High buyer interest sees land prices rising in Wales and NI

Land prices in both Wales and Northern Ireland are being supported by good consistent demand.

A mixture of buyer types is active in the market, with both agricultural and investment interest supporting values.

Over the past year there has been a lack of supply across Wales and Northern Ireland because of uncertainty caused by Covid-19 restrictions.

See also: Sales of land in support schemes: What farmers should know

In recent months, more properties are beginning to be offered, but supply remains tight.

Northern Ireland

Prices in Northern Ireland are averaging £10,000/acre for both grassland and arable ground, while top-quality land is reported to be selling for more than £15,000/acre in some regions.

Larger parcels of land, in excess of 100 acres, are also generating a lot of interest and are often fetching premiums.

James Butler, head of country agency at Savills, said: “Scale and quality continue to be the dominant factors driving the market.

“However, we are also seeing a strengthening in demand for hill ground with potential for conservation opportunities, especially for larger areas in a single block. Increased construction costs are bringing the quality of the fixed equipment on a farm into focus.”

There is a variety of buyers for different land types across Northern Ireland. Farmers are competing at a local level for small blocks of bare land to expand their acreages.

Commercial farms are in demand from both diversified agri-businesses and non-agricultural enterprises, while investors looking to increase their assets are interested in hill land.

“Retirement from farming is the primary reason for sale,” Mr Butler said. “With average land prices remaining firm throughout the province, we are seeing more farming families looking to move to Great Britain if they wish to upsize.”

Wales

There is varied demand in Wales for different land types. Interest in bare land for woodland creation is similar to that in the Scottish market.

Forestry markets remain active, with Savills research showing the average price of planted land reached £6,933/acre across England and Wales during 2020. This was a 4% rise in the average value of forestry land compared with the previous year.

There is a very limited number of larger commercial farms coming to the market in Wales. However, smaller plots are selling well, with demand from both farmers and non-agricultural enterprises.

Demand is reported to be very localised in different regions of Wales, and where demand is strong, properties are selling very quickly.

Andrew Wallace, consultant director at Rostons, said the market was buoyant for the right property in the right location.

“Farms that are well-equipped and have good quality land will continue to sell reasonably well,” he said.

“There are buyers in the marketplace that are actively looking to purchase with rollover money in order to invest, as well as lifestyle buyers looking for smaller plots of land.”

Best quality ground in North Wales was averaging £10,000/acre, Mr Wallace said, while typical grassland in the region was selling for £8,000 to £9,000/acre.

Land where there were multiple potential buyers interested was able to achieve £12,000 to £13,000/acre, he said.

What’s on the market?

© Savills

Cavandarragh Farm, Castlederg, County Tyrone is on the market with Savills at a guide price of £4.75m.

The 317-acre holding includes a dairy complex with more than 300 cubicles, a five-bedroom house and a range of modern buildings.

© Rostons

Hem House Farm, Rossett Road, Wrexham is on the market with Rostons for offers in excess of £3m.

The property has 294 acres of grassland, a six-bedroom house and modern agricultural buildings. An optional 150 acres of rented grazing is also available.