Boost income amid new let rules in rural Scotland

It is rare nowadays to see an estate rely exclusively on residential tenancies and agricultural grazing licenses.Savvy operators embrace modern farming methods, carbon capture, renewable energy, glamping and camping sites, motorhome storage, sporting, fishing and support for afforestation and/or rewilding. If your property is reliant on oil or gas it’s always beneficial to explore the costs of renewable energy.

Farm diversification As to repurposing, the relevant National Planning Framework (NPF4) policy includes ‘brownfield, vacant and derelict land and empty buildings’ and permitted development rights. The policy ensures development is directed to the right locations, maximising the use of existing assets and minimising additional land take. And while the repurposing of agricultural buildings requires investment, the rewards are there for the taking.

DM Hall works closely with planners and architects across Scotland to maximise opportunities on relevant land parcels with development opportunity. It is also worth noting the recent change in Local Development Plans (LDP). As a result of NPF4, the development planning system changed from a 5 year to 10-year review cycle. Very recent changes in business rates, with many exemptions now lost, may also encourage landowners to look at market value or to repurpose the lands or empty buildings.

How to identify areas you could expand:

Vacant land

Is there the potential for income for camping, motorhome/caravan storage or campervan provision, dog park, grazing, livery, woodland schemes, or renewable energy?

Vacant buildings

Is there the potential for further residential lets (short term, long-term including staff accommodation), commercial lets (complementary services such as a beauty room, coffee shop, bike hire, food and drink production or craft shop. Do you have any empty sheds that could be repurposed into a storage facility or separated into individual workshops for hire?

Reference Points:

If you are considering diversification your first port of call should be National Planning Policy (NPF4): https://www.gov.scot/publications/national-planning-framework-4/pages/3/ and Non-domestic Permitted Development Rights: https://www.gov.scot/publications/circular-2-2024-non-domestic-permitted-development-rights/pages/10/

In addition, you may want to reference your LDP through your local authority planning portal. If you are having difficulty sourcing this and navigating planning policy, you can contact your local planning office or you may want to consider a professional planning consultation. We work with Paul Hughes of Glen Etive Projects who has had several successful applications for rural projects in recent years.

The Planning Process:

Once you have identified what you would like to do, your next step is a planning application. There are two approaches for this, outline or detailed. The latter is more onerous in terms of cost but often proves to be the more successful route.

Altering agricultural land to car parking, dog park or motorhome park does require ‘Change of Use’ and if you are not confident with the planning process it is always best to seek professional advice.

Where planning or a building warrant is required, this must be sought in advance of works being carried out. Retrospective planning is costly, and you may be fined for carrying out works without obtaining the necessary consents.

Referring to NPF4 is always a good approach to starting a planning process. Is the development sustainable, will it have an adverse effect on the community, landscape or environment?

The process of applying is clearly set out by your local authority on its website, including the cost for submission and whatever information is required. If you suspect that your application is likely to be rejected, usually because information is missing, you are best to withdraw temporarily while you seek the required information then resubmit. This is because a rejected site is less likely to be re-considered.

Permitted Development Rights:

Permitted Development rights on agricultural buildings have been in place for some years now with some more recent updates relating to:

• the maximum floorspace surrounding development of buildings

• converting what was previously an agricultural building for use as a dwelling

• changes to the rules relating to “flexible commercial use” of an agricultural building

• changes to the requirements for conducting peatland restoration

We recently assisted a farm in Fife in obtaining rural tenants for agricultural sheds. Permitted Development Rights would allow the change of use of an agricultural building (and any land within its curtilage) to a ‘flexible’ use falling within class 1a (shops, financial, professional and other services), class 3 (food and drink), class 4 (business), class 6 (storage or distribution or class 10 (non-residential institutions) of the Town and Country Planning (Use Classes) (Scotland) Order 1997. Proximity to residential or listed buildings would prevent this and, in some circumstances, change of use will be required.

Planning law already allows for the temporary use of land or buildings for up to 28 days in a calendar year without the need to make an application for planning permission – the ’28-day rule’. This is set out in Class 15 of the Town and Country Planning (General Permitted Development) (Scotland) Order 1992, specifically allowing the “use of land (other than a building or land within the curtilage of a building) for any purpose, except as a caravan site or an open air market, on not more than 28 days in total in any calendar year, and the erection or placing of moveable structures on the land for the purposes of that use”. This is often exercised for events, festivals and pop-up cafés.

Finance:

Seek advice from a qualified accountant with regards to structuring a new project or further diversification on your rural property. There is assistance available for agritourism and there may be local authority assistance where a rural project will deliver local employment. Significant land parcels will be considered for renewable projects, where appropriate and long leases can offer lucrative financial return, which may be offset against further diversification on your property. Significant land parcels may also be considered for biodiversity net gain ‘habitat banks’ and where peatland is present you may also be eligible for restoration grant schemes.