Scotland’s farmland supply increases

    Savills latest Agricultural Land Market Survey reveals that the volume of farmland publicly marketed in Scotland increased by 25% in 2012, amounting to a total of 38,800 acres. This compares to a -14% reduction in the supply of farmland across the whole of Great Britain.

    The supply in Scotland was higher last year than it has been since 2008, when 39,000 acres were publicly marketed. This increase is very welcome, but the total is a long way short of the peak in 2000, when over 100,000 acres were advertised.

    Our current registered buyers have a combined total of £1.2 billion to spend on Scottish agricultural property, but they remain extremely discerning and value-driven. The additional farmland on the market increases the likelihood of buyers meeting their specific requirements. Many are looking for larger, commercially viable farms, and these remain scarce.

    According to Savills survey, private sales continue to be a feature of the UK market.  Analysis of 2012 rural deals in which Savills acted for either buyer or seller reveals that around one quarter of the acreage available to buy was not publicly marketed but was registered with agents privately.

    Demand from existing farmers continues to dominate the UK farmland market, representing 50% of buyers and 46% of sellers last year, according to the survey. Expansion of farms was the strongest motive behind transaction, accounting for 44% of cases. Around 70% of purchases were funded by cash.

    The presence of non-farming, lifestyle buyers continues. However, the proportion of these buyers, who are making their first purchase of land, farm or rural estate, is at its lowest level since 1998.

     
     

    Key contacts

    Charles Dudgeon FRICS

    Charles Dudgeon FRICS

    Director
    Rural Sales

    Savills Edinburgh

    +44 (0) 131 247 3702

    +44 (0) 131 247 3702