Realistic pricing and location remains key for sales, according to Carter Jonas
Economic uncertainty has led to a 10 per cent drop in farmland values over the last 12 months, according to property consultancy Carter Jonas.
But demand remained strong for good quality land in the right location with interest from neighbours, particularly in central, south and south west areas where there was potential for diversification.
Prices for bare arable land have dropped back to 2012 levels with the national average during the third quarter of the year, averaging £22,148/ha (£8,967/acre).
Tim Jones, head of rural, Carter Jonas, said it was clear economic uncertainty had affected the market.
“Following the Environment Secretary’s recent announcement on farming support, we would urge the Government to assess businesses in relation to their wider public benefit and potential output, rather than their size, in order to safeguard the agricultural sector – particularly as we move forward with the Brexit negotiations.”
Andrew Fallows, head of rural agency at Carter Jonas, said realistic pricing and good location remained key to selling land in an increasingly polarised market.
“The rural sector as a whole continues to show resilience to the wider economic factors at play, and is benefiting, in the short-term, from a further increase in output commodity prices,” he said.
Prices fell furthest across the midlands, by 11.1 per cent to £19,760/ha (£8,000/acre). The market has become increasingly polarised with hotspots in the midlands attracting up to 30 per cent more.
Following a quiet spring and summer, supply in the northern regions increased year on year with land achieving about £22,230/ha (£9,000/acre).
Carter Jonas added while banks were continuing to support the sector, lenders had become more cautious as a result of Brexit.
However, it was unclear whether this would encourage innovation and revised strategies, or result in the demise of underperforming farming businesses.