The average value of arable land in England has risen to a record of £10,800/acre, with strong interest from private and institutional investors pushing up prices.
Our Farmland Database records the sale of all farms, estates and blocks of publicly marketed land in England over 100 acres. It is constantly updated as we receive new information on transactions. It shows that the average value of arable land is currently £10,800/acre, which is £200/acre more than Strutt & Parker reported at the end of 2022 and 15% higher than a year ago.
The average value of pasture land is £8,500 which is 13% higher than 12 months ago.
Private and institutional investors bought 33% of all the farms sold in 2022 – the highest level for at least a decade.
In total, they bought almost half of the agricultural land publicly marketed in England during 2022, demonstrating that at times of economic uncertainty and high inflation land does tend to be seen as a haven for capital.
The data highlights that nearly 70% of arable land in England sold for over £10,000/acre in 2022, compared to 33% in 2021. However, the range in prices achieved can still be wide with the highest value recorded in 2022 being £21,500/acre and the lowest being £6,000/acre.
84% of farms that exchanged in 2022 sold at, or over, their guide price, the highest proportion since 2000. Demand has been particularly strong for cereals farms.
Just 4,300 acres was brought to the open market during the first three months of the year which is the smallest amount for the past 20 years. However, we do expect the market to return to more normal levels in the spring and summer.
Read the full English Estates & Farmland Market Review – Spring 2023 for more detail on:
- Market outlook
- Supply
- Demand
- Pricing
Download a copy of the English Estates & Farmland Market Review – Spring 2023.
