Land agents say market holding up

The Scottish farmland market is holding up despite the uncertainty posed by Brexit and a possible second referendum on Scottish independence, according to land agents.

Research by Savills suggests there is not enough land to meet demand in Scotland.

The agency said commercial reality and value for money were “trumping politics”, and values were stabilising with strong prices continuing to be paid for the best quality land.

Jamie Wedderspoon from the firm’s farm agency team in Scotland said: “Investors appear to be encouraged by increased certainty with regard to CAP to 2020 at least.

“The exchange rate is helping UK farmland exports, which is reassuring potential buyers. It also means farmland is more affordable for international buyers.

“Meanwhile, buyers from the south are capitalising on the comparative value for money available in Scotland and the opportunity to purchase more acres for less.”

The property arm of north-east farmer’s co-operative ANM Group – Aberdeen & Northern (Estates) Ltd – said, despite pressures on the rural economy, realistic prices were being achieved and in some cases exceeded for a range of land and property types.

The firm’s senior associate James Presley said: “Our practical experience in the north and north-east market is that demand is often localised, with buyers from outwith the region occasionally being involved in larger and better-equipped farm transactions.

He said a recent example of this is a portfolio of 1,076 acres of equipped farmland they recently brought to the market which has already drawn interest from throughout the UK.

CKD Galbraith’s partner in charge of farm sales, Simon Brown, said the firm had launched six Scottish farms for sale in the past three weeks.

He said: “We are witnessing a good level of demand for both east and west coast properties that we have brought to market, and good quality land is attracting buyers who are happy to increase their gearing if the right property comes available.”

Values for upland farms had been underpinned by forestry interests, while arable land offered a flexible investment due to the option to set up contract farming agreements, added Mr Brown.

Investors appear to be encouraged by increased certainty with regard to CAP to 2020 at least. JAMIE WEDDERSPOON