Land market 2012 – West Country
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
2012 has seen plenty of land available throughout the West Country. An increase in larger parcels of bare land and buildings coming to the market has been noticeable, but sales of equipped farms continue to be limited.
Demand has been very strong throughout the year, primarily driven by farmer buyers, although investor buyers appear to be returning to the market. Smaller parcels have seen strong interest from the amenity and equestrian sectors.
| Sale highlight of the year (pictured above) |
|---|
| The sale by informal tender of almost 70 acres of land and buildings at Combe Raleigh near Honiton, Devon, saw strong agricultural interest for bare land and an excellent range of buildings, with the total guide price of £700,000 easily exceeded. |
Sales in excess of £10,000/acre are achievable, even for larger blocks. However, prices can vary considerably, with location being very important in determining value.
- Inconsistent ability for farming businesses to raise finance
- Values very location specific and varying from £6,000 to in excess of £10,000/acre
- Strong agricultural interest with established farms wanting to expand
2013 outlook – main market influences
- CAP reform
- Profitability of farming
- Weather
- Availability of land for sale
2013 outlook – what will happen to land prices?
I anticipate the demand to remain strong, but I do not expect to see prices rising at the same rate of the past few years after a very challenging 2012 for most farming businesses. I would therefore expect prices to level.
How much land will come on the market in 2013?
Uncertainty over changes to the CAP may make some potential vendors nervous until there is more clarity. Generally, I would expect the volume of land to remain at a similar level to 2012.
Easiest farm to sell in 2013?
A well-equipped ring-fenced dairy farm of 250-plus acres in east Devon or on the Blackdown Hills.
Most challenging farm to sell in 2013?
A small farm with a large farmhouse and numerous rights of way over the land.