Sales surge points to rising confidence
Following a slow start to the farmland market this year, it has since evolved with good levels of activity for public and private sales, and there have been notable value increases.
Analysis by Savills rural research shows there are early signs that the theme of low supply is beginning to ease. A total of 58 per cent more farmland was publicly marketed in the first half of 2021 than in the same period in 2020, which for obvious reasons was an exceptional year.
This suggests previous uncertainties surrounding trade deals and the agricultural transition are making way for renewed confidence, allowing farmers to make informed business decisions.
Demand, based on our applicant numbers, remains strong. The pool of potential buyers is growing more rapidly than before, with 28 per cent more registered at the half year point compared to the same period in 2020.
According to our research although values increased for all land types, average livestock and poorer quality livestock land outperformed with 3 per cent and 3.2 per cent growth respectively. This means that values for average livestock land have almost returned to peak levels last seen in 2015.
In part, this may be a result of amenity buyers looking to acquire smaller plots of land fuelled by the desire for more outdoor space following the pandemic.
Rhydian Scurlock-Jones, rural director at Savills in the West Midlands
