Rural Report 2017: Spotlight on the West Country’s farmland markets

Somerset & Dorset

We are experiencing good activity in these counties with demand for both large and small blocks of land.

Significant interest is currently being generated in two blocks of land of over 100 acres we have recently launched from farmers. Most of the interest is from within a 10-mile radius and is from landowners and neighbouring farmers all looking to expand their existing acreage and some looking to create a new standalone farmstead. Prices being achieved are in excess of £9,000/acre. It is also clear that many smaller farmers are looking to dispose of blocks of between 10 and 30 acres to their neighbours to settle debts and keep the banks happy.

William Morrison 

Contact William 

Devon & Cornwall

A quick assessment of the recent RICS sales returns shows a greater number of sales of small blocks of land being reported in Devon than many of the other counties in the UK.

This clearly shows that farmers are selling parcels from 10 to 40 acres, whereas in the rest of the UK it is mainly larger blocks of land. It is predominantly smaller farms who are selling in order to raise cash to meet the demands of their banks. This raises the question whether this leaves them with a viable holding. Most of these sales are to neighbouring farmers expanding their acreage, residential purchasers occupying them for pony paddocks or as amenity land beside their house. Demand remains good for all land in Devon and the larger blocks of land, particularly with houses, are attracting a good premium and significant interest.

William Morrison 

Contact William 

The Cotswolds

Despite the recent plateau in land prices, the Cotswolds land market has continued to thrive. The area remains extremely popular and demand has continued to outstrip supply.

This has helped to keep prices strong, with competitive bidding from special purchasers or interested neighbouring landowners often also helping. However, as with many other areas in the country, the market continues to be variable. Good quality land in favourable locations has seen high levels of interest and achieved strong prices. Blocks of lesser quality land, or land that is blighted in some way, have not achieved the same levels of interest or prices. Purchasers have become more sensitive in terms of what return on investment is being achieved, a few years ago this would have been of less importance. Recent transactions in the Cotswolds have seen Grade 3 arable land making in excess of £10,000/acre and traditional pasture reaching up to £8,000/acre.

Hollie Byrne 

Contact Hollie 

The Three Counties

Over the past 12 months we have seen that price sensitivity is key in Gloucestershire, Herefordshire and Worcestershire. Setting a realistic guide price from the outset is essential in achieving a successful sale.

Adding to this, the recent triggering of Article 50 has created further uncertainty and will provide challenges for the UK agricultural industry going forwards. However, agricultural land remains a strong asset with various advantages for investors. We continue to see strong investor demand along with lifestyle purchasers and agricultural expansion – with stock levels remaining short the demand is outweighing supply.

We have seen through recent sales, figures for quality arable land reaching between £8,000 to £9,500/acre. Presentation to the market, location, quality of land and acreage are all factors which are key in terms of saleability. As the spring market kicks off and the English countryside comes into its own, we anticipate a strong year ahead.

Will Kerton 

Contact Will