Founder of land agents Townsend Chartered Surveyors and UK's leading farm intangible asset brokerage house. I have been trading for 38 years.
Very interesting Rich. Looking specifically at BNG habitat bank land values it is one of the important warnings we issue prior to a client starting a BNG creation project. My BNG “crystal ball” peering, which is misty, even though I am an RICS registered valuer, is that at the start of the 30+ year term the land could be devalued by 80-90 % in the worst cases and some very poor land hardly at all. This excludes the value of the units which have the potential of being worth multiples of the current land value. This devaluation will not be set and could reduce the nearer one gets to the end of the 30+ year term, depending on what the land can at that time be foreseen to be used for. Grassland habitat of course under current legislation may not be ploughed as it will be “permenent pasture” requiring an EIA anyway for other uses. 30 years is a long time though and a lot can happen in the meantime. Devaluation of the land is even more severe with NN projects.
Founder @ Oxygen Conservation | Scaling Conservation, Delivering Positive Environmental & Social Impact | Natural Capital Asset Management
📢 New Article incoming: The Future of Land Value!! Focusing on the future of UK land value as we enter the natural capital century is set to hit your screens Wednesday! 🚀 🌱 Over the past century, rural land in the UK has experienced steady growth, with farmland values increasing at an average rate of 5.7% per year. Yet, the factors driving this growth have varied, influenced by government policies, global events, and technological advancements. Now, as we enter the "Natural Capital Century," we're seeing a profound shift in how land value is perceived, with an increasing emphasis on environmental sustainability and social impact. In this article, we will dive into the key trends shaping UK land values, including: 🌍 The impact of climate change and biodiversity loss on land investment. 🏡 How lifestyle choices are influencing demand for properties with natural amenities. 💡 The role of renewable energy in driving land demand. 🌳 The growing importance of sustainable forestry practices. Don't miss this deep dive into one of the most intriguing trends in rural land investment! 🌱 #NaturalCapital #LandInvestment #RuralDevelopment
Founder @ Oxygen Conservation | Scaling Conservation, Delivering Positive Environmental & Social Impact | Natural Capital Asset Management
1moThanks for the thoughts Hugh. I’m interested in how you are currently capturing the devaluation of land through soil degredation and loss under standard agricultural use? Would you for example devalue arable land in a conventional system to zero over the next 30 years if not perhaps sooner?