Friday, June 5, 2020

Flurry of farmland sales show confidence in the East Midlands land market

Sales agreed on a series of farmland deals across the East Midlands during 2016 have demonstrated important indicators of demand, despite a year of political change and uncertainty – that’s according to Richard Gadd of Savills farm agency team in Nottingham.

He said: “During the first half of the year, supply was fairly limited and buyer interest was incredibly parochial which resulted in some exceptional sale prices at both the high and low end of the region’s range. The referendum delayed a number of purchasers who otherwise would have offered without delay, resulting in a more active autumn market. By the year end, 180,000 acres of farmland had been marketed in Great Britain, an increase of two percent on 2015.

“Volume in the East Midlands was up and average values remained remarkably resilient, whilst prime arable land in the UK fell by approximately 3.3 percent to £9,170 per acre. The region’s prime values remained stable at around £8,828 per acre for well placed blocks of land.

“From the Nottingham office, we agreed deals on over 1,500 acres of land across the East Midlands with a value in excess of £14 million, including: 577 acres of productive arable land in Papplewick; 247 acres of productive cereal and root cropping land near Mansfield; 30 acres of arable land to the north of the county achieving in excess of £10,000 per acre; nine acres of strategic land at Woodborough which achieved over £25,000 an acre; and 180 acres of bare arable land in South Yorkshire, achieving in excess of £9,000 per acre”.

Savills research indicates that UK farmland values are expected to rise by 5.5 percent over the next five years, whilst farmland supply is expected to increase by 10 percent in acreage over the same period.

Gadd added: “Looking forward into 2017 the market seems set fair albeit with growth relatively subdued. Whilst uncertainties regarding the EU negotiations will overhang the sector, the underlying fundamentals supporting land purchase remain. For so long as supply remains tight, progressive farmers and those with rollover funds to reinvest will continue to underpin the commercial market while demand for good residential, amenity and sporting farms is stronger following a resurgence of lifestyle buyers.

“Selling a farm has the potential to be a hugely stressful process particularly when it combines the disposal of a home which has been occupied by the same family for many generations: a business, a livelihood and an inheritance.

“For the majority of owners who have decided to sell the primary objective is to achieve the best price. In order to achieve this, preparing for the sale well in advance of any marketing is essential and will help to avoid delays or potential conflicts later on”.

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

New ownership for Market Harborough ventilation, maintenance & hygiene company

System Hygienics, formerly the service arm of the Hotchkiss group - the largest duct manufacturer and installer in the UK – have new ownership,...

Construction of Kirkby’s new Leisure Destination takes a step closer

Plans to bring a new state-of-the-art leisure centre to Kirkby in Ashfield have taken another step forward. Ashfield District Council is seeking tenders from contractors...

Seven Derby managed workspace buildings to reopen

Connect Derby, the managed workspace provider, is reopening its seven buildings and services to tenants on Monday (8 June). Connect Derby buildings were closed at...

New tax director for Midlands accountancy firm

Midlands firm, Edwards Accountants, has appointed a new tax director as it looks to expand and diversify its offering to clients across the UK. Steven...

Northamptonshire fresh fruit giant maintains supplies with CLBILS loan

Fresh fruit company, Blue Skies, has secured a seven-figure loan from HSBC UK through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) to ensure...

Related news

Streets focus on job and employment schemes in latest business update

Streets Chartered Accountants provide details of changes to Coronavirus Job Retention Scheme including the introduction of flexible furlough in its latest business support update. As...

New ownership for Market Harborough ventilation, maintenance & hygiene company

System Hygienics, formerly the service arm of the Hotchkiss group - the largest duct manufacturer and installer in the UK – have new ownership,...

Construction of Kirkby’s new Leisure Destination takes a step closer

Plans to bring a new state-of-the-art leisure centre to Kirkby in Ashfield have taken another step forward. Ashfield District Council is seeking tenders from contractors...

Seven Derby managed workspace buildings to reopen

Connect Derby, the managed workspace provider, is reopening its seven buildings and services to tenants on Monday (8 June). Connect Derby buildings were closed at...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close