West’s farmland market holds up amid Covid crisis
FARMLAND values held firm throughout the uncertainty brought by the coronavirus pandemic, according to the latest figures, with Westcountry farms and estates in particular capturing the hearts of non-local buyers.
Analysis of the Strutt & Parker Farmland Database, which keeps a record of the details of all farms, estates and blocks of publiclymarketed farmland in England over 100 acres in size, shows the average price of arable land was £9,300/acre, with the average price of pasture at £7,200/acre.
About half of the arable land sold in 2020 made £8,000-10,000/ acre, with about 30% selling for £10,000/acre or more.
Matthew Sudlow, head of estates and farm agency at Strutt & Parker, said a “combination of low supply and sustained demand” meant that average prices remained firm throughout the year. “Indeed, the consistency of average prices in recent years is a remarkable story - with the 2020 average arable price of £9,300/ acre exactly the same as the fiveyear average,” he added.
“However, there is a significant range in values between the top and bottom of the market - from £5,200/acre to £17,500/acre - with the location and consequently a property’s appeal to lifestyle or other non-farmer buyers being a critical factor.”
In the second half of 2020, there was “strong interest” in residential farms and estates, Mr Sudlow said, “particularly in the South and West of England”, from buyers seeking a change in lifestyle as a result of the Covid-19 pandemic.
He explained: “Rollover buyers, along with private investors, do continue to be active in many regions, viewing farmland as a safe, long-term investment. We have also had increased numbers of enquiries from overseas.
“But at the same time, there are now instances where some of the best quality land is selling for the least amount of money, because it is located in less appealing areas to non-farmer buyers.”
William Morrison, head of estates and farm agency in the South West, said he is seeing lots of interest from buyers in the South East looking to relocate to the region: “In the past two weeks alone, I’ve taken calls from some very motivated buyers who are currently South East-based and are keen to get down here.
“Some are farmers who have sold development land and are looking to reinvest their capital in an asset that they know and understand. Others are lifestyle buyers who are seeking a change of lifestyle and also to invest in something they can pass to future generations.”
The South West is one region where there has been an increase in the number of private deals, Mr Morrison explained, with rising numbers of sellers choosing not to market their farms and estates publicly. “This makes it really important that buyers do talk to their local agents, so they can be alerted to suitable off-market opportunities as they arise.”