Agency Update

    Points of interest from the current rural market

    Bragborough Hall

    This classic residential/agricultural estate at Braunston, Northamptonshire, marketed at a guide of £7 million, is notable for its remarkably swift sale. When a deal agreed in late autumn collapsed, we remarketed the estate in midwinter, when traditionally the market is inert. Yet we agreed a sale on Christmas Eve and exchanged contracts at the end of January – an unusually quick turnaround for a comparatively complex property.

    This success is largely due to Savills thorough knowledge of buyers; our comprehensive database and close relationship with potential purchasers gives us a head start in matching buyers to properties.

    Farmland – Supply and demand

    The number of buyers continues vastly to outweigh the amount of land coming to the market. Less land being offered for sale plus a huge demand for such a secure asset should result in stiff competition, which will push up values in the coming quarter – it certainly will for the best quality land.

    Much of this competition stems from the dominant ‘big investor names’: substantial investors – both private and institutional – with budgets of £10 million–£20 million looking for large parcels of land which they can buy discreetly, preferably off-market.

    Our particular concentration on cash buyers allows swift and discreet deals to be achieved. Estate buyers are often comparatively opportunistic – they don’t have to buy, but are happy to if the right opportunity arises. They don’t want to delay, and neither do we.

    Mind the gap

    The discrepancy in value between the best and the least good farmland is marked, with headline sales exceeding £10,000 but average prices of about £6,000 per acre. We expect this gap to widen as demand for the best land continues to boost values while the market for poorer or average quality land levels off over the next year or so.

     
     

    Key contacts

    Alex Lawson

    Alex Lawson

    Director
    National Farms and Estates

    Savills Margaret Street

    +44 (0) 20 7409 8882

    +44 (0) 20 7409 8882

     

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