The land market in your area: Northern Ireland

Sheltering income from inheritance tax is the principal reason for the flight to farmland which is particularly popular with those who grew up on farms before pursuing other careers.  

One agent estimates active farmers were the successful bidder in just 20% of land sales in 2017.

Anecdotally, average values have continued to rise steadily with best-in-class achieving £13,500/acre compared with £12,500/acre in 2016.

Prices being paid are yet to reach the £16,000/acre pre-recession peak but are following a pattern of steady annual growth.

See also: The land market in your area: north-east England

Supply set to increase

Northern Irish farmland trades in low numbers compared with the UK; in a busy year about 900 acres might hit the open market.

Gary Best, director of Newry-based Best Property Services, says 2017 was a quiet year for supply but 2018 is shaping up to be different.

“Last year supply was down about 25% on 2016 but it’s hard to put your finger on why that was,” Mr Best said.

“The early signals are that 2018 is going to be more like 2016.”

Regardless of supply, Mr Best expects investors to continue to out-number farmer buyers.

See also: The land market in your area: West Midlands

“I would estimate only 15-20% of land was bought by active farmers last year.

“A lot of investors are only one generation from the land or were brought up on a farm so as well as inheritance tax relief being a driver, they do a bit of weekend farming, hobby farming or let the land out.

“Farmers may start the bidding, but it’s non-farmers who are stretching themselves to get the land.”

Low supply has meant buyers cannot afford to be picky and this has led to few pockets of strength in terms of premium prices being paid.

Land around the A1 corridor from Dublin to Belfast continues to be popular, but any land with road frontage is attractive.

Estates expected

Savills says it expects a busy year selling a number of larger estates that will appeal to farmers more than investors.

Pat O’Hagan, the firm’s regional sales manager, said the sale of a 104-acre farm at Eglington, near Derry, with ploughable pasture and cattle buildings is going through in excess of its £900,000 guide price.

“We have a number of other farms with land, buildings and houses coming to the market this year,” he said.

They include a 250-acre grassland unit in the Coleraine area of County Londonderry, and another estate of a similar size in County Down.

“It’s quite unusual to see whole farms over 100 acres coming to the market in Northern Ireland so we are expecting good levels of interest,” Mr O’Hagan added.

What’s on the market?

Farmers have an opportunity to create a 122-acre holding on Armagh Road near Newry, County Down, where a ring-fenced block of grassland with planning permission for a replacement farmhouse is for sale.

A bid is on the table at £1.25m but the farm will go to auction next month and is set to make around £1.5m with Best Property Services.

The firm also has 80 acres of land at Summerisland Road, five miles north-east of Armagh at Loughgall.

Offers stand at about £500,000 for the nine grassland fields, which could sell in as many as three lots with an auction pending in April.