Highways England Compound Rental

[RedTractor6761]

Hi everyone, has anyone had any experience dealing with HIghways England renting your land for a compound to do with road maintenance? I'd like to know what the going rate for pasture land rent would be in this situation. I've been offered an insultive rental amount of £7/acre per month. Yes, I did write seven pounds sterling! We are also talking about less than 25 acres in total for this amount.

Any advice and some idea of rental figures would be greatly appreciated!

Thanks!

 

[Badshot]

Put an agent on it.
I'd not let them near it, basically I'd want the full cost of buying the ground if it was mine.
It'll be ruined for years after.

 

[Wooly]

That’s £84 per acre per year and no BPS !

they need to add a few more noughts on it

 

[curlietailz]

Put an agenT on it ASAP

 

[RedTractor6761]

That’s £84 per acre per year and no BPS !

they need to add a few more noughts on it

Hi Wooly, thanks for your reply. Can you tell me what BPS means please?

 

[HolzKopf]

In 2018 we let a well known construction company have general daytime access to a 'compound' sized area (prob an acre or so) and light vehicle parking while a footbridge over a railway line was replaced. We let them have access for a fixed period of six weeks but in reality they were gone in two. Clean, tidy and insured by them. We got £2500 + vat. They didn't quibble

 

[Steevo]

Are we talking short term rental here whilst they do a project?

"Less than" 25acres sounds a massive job! If it's for a decent period you could almost buy a farm off the back of that.

As above, find a good agent.

Would probably be worth having a phone round some agents first to pick their brains on what they think it's worth, could get for it, experience of similar situations etc.

Assuming it's a short term project there are two main element as I see it - rental price for you (profit) and reinstatement cost (no gain to you, but potential loss if it isn't done properly by them).

The reinstatement will often work out more costly than the rent and often they try and cut corners on this which risks leaving you in the lurch. Depends whether they want to put trackmatting down and leave the ground as is, or whether they decide to strip the topsoil, lay terram and stone and then remove and reinstate after use.

 

[Wooly]

Hi Wooly, thanks for your reply. Can you tell me what BPS means please?

Basic Payment Scheme. I presumed when you said it was 'only' 25 acres, that you farmed alot more and therefor you must collect the BPS money !

25 acres as a compound is a massive project.

I rented out part of my yard 25 years ago, which was less than a quatre of an acre, to a road construction firm while they did work on the local road. The payment was £1000 a week.

So your £7 acre doesn't stack up !

 

[Steevo]

Basic Payment Scheme. I presumed when you said it was 'only' 25 acres, that you farmed alot more and therefor you must collect the BPS money !

25 acres as a compound is a massive project.

I rented out part of my yard 25 years ago, which was less than a quatre of an acre, to a road construction firm while they did work on the local road. The payment was £1000 a week.

So your £7 acre doesn't stack up !

All good points.

I rented an acre of yard out recently for a filming base and they were paying £500/day.....sadly it was only 1 day but still.

 

[David.]

I am aware of a 1.5ac compound that was let to a developer for 2yrs at £10k/yr.
Topsoil heaped and reinstated at end of term.

 

[RedTractor6761]

Are we talking short term rental here whilst they do a project?

"Less than" 25acres sounds a massive job! If it's for a decent period you could almost buy a farm off the back of that.

As above, find a good agent.

Would probably be worth having a phone round some agents first to pick their brains on what they think it's worth, could get for it, experience of similar situations etc.

Assuming it's a short term project there are two main element as I see it - rental price for you (profit) and reinstatement cost (no gain to you, but potential loss if it isn't done properly by them).

The reinstatement will often work out more costly than the rent and often they try and cut corners on this which risks leaving you in the lurch. Depends whether they want to put trackmatting down and leave the ground as is, or whether they decide to strip the topsoil, lay terram and stone and then remove and reinstate after use.

Hi Steevo, thanks for your reply. It's for two to three years I believe. Sounds like it will be a massive compound by the sounds of it (comparing it to other replies). I'm just fed up of being taken advantage of all the time, so I want to know roughly how much to expect per acre as £7/month sounds absolutely laughable!!

They said that they would strip the topsoil and reinstate afterwards.

What sort of reinstatement terms should I be proposing?

 

[RedTractor6761]

I am aware of a 1.5ac compound that was let to a developer for 2yrs at £10k/yr.
Topsoil heaped and reinstated at end of term.

Thanks David, that's more like the amount I would be expecting!

 

[RedTractor6761]

I am aware of a 1.5ac compound that was let to a developer for 2yrs at £10k/yr.
Topsoil heaped and reinstated at end of term.

Thanks David, that's more like the amount I would be expecting!

Basic Payment Scheme. I presumed when you said it was 'only' 25 acres, that you farmed alot more and therefor you must collect the BPS money !

25 acres as a compound is a massive project.

I rented out part of my yard 25 years ago, which was less than a quatre of an acre, to a road construction firm while they did work on the local road. The payment was £1000 a week.

So your £7 acre doesn't stack up !

Thanks Wooly, I've never claimed any benefits or set-aside... something I am beginning to regret!

 

[RedTractor6761]

I will also be losing a small rental income off the land where their compound will go, I think they are basing their figure on my measly losses rather than the value of the land perhaps?

 

[RedTractor6761]

Put an agenT on it ASAP

Thanks curlietailz, I have got an agent on it, will be discussing this next week and wanted to be armed with an idea before-hand. How good the agent is will be determined on how he responds to this I guess! I just didn't want to go into discussions thinking that £7/acre/month is what I should be expecting!

 

[Steevo]

Hi Steevo, thanks for your reply. It's for two to three years I believe. Sounds like it will be a massive compound by the sounds of it (comparing it to other replies). I'm just fed up of being taken advantage of all the time, so I want to know roughly how much to expect per acre as £7/month sounds absolutely laughable!!

They said that they would strip the topsoil and reinstate afterwards.

What sort of reinstatement terms should I be proposing?

Wow! That's a serious project that they have got going on.

I'd certainly be going to an agent with that!! I'd be expecting minimum £1000 a week, if not more still.

 

[RedTractor6761]

Put an agent on it.
I'd not let them near it, basically I'd want the full cost of buying the ground if it was mine.
It'll be ruined for years after.

Thanks Badshot, I am under the impression that they will get compulsory powers if I don't comply and thought that by being nice and approachable it would help me gain a better rental figure. I believe I'm stuck between a rock and a hard place but at least don't want to get taken advantage of!

 

[milkloss]

South east water paying £500 a month for one acre off a neighbour. Scrape top soil back and reinstate.

six months

 

[Steevo]

Thanks Badshot, I am under the impression that they will get compulsory powers if I don't comply and thought that by being nice and approachable it would help me gain a better rental figure. I believe I'm stuck between a rock and a hard place but at least don't want to get taken advantage of!

I think they could get compulsory powers, but that could be a long drawn out process and I'm sure they would rather not go down it. As long as you are co-operative then I don't think they are able to invoke them.....I'm not sure it would give them power to offer you a bad deal though.

I'm sure we had an agent on here at one stage who would know more no doubt. Your agent will I'm sure be able to advise. If you fancy updating us on the compulsory powers after speaking to your agent I for one would be interested to learn.

 

[puppet]

Regarding compulsory powers, the big companies will have lawyers already working on it in case you object. The court is not there to set a rent, just to enforce the use of the land.
Rental for a year should be around the value of the land