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With demand outstripping supply and the general outlook for agricultural returns remaining positive ‘researchers’ are predicting that values will continue to rise over the next 2 – 3 years.
The area of farmland sold nationally over the past 9 months is reported to be 20% lower than the same period in 2008, yet despite this shortage, buyers are being selective and very value conscious. As a result of this, the range of values between poor quality and prime arable land continues to widen in the eastern region.
In less accessible locations, poorer quality arable land is still struggling to reach the £4,000 per acre mark whereas well located blocks of prime arable land are regularly exceeding £5,000 per acre with many blocks selling for £6,000+ per acre. This imbalance of supply and demand is resulting in a ‘bottleneck’ market for good quality land and it seems that this may well continue into 2010 and beyond which will continue to push up land values.
The market for amenity land and paddocks has remained strong throughout despite the economic pressures and whilst values have fallen from £10,000+ per acre that were being achieved, demand still remains high for accessible amenity land. Such demand was experienced recently at Cheffins’ September 2009 property auction where 5 acres of riverbank on the River Cam at Waterbeach received over 70 enquiries and eventually sold for £83,000. Cheffins has also recently concluded the sale of the Moat Farm Estate, Newmarket, which comprised a substantial period house with outbuildings and 208 acres of arable land – in lots it achieved in the region of £3 million.
With the ‘bottleneck’ for well equipped arable units set to continue into 2010, those landowners poised to sell may be well advised to consider selling before the cork ‘pops’ and the fizz comes out of the market.
Cheffins is able to provide advice on valuations of all types of property and undertake the sale of farmland and property by private treaty or auction. Contact Simon Gooderham on 01223 213777.
Source Farmland Market Autumn 2009 and RICS Farmland Price Survey January – June 2009.
Farmland – A Bottleneck Market?
The continuing demand from both investors and farmers and the lack of supply of good quality farmland coming to the market is ensuring that prices remain firm, reports Simon Gooderham MRICS FAAV of Cheffins.With demand outstripping supply and the general outlook for agricultural returns remaining positive ‘researchers’ are predicting that values will continue to rise over the next 2 – 3 years.
The area of farmland sold nationally over the past 9 months is reported to be 20% lower than the same period in 2008, yet despite this shortage, buyers are being selective and very value conscious. As a result of this, the range of values between poor quality and prime arable land continues to widen in the eastern region.
In less accessible locations, poorer quality arable land is still struggling to reach the £4,000 per acre mark whereas well located blocks of prime arable land are regularly exceeding £5,000 per acre with many blocks selling for £6,000+ per acre. This imbalance of supply and demand is resulting in a ‘bottleneck’ market for good quality land and it seems that this may well continue into 2010 and beyond which will continue to push up land values.
The market for amenity land and paddocks has remained strong throughout despite the economic pressures and whilst values have fallen from £10,000+ per acre that were being achieved, demand still remains high for accessible amenity land. Such demand was experienced recently at Cheffins’ September 2009 property auction where 5 acres of riverbank on the River Cam at Waterbeach received over 70 enquiries and eventually sold for £83,000. Cheffins has also recently concluded the sale of the Moat Farm Estate, Newmarket, which comprised a substantial period house with outbuildings and 208 acres of arable land – in lots it achieved in the region of £3 million.
With the ‘bottleneck’ for well equipped arable units set to continue into 2010, those landowners poised to sell may be well advised to consider selling before the cork ‘pops’ and the fizz comes out of the market.
Cheffins is able to provide advice on valuations of all types of property and undertake the sale of farmland and property by private treaty or auction. Contact Simon Gooderham on 01223 213777.
Source Farmland Market Autumn 2009 and RICS Farmland Price Survey January – June 2009.
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