Our 2010 survey results show that the average net income (before depreciation, finance, drawings and tax) increased by 4.8% during 2010 to £108 per acre (£267 per ha). This reflects an easing back from the strong upward trend of the past decade (see Graph 6 in the gallery).

The fact that net income rose at a greater rate than gross income is explained by a more efficient management of costs. Property repairs, a significant cost representing over 20% of gross income, fell by -2.1% to £39.50 per acre (£98 per ha), relieving some of the upward pressure recorded over the past few years.

Rising costs

Total management costs (cost of estate office plus management fees) increased 6.6% in 2010 and on the average estate represent 11.8% of gross income (£22 per acre (£54 per ha)).

All other estate costs increased 3.9% to £19 per acre (£47 per ha) in 2010. These include insurance costs, which increased by 6.6% to £4.60 per acre (£11.40 per ha). This reflects the higher capital sums requiring insurance, including better residential stock. This is set to continue with the increased levels of Insurance Premium Tax (IPT) announced in the budget.

Taken from
Estate Benchmarking Survey 2010