9165 - BM Outlook 2022 R6 - Flipbook - Page 10
Public goods
Whether you describe it as ‘traditional‘
management or environmental, social
and corporate governance, or just plain
politics, estates need to demonstrate their
value to a wider society. Estates need
to build ‘social capital’; whether that’s
by providing open space for the public,
wildlife and ecology habitat or spaces
for local community events, they need to
demonstrate their worth to society.
Many of our clients are leading the way
on this, with websites welcoming the
public to open access areas, taking
part in pioneering ecological projects
for research or supporting charitable
activities. Most estates don’t do enough
to justify to themselves, let alone the public,
how much they receive in subsidies or via
valuable inheritance tax reliefs.
High quality homes
Estate management is constantly
changing. New challenges,
particularly in the modern era,
mean successful businesses need
to continually refocus, or at least
look carefully at their operation
to ensure they are making the most
of the opportunities on offer.
21st century challenges facing estate
owners include climate change, energy
efficiency and the acceptability of
inheritance tax breaks and subsidies,
which at least implies a responsibility to
‘give something back’ to the community.
Alex Wilks believes it is possible for estate
owners to ‘do the right thing’ without
conflicting with traditional values and
suggests that with Covid-19 in the rearview mirror, now is the time to focus on
driving forward a well-run business that
provides quality accommodation and
facilities both for tenants and for the wider
public.
What is modern estate
management?
Batcheller Monkhouse provides a bespoke
estate management service aimed at
helping clients develop a modern estate
focused on its core business to ensure
8 | Outlook
a successful future in which traditional
values work alongside a 21st century
management approach.
So, what are the key elements to
managing an estate throughout the
2020s and beyond?
Alex Wilks
Partner,
Pulborough
As a trainee surveyor I was taught that
“bad houses get bad rents and bad
tenants”. That has always been true,
but with the ever-increasing burden
of legislation, not least EPC (Energy
Performance Certificate) regulations
coming at us fast, it is more important
than ever to provide high quality homes.
The EPC regulations in particular will
give landlords plenty of new hoops to
jump through in the coming years, but no
sensible estate can afford to be left behind.
families are supported and helped to
adapt, and is an approach that in the
end benefits everyone.
I have never understood private landlords
who are content to provide poor housing;
everyone loses in the end. Yes, the next
few years will require heavy investment
by many landlords if they are to meet
the rules, but we all know the rules will
only get tougher. Modern estates should
demand good rents from good tenants
by providing good housing.
Forestry has its own challenges but
presents a great opportunity for estates
to generate income and demonstrate
wider benefits to society through
delivering biodiversity or open space.
If well managed it can help meet many
of the challenges facing the sector such
as tree diseases, climate change and
the need to deliver public goods.
Agriculture and forestry
Ecology and nature
Batcheller Monkhouse encourages all
landlords to work with their tenants to
ensure they not only survive but thrive. I
know one estate that is supporting tenants
by organising farm business skills training.
That’s a really progressive example of an
estate ensuring traditional, local farming
There’s no single solution and every
estate is different, but take the ‘website
test’: could your estate build a website
demonstrating how you are achieving
all of these things?
Brexit, world trade, Covid-19 and the
Ukraine situation are all providing
challenges and opportunities. Modern
estates need to have a good working
relationship with tenant farmers,
understanding the value of their
knowledge and skill and ensuring they
are well equipped with modern buildings
and facilities.
Estates can and should play their part
by making sure a proportion of their
land is managed for wildlife, supporting
biodiversity or helping climate change. I
suspect most owners would wish to leave
a legacy of an enriched environment, and
in the 2020s you should be demonstrating
how you are achieving that and have a
plan in place.
Core business
Any business needs to focus on its core
activities to ensure success. For most
estates, this is property investment,
together with added enterprises such as
in-hand farming.
Silage Wrap Tax
Many of the best-performing farms
generate the lowest percentage of
turnover from diversification.
While there are many potential
opportunities such as selling carbon or
biodiversity credits, renewable energy
or tourism, success lies in ensuring the
basic business activity is properly run.
Additional diversification should be seen
as complementary and should not be
allowed to distract from the core business.
As one agricultural accountant told me:
“It’s hard to make £50,000 a year profit
selling home-reared sausages but take
your eye off the farming and you’ll lose
that in a month.” I don’t believe estates
are any different.
Estates need to build ‘social
capital’; whether that’s by
providing open space for the
public, wildlife and ecology
habitat or spaces for local
community events, they
need to demonstrate their
worth to society.
The Government originally proposed to
lump a £200 per tonne plastic tax on silage
wrap, which was due to be introduced in
April 2022. Having proved controversial with
farm unions in England, Scotland and Wales,
the Government has now taken silage wrap
out of the equation.
The original proposal included silage wrap
under the definition of “packaging” but has
since agreed that it should be exempt as it
has a specialised purpose being designed to
promote the fermentation of harvested grass
and not merely to ‘package’ it.
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