‘Size does matter’ as smaller farms put up for sale increases
FARMS under 250 acres made up more than three quarters of those publicly put up for sale in the East Midlands last year, according to the latest figures.
The research has been compiled by Savills, whose agents say it is reflective of the “race for space” which has been seen since the pandemic.
According to the figures, 78 per cent of the farms publicly marketed last year across the East Midlands were between 50 and 250 acres, with 20 per cent 250-499 acres, and two per cent between 500 and 999.
The 2021 figures for all farm sizes are broadly in line with recent years, but for farms of under 250 acres there has been an increase over the last decade. In 2011, farms under 250 acres accounted for 68 per cent of sales across the region, while 2015 was 69 per cent and 2016 was 70 per cent.
Henry King, associate in the East Midlands based rural agency team at Savills, said: “A product of various lockdowns has been the well reported ‘race for space’ by urban buyers seeking rural living or indeed a complete change of lifestyle – meaning that the desire for smaller farms and land holdings has remained strong in recent years.
“Over the past couple of years we’ve sold a number of these for this purpose, as well as blocks of unequipped bare land.
“Some of this demand has come from those looking for property to accommodate tourism and leisure businesses – such as wedding venues and glamping pods – or rural enterprises where value can be added, for example ice-cream production, cider making or online flower delivery.
“There are also farmers in the market for small units where they can diversify, as well as new urban buyers keen to reemploy their business and marketing skills within a rural setting.”
Nationally, of the farms which came to the open market last year, Savills Research found that 75 per cent were holdings of 50-250 acres, in essence 517 ‘small’ farms.
Meanwhile, 44 per cent of marketed holdings were 50100 acres in size.
Mr King added: “It is easy to get distracted by headline grabbing deals involving large farms and estates of 1,000 acres or more. But these are not the norm. Indeed, in Great Britain, year after year, the sale of holdings sized 50 – 250 acres far outnumbers larger farm sales.
“Our Farmland Value Survey reveals the strength of demand for farmland holdings of all sizes, with an increasingly diverse range of buyers competing in a scarce market.
“This supply-demand imbalance saw average GB farmland values rise by 6.2 per cent to £7,180 per acre last year, the strongest annual growth since 2014, with poorer and average quality livestock land leading the way with price growth of 8.8 per cent and 8.7 per cent respectively in the year to December 2021.
“Given the increasingly diversified nature of demand, we now regularly let larger properties to create smaller farms which we can promote to a targeted and distinct groups of buyers.
“Indeed when it comes to selling your farm, size does matter and small is often mighty.”