|
 Farmland values on the rise
Smiths Gore says the value of equipped farms rose for the first time since summer 2008, increasing by 2% in the final quarter of 2009 to an average across England of £7,200 per acre. “The value of equipped farms rose for the first time since summer 2008, increasing by 2% in the final quarter of 2009 to an average across England of £7,200 per acre. However, values are still about 10% lower than a year ago”, says Dr Jason Beedell, Head of Research.
The farmland market was very quiet, report Smiths Gore, with less than half of all land for sale being marketed within the final quarter of 2009. The picture across the country is of very limited amounts of land for sale and pent up demand from farmer, non-farmer and investment buyers. “Some of the increase in values is due to smaller farms being marketed. Our database of sales clearly shows that smaller farms have higher values per acre, as the value of the house and buildings ‘boosts’ the value per acre. Given this, careful lotting of farms is essential to maximise their overall value”, comments Giles Wordsworth, Head of Farm Agency. “7,800 acres of equipped farms were marketed in 37 sales, so an average of 210 acres. This is much lower activity compared with the year before when 19,100 acres were marketed, in 62 sales at an average of 308 acres per sale.” Bare land values drop slightly Bare land values dropped slightly across England, by 2%, to an average of £4,800 per acre, demonstrating a return to values previously seen at the beginning of the year. “The view from our farm agents around England are that values have remained broadly the same so this small drop may be a result of the small number of sales and paucity of land for sale in the quarter.” 2,600 acres were marketed, less than half the amount in the same quarter in 2008, when 5,700 acres were sold. There were also many fewer sales (26 compared with 43). “Our view is that the value of bare land remains firm at £4,800 per acre across England. It has stayed between £4,800 and £4,900 for the past year and, despite the credit crunch, is about 30% higher than it was at the end of 2007”, according to Dr Jason Beedell. “The farmland investment market continues to improve”, comments Gerald FitzGerald, Head of Property Investment and Valuations. “Our recent sale of the Coldred Estate exceeded our expectations. There remains strong demand and a lack of suitable stock. Currently we are on the search for suitable investments both of secure tenanted properties and estates as well as land with long-term development hope. Although yields remain low, investors are attracted to the tax advantages and potential uplifts in value.” All farms 63 farms and parcels of land over 50 acres were marketed in 2009Q4. This is 40% less during the same period in 2008 but more than in the equivalent period in 2007 (59 parcels marketed). 10,300 acres were marketed in 2009Q4, which is less than the previous year (24,800 acres) and in 2007 (17,500 acres). Equipped farms 37 equipped farms were marketed in 2009Q4, compared with 62 in the same period in 2008. 7,800 acres were marketed in 2009Q4, which is 60% less than in 2008 when 19,100 acres were marketed. Bare land 26 parcels of bare land were marketed in 2009Q4, compared with 43 in the same period in 2008, representing a drop of 40%. 2,600 acres were marketed in 2009Q4, which is 56% less than in 2008 (5,700 acres). The average parcel size has dropped from 133 acres to 98 acres. Farm types and regions There is a noticeable decline in the number of properties and land areas being brought to market in the southern regions of England (South East, South West, East Midlands and East of England). Numbers of properties and areas of land in the North West, West Midlands and Yorkshire remain comparable to 2008.
|
Rural agency 
