In 2023, the total number of vineyards registered in the UK exceeded 1000 for the first time. This statistic represents the ever-increasing demand for British wines such as Chapel Down, which has been facilitated by the warming climate, turning Southern England into a favourable site for viticulture. The opportunity to acquire a vineyard or winery may be lucrative, but it also involves a complex process, requiring specialist advice.
There are a multitude of options available for farmers, landowners and wine producers to enter into or expand their presence in the industry. They could buy freehold land to provide themselves with as much security and control as possible. They may decide to enter into a Farm Business Tenancy, which could be more suitable for smaller businesses. Such an agreement would require extensive negotiations between landlord and tenant to protect their relative interests. They could also decide to buy an already-established winery.
Substantial legal due diligence is recommended if acquiring an interest in land with the aim of using it for viticulture. Extensive searches will check for risks such as contamination, flooding, and planning permission requirements. More specifically, it will be important to ensure that the appropriate planning permission is obtained, for example for change of use. If the land is in a conservation area, there may be tighter restrictions on permissible development. The potential consequences of non-compliance with planning requirements should prompt any prospective buyer to seek legal advice.
Legal assistance will also uncover any adverse rights owed to third parties, such as rights of way, as well as restrictive covenants. This may include a prohibition on the land being used for the production or sale of alcohol. This will be made more complicated if the land has not yet been registered at the Land Registry. In such cases a buyer’s solicitor will assess whether such rights will be enforced and advise on appropriate safeguards to ensure any intended developments can go ahead unencumbered.
Apart from giving careful thought to the financial viability of running the vineyard (in conjunction with your accountant); and finding out what government grants and subsidies may be available or which may need to be assigned or novated the buyer (in conjunction with your land agent); it is important to ensure that there is sufficient water and irrigation available and what water abstraction licences are in place or which may be required.
If you are interested in buying land to be used for viticulture or any other agricultural development, or have any other query relating to agricultural land, please call our office on 01206 764477 and ask to speak to a member of the Rural Affairs team, who will be pleased to assist.