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 Midlands market has remained very strong throughout 2012, although we are seeing a more cautious approach.
Buyers are concentrating more on the detail of the land, being willing to wait a little longer for the right purchase. Sales have been made up of a vast range of farm and land sales, from small farms to large corporate portfolios.
- In 2012 we have marketed in the region of 4,500 acres, ranging from vacant possession to investment property
- Prices reported for some and sold within large portfolios and with conditions attached could make true vacant possession values difficult to establish
|Sale highlight of the year (pictured above)|
|Bragborough Hall Estate, Northamptonshire – sold for more than £6m. Traditional 641-acre country estate with Grade II Regency house, grounds, traditional stable courtyard, three flats, two lodges, bungalow. Modern farm buildings, about 507 acres arable, combinable crops in contract farming agreement.|
2013 outlook – main market influences
- High prices will cause slight reduction in demand as buyers look to get the most from their money
- Purchasers will look more closely at the detail of what they are buying
- Demand will remain high for very good quality farms, which will continue to attract a premium
- Purchasers will be willing to wait longer for the right farm, in the right location and of the right quality
2013 outlook – what will happen to prices?
Values will hold in the main, certainly for good-quality land. Some marginal land could lose value or take longer to sell.
How much land will come on the market in 2013?
More land should come to market – the wet harvest and tough conditions have caused some farmers to sell. Institutional clients are selling to benefit from higher land prices.
Easiest farm to sell in 2013?
Good-quality arable accommodation land. There is also especially high demand for farms with a nice rural house. Farms of any size of this sort will be in high demand.
Most difficult farm to sell in 2013?
Poor quality and poor location. The investment market has eased and there are now fewer tenant farmers. Farmers and investors are more interested in high-yielding land – before they would have purchased any land they could obtain.