By Freccia Benn - (4 min read)
The past decade has seen the use of wind energy develop from an important idea with little real impact to becoming a significant contribution to the UK’s energy strategy, providing over 17 percent of the supply in 2018. The government continues to invest heavily in offshore wind farming as the future of renewable energy. However, in the face of mounting pressure, many industry experts are calling for the same investment in onshore wind energy, which would also bring an entirely new market of landowners into the game.
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How will the interest rate rise affect landowners?
By Travis Benn – (3 min read) Landowners’ rent payments are generally made up of two fees: Minimum rent which is a flat rate linked to inflation; and turnover rent which is based on energy performance and is affected by interest rates. The interest rate rise from 0.5% to 0.75% is expected to have a positive effect on rent payments and landowners can anticipate an increase in their earnings for the following reasons: 1. There is still an expectation that inflation, as we explained here, will rise as a result of higher wages in the future leading to a rise in minimum rents. 2. Many landowners receive a fee based on turnover rent which is linked to a percentage of their electricity producer’s sale price. Given that electricity prices are likely to increase based on higher interest rates, landowners should also see an increase in their turnover based rent payments because of this. 3.Higher interest rates would result in higher interest payments if a future rent audit reveals that any rents are underpaid. There is talk of there being another interest rate rise in roughly 12 months, which could be a green shoot of brighter days ahead. However experts warn that we are unlikely to see rates reach the levels that were experienced pre-recession, so even if your payments do increase over time, the hike will be gradual. Of course there are many factors to consider that could impact your specific contract, and of course we are still yet to see how Brexit will play out, but at least for now your payments won’t be adversely affected by the recent interest rate rise. For further information, please contact: Travis Benn Co-Founder 0203 375 6144
The recent interest rate increase has caused a stir among the business community. Despite being only the second rise in nine years, some feel the move by the Bank of England was ill-judged against the backdrop of an uncertain Brexit. What’s the impact on landowners’ land rent payments? Read on to find out.
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Is the government stunting a lucrative diversification stream for corporate landowners?
Substantial back-payments. Lower energy bills. New revenue streams.
By Freccia Benn - (5 min read)
Dewlay Cheesemakers are a leading green example in the dairy industry and have seen significant results following our audit. The owners of the family-owned business pride themselves on their longstanding reputation for great foresight, vision and for producing Lancashire’s finest cheese. Working in an energy-intensive industry can mean big bills and a high carbon footprint, with sustainability at the heart of all they do, Dewlay invested in a turbine to mitigate this.
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