North East land market review and outlook

Claire Whitfield, Strutt & Parker

2013 market – key features

The market in the north of England has remained strong, with interest from both local and national purchasers. The strongest land sales have been in the arable sector, sometimes exceeding £12,000/acre.

Grassland values have also remained strong with parcels of land next to other farms still in high demand. In a buoyant market a few key sales have raised the number of acres sold in 2013 above the 2012 total.

2014 outlook – main market influences

Farmers will continue to drive the market. Interest from investors who have not been successful in purchases in other areas of the country has now increased as they now look to Yorkshire and the north of England as sensible areas for investment.

2014 outlook – what will happen to land prices?

Demand is likely to remain the same and farmers are likely to remain the most prevalent purchasers. I anticipate prices will remain the same as in 2013. Neighbouring landowners are paying over the £/acre value to secure land that abuts theirs.

How much land will come on the market in 2014?

I think we are likely to see more bare blocks of land come to the market as farmers look to consolidate their land holdings. The market for large units remains strong and those that are realistically priced have sold well in 2013 – I think this is only set to continue in 2014.

Easiest farm or land to sell in 2014?

Commercial farms of a sustainable size (larger than 450 acres) will continue to be highly sought after. The larger the unit the greater the influence investors will have in the sale price. Geographical location does affect the desirability of farms and those that are easily accessible will remain most highly sought after.

Most difficult farm to sell in 2014?

The key to achieving a successful sale is setting a realistic guide price and ensuring the management responsibilities of the land are not too onerous.

Good-sized farms that are well presented and maintained will always appeal to the widest market but even in less desirable areas land can achieve sensible prices that still remain 100% higher than seven years ago.

Sale highlight of the year (pictured above)

Lingholm Farm, near Scarborough, North Yorkshire, is a prime, 1,113-acre arable unit, meticulously managed with good grain storage facilities, water lagoon, well-proportioned principal house, two holiday cottages and three further dwellings. It appealed to local, national and international purchasers, achieving well in excess of its £9.6m guide price.