The strength of the South-West land market remains buoyant in 2022 with huge demand from both farmers and external investors combining with limited supply to produce competitive bidding environments.
According to national statistics, 36,512 acres have been publicly marketed so far this year, down 9% on the same point in 2021. These figures are particularly surprising due to lack of financial support under the new incoming agricultural subsidy regimes and the Lump Sum Exit Scheme which is aimed to encourage farmers at retirement age to exit the industry to free up land for new entrants to farming.
Demand amongst potential purchasers for almost all farms and land brought to the market remains incredibly high as farmers are desperate to expand in order to benefit from economies of scale while wealthy investors seek the taxation benefits of owning agricultural land. This has led to the average value of arable land rising to an average price of £9,500 per acre nationally which is 2% higher than a year ago while the average value of permanent pasture is now £7,500 per acre which is 3% higher than 12 months ago.
Over the last year, Luscombe Maye’s specialist Farms, Land and Smallholdings department have handled the sale of over 3,000 acres of farmland (on both the open market and more so, privately). Notably, in the past few months alone, Luscombe Maye have successfully sold Chineway Farm, Land at Higher Dunstone Farm and have recently brought to the market The Byre and Land Part Cross Farm which is a spacious converted barn with a range of modern farm buildings situated in over 58 acres of agricultural land.
Tom Maynard BSc (Hons) MRICS FAAV of whom is based within Luscombe Maye’s Farms, Land and Smallholdings department observed that “The demand for agricultural land is particularly strong at the current time and in the past 12 months we have often witnessed a premium will be paid to secure a block of land or a farm off-market but this is not always guaranteed”.
Due to the shortage of supply of farms, land and smallholdings purchasers are having to search further afield to find the right package that suits their requirements. At Luscombe Maye, our Farms, Land and Smallholdings Department work with our clients to not only offer them a service to sell their farm, smallholding or land to a very wide market but also offer a service to help advise on the purchase of such property.
For further information in relation to any of the above or if you would like a no obligation pre-market appraisal, please do not hesitate to contact our Farms, Land and Smallholdings Department on either 01548 857 474 or 01364 646 174.
