Income from alternative sectors

Commercial and leisure incomes have been exposed to recessionary pressures for the second consecutive year.

16 January 2013, Words by Ian Bailey

 

Commercial and Leisure

These sectors have been most exposed to recessionary pressures and this is demonstrated by our research. Average income from all commercial sources on ‘All Estates’ came under pressure for the second year in a row and represented 8.5% of gross income, which totaled £8.38 per acre (£20.70 per ha), compared with 12% in 2010. The trend is similar for all leisure sources of income, which represented 5.5% of gross income in 2012, £5.44 per acre (£13.44 per ha), compared with 7.7% in 2010.

The majority of let commercial workspace on Scottish estates is low cost industrial type space with average rents of around £1 per sq. ft.

Despite coming under pressure in 2011, telecoms mast rents increased by 12% in the 2012 survey to an average of £8,580 per mast. This figure reflects total income per mast. This suggests that Scottish landlords continue to take a robust stance against telecom tenants who continue to push for downward rent reviews.

Sporting

Bearing in mind that the majority of participating estates are mixed or low-ground estates, sporting income is unlikely to make up a significant proportion of the total gross income. However, it is often a very important aspect of the estate, particularly in respect of capital values. In 2012, the income derived from all sporting activity was marginally under £3 per lowland acre (£7.40 per ha), up 14% on 2010. We believe that this is predominately as a result of an increasing proportion of estate sporting being let rather than enjoyed in-hand.

Other income sources

Other sources, including woodland and minerals, contributed the remaining 5% of gross income and amounted to £5 per acre (£12.35 per ha) in 2012.

 
 

Key Contacts

Ian Bailey

Ian Bailey

Director
Rural Research

Savills Margaret Street

+44 (0) 207 299 3099

 

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