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To remove the agricultural condition of a dwelling, the long-term need of the dwelling for agricultural workers, both on the particular farm and in the locality, no longer warrants reserving the dwelling for that purpose (Appendix 1).
This report has been prepared to explain the reasoning behind the application to remove the planning condition "The dwelling must be occupied by a farm worker or a person engaged in agriculture and such tenancy must be subject at all times to enquiry and approval by the Planning Committee" (Planning I.D.O 38876 approved 7th January 1975). It demonstrates that there is no long-term requirement to reserve the dwelling for those working in agriculture.
Planning application: 02/00697/B Erection of conservatory: Rhenny Mooar Farm - Permitted Planning application: 08/01387/B Conversion of farm building into ancillary accommodation - Permitted
In 1975, the old farmhouse for Rhenny Mooar Farm was demolished and an old barn converted to the existing dwelling. Mr and Mrs Shearman lived in the house until 1980, when they moved to Barregarrooo which at the time was a more viable farm. The house and land were then owned by several other people and it is believed that not one of them made a living from the farm as they all had other occupations:
Mr and Mrs Bennett purchased the dwelling in 1995 with the intention of running an agricultural business with the land which was purchased at the same time so that the agricultural condition could be fulfilled.
The dwelling is rated by IOM Government as fully residential and not as an agricultural dwelling.
The farmland totals 26 acres of which approximately 6 acres are classified as semi-natural which cannot be intensively farmed. The remaining 20 acres are permanent pasture suitable for grazing with sheep. Mr and Mrs Bennett filed farm accounts with the Income Tax Office annually for 20 years but due to the size of the farm, soil type and climate it was not profitable, and the Income Tax Office decided that the farm was not a commercial business. The tax accounts show that the best year for the farm was in 2009 when the loss (before capital allowances) was only £138.
Mr and Mrs Bennett need to plan for their future and have realised that they are unable to look after the land properly now and are concerned about the difficulty in getting to or from the house in adverse weather conditions. Access to the dwelling is via Rhenny Mooar Lane, which is a steep, long road. Consequently, they have made the difficult decision and have now actually moved to a property in Union Mills.
Rhenny Mooar Farm was put on the market with Cowley Groves in March 2017 for $£ 950,000$ (Appendix 2) with one potential purchaser at the asking price who could meet the agricultural conditions however, they unfortunately were unable to arrange finance. In March 2019, Manxmove Estate Agents started marketing the property with an asking price of $£ 835,000$ and had a potential purchaser in May 2019 who offered $£ 750,000$ on the condition that Mr and Mrs Bennett would provide a loan of $£ 460,000$ payable over 19 years as the potential purchasers were unable to secure a mortgage for the property with the agricultural condition. Mr and Mrs Bennett would have accepted the offer but were not able to provide a loan to the purchaser.
Manxmove has stated 'that whilst they have had healthy interest and several interested parties, unfortunately, the agricultural tie is affecting their ability to purchase as they have been unable to obtain a mortgage on the property'. They also have stated that 'A further price reduction is unfortunately unlikely to help as it seems unlikely that any funding can be obtained on the property whilst the tie is in place, regardless of the price' (Appendix 3).
Mr Bennett has approached a number of financial institutions on the Island, all of which have confirmed their policy is not to lend on properties with agricultural ties.
In August 2019, Mr and Mrs Bennett wrote to several local farmers and despite enclosing stamped addressed envelopes, they only received two responses, both stating that they have no requirement or interest in purchasing the farm and house (Appendix 4 and 5). One of the farmers in conversation stated, ' the property would be unsuitable for any of their agricultural workers as the road access is impractical for any modern tractors or equipment, which the workers would be required at times to take home overnight'. As Mr and Mrs Bennett do not own most of the road, there is no possibility of widening or straightening the access road.
The farming in the locality comprises mostly of family run beef and/or sheep farms with soils being in capability class of 3 and $3 / 4$. Farms are managed in a relatively extensive way due to the weather, soil types and topography.
Over the years, farmers in the area have increased their acreages by purchasing or renting additional land to try and maintain economically viable as prices of lamb and beef have reduced in relative terms. This has resulted in a reduced requirement for agricultural dwellings in this part of the Island. According to DEFA's annual census figures, there were 718 agricultural holdings in the Isle of Man in 2003 but in 2018 this had been reduced to 338, a reduction of $47 \%$. Many of the traditional farmhouses are now occupied by people not working in the Industry.
Another factor which may be detracting persons engaged in agriculture is the Isle of Man, Agricultural Wages Act 1952 which sets the minimum agriculture wages for an ordinary grade worker over the age of 19. In 2018 this was £265.75/week which relates to £13,819/year. It is unlikely that a full-time worker in agriculture would be able to obtain a mortgage in the Isle of Man unless they had income from other sources and even if they could, mortgage providers will not lend on dwellings with an agricultural condition.
Conclusion and Summary
Since 1995, Mr and Mrs Bennet have tried to farm Rhenny Mooar but unfortunately have found the farm to be unviable due to its size, location and soil type. Previous occupants of the dwelling did not farm the land to any extent and without exception, from 1980, all the occupant's main income was not from farming the land.
Mr and Mrs Bennett have been trying to sell Rhenny Mooar for over 2.5 years as they now need to live in a dwelling which is more manageable and less remote. As they have also retired from any remunerated employment, they cannot manage the concerns of having to run a small unprofitable farm. The reasons for the lack of offers is due to the planning condition "The dwelling must be occupied by a farm worker or a person engaged in agriculture and such tenancy must be subject at all times to enquiry and approval by the Planning Committee" and also because the structure of the agriculture industry has changed enormously in the last 40 years.
It is not only important to Mr and Mrs Bennett that the occupancy condition is removed so that they can sell the property but more importantly, that the dwelling is occupied so that it does not deteriorate and that the land is managed properly especially now that the Isle of Man is an UNESCO Biosphere region.
Caroline Perry Island Land-Based Services Limited Isle of Man
November 2019
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