Land, Farms & Estates Market Update

    Savills latest research examines the farmland market over the whole of 2010 and reveals a year of rising values in the face of tight supply and strong demand.

    The amount of farmland publicly marketed across Great Britain increased by 11% compared with 2009, to 158,000 acres. However, this increase was concentrated in Scotland (where it rose by 35%) and Wales (65%); in England supply remained unchanged, at 107,000 acres.

    The average value of grade 3 arable land across Great Britain increased by 11%, to £5,250 per acre, compared with 7.2% in 2009. But this average conceals regional variations: values increased by 11.7% in England and 5.8% in Scotland, while there was significant growth of 23.5% in the North of England, 18% in the East and 14% in the East Midlands.  That said, we have seen some record prices in the market place and in certain circumstances, prices of £10,000 an acre and more have been achieved.

    This growth was underpinned by continued strong demand. Farmer buyers accounted for 56% of purchasers, compared with 61% in 2009. Institutional and corporate buyers increased to 9.6% (from 3.9% in 2009), suggesting the investors are once again competing with farmers. Indeed, 31% of purchasers cited investment as the reason for buying. With 94.4% of buyers being British, overseas buyers accounted for just 6% of purchasers, compared with 22% in 2006.

    There was little change in seller profile from 2009: 47.5% of vendors were farmers (up from 46.7%), 37.5% were lifestyle landowners (38.3%) and 15% were institutional (14.8%). However, the primary reasons for selling did alter, with more investment-linked sales: 33.3% of sales were in order to invest elsewhere.

     
     

    Key contacts

    David Cross

    David Cross

    Director
    Farm Agency

    Savills Salisbury

    +44 (0) 1722 426 813

    +44 (0) 1722 426 813