Cheffins was involved in the sale and purchase of over 3,000 acres of farmland in the Eastern region during 2022, with the majority of sales realizing prices comfortably in excess of the quoted guide price. The strong demand has seen competition between private investors, farmers, agribusinesses and property developers.
There has been much talk in the press about large scale corporations buying up land for carbon offsetting schemes and rewilding projects but we have not seen much evidence of this in East Anglia. However, there is growing interest from landowners who are prepared to make some of their land available for biodiversity offsetting where the opportunity presents itself.
The interest from non-farming private investors and corporate buyers for larger blocks continues to underpin prices with values for unequipped Grade 2/3 arable land making £9,500 - £10,500 per acre. Pastureland values are, in some cases, on a par with arable land particularly for grassland with amenity and ecological value.
Development rollover funds continue to have an impact on the market for blocks of land of 200+ acres with Agricultural Property Relief from inheritance tax still a significant attraction for buyers.
Sales in 2022 included Chrishall Grange Farm on the Essex/Cambridgeshire border with a let holding extending to 1043 acres with a guide price of £6.5m; Home & Heath Farm in Fowlmere extending to 340 acres of arable land marketed with a guide price of £3.10m. Other smaller offerings included 90 acres of Grade 2 arable land in Thaxted, North Essex and 80 acres in Burwell, Cambridgeshire which both sold comfortably in excess of the respective guide prices.
As values continue to rise we expect more land to come to the market in 2023 although with the number of active buyers, demand is likely to continue outstripping supply.
If you are interested in buying or selling land, please contact Simon Gooderham on 01223 271952.
To read the full article, check out the Autumn edition of Rural Scene here.