Quantity of farmland for sale rises

The quantity of farmland up for sale in Scotland grew by almost 50% last year, according to the latest research from land agents Savills.

This compares to a rise of just 16% across Great Britain.

While there was a marginal fall in all land values across Great Britain as a whole (-1.7%), values remained stable during 2015 across Scotland and the north of England.

Savil ls’ Perth-based estate management associate director Alastair Gemmell said supply was still relatively “constrained”.

“Following a long period of uncertainty, which has been fuelled by a poor economy, CAP changes and impending Land Reform, advertised farmland supply is now back to 2013 levels,” he said.

“However, we still remain in a period of historically low supply which continues to support the prices that are being achieved in Scotland.”

According to Savills’ research, farm expansion remains the predominant reason for buying farmland across the UK, as the need to achieve economies of scale becomes increasingly pressing, with 75% of farmers citing this as the key driver in their decision to buy.

Savills also suggest there is evidence that some farmers, especially those without successors, are taking advantage of current high land values to exit the industry.

Retirement was cited as the predominant reason to sell last year by 26% of sellers across Great Britain.

And despite the rise in UK bank lending to agriculture, the proportion of farmers selling for debt related reasons remains below 20%.

Mr Gemmell added: “There is bound to be uncertainty in buyers’ minds in the lead up to the referendum on EU membership, but in the meantime genuine purchasers will not miss an opportunity to buy good quality units.”

Alastair Gemmell of Savills.