National View
While the long-term impact of the Covid-19 pandemic is yet to be determined for UK rural property, over the last three months the sector has proven to be resilient. Land values for both arable and pasture land have held steady, and activity has not waned with a good volume of farms and land launching, being agreed, and completing.
Average arable and pasture prices have remained at around £8,500 and £6,700 per acre, respectively, for some time. However, there are still some assets which are achieving more than £10,000 per acre, notably in sought after areas where scarcity, underlying wealth and rollover funds help drive premiums. In addition, strong demand and consequently prices are being delivered by lifestyle buyers, as the flight-to-country trend continues.
Strong demand continues to be underpinned by lower levels of supply being launched to the market, with year-to-date supply levels down 40% on 2019, significantly low in the historical context. Looking specifically at Q3, close to 28,000 acres were publicly launched between July and September. This was up by close to 50% on the previous quarter, when 18,700 acres were launched, although three quarters of this volume was in June, when the government-imposed lockdown measures were eased. When comparing the Q3 2020 supply figures to the same period of 2019, farmland supply was actually up by close to a third.
In southern and eastern England, the market has remained busy and demand is still very strong, with a number of few deals going over the line, and above guide price in some instances, across a variety of lot sizes. Larger holdings remain scarce and those which do become available are generally attracting a good volume of interest.
Across the midlands, north of England and Wales, smaller parcels of land are continuing to keep the market ticking over, however fewer deals have crossed the line over the last three months. Nevertheless, pricing levels have remained broadly flat and locations such as the Lake and Peak Districts remain attractive for purchasers who are looking to relocate for lifestyle purposes.
With the Autumn Budget postponed until Spring 2021, potential changes to taxes which may affect buyers and sellers in the land market are temporarily on hold. This may provide a degree of comfort to vendors to prepare to launch their assets in the current marketplace, setting the market up for the upcoming months.
£8,439
per acre
Average
arable land value in q3
Q-ON-Q
CHANGE
0.0%
-1.5%
y-ON-y
CHANGE
£6,728
per acre
Average
PASTURE land value in q3
Q-ON-Q
CHANGE
0.0%
-1.5%
y-ON-y
CHANGE
Farmland market update q3 2020
Key data and expert commentary
outlining key trends in the farmland market
"Strong demand continues to be underpinned by
lower levels of supply being launched to the market"
Average land values in
England and Wales
FIGURE 1
Publicly marketed
farmland supply
FIGURE 2
FIGURE 3
Commodity price trends
Source: Carter Jonas, AHDB, Farmers Weekly, DEFRA
Inputs
Outputs
Crude Oil
Fertiliser
Red Diesel
Feed Wheat
Rapeseed Oil
Milk
Beef
Pork
Average land values in
England and Wales
FIGURE 1
Publicly marketed
farmland supply
FIGURE 2
Average land values in
England and Wales
FIGURE 1
Source: Carter Jonas
Average land values in
England and Wales
FIGURE 1
Average land values in
England and Wales
FIGURE 1
£12,000
£10,000
£8,000
£6,000
£4,000
£2,000
£0
Sep 2012
Sep 2020
£ per acre
Pasture
Arable
Publicly marketed
farmland supply
FIGURE 2
Source: Farmers Weekly
Acres
As at September
150,000
120,000
90,000
60,000
30,000
0
2014
2015
2016
2017
2018
2019
2020
CRUDE OIL
Unit
Latest data
Date
Quarterly change
Annual change
£/barrel
32.0
Sept '20
8.3%
36.7%
Fertiliser
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
218.5
Aug '20
-3.2%
-15.2%
Red Diesel
Unit
Latest data
Date
Quarterly change
Annual change
pence/litres
51.7
Sept '20
11.3%
-17.4%
Feed Wheat
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
186.3
Sept '20
10.0%
36.1%
Rapeseed Oil
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
352.9
Sept '20
5.4%
2.8%
MILK
Unit
Latest data
Date
Quarterly change
Annual change
pence/litre
27.8
Aug '20
4.0%
-3.0%
BEEF
Unit
Latest data
Date
Quarterly change
Annual change
pence/kg dw
367.8
Sept '20
2.8%
13.4%
Pork
Unit
Latest data
Date
Quarterly change
Annual change
pence/kg dw
166.5
Aug '20
0.0%
7.0%
Click a location for
a local overview
EMAIL Jack
01423 707815
Senior Surveyor
Jack Cook
East of england
Arable
Pasture
Lifestyle
Silts and Fen
£5,900
£5,000
£13,000
£7,000
£9,250
£9,000
£20,000
£11,000
£7,850
£6,500
£15,000
£8,500
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-4.5%
Low
£ / acre
Prime
£ / acre
Average
£ / acre
Quarterly %
Annual %
East of England land values
Sep 15
Sep 20
£ per acre
£0
£12,000
Arable
Pasture
North west
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£7,750
£5,000
£250
£11,000
£8,250
£1,500
£9,500
£6,750
£800
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Pasture
Hill
EMAIL robert
01539 722592
Senior Surveyor
Robert Bowyer
North West land values
Sep 15
£0
£12,000
Arable
Pasture
£ per acre
Sep 20
Wales
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£8,000
£4,000
£500
£9,000
£8,000
£1,500
£8,500
£6,000
£1,000
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Pasture
Hill
EMAIL Hugh
01248 360417
Associate Partner
Hugh O’Donnell
Wales land values
Sep 15
£0
£10,000
Arable
Pasture
£ per acre
Sep 20
South WEst
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£8,000
£4,000
£10,000
£8,500
£8,500
£7,250
0.0%
0.0%
-2.9%
-3.3%
Pasture
EMAIL David
01823 428591
Partner
David Hebditch
South West land values
Sep 15
£0
£12,000
Arable
Pasture
£ per acre
Sep 20
North east
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£5,750
£3,750
£1,400
£10,000
£8,000
£6,000
£2,500
£13,000
£6,750
£5,250
£1,900
£11,500
0.0%
0.0%
0.0%
0.0%
-3.6%
-4.5%
-5.0%
n/a
Pasture
Hill
Lifestyle
EMAIL Sam
01423 707801
Associate
Sam Johnson
North East land values
Sep 15
£0
£10,000
Arable
Pasture
£ per acre
Sep 20
Yorkshire and the Humber
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£7,250
£4,750
£1,400
£10,000
£10,000
£6,500
£3,500
£12,000
£8,250
£6,250
£2,400
£11,000
0.0%
0.0%
0.0%
0.0%
-2.9%
-3.8%
-4.0%
0.0%
Pasture
Hill
Yorkshire Wolds
EMAIL Sam
01423 707801
Associate
Sam Johnson
Yorkshire and the Humber land values
Sep 15
£0
£12,000
Arable
Pasture
£ per acre
Sep 20
£10,000
£15,000
£12,500
0.0%
n/a
Lifestyle
East Midlands
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£6,100
£6,000
£7,500
£9,500
£8,000
£11,750
£7,750
£6,800
£9,000
0.0%
0.0%
0.0%
-5.8%
-2.5%
0.0%
Pasture
Stilts and Fen
EMAIL Ben
01604 608224
Associate Partner
Ben Ainscough
East Midlands land values
Sep 15
£0
£12,000
Arable
Pasture
£ per acre
Sep 20
West Midlands
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£7,500
£6,250
£8,000
£12,250
£9,250
£12,000
£9,600
£8,000
£10,500
0.0%
0.0%
0.0%
-1.5%
0.0%
5.0%
Pasture
Lifestyle
EMAIL Ben
01604 608224
Associate Partner
Ben Ainscough
West Midlands land values
Sep 15
£0
£12,000
Arable
Pasture
£ per acre
Sep 20
South east
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£8,250
£6,750
£12,000
£9,750
£8,000
£15,000
£9,250
£7,750
£13,500
0.0%
0.0%
0.0%
2.8%
0.0%
0.0%
Pasture
Lifestyle
EMAIL Andrew
01962 833386
Partner
Andrew Chandler
South East land values
Sep 15
£0
£14,000
Arable
Pasture
£ per acre
Sep 20
Wales
West Midlands
East Midlands
South west
South east
East of england
Yorkshire & the humber
North east
North west
EMAIL Andrew
020 7518 3212
Head of Rural Agency
Andrew Fallows
EMAIL heena
020 7518 3270
Research Analyst
Heena Gadhavi
Get in touch
Click a trend for more info
Q-ON-Q
CHANGE
y-ON-y
CHANGE
WEST MIDLANDS
NORTH EAST
SOUTH WEST
WALES
NORTH WEST
YORKSHIRE & HUMBER
EAST MIDLANDS
EAST OF ENGLAND
SOUTH EAST
2019
EMAIL Robert
CLOSE
01539 722592
Senior Surveyor
Robert Bowyer
View on desktop for a full overview
2019
CLOSE
View on desktop for a full overview
North East land values
Sep 15
£0
£10,000
£ per acre
Sep 20
EMAIL Sam
01423 707801
Associate
Sam Johnson
2019
CLOSE
View on desktop for a full overview
Yorkshire & The Humber
land values
Sep 15
£0
£12,000
£ per acre
Sep 20
EMAIL Sam
01423 707801
Associate
Sam Johnson
2019
CLOSE
View on desktop for a full overview
Wales land values
Sep 15
£0
£10,000
£ per acre
Sep 20
EMAIL Hugh
01248 360417
Associate Partner
Hugh O' Donnell
2019
CLOSE
View on desktop for a full overview
East Midlands land values
Sep 15
£0
£12,000
£ per acre
Sep 20
EMAIL Ben
01604 608224
Associate Partner
Ben Ainscough
2019
CLOSE
West Midlands land values
Sep 15
£0
£12,000
£ per acre
Sep 20
EMAIL Ben
01604 608224
Associate Partner
Ben Ainscough
2019
CLOSE
View on desktop for a full overview
East of England land values
Sep 15
£0
£12,000
£ per acre
Sep 20
EMAIL Jack
01423 707815
Senior Surveyor
Jack Cook
2019
CLOSE
View on desktop for a full overview
South East land values
Sep 15
£0
£14,000
£ per acre
Sep 20
01962 833386
Partner
Andrew Chandler
EMAIL Andrew
2019
CLOSE
View on desktop for a full overview
South East land values
Sep 15
£0
£12,000
Arable
Pasture
£ per acre
Sep 20
EMAIL david
01962 833386
Partner
David Hebditch
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
View on desktop for a full overview
View on desktop for a full overview