GSC Grays has said the result of the General Election and its subsequent tax shifts could impact land and farm sales in Northern England.
Keir Starmer is set to become the UK’s new Prime Minister with the Labour Party expected to take 412 seats in the General Election with a majority of more than 170.
Managing director or GSC Grays, Guy Coggrave said farm sales in the north are currently experiencing increased activity, despite there being a shortage of good-sized arable or commercial farms coming to the market.
“Supply and demand are roughly balanced, but it would not take much to tip this balance, especially with factors like debt reduction and changes in farming policy playing a significant role,” he said.
“Potential increases in Capital Gains Tax or the removal of Agricultural Property Relief (APR) could further impact the market.
“Business Property Relief (BPR) is hoped to remain unchanged, but if APR is modified, landowners must ensure their farms are active enterprises to benefit from this relief.”
Coggrave said farmers are increasingly using specialist advice focusing on profitability and sustainability of their farm businesses, which is the essence of the Department for Environment, Food and Rural Affairs’ (Defra) funded Farming Business Advice Service (FBAS).
“The majority of bare land sales in the north are highly localised, often depending on neighbouring interests looking to expand their enterprise while those buyers with an environmental agenda have become more selective, recognising they have sometimes overpaid in the past.”
“Demand for larger arable and more commercial units remains strong.
“The quality and presentation of farms is increasingly important and for those who are considering selling, it is advisable to act promptly to make the most of what currently remains a favourable tax regime, which many commentators anticipate will change this autumn or next spring.”
