Farmland prices ‘holding up’

Farmland supply is tight and prices are holding up due to the uncertainty posed by Brexit, claims Savills.

According to the land agency firm, 39,400 acres of land were offered for sale on the open market last year, representing a 12% decrease on the amount forward the year before.

“With fewer opportunities to purchase, demand was concentrated on the limited acreage launched to the Scottish market last year with more buyers coming from all over the UK,” said the company’s head of rural agency, Charles Dudgeon.

“Of the 311 buyers who viewed farms launched by Savills in 2017, 38% originated from outside Scotland, up by 15% on the previous year.”

He said market activity was particularly focused in the north-east and south-west of the country, and Dumfries and Galloway was the only region in Scotland to experience an increase in the number of acres advertised – up 17%.

The Savills Farmland Value Survey reveals that during the first nine months of 2017, the average value of prime arable land was £7,690 per acre.

This compares to a British average of £8,940 an acre.

Looking ahead to market prospects for 2018, Mr Dudgeon said appetite for land remained strong, particularly for quality, well-equipped holdings that were fairly priced.

The outlook for the farmland market in 2018 remains positive, according to Savills.