Further to recent Government advice we feel it appropriate to close our offices and move our teams to working from home during these difficult times. We will therefore be working remotely to continue helping our clients and customers and will take all possible steps to ensure service levels remain high during these rather challenging times.
Please call the normal office telephone lines as your calls will continue to be answered and forwarded to the appropriate member of staff..
We appreciate how difficult and uncertain this period will be for everyone but we would like to reassure you that during it we will do all we can to help.
Thank you for your understanding. Stay safe and well.
In response to the latest Government guidance on 13th May please click here for the current advice. Our virtual door remains open and our physical office doors are open by prior appointment in accordance with the guidelines.
This is a developing situation and although it is not 'business as usual' it is one of many positive steps towards it becoming so.
Please complete the form below and we'll contact you about your appraisal.
We are closing in on Michaelmas, 29th September, which will normally mean Tenants receiving a dreaded rent review notice! but why should it be this way, with the current state of the agricultural markets should Tenants be serving notices on the Landlords and look at the possibility of a rent reduction?
Traditionally if the rent was to be discussed the tenant is the one to lose and end up paying more. Over the past few years we have seen un-sustainable rents tendered for agricultural land. Rents over £200/acre have been common across the south west region even reaching £250/acre plus for regular grade 3 arable land.
When I discuss rents with my clients they all agree that this level is not healthy for a business or the agricultural rent market. So why are we not seeing more honest rents?
Well I believe we are! We are stilling seeing high rents tendered but recently these are back in the region of £175/acre rather than £250. Tenants are willing to pay a competent agent to negotiate with the Landlord for a serious rent reduction. Where a Landlord understands the value of a capable tenant negotiating a reduction in today’s market can be a much more amicable affair.
With Wheat prices hovering around the £100/ton mark farm business financials need to be under close scrutiny and this includes the farm rent. If the farm is efficiently only making a £80/acre profit before rent then it does not make business sense to be paying £160/acre rent.
The argument I always here is my agent fees will be more than the rent I save! This may be true but a good agent will be able to manage expectations and know if the discussion is worth having. In terms of figures if you rent 150 acres at £200/acre and your agent can negotiate a reduction of £20/acre saving you £3,000 per annum on rent then a fee of £2,000 would still see a saving along with a reduced rent for the next couple of years.
Any tenancy should be fair and the majority of Landlords or their agents will understand the current market and should be willing to discuss rental levels.
If you have any questions leading up to Michaelmas 2016 please do call Chris Powell in the Marlborough office, 01672 515 252.
Rural Practice Surveyor