Are you utilising all your farm buildings to their full potential?

With the Basic Payment Scheme being phased out, now is an ideal time to assess your farming assets to determine whether any are not being fully utilised and are surplus to requirements. One such asset might be your modern or traditional farm buildings.
 

Matthew Wilcox of Stags Professional Services has assisted a number of clients who have decided to let their farm buildings for alternative uses. Demand has been strong with applicants attracted by the secure and rural setting which many farm buildings offer.
 

Interest for a range of different uses can be received. These have previously ranged from the storage of vintage vehicles to a gym.  It is therefore well worth considering whether any buildings could be let out as it is surprising how many applicants might be looking for a building in that area.
 

If you think you have a building which might be suitable for letting, there are a few key factors to consider before embarking on this venture:
 

• A change of use class may be required or planning permission under Class R permitted development rights
• A properly documented written tenancy agreement should be put in place to avoid the Tenant obtaining protected business tenant rights
• Consideration as to whether the building is suitable to be let in its current condition
• There may be tax implications associated with this change of use including Inheritance Tax and Stamp Duty Land Tax
• Consideration as to whether any separate use might impact on the rest of the farm
• Statutory requirements such as whether an Energy Performance Certificate is require

To ensure these factors are considered and measures are taken to address these, it is worth seeking professional advice.
 

Whilst there are a few factors to consider, this is worth considering, particularly in light of the transition period the agricultural sector is facing and the recent increase in demand for storage, warehouse and “last mile” buildings. If you would therefore like to discuss the potential of any of your buildings, please do not hesitate to contact Matthew Wilcox on 01884 235701 or m.wilcox@stags.co.uk.

 

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