2023 was a “pivotal year” for Great Britain’s farmland supply with 157,200ac marketed, according to real estate company Savills.
This figure is 15% more than the previous five-year average, but is still below the 162,000ac average recorded between 2003 and 2016.
In Spotlight: The Farmland Market, Savills suggests that there is potential for publicly marketed supply to increase further with around 180,000ac forecast/year by 2028.
Associate director of Savills rural research, Andrew Teanby, said: “Farmland supply is increasing because of changes largely driven by the agricultural transition; and our research into the number of machinery sales would seem to support this.”
There were 71% more farm machinery sales in 2023 than in 2015, according to the research.
“Using the rise in machinery sales as an indicator we remain confident that more land will come onto the market because the sale of farmland is one potential outcome following a change in farming system/activity, tenancy surrender or retirement,” Teanby said.
Savills said that, over the past three years, retirement and change in farming policy have become far more common reasons for farmers selling their farm machinery compared to 2015, when new agricultural policies were not on the horizon.
The real estate company value forecasts for the farmland sector during the next five years are influenced by continuing economic challenges, weaker demand from all types of buyers in the marketplace and increased availability of farmland.
Head of Savills rural agency, Alex Lawson, said: “Within any land type the range of values achieved remains significant.
“Individual sales will be influenced by specific property attributes and marked dynamics such as the location and strength of neighbour interest.
“However, as we have witnessed recently unforeseen global and economic shocks have the potential to impact all markets”.
