Farmers could lose thousands under new National Grid agreements

Farmers with electricity infrastructure on their land are being warned they could lose thousands of pounds if they rush into signing new agreements with National Grid.

The company has asked landowners with infrastructure on their land to sign a new wayleave agreement as part of a record updating exercise.

But surveyor Hamer Associates warned this could bind the landowner to a limited annual payment, with no compensation for potential loss of earnings if the land had future development potential.

In additional, National Grid is offering some landowners one-off sums of 20 times their annual wayleave payment – which could remove the right to future compensation for loss of earnings.

Farmers advised to ‘future-proof’ their land value

Nick Marshall, associate director at Hamer Associates, advised landowners who had received National Grid letters to read the wayleave documents carefully and seek professional advice before signing.

“[Landowners] may see the opportunity to have an annual payment or the one-off 20 times sum and just take it without really thinking it through. In fact, that’s what many have done already.

“In accepting the one-off 20-times payment they are potentially signing away the chance to gain compensation for a loss of future development opportunities.”

In February 2015, farmers were warned they could lose thousands of pounds in pylon compensation depending on the method used to calculate it. 

Sam Blaize, surveyor at Hamer Associates, said landowners needed to “future-proof” the value of their land if it had development potential.

Land would be worth less to a developer if it had electricity infrastructure such as pylons on it because it would limit the number of houses that could be built. 

To avoid this loss of earnings, Mr Blaize said landowners should ensure their wayleave agreements could be terminated annually if needed, or that compensation would be possible.