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With the election now way behind us and the Bank of England reducing the base rate, what we are now seeing in the farmland market is a return to regularity.
George Alder, Partner and Head of Stags Farm Agency Department, comments “The market trend has seen buyer demand returning to normal levels and prices remaining firm with minimal change, except some local variations. More noticeably there has been an increase in the number of farms available on the market in comparison to previous years, giving buyer’s greater opportunity to be more selective in some parts of the region.”
The key market trends we are now seeing are as follows:
The market for more residential farms continues to remain buoyant, particularly from buyers drawn to the West Country. Recently, Westacott Farm, 70 acres and a farmhouse for renovation in West Devon, attracted 31 viewings and sold at auction in excess of the guide price range of £900,000 to £1.1m. Buyers were attracted by the rural location and also having the opportunity to renovate the farmhouse and buildings into their dream home.
The market for larger, commercial farms remains positive, particularly for first class farms in good locations, seeing strong demand from buyers with rollover funds. Despite the effect of agricultural policy transition, challenging costs, and weather, we are seeing very few commercial farms come to the open market, leading towards a tight supply. An example of this was 250 acres of arable land with two cottages, situated in South Devon, which was agreed in excess of the guide price.
The commercial land market continues to remain robust and resilient against flat economic growth and changes to agricultural policy, particularly the larger sized parcels in excess of 20 acres. We have seen strong interest in these larger parcels with the farmer buyers still keen to expand and taking a long-term view. Recently, 63 acres of productive arable and pasture land sold near to South Brent for over 10% of the guide price of £560,000.
Smaller parcels of land, particularly those on the edge of towns or villages, which offer amenity or equestrian appeal, continue to attract a strong interest and very often sell in excess of the guide price. A recent example includes a 2.75 acre grass paddock and store just outside of Combe Martin, selling at auction for 15% over the guide price of £65,000.
Going forward, we are expecting the market to continue to improve, particularly as we are now seeing buyers from outside the region agreeing sales on their own farm or property and then looking to relocate to the South West. As there have been more farms on the market in comparison to previous years, presentation of property and pragmatic pricing is important.
For those considering their future options Stags Farm Agency would be pleased to help, contact our knowledgeable team on [email protected] or 01392 680059.
To view our current farms and land on the market now, visit our sales page here.
