Farmers holding back from marketing land with major changes on the horizon

BREXIT

TIMES of uncertainty often meant people ‘sit tight’ and wait for clarity before marketing their land or making a purchase.

And with Brexit, people had been holding off waiting for the deadline earlier in the year.

But as that deadline has been and passed, property experts expected land supplies would remain
restricted beyond Boris Johnson’s ‘do or die’ deadline to leave the European Union on October 31.

“We were meant to be coming out on March 29,” said Charles Dudgeon (pictured), Savills director of Scottish farms and estates.

“Everyone thought ‘we will wait until March 29’, and people have just sat on their hands.”

And he expected it would continue until the industry had more certainty.

“I think we are going to see a continued drought in acres for the rest of the year and people will make their minds up post-Brexit,” Mr Dudgeon said.

He highlighted it had been the same in 1991, as the industry waited on a round of Common Agricultural Policy (CAP) reforms.

“There was almost a vacuum of land,” he said.

“It took until about 1993 before the markets recovered.”

Mr Fiddes said any time there had been a reform of CAP it had reduced the supply of land.

“People wait to see what the outcome is, rather than committing,” he said, adding he expected there would not be a large amount of land coming forward in 2019.

Commercial

The Eastern Counties had felt this lack of supply most acutely, with Mr Lawson highlighting this was down to the market being dominated by commercial arable farming enterprises and fewer lifestyle buyers.

“The commercial areas of the countries have probably been more affected by the level of supply,” he said.

“In other areas there are a wider range of motivations for buying.”

SELLERS

REALISTIC preparation and pricing was vital for those looking to sell in this market, with bidders reassured when buying a property there was competition for.

Mr Lawson said: “Having a realistic price or a conservative pricing strategy ought to generate more interest and a better result.

“For presentation, it is worth making sure things are looking spic and span.”

He added preparation was incredibly important.

“So you have identified any issues that need to be disclosed and, if possible, resolved. If you agree a deal with someone and issues pop up, they are likely to renegotiate,” he said.

“Get all of those in the open and resolved in advance.”

He added some people were seeing an opportunity to sell with limited land coming forward. Mr Dudgeon agreed, saying anyone who wanted to sell in the next year or two should consider going to market now.

“You have got a market now, so why not use it.”

Mr Fiddes said there were still good buyers around, with quite a lot of rollover buyers in the market.

“There are still people who want to buy land. They may be more discerning,” he said.

Location was an important factor in selling well.

“If you live in the area and want to buy more land, if it is next door to you and a good price you might buy it,” Mr Fiddes added.

Market

“If they are rollover buyers, they want to look in the right area. But they do not feel they need to jump into the market.”

He added selling now depended on where the land was and what it was.

“If they have the right property in the right area, there is something to be said for getting it on the market,” he said.