Volume of farmland for sale hits 10-year low
Less than 16,000 acres of land has been publicly launched in England over the past three months, which means that across the whole of 2019 supply is down more than 40% against 2018 levels. Our farm agency team predicts that little is going to be marketed before the end of the year.
However, this significant drop in supply is acting as a counterbalance to weaker demand – particularly from farmers needing to borrow to fund an acquisition – keeping average prices relatively static.
Land is still selling, and in some instances selling very well, despite the market sentiment being one of caution. Well over half of the land marketed in the first six months of 2019 has already sold or is currently under offer, which is the same proportion as had sold at this time in 2018 (56%). The average price of arable land sold in 2019 is £9,100/acre, which is only marginally lower than it was 12 months ago.
The range in prices paid remains wide, with the value being driven by location, rather than the productive capacity of the land itself. If there is a take-home message on pricing, it is that there are extremes at either end of the spectrum, but less arable land is now selling for £10,000+/acre and much more for around £8,000/acre. This makes knowing who the active buyers are in your area, and wider, even more important so that your farm can be presented to them in the best way to attract a high offer.