Savills 2024
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Copyright © 2023 — Savills
Andrew Harle
Head of Rural
Much has evolved since we published the spring issue of Aspects of Land, not least a change in government. Change of any kind brings both uncertainty and opportunity, particularly in the rural sector.
+44 (0) 7768 708 277
aharle@savills.com
AN OPPORTUNITY TO BE BOLD
2024/2025
Autumn/Winter
policy | WATER | energy | tourism | Biodiversity
Building resilience
Without water we cannot function, yet the challenges on water quality and quantity are greater than ever. Demand for water is being driven by population growth, climate change and environmental demands. In the UK alone, the Environment Agency (EA) estimates that by 2050 we’ll need an extra five billion litres of water per day to meet these demands. So, collaborative and innovative thinking is urgently required if we are to create a resilient approach to water management – particularly in the rural sector.
“We’re walking completely blind into a really challenging situation,” says Kelly Hewson-Fisher of Savills Rural Research and co-author of a new report on water resilience. “We’ve published this research because we genuinely believe much more needs to be done.
“It’s easy to think ‘it doesn’t affect me’, but water security touches everyone. Currently, the government is focused on water quality and the public water supply and sewage outfalls, but that focus will soon shift to agriculture. So, let’s get ahead of the game.”
At this year’s Water Matters conference, it was reported that, in the commercial UK market, 1% of organisations use 50% of the water. Yet Water Resources East, a not-for-profit membership organisation in Eastern England, believes that as much as 75% of the total water demand for commercial and non-household buildings could be met with recycled rainwater (green water) or waste water (grey water). This would reduce reliance on blue water (abstracted from our lakes, rivers and aquifers). So, can similar efficiencies be driven by agriculture?
Water demand within the agriculture sector is dominated by irrigation for food production. By 2050, it’s estimated that demand will increase somewhere between 71% and 150%. So, there’s a real need for farms and rural businesses to reduce their reliance on blue water by using technology and nature-based solutions. That includes the use of green and grey water – especially as water abstraction licences become harder to negotiate.
Kelly believes even more can be achieved by the rural sector to improve its water management. “We can look more closely at integrated water management, we can use land to help prevent flooding and we can adopt nature-based solutions to improve water quality – our WRAP case study (see next page) is a good example of how changes like these can make a difference,” she says.
“For businesses, benchmarking your water use is the best place to start because that enables you to think about driving efficiencies across your whole estate – fixing leaks, looking at your irrigation schedule, growing drought-resistant crops, solar pasture pumps for livestock, planting trees to help water capture, looking at soil health and rainwater harvesting. Our report includes lots of suggestions on how to make positive contributions to build water resilience. It’s not a definitive list by any means, but it gets the conversation started.”
Water is fundamental to our existence, yet there is real concern about its scarcity. We look at how the rural sector can contribute to greater water security.
Water abstraction in numbers
of water is licensed from England’s natural resources every year.
Where it comes from:
What it’s used for:
from freshwater surface sources (lakes, rivers, streams, canals)
from tidal waters
from ground water sources
public water supply
energy production
industrial, commercial, amenity
agriculture
Winds of Change
Wind power and battery storage offer solutions to delivering a modern, green and resilient energy network.
One of the first actions taken by the new government was to free onshore wind power in England from the shackles curtailing its progress.
The industry had effectively ground to a halt after tightened planning rules were brought in by the Conservative government in England in 2015, making new projects virtually impossible.
In the run-up to the 2024 election, the Labour party made no secret of the fact that they intended to reverse this decision, pledging to double onshore turbines by 2030. They acted almost immediately, publishing a new draft of the National Planning Policy Framework on 30 July for consultation.
This version did not include the two footnotes introduced in 2015, which demanded such strong proof that there was no local opposition to a proposed turbine site that it proved practically impossible to achieve.
By putting onshore wind on a level-footing with other forms of renewable energy, Nick Green of Savills Earth hopes projects will be able to move through the planning process in a more efficient way.
“So far the government is making all the right noises and changes to regulation centre on removing blockers,” he explains. “The biggest policy changes have been announced around onshore wind in England – and the fact that this moratorium has now been lifted will offer opportunities for farmers and landowners.”
Although some reports suggest the changes could unlock huge amounts of additional capacity in England, Nick advises a note of caution. “So far, it’s good news,” he says. “However, although some projects will be realised, I suspect there won’t be as many as initially hoped. This is simply because the size of modern onshore projects means that developers need large open spaces to create schemes of a meaningful size – and by the time you factor in all the constraints, including allowing sufficient separation from residential properties, the developable areas quickly become very constrained.”
“It’s worth being enthusiastic and recognising the opportunities, but we still advise clients that despite the positive news from government, it does not guarantee that consent will be granted – an onshore wind project can take almost twice as long as a solar project to navigate the consenting process. If this is sped up that will be great, but each proposed scheme will still be heavily scrutinised by planning authorities.
It’s worth being enthusiastic and recognising the opportunities, but we still advise clients that despite the positive news from government, it does not guarantee that consent will be granted.
Nick Green of Savills Earth
In their own words
There’s a slow but discernible shift in the appetites of tourists. This year, the travel website Booking.com reported that 75% of global travellers want to travel more sustainably over the next 12 months. Expedia, meanwhile, says over two-thirds of tourists are thinking more about sustainability and environmental impact when planning holidays.
As consumers become increasingly concerned about climate change and how their choices can make a difference, sustainability has an increasingly important role in any landowner or operator’s diversification playbook. With customers considering the environmental cost of their leisure pursuits, venues and attractions are seeking ways to improve and demonstrate their environmental credentials.
Already, some rural estates are developing tourism offers that revolve entirely around sustainability and the environment. Among the best known is the pioneering rewilding scheme at the Knepp Estate in West Sussex. There are others too, such as Somerleyton in Suffolk, which encourages guests to embark on safaris to witness the landscape’s transformation – as well as Inverlonan, located east of Oban, which offers ‘rough luxury’ cabins and ‘hyper-local’ farm-to-bothy catering.
It’s not only estates, landowners and farmers, however, who see a future in sustainable tourism. Nattergal is a private company, equity funded by a mix of institutional and family office investors who have committed to making nature what they call an ‘investable asset class’. Charlie Burrell, owner of Knepp, is one of the founders and the non-executive chairman. Nattergal owns three sites across Lincolnshire, Norfolk and Essex, but it expects to acquire and manage many more in the next few years. It introduced a camping and glamping pop-up this summer, along with rewilding tours to provide an insight into the early stages of nature recovery.
“We are pioneering the commercialisation of nature restoration to help deliver the ‘30% by 2030’ global biodiversity framework goal,” explains Jen Witherspoon of Nattergal. “Alongside natural capital and corporate sponsorship, sustainable tourism plays an important part in generating the income we need to achieve our ambitions for nature. Our values are Nature First, Collaboration and Act Local. We will always lead with what’s best for nature.”
Such environmentally-focused ventures are likely to be the next big thing in rural tourism, believes David Collier of Savills Tourism and Leisure. “There are challenges, however,” he adds. “The main one lies in the interpretation of what sustainable tourism means, as well as how rural operators provide experiences that encourage or incentivise sustainable travel options.
An element of cynicism has crept into the debate about sustainable tourism. Are people ticking boxes to meet environmental, social and corporate governance (ESG) aims, or is there a meaningful motivation behind the move towards sustainable practice? Another question to ask is whether nature recovery is a priority and tourism bolted on after or is tourism the goal from the start.
“The key to sustainable tourism is to keep it real; it has nothing to do with paying lip service to buzzwords,” says David. Consumers these days are more informed and expect a certain amount of environmental responsibility from the brands and businesses they choose to support, including heritage and estate-led attractions and experiences, he adds. “We advise all businesses that we consult with to have an ESG strategy in place. This approach needs to feed through to the finer details on the ground.”
Aspects of land Autumn/Winter Edition – 2024/2025
To discover the full stories and latest insights click below to explore the full version.
Read the full issue
At a glance
What do you need for battery storage?
Battery Energy Storage Sites (BESS) should be located near existing infrastructure and in spots that minimise the impact on any nearby residential properties.
Although the land requirement varies, BESS developers typically look for between two to 15 acres of relatively level land.
A viable grid connection is crucial, with connections available in 3-4 years being more valuable than those 8-10 years away. Ideally, the connection should be located on the proposed battery storage site.
Planning guidance also favours sites that are outside flood zones and not on higher quality agricultural land.
Ideally, the land should not be adjacent to or located within a national park, nature reserve, or site of specific interest.
foreword
building resilience
winds of change
change of view
“I joined Savills in 2023; it’s a new role and is slightly unusual in that it’s not a client facing position and is focused on operational change. They were looking for someone to help put into place processes and structures that would support the future growth of the business. I’m primarily responsible for the financial and operational performance of Infrastructure Projects.
JESSICA ARROWSMITH
Change of view
HEAD OF OPERATIONS Infrastructure Projects
phone: +44 (0) 7811 008 196
email: jessica.arrowsmith@savills.com
The demands vary from week to week but can take in anything from recruitment coordination to looking at the financial performance of the business, supporting conversations around growth, addressing client issues and looking at processes to streamline how we do things and make us more efficient. In a nutshell, I love working with people, managing change and facing challenges.”
“After my degree, I did a Masters in environmental management (conservation) at the University of Stirling as a springboard to move into forestry.”
Both my undergrad and postgrad dissertations had been on the subject, so, with the Masters complete, I did a simple search for graduate positions – and this opportunity at Savills popped up.
The two-year graduate scheme was based in Inverness, where I am, and the role involves working across the Highlands and Islands. It varies a good deal depending on the time of year. At the moment, I’m doing applications and surveys for new native woodland creation and natural regeneration sites, as well as mixed-use and commercial woodland. Some of these sites can be very remote. At other times, I’m working on thinning and harvesting operations, and beat-up surveys, which evaluate tree mortality.”
Kyle Dawson
Graduate Forester
phone: +44 (0) 1463 215 120
email: kyle.dawson@savills.com
“It was wanting to be part of a team and expand my career opportunities that led me to Savills in 2023. Based in Telford, I provide valuation and expert witness advice to a range of clients based all over the country. From large intensive farms and country houses to commercial sheds in Stoke-on-Trent, houses on the beach in Abersoch and a nuclear bunker utilised for cyber security – the spectrum of property and variety of sites is huge.
At the same time, I’m advising clients with matrimonial disputes, succession issues, restricted covenants and overage clauses. Being with Savills has enabled me to return to my country roots as well as have a diverse and wide-ranging career. The exceptional people I work with in the office, the wider teams, and other professionals we meet on a day-to-day basis are also a huge bonus.”
Emily Summerfield
Chartered Rural Surveyor
phone: +44 (0) 7977 729 452
email: emily.summerfield@savills.com
in their own words
10%
(4.5 tr. litres)
(12.6 tr. litres)
27%
(29.9 tr. litres)
63%
57%
23%
13%
7%
trillion
litres
47
Welcome to the Autumn/Winter Edition – 2024/2025 of Aspects of Land, click below to learn more.
Read the full issue
To hear more about how the rural sector can contribute to greater water security, watch our short video here.
As we went to press, rumours of what might be contained in the autumn budget were rife, but the new government’s obvious intention to plug the funding deficit has signalled the need to reduce spending and to generate extra funds from somewhere. In the farming and rural context, it seems that the possible headline implications could typically impact profit and loss and the balance sheet.
Dealing with the former, a reduction in farming support, off the back of a really poor harvest, will have immediate cashflow implications and further reduce the profitability of a sector already under strain. This also means that the prospects of many rural businesses being able to fund investments to boost productivity seem remote.
All the usual misgivings about change aside, this is a government with a significant majority and there is an opportunity for the chancellor to be bold, and to propose robust long-term solutions. After all, everyone can plan well for the future if they know the detail and the direction of travel is clear.
In this issue, we discuss the kind of policies that the rural sector can potentially expect from the new government. We also look at opportunities to explore new income streams, particularly those linked to biodiversity and the UK’s net zero targets; we make a timely analysis of sustainable tourism and how estates can contribute to this growing market; and we take a deep dive into water resilience and look at how the rural sector can contribute to more effective use of this most precious resource.
There’s a slow but discernible shift in the appetites of tourists. This year, the travel website Booking.com reported that 75% of global travellers want to travel more sustainably over the next 12 months. Expedia, meanwhile, says over two-thirds of tourists are thinking more about sustainability and environmental impact when planning holidays.
As consumers become increasingly concerned about climate change and how their choices can make a difference, sustainability has an increasingly important role in any landowner or operator’s diversification playbook. With customers considering the environmental cost of their leisure pursuits, venues and attractions are seeking ways to improve and demonstrate their environmental credentials.
Already, some rural estates are developing tourism offers that revolve entirely around sustainability and the environment. Among the best known is the pioneering rewilding scheme at the Knepp Estate in West Sussex. There are others too, such as Somerleyton in Suffolk, which encourages guests to embark on safaris to witness the landscape’s transformation – as well as Inverlonan, located east of Oban, which offers ‘rough luxury’ cabins and ‘hyper-local’ farm-to-bothy catering.
It’s not only estates, landowners and farmers, however, who see a future in sustainable tourism. Nattergal is a private company, equity funded by a mix of institutional and family office investors who have committed to making nature what they call an ‘investable asset class’. Charlie Burrell, owner of Knepp, is one of the founders and the non-executive chairman. Nattergal owns three sites across Lincolnshire, Norfolk and Essex, but it expects to acquire and manage many more in the next few years. It introduced a camping and glamping pop-up this summer, along with rewilding tours to provide an insight into the early stages of nature recovery.
“We are pioneering the commercialisation of nature restoration to help deliver the ‘30% by 2030’ global biodiversity framework goal,” explains Jen Witherspoon of Nattergal. “Alongside natural capital and corporate sponsorship, sustainable tourism plays an important part in generating the income we need to achieve our ambitions for nature. Our values are Nature First, Collaboration and Act Local. We will always lead with what’s best for nature.”
Such environmentally-focused ventures are likely to be the next big thing in rural tourism, believes David Collier of Savills Tourism and Leisure. “There are challenges, however,” he adds. “The main one lies in the interpretation of what sustainable tourism means, as well as how rural operators provide experiences that encourage or incentivise sustainable travel options.
The south
Central
The East
The mIdlands
West Midlands
The NOrth