Rural Bulletin: 15 March 2018

A summary of the latest news and issues affecting rural landowners and businesses brought to you by Knight Frank.
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Categories: Agriculture

Changes announced to permitted development rights

Rural communities, land and estate owners will be given more opportunity to convert agricultural buildings into housing to meet local housing needs, housing minister Dominic Raab announced this week. 

Changes to permitted development rights – set to come into force on 6 April, 2018- will mean up to five new homes can be created from existing agricultural buildings on a farm, rather than the current maximum of three.

“We need to be more creative if we are to meet the housing needs of rural communities,” said Mr Raab. “That’s why I’m changing planning rules so rural communities have more flexibility on how best to use existing buildings to deliver much needed homes for families.”

The new measures also increase the size limit of new agricultural buildings on larger farms from 465m2 to 1,000m2, and extend the temporary permitted development right for changing storage and distribution buildings to residential use to 10 June 2019.

Online BPS application open in England

Landowners in England can now apply for the 2018 Basic Payment Scheme online.  “With the application window for BPS 2018 open, now is the time for farmers to log on and submit their applications in good time,” says RPA chief executive Paul Caldwell, in a report by Farmers Weekly. “The RPA will be on hand with clear guidance and support throughout the application window to ensure the process is as quick and simple as possible.” 

The 2018 guidance information highlights changes to active farmer, young farmer and greening rules

Reminder of imminent changes to wage increases

Farm and estate owners should ensure provisions have been made to comply with imminent changes to wages and pension rates, according to chartered accountant Saffery Champness.

The new rates, which come into effect from 1 April 2018, will see the National Living Wage increase by 4.4% to £7.38 and employer pension contributions increase to 2%. 

Martyn Dobinson, director at Saffery Champness says: “We were aware last year of HMRC carrying out compliance checks in the rural sector. We have no reason to believe that this will not continue.

“We are therefore urging all employers to be aware of the correct minimum wage levels and be sure their records are correct and up-to-date.”

11,000 Scottish hill farmers to benefit from LFASS Scheme

Around 11,000 hill farmers and crofters will be offered 90% of last year’s Less Favoured Area Support Scheme loan in the coming weeks. According to NFU Scotland, those who respond to the offer quickly can expect to receive their loan payment at the beginning of April.

NFU Scotland LFA Chairman Robert Macdonald says: “The LFASS payments are a vital source of funding for the most vulnerable farmers and crofters in Scotland. It is particularly important that those in less favoured areas are on the front foot this year, following the dreadful weather we suffered last summer and autumn.”

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