News

31 Jan 2019

Lifestyle buyers now acquiring more farmland than farmers

For the first time ever, more than half of all farmland purchases have been acquired by lifestyle buyers, investors and wealthy individuals.  

According to Strutt & Parker, farmland values in 2018 were, in the face of Brexit-related uncertainties and unpredictable weather, more resilient than many had predicted.

The ranges in land value had also increased significantly, as buyers were willing to pay more for location than land quality.

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Strutt & Parker’s Farmland Database has suggested that the average arable land prices in England increased by 2% in 2018 to £9,400/acre, and although £1,300/acre down from its Q2 2015 peak, the value was only slightly south of the five-year average.

However, at a local level, the range on land value prices was quite substantial with prices recorded as low as £4,575/acre and as high as £15,000/acre.

“Our data confirms that over the past two years non-farmers have played an increasing role in the market,” said Strutt & Parker’s head of estate and farm agency, Michael Fiddes. 

“Land in the right location remains in considerable demand for capital investment for many non-farming reasons, including development potential, privacy, tax reasons, or amenity.”

It’s clear that the proportion of land bought by existing farmers is reducing year-on-year with declines in farm profitability and concerns over future changes to support payments meaning that farmers have taken a more cautious approach toward buying land, Mr Fiddes said.

“However, the most entrepreneurial farmers remain in the market for more land if it is in the right location and at the right price.

“History shows that in times of uncertainty around CAP reform, supply of land in the market has tightened,” he said.  

“Overall, we expect that in 2019 and 2020 we could see a decrease in average farmland prices, but that growth will return from 2021 onwards.”

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