Property
Competition for farmland hots up in busy market
• Demand for land outstripping supply • Market most active in last four years • Range of buyers looking to purchase
ngland’s farmland market is busier than it has been for some time, with many farms and estates attracting mul- tiple bidders and selling for more than their guide price. Matthew Sudlow, head of es- tates and farm agency at land and property specialists Strutt & Parker, says the market is more active than it has been for four years. Demand is generally out- stripping supply, he adds. “It is not only the housing mar-
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ket that is busier than it has been for years, our agents involved with selling and buying farms and estates are also seeing strong demand. We are currently seeing multiple buyers for most of the farms we are selling.
Private sales
“Some prime properties are sparking bidding wars and sell- ing for well in excess of their guide
Matthew Sudlow: Strong for farmland
price. We have even seen some examples of gazumping, which is something we have not seen in the farmland market for the past five years.”
One farm marketed recently by Strutt & Parker attracted bids
from 31 bidders and went under offer for £1m more than its guide price. Another farm went under offer within a week of it being put on the private market.
“Over 70% of farms and es- tates that have sold in recent months have exchanged hands for more than their guide. One of the factors behind this is the wide range of buyers currently looking for land.” Farmers, lifestyle buyers, pri- vate and green investors are all in the mix, says Mr Sudlow.
Database Strutt & Parker’s Farmland Da- tabase, which records the details of all farms, estates and blocks of publicly marketed farmland in England over 100 acres in size, shows 30,400ha of farmland came to the open market in the second quarter of 2021 This was well up on the 5,800 acres marketed in the first quar- ter, although cumulatively the first half of the year is still be- low the five-year average. In to- tal, 110 farms were publicly mar- keted during the first half of the
year – just below the five-year average of 120.
But a significant amount of land is being marketed private- ly, with private sales now estimat- ed to account for up to 50% of land sold in some regions. This means supply is higher than it first ap- pears, although in historical terms total volumes are still low. The range of prices paid for both arable and pasture land re- mains large. Land achieving the highest prices tends to be in are- as popular with lifestyle buyers or private investors, such as south- east England and the Cotswolds. The proportion of farms bought
by lifestyle buyers and private in- vestors rose to its highest level on record – accounting for 45% of transactions in 2020. Non-farm- ers are now the main type of buyer in the south east and south west of England.
Arable land has sold for be- tween £6,800 and £15,800/acre across the first six months of 2021 (H1), with a Q2 average of £9,000/ acre. Pasture has sold for between £3,000 and £10,000/acre in H1, with an average of £7,100/acre.
Farms offer helping hand for health
he pivotal role played by East Anglia’s countryside in boosting people’s well- being is highlighted in a new survey. Almost nine out of 10 (88%) people ques- tioned in towns and cities across the region said that visiting the countryside and farm- land over the past year had improved their physical or mental wellbeing. Just over half (51%) said it helped to improve both. More than one third (36%) said they spent more time in the countryside during lockdown and 45% said they had a greater apprecia- tion of the British countryside and farmland than they did a year ago.
T NFU Regional Director Gary Ford said:
“For much of the lockdown, visiting the coun- tryside was the only recreation and exercise many people were able to enjoy. It’s hearten- ing to discover this really has boosted the na- tion’s health and wellbeing.
72 ANGLIA FARMER • AUGUST 2021
“The survey confirms that connecting peo- ple with rural areas they may never have visited before can leave a long-term positive legacy of greater appreciation of the country- side as well as, importantly, improving health and wellbeing.
“Countless popular rural tourist spots throughout East Anglia are located on work- ing farmland, and farmers work hard to main- tain footpaths and public rights of way so visitors can enjoy our beautiful countryside. “Recognising this, and to inform visitors using footpaths of what is happening on farm- land, we have created a suite of new footpath signs that enable people to see what’s grow- ing, or grazing, in fields.” The role farmland plays in boosting phys- ical and mental wellbeing is highlighted in the NFU’s Levelling Up Rural Britain report, launched in February.
Gary Ford – Countryside has many benefits
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