National View
The average price of arable and pasture land in England and Wales remained broadly flat during the final quarter of 2020. Arable land values increased by 0.1% to £8,450 and pasture land by 0.2% to £6,744 per acre. While the quarterly figures have shown an increase, albeit very minimal, values are down by about 1% and 1.3% respectively throughout the year.
Virtual viewings, across both national lockdowns and in areas faced with tier 2 and 3 Covid-19 restrictions, have kept the market moving and over this last quarter, many farms have gone under offer, some due to complete imminently and others within the first quarter of 2021.
Given the difficulties the sector has faced in 2020, Carter Jonas has shown success, handling close to 20,000 acres across the public and private markets in England and Wales.
In some parts of the country, we have started to notice a shift in purchaser type. The agricultural sector is beginning to attract interest from buyers who have previously not been involved in land purchases, and in some cases, deals have been successfully struck. Changes in working practices may be attributed to this shift, in addition to land being considered a safe haven, when compared to typical portfolios, which, although offering higher returns, are less resistant to wider economic and political changes. The benefits set out in the Sustainable Farming Bill is also driving demand for land which can be used for environmental purposes.
Low levels of supply continue to underpin demand, a trend which is expected to continue in 2021. According to figures from Farmers Weekly, supply for publicly marketed land in 2020 reached the lowest level since records began. Approximately 64,000 acres were brought to the market throughout the year, the second consecutive year in which annual supply fell and failed to surpass 100,000 acres. That being said, privately marketed land parcels, which are not included in these figures, continue to be key in driving activity.
As far as the pipeline for 2021 goes, supply levels are expected to remain low, particularly with the absence of larger farms and parcels of land. However, with many farmers still keen to expand their holdings and low interest rates a key attraction for buyers, values to expected to remain at keen levels.
£8,450
per acre
Average
arable land value in q4
Q-ON-Q
CHANGE
0.1%
-1.0%
y-ON-y
CHANGE
£6,744
per acre
Average
PASTURE land value in q4
Q-ON-Q
CHANGE
0.2%
-1.3%
y-ON-y
CHANGE
Farmland market update q4 2020
Key data and expert commentary
outlining key trends in the farmland market
"Many farmers are still keen to expand their holdings with low interest rates a key attraction for buyers"
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
Dec 2012
Dec 2020
£ per acre
Pasture
Arable
Publicly marketed
farmland supply
FIGURE 2
Source: Farmers Weekly
Acres
As at November
180,000
160,000
80,000
60,000
40,000
0
2014
2015
2016
2017
2018
2019
2020
CRUDE OIL
Unit
Latest data
Date
Quarterly change
Annual change
£/barrel
36.6
Dec '20
14.3%
-27.2%
Fertiliser
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
218.8
Nov '20
0.1%
-14.6%
Red Diesel
Unit
Latest data
Date
Quarterly change
Annual change
pence/litres
51.2
Dec '20
0.0%
-15.6%
Feed Wheat
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
196.4
Dec '20
5.4%
27.7%
Rapeseed Oil
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
377.3
Dec '20
6.2%
11.0%
MILK
Unit
Latest data
Date
Quarterly change
Annual change
pence/litre
30.5
Nov '20
8.9%
2.2%
BEEF
Unit
Latest data
Date
Quarterly change
Annual change
pence/kg dw
375.9
Nov '20
1.0%
15.3%
Pork
Unit
Latest data
Date
Quarterly change
Annual change
pence/kg dw
158.2
Nov '20
-5.0%
-0.1%
Click a location for
a local overview
East of england
Arable
Pasture
Lifestyle
Silts and Fen
£6,000
£5,000
£13,000
£7,000
£9,500
£9,000
£20,000
£11,000
£7,950
£6,500
£15,000
£8,750
1.3%
0.0%
3.3%
2.9%
1.3%
0.0%
3.3%
2.9%
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
£7,400
0.0%
2.1%
-2.9%
-1.3%
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%
0.0%
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%
0.0%
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%
-3.1%
-2.5%
0.0%
Pasture
Stilts and Fen
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%
1.1%
0.0%
5.0%
Pasture
Lifestyle
EMAIL MICHAEL
07801 173004
Associate
Michael Paton
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%
0.0%
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
2019
CLOSE
West Midlands land values
Sep 15
£0
£12,000
£ per acre
Sep 20
EMAIL Ben
07801 173004
Associate
Michael Paton
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
01223 346628
Partner
Mark Russell
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 West 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
As we begin the new year, there are many issues that will impact both supply and demand. While the Covid-19 pandemic will continue to disrupt the market over the next few months, the UK’s transition into a post-Brexit world will be the biggest obstacle for the sector in the longer-term.
The 2021 season is a third full already, and many business operators are considering increasing their prices due to the excess demand for staycation holidays, and there is no evidence to suggest that this will not continue into the next couple of years – something that is reflected in the level of enquiries we are seeing from potential purchasers.
Our purchasers over the last twelve months are from across the board – new entrants into the market looking to set-up a glamping business by purchasing woodland or bare land, through to corporate leisure operators looking to expand their businesses. Many are coming from London and the South East, looking to cash-in on the buoyancy of the residential market. They are looking to move to the countryside, and they see a self-catering business such as a holiday cottage complex or lodge park as an ideal way of funding their move. Where buyers are not able or not inclined to borrow large sums, we have seen generations of families pooling their money to fund a purchase, and sharing the workload.
There are early signs of potential purchasers using their pension or redundancy funds to purchase holiday complexes as a semi-retirement project, a trend which was seen back in 2008. We have also seen long established operators feeling that it is the right time to sell, looking to cash in on the high demand witnessed for leisure properties in 2020.
Looking to 2021, key tourist locations across the country seem to be set for another bumper season, with people more likely to holiday in the UK than abroad. Self-catering accommodation seems to be the favoured type of accommodation, offering the separation that many want and need. While it is difficult to predict what may happen, based on historical events one thing is for sure – the staycation market is here to stay.
"Where buyers are not able or not inclined to borrow large sums, we have seen generations of families pooling their money to fund a purchase, and sharing the workload"
The Government lockdown in March brought the property market – along with much of the country – to a standstill. Through the months of April, May and June, we saw unprecedented levels of enquiries for leisure properties as corporate operators and individuals considered the future. Our database of potential purchasers swelled, and this led to pent-up demand and, through the months of July, August and September, levels of viewings that we hadn’t seen since the height of the market back in 2007. When the tourism industry re-opened in July, many clients reported that they were then fully booked for the next three months.
RURAL LEISURE View
140,000
120,000
100,000
20,000
EMAIL STEPHEN
07968 216596
Head of Leisure
Stephen Richards
EMAIL MARK
01223 346628
Partner
Mark Russell
EMAIL MARK
01223 346628
Partner
Mark Russell
200,000
RURAL
LEISURE
VIEW
The average price of arable and pasture land in England and Wales remained broadly flat during the final quarter of 2020. Arable land values increased by 0.1% to £8,450 and pasture land by 0.2% to £6,744 per acre. While the quarterly figures have shown an increase, albeit very minimal, values are down by about 1% and 1.3% respectively throughout the year.
The Government lockdown in March brought the property market – along with much of the country – to a standstill. Through the months of April, May and June, we saw unprecedented levels of enquiries for leisure properties as corporate operators and individuals considered the future. Our database of potential purchasers swelled, and this led to pent-up demand and, through the months of July, August and September, levels of viewings that we hadn’t seen since the height of the market back in 2007. When the tourism industry re-opened in July, many clients reported that they were then fully booked for the next three months.
The 2021 season is a third full already, and many business operators are considering increasing their prices due to the excess demand for staycation holidays, and there is no evidence to suggest that this will not continue into the next couple of years – something that is reflected in the level of enquiries we are seeing from potential purchasers.
"Where buyers are not able or not inclined to borrow large sums, we have seen generations of families pooling their money to fund a purchase, and sharing the workload"
Our purchasers over the last twelve months are from across the board – new entrants into the market looking to set-up a glamping business by purchasing woodland or bare land, through to corporate leisure operators looking to expand their businesses. Many are coming from London and the South East, looking to cash-in on the buoyancy of the residential market. They are looking to move to the countryside, and they see a self-catering business such as a holiday cottage complex or lodge park as an ideal way of funding their move. Where buyers are not able or not inclined to borrow large sums, we have seen generations of families pooling their money to fund a purchase, and sharing the workload.
There are early signs of potential purchasers using their pension or redundancy funds to purchase holiday complexes as a semi-retirement project, a trend which was seen back in 2008. We have also seen long established operators feeling that it is the right time to sell, looking to cash in on the high demand witnessed for leisure properties in 2020.
EMAIL heena
07968 216596
Head of Leisure
Stephen Richards
EMAIL mark
01223 346628
Partner
Mark Russell