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Finance and estate investment

The Estate produces an annual rental surplus (income over expenditure) which is directly invested in the Environment Department revenue budget.

The Estate income mostly comes from farms and agricultural property but an increasing amount now derives from non-agricultural lettings, small rural enterprises, wayleaves and other windfall gains, residential rents and other minor lettings.

As part of a much broader County Council owned property portfolio the Estate contributes a steady flow of capital receipts for re-investment in capital projects across the authority. Since 1974 over £24 million has been raised from the estate and re-invested in this way to support adult care, education and highways projects. This will continue as and when opportunities for suitable property disposals occur.

Most privately owned estates routinely set aside part of any rental surplus for reinvestment, major repairs, or to finance conversion works or new buildings. Because of local authority finance controls the Rural Estate is not able to do this. However, opportunities do occasionally arise to upgrade and refurbish deteriorating assets or provide new farm buildings and these are usually funded out of estate income.

In recent years a number of self financing projects have been completed including new grain stores or milking facilities, associated with Combinable Crop or Milk Assurance schemes. In these cases the County Council receives a return by way of a rent increase based on the cost of the investment. Many jointly funded projects are carried out with the tenants themselves. Other improvements have been undertaken to enhance long term capital value of an asset prior to its eventual disposal. Match funding from Natural England and DEFRA is also sought in conjunction with environmental or public access type projects.

Land agents promote opportunities for capital receipts from a wide range of sources including the sale of residential property, surplus farmsteads, residential barn conversions or for instance the sale of mineral rights.

The Rural Estate is required to charge market rents. Opportunities for raising revenue income are pursued but carefully balanced against environmental, planning or local community considerations.