Extreme demand from farmers making an attempt to extend, patrons and environmental and lifestyle customers has prompted an increase in land values in Northern Ireland.

Market train strengthened in 2021, following an not sure 2020, with retirement one of many important widespread causes for selling.

James Butler, head of nation firm at Savills, believes there is a renewed momentum on the market for farmland in Northern Ireland.

See moreover: Land in your house 2021: Wales

Mr Butler acknowledged: “Non-farming money has dominated the market in Northern Ireland for some time, owing to taxation advantages, a notion that land is a protected asset, a strong farming heritage inside the nation, and meals manufacturing.

“Nonetheless, the reasons for funding are broadening, with a rising emphasis on the optimistic contribution that land possession might make to the setting and additional lifestyle customers enthusiastic about nation dwelling and the pliability to work from home.

“Present last 12 months elevated – arising from sellers who’ve been holding once more all through Covid-19 – offering customers higher various.”

Nonetheless, the strengthened demand has resulted in aggressive curiosity for all farms equipped in the marketplace before now 12 months, with frequent prices at merely above £10,000/acre. Fairly a number of product sales generated bids of £20,000/acre on account of sturdy neighbouring curiosity, based mostly on Mr Butler.

He acknowledged: “The rising differ of purchaser varieties is liable to proceed to drive land values up in 2022 and whereas the sturdy prices might encourage some to commerce up by shifting to GB, we do not anticipate to see a surge in present.”

What purchased correctly?

Aerial view of farmland

Carnamuff Freeway © Savills

Savills purchased a 478-acre hill farm as an entire for above its £850,000 info worth to an investor, after a aggressive bidding course of.

125 Carnamuff Freeway, Limavady, near Londonderry, includes a three-bedroom house, an expansion of farm buildings, 35 acres of silage ground, 37 acres of pasture, and 399 acres of hill ground.

Aerial view of farmland

Ballyhornan Freeway © Savills

A 41-acre block of arable and pasture land with an ordinary outbuilding near Downpatrick, County Down, was purchased by Savills to a farmer for above its £410,000 info.

Farmland market round-up

This week marks the tip of Farmers Weekly’s annual regional analysis of the land market all through the UK.

Agricultural land values in England rose by 1% in 2021, based mostly on Strutt & Parker, fuelled by a shortage inside the number of farms and estates in the marketplace and the rising differ of customers.

Matthew Sudlow, head of estates and farm firm for Strutt & Parker, acknowledged the rise in 2021 adopted a 3% rise in 2020 and bought right here no matter farmers experiencing reductions of their assist funds, present chain disruption and rising costs.

Listed beneath are some key numbers for the 2021 English and Scottish land markets, in distinction with 2020:

England

  • 55,000 acres have been marketed in England in 2021 (55,600 acres in 2020) – 25% underneath the five-year frequent of 73,100 acres and one in every of many lowest areas on file.
  • In three areas – East of England, North East and West Midlands – present was larger than 40% underneath the five-year frequent.
  • Usually, present dropped additional in southern England (-32%) than inside the north (-13%).
  • 192 farms and estates have been publicly marketed (201 in 2020).
  • Solely six farms of larger than 1,000 acres have been publicly marketed.
  • The busiest space was South West England, as common, the place 39 farms have been launched (47 in 2020).
  • The North East launched the underside number of farms: 12 (moreover 12 in 2020).
  • The very best worth paid for arable land was £15,800/acre inside the East Midlands (£17,500/acre in 2020, moreover inside the East Midlands).
  • The costliest grassland purchased was £13,000/acre inside the East Midlands (£13,000/acre in 2020, inside the South West).
  • The standard worth of arable land was £9,400/acre, up 1% on 2020.
  • Higher than half of arable land made £8,000-£10,000/acre, with 34% selling for £10,000/acre or additional.
  • The underside worth paid for grassland was £3,000/acre inside the West Midlands (£2,750/acre in 2020, inside the North East).
  • About 60% of purchases have been made by farmers – a greater proportion than in latest occasions and once more to the 20-year frequent.
  • 67% of farms marketed purchased at or above their info worth – the perfect stage since 2014, which was a peak on the market.

Scotland

  • 27,300 acres have been marketed in Scotland – a serious enhance of 81% in distinction with 2020, nevertheless nonetheless underneath frequent.
  • 74 farms have been publicly marketed (50 in 2020 and a five-year frequent of 86).
  • All areas have been busier than in 2020. The busiest areas have been the North East and South West, which collectively accounted for 11,400 acres and 32 farms in the marketplace.
  • The overwhelming majority of farms in the marketplace have been lowland livestock gadgets and there have been additional blended farms in the marketplace than common.
  • A variety of the farms in the marketplace have been decrease than 500 acres (60 out of 74). Solely 5 farms of 1,000 acres or additional have been marketed nevertheless that’s once more to the five-year frequent cost after only one farm in 2020.
  • Although agricultural customers dominate, forestry and environmental, social and governance purchasers are rising.
  • Grade 1 arable land in East Lothian peaked at £19,500/acre, which is a file for the realm, although the standard price of arable land was £7,000/acre.

Provide: Strutt & Parker Farmland Database. Product sales over 100 acres solely

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