Professional AdviceYou are here : In Your Area » East Midlands » Regional News » Rural Economy » Rural Business
|
Please note that as part of the recent CLA restructuring the counties of the East Midlands region have been divided between the new CLA East region and the new Midlands region. Consequently, existing news releases from the East Midlands are now only available on this website as archived articles. Members based in Lincolnshire, Northamptonshire and Nottinghamshire are now part of CLA East and should go to CLA East News for releases in their region. And members in Derbyshire, Leicestershire and Rutland are now part of the Midlands and should go to Midlands News for releases in their region. Rural estate assets continue to perform despite economic climate According to new research, incomes on rural estates in England continued the positive trend of recent years by returning an average net income increase of 4.8%. A survey by CLA East Midlands members, Savills, shows this growth was achieved despite income pressure on assets, which have been hit by the downturn in the construction industry. However, volatility in the farming sector contributed to a weakening in the average agricultural incomes across all estates in the region. For the 2010 survey year these incomes fell back from the highs of the 2009 survey year of £118 to £91 per acre. In contrast, average Agricultural Holdings Act (AHA) rents increased by 4.4% to average £67 per acre, although the majority of the uplift was in the livestock sector. Pressure on dairy profitability reduced average AHA rents in this sector by -2.2%. The benchmarking survey results show a significant improvement in the investment performance of rural estates with an average total return from all let property of 7.1%, which is a significant uplift on the 1.9% recorded in 2009. This growth was largely due to the return of positive capital growth of residential assets. Mike Pennington, head of Savills Estate Benchmarking Group said: "It is heartening that rural estates continue to prosper during the present economic uncertainty. This puts estate owners in a strong position to react to new opportunities that will arise in the short and medium term. "Our research suggests that the gross income of estates should, over the long term, continue to improve at a rate just ahead of inflation. We expect income in the agricultural, commercial and leisure sectors to be under the most pressure, but the increasing shortage of good quality rental properties is good news for those estate owners with residential portfolios." CLA East Midlands director, Helen Woolley, added: "It is important that estate owners in our region take up any future opportunities for income generation such as renewable energy. Renewable energy not only reduces the estate's dependence on fossil fuels, but can produce good returns from investment. There are also attractive grants available to both landlord and tenant to improve energy efficiencies." |
Have a problem - need advice? East Midlands Office Percy's Barn
Join the CLA today
The CLA Game Fair 2012
CLA Events in your area To receive our regular email newsletter containing advice and the latest news affecting the region - contact the office or send your email address and membership number to info.eastmidlands@cla.org.uk |
RSS Feeds
- Policy Topics
- Policy Topics
- Site sections
- Specially for members
© 2012 Country Land and Business Association Limited (CLA). All rights reserved. No part of this website may be reproduced or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in any retrieval system of any nature without prior written permission of the copyright holder except as expressly permitted by law.
Disclaimer
No responsibility for loss occasioned to any person acting or refraining from action in reliance on or as a result of the material included in or omitted in this website can be or is accepted by the author(s), the CLA or its officers or trustees or employees or any other persons.
The Advisory Services are made available to members on the basis that members' rights to compensation and the liability (if any) of CLA and its officers and/or its staff advisers, are restricted in the following ways. In the event of any advice given by any CLA staff adviser being given negligently or otherwise being incorrect no liability whatsoever is accepted by the CLA or its officers or by its staff advisers concerned
(a) towards any person who is not the current CLA member to whom the advice was directly given,
(b) to any person in the respect of consequential loss or loss of profits, or
(c) to any person for any sum exceeding £50,000 in respect of any one enquiry (whether made or responded to orally or in writing and whether dealt with at one time or over a period of time).
Any person making use of the Advisory Services accepts such restrictions. Members should refer to appropriate professional advisers in private practice before taking any particular course of action potentially or actually involving any substantial amounts of money.
Please note that whilst the advisers are able to advise on a wide range of subjects relating to land ownership, they cannot act in place of a member's own solicitor, accountant, surveyor and tax specialist by, for example, drafting documents or corresponding on their behalf and may be precluded, by the rules of their own professions, from advising one CLA member against another CLA member in the case of conflict.
Solicitors Indemnity Fund . Solicitors in the CLA Legal Team are not covered by the Solicitors Indemnity Fund in relation to professional negligence in relation to any advice given by them.
Please note that from time to time telephone calls maybe recorded for training purposes.