroom stone property with a south-facing garden, excellent equestrian facilities, and 4.4 acres, including an arena, horsewalker, and outbuildings.
GUIDE PRICE: £875,000
SPRINGFIELD BARN DISHFORTH
A stunning 4-bedroom detached country house of exceptional specification and attached annexe. Set in 2 acres of immaculate grounds with extensive southerly views.
WELL BARN TOLLERTON
A stunning 4/5 bedroom barnstyle property with over 2,000 sqft of immaculate, flexible accommodation in the sought after village of Tollerton.
STATION HOUSE RICHMOND
A stunning Grade II listed 5-bedroom detached home on a 0.6-acre plot, with an annexe, extensive gardens, a triple garage, and private parking.
PRICE: £995,000
THE LODGE CASTLE EDEN
The Lodge in Castle Eden is a wonderful Grade II listed, detached 3-bedroom cottage full of character and offers the flexibility of modern day living. It has pretty gardens and wonderful walks on its doorstep.
PRICE: £500,000
WHAT DOES LABOUR MEAN FOR THE RENTERS' REFORM BILL?
Originally introduced by the Conservative Party in May 2023, the Renters' Reform Bill progressed through to the Second Reading in the House of Lords before being quietly shelved prior to the general election.
With a change of government came a change of name to the Renters’ Rights Bill, and a renewed commitment to delivering new and stronger protection for tenants.
LABOUR’S COMMITMENTS
Labour have pledged landmark reform which they describe as the biggest overhaul to the private rented sector for over 30 years. Many top Labour MP’s have publicly commented on their support for the change
that the Renters' Rights Bill will bring to the sector. Housing Minister, Matthew Pennycock added that the reform of the rental sector will, “…decisively level the playing field between landlord and tenant and ensure that their interests are balanced.”
Whilst the bill contains much of the same content as the legislation under the Conservative Government there are some amendments. Here, we explore the implications for private residential landlords.
IMPROVING SAFETY AND STANDARDS
The Government has proposed four ways to improve safety and standards in the private rented sector:
1. The extension of Awaab’s Law from the social housing sector to the private rented sector which will set clear legal timeframes within which landlords must deal with serious hazards.
2. The bill introduces stricter property standards for all private rented homes by applying the Decent Homes Standard. This will require landlords to meet enhanced criteria for housing safety, quality, and maintenance.
3. In a bid to increase transparency and ensure compliance with rental regulations, landlords will be required to register all rental properties on a new digital Property Portal.
4. The provision of greater enforcement powers to local councils who will follow up non-compliance.
IMPLICATIONS FOR LANDLORDS:
Landlords will need to take a more proactive approach to property maintenance, potentially investing in repairs and upgrades to meet the new standards, especially for older properties. Compliance will also require maintaining up-to-date records, with increased inspections and the risk of penalties for non-compliance.
However, these additional costs may be offset by the benefits. Properties that meet higher standards are likely to attract better tenants, reduce void periods, and encourage longer tenancies.
FURTHER PROTECTIONS
1. Abolition of Section 21 "No-Fault" Evictions
One of the most significant elements of the bill is the abolition of Section 21, which currently allows landlords to evict tenants without providing a reason once the fixed term of a tenancy ends. This measure is designed to enhance security for tenants, ensuring they cannot be evicted without justification. While the Conservatives planned a phased implementation, there is potential that this could be implemented in one stage under Labour.
IMPLICATIONS FOR LANDLORDS:
Landlords will need valid grounds to evict tenants under the revised Section 8 process. Grounds include rent arrears, anti-social behaviour, or the landlord’s intention to sell or move into the property. Landlords must ensure that they meticulously document tenant breaches to substantiate any Section 8 claims, potentially leading to higher legal costs and longer disputes.
2. Introduction of Periodic Tenancies
The bill proposes to replace fixed-term tenancies with periodic tenancies. Tenants will have the flexibility to leave their rental properties with two months' notice, while landlords will also have to adhere to stricter notice periods.
IMPLICATIONS FOR LANDLORDS:
Without fixed-term tenancies, landlords may face uncertainty regarding the duration of occupancy and might lead to more frequent turnover, increasing void periods and the costs associated with finding new tenants.
3. Rent Review Restrictions
The bill introduces measures to limit rent increases, requiring landlords to provide tenants with clear notice and justifications for any changes in a bid to protect tenants against ‘unreasonable’ rent hikes.
IMPLICATIONS FOR LANDLORDS:
Landlords may face limitations on how quickly they can adjust rents to reflect market conditions, potentially restricting revenue growth and discouraging investment in the rental market if the measures are viewed as overly restrictive. However, rent control offers tenants transparent and fair rent policies, which can improve tenant satisfaction and reduce turnover.
4. Banning of Blanket No Children, Pets or Benefits Policies
The bill seeks to prohibit landlords from imposing blanket bans on pets in rental properties. Tenants will have the legal right to request permission to keep pets, which landlords cannot unreasonably refuse. Additionally, the bill will also make it illegal for landlords to discriminate against prospective tenants based on their receipt of benefits or having children.
IMPLICATIONS FOR LANDLORDS:
This will promote fair treatment for everyone when looking for a place to live and will expand the tenant pool to a broader demographic. Landlords may have concerns about potential property damage. These risks can be addressed through explicit agreements outlining responsibilities, for example, including the requirement for tenants to obtain pet insurance.
5. New Private Rental Ombudsman
The bill proposes the creation of a private rental ombudsman to resolve disputes between landlords and tenants offering a faster, more cost-effective alternative to court proceedings. An independent resolution mechanism may enhance trust and communication between landlords and tenants.
WHEN WILL THE BILL COME INTO FORCE?
Many Labour MPs have publicly commented on the urgency for the bill. Deputy Prime Minister, Angela Rayner said:
“Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act
because of the threat of a retaliatory eviction hanging over them...There can be no more dither and delay.”
The Government aims for the bill to be passed by late Summer 2025.
EFFECT ON THE RENTAL MARKET
The Renters' Rights Bill marks a significant shift in the private rental market, aiming to balance tenantlandlord relationships and improve housing standards.
WHILE THE REFORMS INTRODUCE GREATER RESPONSIBILITIES FOR LANDLORDS, THEY ALSO OFFER OPPORTUNITIES TO BUILD STRONGER, MORE TRANSPARENT RELATIONSHIPS WITH TENANTS.
Landlords who invest in compliance, property quality, and tenant satisfaction are likely to thrive in this evolving landscape.
However, increased security of tenure, rent controls, and rising compliance costs may be the final straw for some landlords and lead some to reassess investments and exit the market. Indeed, there is a growing number of enquiries for new lettings coming from tenants who have been served notice due to landlords selling their properties. Only time will reveal the bill's long-term effects on the rental market.
CHAIRMAN'S CLOSING REMARKS
In 1997, as Tony Blair won his first election, I was helping with lambing on my brother’s farm in County Durham. I wrote in chalk on the back of the quad bike trailer, “These ewes have survived Labour, will British Farming?” Now, nearly three decades later, that same question comes to mind.
Having practiced in the northeast of England throughout this time, I have seen significant change, and I would like to say, achievement. The landowning sector has faced great adversity, from foot and mouth disease to the Covid pandemic, emerging with stronger and more resilient businesses. Yet, as I reflect, I fear that the challenges we face in 2025, particularly from a largely urban based government disconnected from rural realities, are the most significant I have encountered in my 40-year career.
While the path ahead may be daunting, it is not without opportunity. Calum’s article on the potential of Grey Belt land highlights ways to unlock development opportunities, and Anna’s insights into Local Nature Recovery Strategies show opportunities exist for some rural businesses through biodiversity net gain and carbon.
This year, however, is the time to pause, take a deep breath, and consider the next three to five years. The Budget has given us all a window of opportunity to review strategies before inheritance tax changes come in at the end of March 2026, and pension reforms at the end of March 2027. Even the most efficient and resilient businesses need to review the direction of travel and evaluate their position. As land agents and rural advisors, we are ideally placed to help you bring together the necessary information and options to discuss with your accountant and lawyer, to ensure a sustainable future.
The profitability of rural enterprises has never been under greater pressure with rising costs, pressure on rents, volatile commodity prices and shifting support schemes. Now, more than ever, the costs of production, maintenance and advice will need to be monitored closely.
This is a time for keeping one’s nerve. Difficult decisions may lie ahead, but with careful review and a willingness to adapt plans and expectations, I am sure that rural businesses can, and will, succeed.
DAVID GRAY CHAIRMAN
01388 487000 dag@gscgrays.co.uk
EXPANSION OF OUR SENIOR MANAGEMENT TEAM
As part of our ongoing growth and commitment to excellence, we are delighted to announce several key appointments to our senior management team.
These include the promotion of key individuals to Director and Associate level, and the appointment of two new senior-level positions.
Janine Tompkins - Chief Operating Officer (COO)
Janine brings extensive experience having previously served as COO at bed retailer Dreams for two years and as Operations Director at Bestway Group for three years. Her earlier roles include operational management and business planning for Tesco’s. Janine will oversee the company’s operational policies, initiatives, and goals, driving strategic planning and operational excellence.
Sally Bowen - Finance Director
Sally joins as Finance Director following her successful tenures at Simon Bailes Peugeot dealership group and the renowned Wensleydale Creamery. She will lead our financial strategy, ensuring robust management practices while supporting growth, profitability, and operational efficiency.
PROMOTIONS FROM WITHIN
“The following promotions highlight the breadth of talent and expertise within the GSC Grays team. They come at a time of exciting growth for the company. I congratulate them all on their well-deserved promotions and new responsibilities.” Guy Coggrave, CEO
James Bush – Director and Vice Chair of the Farm Business Board
James will continue providing exceptional client support in business reviews, budgeting, cash flow management, stewardship and grant applications, and in-hand farm management.
Rachel Morris – Director
Rachel, a RICS-registered valuer and Head of Valuations, leads the firm's valuation services. Her expertise spans secured lending, tax planning, partnership and matrimonial disputes, pension funds, and acquisitions.
Sam Cole – Director
A Chartered Surveyor and Fellow of the CAAV, Sam oversees estates across Northern England with a focus on upland properties. He also heads our Chester-leStreet office.
Alice Bonas – Associate
A key member of the Planning and Development team, Alice specialises in managing large-scale strategic sites, negotiating agreements with housing developers, and addressing challenges related to nutrient neutrality and air quality.
Jasmin Leetham – Associate and Head of Energy
Jasmin brings extensive expertise in energy technologies, including battery storage, solar, wind, anaerobic digestion, and natural gas. She advises on large-scale grid connections and private-wire projects, positioning GSC Grays as a leader in innovative energy solutions.
Rachel Morris Sam Cole Alice Bonas Jasmin Leetham
Janine Tompkins Sally Bowen
James Bush
OUR OFFICES
We have dedicated consultants across the North of England ready to hear from you.
