Water and Leisure Review 2018

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1 Water and Leisure Water and Leisure Review 2018 The leading specialists in the sale, acquisition and valuation of all types of property with water - including fisheries - anywhere in the UK.

2 We have seen a considerable improvement in the market during 2017 for the sale of all types of properties with water. The demand has predominantly been for commercial fisheries with holiday accommodation and an owner s dwelling. This is primarily from lifestyle buyers who may rely on the sale of a small business or the sale of a house to fund their purchase saw a resurgence of these buyers and significant improvement in their confidence and buying power. The market for fishing rights, both coarse and game, for river fishing is weakening. In particular relatively short stretches with limited access in poor locations are difficult to sell. Prime beats in England and Wales continue to attract good levels of interest providing they are realistically priced. There is a continuing demand for individual rods on prime chalk stream rivers which is evidenced by the sales of rods we have achieved for the Timsbury Fishery in During 2017 alongside expert witness and valuation services the Fenn Wright Water and Leisure team provided professional advice in various forms, including: Preparing planning applications with supporting statements and dwelling house appraisals for both permanent and temporary consents Preparing a feasibility study for a tackle shop and facilities building for a large established commercial coarse fishery Acting on behalf of a landowner in respect of a dispute regarding fishing rights Acting on behalf of a landlord and carrying out a rent review on a specialist trout hatchery Advising a national infrastructure client in respect of potential compensation due to infrastructure works 587 new buyers registered in % properties visited of 2017 instructions sold/

3 Market Outlook 2018 The early indications for 2018 in spite of the recent interest rate rise is that mixed use water based businesses and fisheries can still provide a good return on capital, in particular compared to current bank interest rates. There is likely to be a reasonable supply of all types of property in this niche area coming to the market primarily due to retirement and we expect demand to match supply for the next year. There may be some uncertainty created by the impending Brexit in March 2019, but this sector of the leisure market has proved to be reasonably robust in the past. This is evidenced in particular by the number of enquiries Fenn Wright receive through marketing properties on and 2017 had the highest number of enquiries for over 10 years. Setting up a Glamping Business Glamping has risen in popularity over the past few years, with a growing market supported by an increase in people choosing stay at home for their holiday and the UK s population demographic. It was estimated that more than 17million camping and caravanning trips were taken by UK adults in (Mitel 2017). In particular glamping has become a popular choice for landowners seeking to diversify. The lower capital investment compared with other forms of holiday accommodation, in particular log cabins, together with a higher return on investment are the main attractions for setting up a glamping site. Where combined with water or fishing, they can become an attractive and profitable lifestyle business. Glamping units vary enormously and include; bell tents, timber pods, shepherds huts and yurts, all of which differ in size and specification and can be purchased or self-built. En-suite toilet/showers and kitchen areas are optional and power, heating and Wi-Fi can all be installed. Units offered with additional facilities such as a hot tub, fire pit or BBQ will achieve higher levels of occupancy. It is possible to achieve in excess of 70% occupancy, once the business is established and well marketed. Most landowners choose to phase the development, starting with one or two units and expanding as the occupancy grows. There are however a number of factors to consider. It is difficult to identify a suitable site, which should be in a secluded yet accessible location. Infrastructure costs can be significant. Connection costs of services including mains electricity and water are often restricting factors to small scale developments, depending on their proximity. For sites in less accessible areas solar power and boreholes should be considered. Good access roads and car parking will also be required and potentially a facilities building, to include a toilet and shower block. Any form of holiday accommodation involving a change of use will require planning permission, assuming it is used for more than 28 days per year. Obtaining permission largely depends on the local planning authority and the suitability of the site. Planning permission can be obtained for up to 12 months usage, though 9 and 11 month occupancy conditions are more common, usually with a restriction on the length of occupation per guest. It may be prudent to obtain preplanning advice to the local authority prior to submitting a full planning application. The life expectancy of glamping units should be considered, with most units written off over a period of years. Compare this with a standard specification log cabin, which may last between years. Investment in a glamping site can increase the underlying capital value of a property and such sites are in demand, particularly from lifestyle buyers. The advantage over log cabins can be the lower risk associated to investing a smaller sum in a number of units. The investment and capital value of a glamping site will be lower than a comparative log cabin site with the same number of units. As a result the value of the asset as a whole is kept within the budget of the average lifestyle buyer and therefore often more saleable. Properties with multiple log cabins are often taken into the 1-2m price bracket, which is currently part of the leisure market with fewer active buyers. Fenn Wright regularly provide consultancy advice to landowners looking to diversify into holiday accommodation. In particular, if you have planning permission for log cabins which have not yet been implemented, you may wish to consider amending the permission to glamping units. Springwood Fisheries was sold by Fenn Wright in 2017 with a guide price of 475,000, comprising a fishery, café, 5 glamping pods and a camping and touring caravan site. The property generated strong interest from a number of potential buyers.

4 Ashmire, Cambridgeshire Buttonhole Lake, Cambridgeshire Glanrhyd Y Pysgod, South Wales Hartley Lands Fishery, Kent Izaak Walton Fishery, Staffordshire Lake House, Essex Pant-y-Bedw, Carmarthenshire Springwood Fisheries, Derbyshire Talltrees Fishery, Bedfordshire Water Lane Fish Farm, Dorset Barham Pits, Suffolk Home Farm Fishery, Cheshire Dragonfly Fishery, Conwy S Janson Coarse Fishery, Nottinghamshire S River Irt, Cumbria South Combe Waters, Devon Tichborne Springs, Hampshire Timsbury Fishery Rods, Hampshire Welham Estate Lake, Leicestershire Wenhaston Quarry, Suffolk Willow Park, Hampshire Bishton Pools, Staffordshire Field Aston Fishery, Shropshire Great Yeldham Land and Lakes, Suffolk South Wales Rivers Portfolio South Wales Rivers Portfolio Thoresby Bridge, Lincolnshire

5 List of services News updates Valuations Sale Purchase Tax Matrimonial Pensions Probate Secured lending Expert witness New Dwellings Valuation of assets All still water coarse and trout fisheries Fishing rights Rivers Reservoirs Inland fish farms Restored and unrestored mineral workings, eg gravel pits and quarries Leisure properties with water including holiday parks, properties with holiday accommodation, caravan sites and log cabin developments Water sports lakes Residential properties with lakes and water frontage Fish stocks Planning Certificate of lawful use and development Lake excavation Dwellings Holiday accommodation Permitted Development Rights on Fish Farm Buildings Development schemes Expert witness Mineral site restoration plans Pre planning applications Design and access statement Consultancy Fishery disputes Expert witness reports Fishery management appraisal Fish stock assessment Abstraction licence advice Business appraisal/business planning Water resource management Rent review and lease renewals Landlord Tenant Pension fund Expert witness reports Obtaining planning permission for any form of residential development outside a permitted development boundary is extremely difficult. We have been involved in a number of planning applications, preparing Supporting Statements and Design and Access Statements were we have achieved planning permissions for either temporary or permanent dwellings which not only resulted in a significant increase in capital value, but permit the owners to legally live on site and manage their businesses more effectively. Rents We are regularly approached to advise both angling clubs, landowners and land agents in respect of rental value for all types of water. Historically rents on rivers were assessed on a per metre or per yard basis and inland waters assessed on a per acre basis. These types of rental value methodology rarely apply as there are often many factors which will influence the level of rent payable, in particular the ownership of the fish stocks. Fenn Wright probably have the most comprehensive comparable database for rental values for all types of water in the country. Sport England s Community Asset Fund With effect from February million is available with a maximum of 150,000 for any one project. The funding is looking to achieve the following: Improve and protect existing sports facilities that support the needs of local communities. Invest in new and different places that meet he needs Ensure capital investment reaches organisations who have not accessed funding before. Create a more resilient, sustainable, less grant dependent sport sector. of local communities, which include their target audiences. Many clubs have already taken advantage of similar grant schemes in the past to undertake improvements such as building new platforms, restocking lakes or installing otter fencing. Grants can be applied for through the Angling Trust - visit

6 fennwright.co.uk UK and international We cover all of England and Wales and collaborate with local agents in Scotland and Ireland. Our own industry-leading website fisheries4sale.com attracts enquiries from the home markets and worldwide. During 2018 the content of this site will evolve to include details of all water and leisure property and related services Fenn Wright offer. Experienced Fenn Wright has specialised in the sale of fisheries and leisure properties with water for over 20 years. We have a long, diverse client list that includes a number of leading leisure industry operators. We provide advice that can enhance value and achieve the best possible sale price. We often visit several years prior to a sale to advise owners how to make the most of planning potential, increase profits and the capital value of the property. Qualified professionals The Water and Leisure Department is headed up by Martin Freeman, a Fellow of the Royal Institution of Chartered Surveyors for over 25 years. He is supported by Tom Good MRICS, a chartered surveyor with expertise and a background in Aquaculture and Fisheries Management Call us for a FREE market appraisal Royal Institution of Chartered Surveyors See all properties for sale at fennwright.co.uk