News

18 Jul 2018

English farmland market getting tougher

The latest estate and farmland market review prepared by Strutt and Parker suggests that the market for farmland in England is getting tougher, despite average land values rising over the first half of 2018.

Michael Fiddes, head of estates and farm agency at Strutt and Parker, states within the report that a significant proportion of land marketed over the past year is still available or has been withdrawn.

“The market remains incredibly polarised with location and farm type, rather than quality, remaining the key drivers of the price achieved,” says Mr Fiddes.

“Land is still achieving excellent prices in areas with tight supplies and where buyers are funding the purchase using money from outside of farming. However, in areas where farmer buyers dominate, prices are noticeably lower.

“The range of prices paid for arable land over the past six months goes from £6,800 to £15,000/acre.”

It comes as no surprise that the sector is facing these challenges and it’s something that is likely to continue until there is greater certainty about the impact of policy changes on the agricultural sector.

Summary of findings from the report:

• In total 44,200 acres have been publicly marketed nationally during the first half of 2018, less acreage than in the same time frame during both 2017 and 2016
• The trend for farms to be sold off-market/privately continues
• Buyers with funds generated outside of farming have bought a third of the farms sold in 2018, with the majority of purchases in the south of the country
• Over a third of the farms marketed in 2017 either remain available or have been withdrawn from the market
• £9,900/acre is the average price of arable land sold in 2018 so far
• Pasture prices continue to rise, with an average of £8,100/acre paid in 2018

Note: This does include sales of parkland, which can attract a premium, and also excludes any sales under 100 acres

The full report from Strutt and Parker can be read here.

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