Land market 2012 – North East
Where will land prices go in 2013? We ask agents around the country to sum up the market in 2012 and to set out what will influence buyers, sellers and prices next year.
2012 market – key features
The volume of land offered for sale in the North East has stabilised at current low levels during the past four years, but with variations within the region. Supply in North Yorkshire has remained fairly static, volumes rose in County Durham, offset by much reduced acreages in Northumberland, East and South Yorkshire.
There continues to be a shortage of fully equipped arable or mixed farms. Values rose strongly for the best farms and for good-quality bare land. In the Wolds, £10,000/acre or more has been regularly achieved, with land elsewhere typically trading from £6,000-8,000/acre. Land is still selling for less in districts where demand is traditionally lower, quality is poor or the land has previously been worked for minerals. Purchasers are attracted to good-quality farms nationally. Proceeds from development land sales are starting to filter back into the farmland market, which will help offset any downside due to the poor harvest and weather conditions.
2013 outlook – main market influences
- Sentiment resulting from this year’s difficult harvest, challenging autumn and possible effect on next year’s harvest results
- Increased bank pressure, particularly on livestock and some specialist sectors
- Similar volumes to past four years
- Continuing national demand for good-quality, well-equipped farms
2013 outlook – what will happen to prices?
Savills forecasts that values will increase by 4-8% next year, with most upward pressure in the arable sector and weaker demand for livestock farms.
| Sale highlight of the year (pictured above) |
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Linton Wold Farm, a 514-acre Grade 2 and 3 Wolds farm with house and large range of buildings. Launched in September, with viewers from across the UK attracted by location, farm type and scale. With a guide price of £4.5m, bidding was competitive. |
How much land will come on the market in 2013?
Probably similar to this year.
Easiest farm to sell in 2013?
The greatest demand will be for 500-acre or larger arable farms across the region, with good buildings and character-appropriate house.
Most difficult farm to sell in 2013?
Poorly equipped intensive livestock units in areas where land quality is marginal.