Land market 2012 – South 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
Despite its proximity to London and the capital’s associated wealth, the farmland market in the South East has never really hit the heights that we’ve seen in areas like the Cotswolds and we would be looking at average prices of about £6,500/acre. I think a lot of potential investors, for some reason, don’t see it as a commercial farming area. This could, to a certain extent, be a reflection of the generally limited supply of good farms for sale in the region.
Values are underpinned by interest from neighbouring farmers or consortiums of farmers and that is the interest we have received so far for 1,000 acres of arable land we are selling privately in West Sussex. There is also some investor interest if the acreage is large enough.
2013 outlook – main market influences
- The weather – yet more rain could dampen enthusiasm, while a bumper harvest would boost confidence
- What happens in the EU and its effect on the UK economy
- Availability of land – if supply remains tight it will help support values
2013 outlook – what will happen to prices?
Because much of the market in the South East is driven by farmers, I don’t expect any large increases, as the poor harvest this year and difficult establishment conditions for the 2013 crop weigh on people’s minds. Relatively limited supply, however, should ensure prices don’t drop.
| Sale highlight of the year (pictured above) |
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Great Swifts Manor, Cranbrook, Kent, highlighted the appeal of farmland to wealthy investors. The 280-acre estate sold to an ex-pat returning to the UK looking for a stable investment and a home. The land, which was grass with potential for arable reversion and woodland, made about £10,000/acre, much higher than generally achieved in the region. |
How much land will come on the market in 2013?
I think availability will increase slightly next year. The horrific growing conditions we have been experiencing may encourage some who have been thinking of calling it a day to make a move while land prices remain high.
Easiest farm to sell in 2013?
A ring-fenced block of more than 500 acres of arable land with decent buildings and not residentially biased.
Most difficult farm to sell in 2013?
A low-lying stock farm on wet ground, especially if not within a ring fence.