Great British farmland market activity is continuing its upward trajectory from its post-Brexit lows, according to property agency Savills.
More lowland farmland was publicly marketed in the first quarter of 2024 than in any year since 2008.
In total, Savills analysis of properties over 50ac in size shows 24,800ac (10,000ha) came onto the market across Great Britain; the first time the market has exceeded 20,000ac since 2016.
Savills analysis of the GB farmland market highlights year-on-year the market is 44% larger in supply terms, with increases recorded in all regions apart from the East Midlands during the first quarter of this year.
Savills research shows influences including Brexit and Covid-19 led to an “uncharacteristically quiet” market until recently, so analysing market activity against a baseline of 2012 to 2016 is more insightful.
The results show supply in Q1 of this year was 33% higher across GB than the average from 2012 to 2016.
At a country level the picture is slightly different with supply “considerably higher” across England and Wales (43% and 53% respectively) but 14% lower in Scotland, Savills said.
Associate director for Savills rural research, Andrew Teanby said: “In January we said 2023 represented a step change in farmland supply and forecast the volume would increase further this year. Early indications suggest this will be correct.”
Savills said the agricultural transition has advanced more quickly in England which is perhaps why supply is above average and behind in Scotland, where “much of the detail for future farm support is still awaited”.
Buyers’ needs
Relative to last year, 15% fewer new applicants registered in the first quarter of the year, but more than in 2021 and 2022.
Higher supply and fewer buyers offer an opportunity for those in the market to be more selective and focus on higher-quality properties, Savills said.
The quality of a farm’s infrastructure for example is influencing values strongly.
Farms with good-quality buildings suited to modern agriculture tend to attract more interest and competition in the current market, which can lead to a sale being agreed more rapidly.
Head of Savills rural agency, Alex Lawson, said: “Water and, more particularly, the potential financial benefits landowners can receive through stewardship schemes have also risen up the agenda – peatland rewetting, flood alleviation, nutrient neutrality and more active water meadow management, all offer welcome alternative financial returns.
