Commercial property loan valuations in the UK : the changing landscape of practice and liability

This paper is the first of two which aim to examine the major legal liability implications of changes to the commercial property loan valuation process caused by the recession in the UK property market and to make recommendations to valuers and their professional institutions to improve the quality of the process and the result. This paper identifies the market background to commercial property lending and discusses the implications of the falls in value for lenders and valuers. These include two major strands; first, the outcome of discussions between the representative bodies of these two groups and, second, the increasing litigation caused by lenders suing valuers for professional negligence. The discussions between representative groups have driven a debate on the valuation process leading to a number of reports and guidance notes. This paper discusses the outcomes paying particular attention to the basis of valuation for loan purposes and the provision of additional information in valuation reports. This paper also reviews the legal framework which influences the relationship between the lenders and valuers and discusses the duty of care. The role of instructions in the valuation process, the significance of the identity of the person to be advised and the possibility of a conflict of interest arising are all considered. The paper also addresses the issue of the standards required of a commercial loan valuer, including how this is interpreted by the courts and the legal status of professional guidance notes. The paper concludes by identifying potential areas for dispute within the loan valuation process and raising a number of research questions concerning the operation of this process which are addressed in a following paper.

Measuring societal awareness of the rural agrarian landscape: indicators and scale issues

The work presented in this report is part of the effort to define the landscape state and diversity indicator in the frame of COM (2006) 508 “Development of agri-environmental indicators for monitoring the integration of environmental concerns into the common agricultural policy”. The Communication classifies the indicators according to their level of development, which, for the landscape indicator is “in need of substantial improvements in order to become fully operational”. For this reason a full re-definition of the indicator has been carried out, following the initial proposal presented in the frame of the IRENA operation (“Indicator Reporting on the Integration of Environmental Concerns into Agricultural Policy”). The new proposal for the landscape state and diversity indicator is structured in three components: the first concerns the degree of naturalness, the second landscape structure, the third the societal appreciation of the rural landscape. While the first two components rely on a strong bulk of existing literature, the development of the methodology has made evident the need for further analysis of the third component, which is based on a newly proposed top-down approach. This report presents an in-depth analysis of such component of the indicator, and the effort to include a social dimension in large scale landscape assessment.

The implications of the 2003 Common Agricultural Policy reforms for land use and landscape quality in England

The assessment of the potential landscape impacts of the latest Common Agricultural Policy reforms constitutes a challenge for policy makers and it requires the development of models that can reliably project the likely spatial distribution of land uses. The aim of this study is to investigate the impact of 2003 CAP reforms to land uses and rural landscapes across England. For this purpose we modified an existing economic model of agriculture, the Land-Use Allocation Model (LUAM) to provide outputs at a scale appropriate for informing a semi-quantitative landscape assessment at the level of ‘Joint Character Areas’ (JCAs). Overall a decline in the cereal and oilseed production area is projected but intensive arable production will persist in specific locations (East of England, East Midlands and South East), having ongoing negative effects on the character of many JCAs. The impacts of de-coupling will be far more profound on the livestock sector; extensification of production will occur in traditional mixed farming regions (e.g. the South West), a partial displacement of cattle by sheep in the upland regions and an increase in the sheep numbers is expected in the lowlands (South East, Eastern and East Midlands). This extensification process will affect positively those JCAs of mixed farming conditions, but it will have negative impacts on the JCAs of historically low intensity farming (e.g. the uplands of north-west) because they will suffer from under-management and land idling. Our analysis shows that the territorialisation between intensively and extensively agricultural landscapes will continue.

Long-distance dispersal and its influence on adaptation to host resistance in a heterogeneous landscape

Small propagules like pollen or fungal spores may be dispersed by the wind over distances of hundreds or thousands of kilometres,even though the median dispersal may be only a few metres. Such long-distance dispersal is a stochastic event which may be exceptionally important in shaping a population. It has been found repeatedly in field studies that subpopulations of wind-dispersed fungal pathogens virulent on cultivars with newly introduced, effective resistance genes are dominated by one or very few genotypes. The role of propagule dispersal distributions with distinct behaviour at long distances in generating this characteristic population structure was studied by computer simulation of dispersal of clonal organisms in a heterogeneous environment with fields of unselective and selective hosts. Power-law distributions generated founder events in which new, virulent genotypes rapidly colonized fields of resistant crop varieties and subsequently dominated the pathogen population on both selective and unselective varieties, in agreement with data on rust and powdery mildew fungi. An exponential dispersal function, with extremely rare dispersal over long distances, resulted in slower colonization of resistant varieties by virulent pathogens or even no colonization if the distance between susceptible source and resistant target fields was sufficiently large. The founder events resulting from long-distance dispersal were highly stochastic and exact quantitative prediction of genotype frequencies will therefore always be difficult.

Changing climate and the Irish landscape

The impacts of current and future changes in climate have been investigated for Irish vegetation. Warming has been observed over the last two decades, with impacts that are also strongly influenced by natural oscillations of the surrounding ocean, seen as fluctuations in the North Atlantic Oscillation and the Atlantic Multidecadal Oscillation. Satellite observations show that vegetation greenness increases in warmer years, a feature mirrored by increases in net ecosystem production observed for a grassland and a plantation forest. An ensemble of general circulation model simulations of future climates indicate temperature rises over the twenty-first century ranging from 1°C to 7°C, depending on future scenarios of greenhouse gas emissions. Net primary production is simulated to increase under all scenarios, due to the positive impacts of rising temperature, a modest rise of precipitation and rising carbon dioxide concentrations. In an optimistic scenario of reducing future emissions, CO2 concentration is simulated to flatten from about 2070, although temperatures continue to increase. Under this scenario Ireland could become a source of carbon, whereas under all other emission scenarios Ireland is a sink for carbon that may increase by up to three-fold over the twenty-first century. A likely and unavoidable impact of changing climate is the arrival of alien plant species, which may disrupt ecosystems and exert negative impacts on native biodiversity. Alien species arrive continually, with about 250 dated arrivals in the twentieth century. A simulation model indicates that this rate of alien arrival may increase by anything between two and ten times, dependent on the future climatic scenario, by 2050. Which alien species may become severely disruptive is, however, not known.

Abiotic drivers and plant traits explain landscape-scale patterns in soil microbial communities

The controls on aboveground community composition and diversity have been extensively studied, but our understanding of the drivers of belowground microbial communities is relatively lacking, despite their importance for ecosystem functioning. In this study, we fitted statistical models to explain landscape-scale variation in soil microbial community composition using data from 180 sites covering a broad range of grassland types, soil and climatic conditions in England. We found that variation in soil microbial communities was explained by abiotic factors like climate, pH and soil properties. Biotic factors, namely community- weighted means (CWM) of plant functional traits, also explained variation in soil microbial communities. In particular, more bacterial-dominated microbial communities were associated with exploitative plant traits versus fungal-dominated communities with resource-conservative traits, showing that plant functional traits and soil microbial communities are closely related at the landscape scale.

Flooding tolerance in four 'Garrigue' landscape plants: implications for their future use in the urban landscapes of north-west Europe?

Within a changing climate, Mediterranean ‘Garrigue’ xerophytes are increasingly recommended as suitable urban landscape plants in north-west Europe, based on their capacity to tolerate high temperature and reduced water availability during summer. Such species, however, have a poor reputation for tolerating waterlogged soils; paradoxically a phenomenon that may also increase in north-west Europe due to predictions for both higher volumes of winter precipitation, and short, but intensive periods of summer rainfall. This study investigated flooding tolerance in four landscape ‘Garrigue’ species, Stachys byzantina, Cistus × hybridus, Lavandula angustifolia and Salvia officinalis. Despite evolving in a dry habitat, the four species tested proved remarkably resilient to flooding. All species survived 17 days flooding in winter, with Stachys and Lavandula also surviving equivalent flooding duration during summer. Photosynthesis and biomass production, however, were strongly inhibited by flooding although the most tolerant species, Stachys quickly restored its photosynthetic capacity on termination of flooding. Overall, survival rates were comparable to previous studies on other terrestrial (including wetland) species. Subsequent experiments using Salvia (a species we identified as ‘intermediate’ in tolerance) clearly demonstrated adaptations to waterlogging, e.g. acclimation against anoxia when pre-treated with hypoxia. Despite anecdotal information to the contrary, we found no evidence to suggest that these xerophytic species are particularly intolerant of waterlogging. Other climatic and biotic factors may restrict the viability and distribution of these species within the urban conurbations of north-west Europe, but we believe increased incidence of flooding per se should not preclude their consideration.

Landscape, regional and global estimates of nitrogen flux from land to sea: errors and uncertainties

Regional to global scale modelling of N flux from land to ocean has progressed to date through the development of simple empirical models representing bulk N flux rates from large watersheds, regions, or continents on the basis of a limited selection of model parameters. Watershed scale N flux modelling has developed a range of physically-based approaches ranging from models where N flux rates are predicted through a physical representation of the processes involved, through to catchment scale models which provide a simplified representation of true systems behaviour. Generally, these watershed scale models describe within their structure the dominant process controls on N flux at the catchment or watershed scale, and take into account variations in the extent to which these processes control N flux rates as a function of landscape sensitivity to N cycling and export. This paper addresses the nature of the errors and uncertainties inherent in existing regional to global scale models, and the nature of error propagation associated with upscaling from small catchment to regional scale through a suite of spatial aggregation and conceptual lumping experiments conducted on a validated watershed scale model, the export coefficient model. Results from the analysis support the findings of other researchers developing macroscale models in allied research fields. Conclusions from the study confirm that reliable and accurate regional scale N flux modelling needs to take account of the heterogeneity of landscapes and the impact that this has on N cycling processes within homogenous landscape units.

Risk assessment of UK skylark populations using life-history and individual-based landscape models

Abstract: Following a workshop exercise, two models, an individual-based landscape model (IBLM) and a non-spatial life-history model were used to assess the impact of a fictitious insecticide on populations of skylarks in the UK. The chosen population endpoints were abundance, population growth rate, and the chances of population persistence. Both models used the same life-history descriptors and toxicity profiles as the basis for their parameter inputs. The models differed in that exposure was a pre-determined parameter in the life-history model, but an emergent property of the IBLM, and the IBLM required a landscape structure as an input. The model outputs were qualitatively similar between the two models. Under conditions dominated by winter wheat, both models predicted a population decline that was worsened by the use of the insecticide. Under broader habitat conditions, population declines were only predicted for the scenarios where the insecticide was added. Inputs to the models are very different, with the IBLM requiring a large volume of data in order to achieve the flexibility of being able to integrate a range of environmental and behavioural factors. The life-history model has very few explicit data inputs, but some of these relied on extensive prior modelling needing additional data as described in Roelofs et al.(2005, this volume). Both models have strengths and weaknesses; hence the ideal approach is that of combining the use of both simple and comprehensive modeling tools.

The influence of anthropogenic landscape changes on weather in south Florida

Using identical observed meteorology for lateral boundary conditions, the Regional Atmospheric Modeling System was integrated for July-August 1973 for south Florida. Three experiments were performed-one using the observed 1973 landscape, another the 1993 landscape, and the third the 1900 landscape, when the region was close to its natural state. Over the 2-month period, there was a 9% decrease in rainfall averaged over south Florida with the 1973 landscape and an 11% decrease with the 1993 landscape, as compared with the model results when the 1900 landscape is used. The limited available observations of trends in summer rainfall over this region are consistent with these trends.