Non-farming buyers set the pace in farmland market
The farmland market has proved more resilient than many might have predicted considering the Brexit-related uncertainties and practical challenges posed by the weather over the past 18 months. Despite an increase in the supply of farmland in the market, average prices have remained stable.
The average price of arable land in England rose by 2% in 2018 to £9,400/acre; this is down from its peak in Q2 2015 by £1,300/acre, but only a little below the five-year average.
Of course the big question on everyone’s lips is what happens now?
The Agriculture Bill, published in September, confirmed the government’s intention to phase out support payments over a seven-year period and much has been made of the negative impact this could have on land prices. This is set against continuing uncertainty, as we write, over our leaving of the European Union.