During 2021, the number of acres brought to the market in Yorkshire and Humber was more than double the previous year’s levels, according to Strutt & Parker’s Farmland Database.
Demand is reportedly outweighing supply in the region, with fewer properties making it to the open market, and this is supporting prices.
Average values for arable land remain stable year-on-year, while average pastureland prices increased by 11% compared with 2020.
Buoyant land market
Tom Watson, director, Cundalls
The 2021 land market has been surprisingly buoyant, with most farms and land parcels selling very well with competitive bidding and plentiful offers in most circumstances.
As with last year, volumes have been limited and farms and land that have been marketed at realistic money have tended to gain reasonably good interest and achieve sales, often with competitive bidding and sales prices well in excess of client expectations.
This is particularly true for best-in-class sites and land in the right parishes with strong neighbouring interest.
Cundalls has sold many farms and smallholdings all at or above guide in 2021, and we have also been involved with private sales during 2021.
We dealt with the private sale of an in-hand farming estate on the Yorkshire coast which comprised about 1,150 acres, six houses and a superb range of farm buildings.
The property sold to a farming buyer with leisure interests and achieved an eight-figure sum.
In our view, prices will remain firm or even continue to rise, as quite simply demand is stronger than supply.
Demand remains strong
James Walton, partner, Brown & Co
The Yorkshire and the Humber region has witnessed continually low levels of open market sales during 2021, mirroring the national market.
The basics of supply and demand are, without doubt, a major factor in the market at present.
The shadow of Covid-19 is now passing, and we can confirm that agricultural land has once again proved very resilient.
Land values in the region have either remained firm or increased during the period of the pandemic.
The demand for best-in-class or versatile farms remains very strong, often with 10 or more individual offers being received for a property.
We continue to handle a number of private transitions across the region.
A couple of such notable transactions included Grade 1 and 2 agricultural land in the East Riding and South Yorkshire, showing demand for 100-acre blocks at £13,000/acre and above.
If the winds of change are blowing for reasons relating to Brexit, changing agricultural policy, Covid-19 or Basic Payment Scheme reduction, then the impact has not reached Yorkshire and the Humber.
What sold well?
A commercial in-hand arable estate was sold by Cundalls privately for an eight-figure sum to a farmer buyer with leisure interests and rollover funds.
The property on the Yorkshire coast, near Filey, North Yorkshire comprised about 1,150 acres, six houses and a range of farm buildings.
The property was sold as it was an off-lying unit for a large farming business, which used the funds to re-invest in other farming assets.
What’s on the market?
Cundalls is selling a 142-acre mixed block of arable and grassland available as a whole or in three lots.
Great Edstone near Kirkbymoorside, North Yorkshire, has a guide price of £1.15m and is made up of predominantly Grade 3 land.
The plot is being sold due to retirement and is likely to attract interest from both agricultural and environmental buyers.