Pockets of strength, but prices a postcode lottery
Farmland prices proved remarkably resilient in 2017, defying those commentators who predicted sharp falls in the immediate aftermath of the Referendum result.
While the uncertainty surrounding Brexit has taken some of the heat out of the market,the average value of arable land climbed during the last two quarters of 2017.
The average price in Q4 2017 was £9,900/acre, 8% higher than it was in Q3 and taking the average for the whole year to £9,300/acre.
However, we continue to see a wide range in prices paid – from a high of £16,500/ acre for arable land to a low of £6,000/acre. The amount of land selling for more than £10,000/acre also dropped to less than a third in 2017, compared to nearly 50% three years ago. Additionally, a significant proportion of land marketed during the year remains without a buyer.