The Farmers Mart Dec/Jan 2015 - Issue 37 | Page 69

PROPERTY

2014 Land Market Review
Savills research shows that about 132,500 acres of
farmland were publicly marketed in Great Britain last
year, being a 8% decrease on 2013 and about 50,000
acres less than marketed in 2007 and 2008. This
figure excludes the sale of the Co-operative Farms
Portfolio, which extended to nearly 40,000 acres.
Once again there were regional
variations. In the North of
England, just over 14,500 acres
were advertised, which is a 35%
decrease on 2013.
Locally there has been
decreases in the land market in
Northumberland (73% decrease
compared to 2013), East Riding
of Yorkshire (77% decrease
from 2013 and the lowest level
seen since 2003), Cumbria
(30% decrease since 2013)
and Cheshire (14% decrease).
The market in North Yorkshire
decreased by 49% from 2013
(just over 3,000 acres advertised)
which had previously remained
fairly consistent at just under 6,000
acres during 2011, 2012 and
2013.
The large increase in the market
in Durham (282% uplift on the
2013 market, albeit from a very low
base) was largely due to the sale of
part of the Church Commissioners
Bishop Auckland Estate.
Values increased throughout
the year by approximately 14.3%
across the country (for all land types
and quality). This growth is higher
than 2013, when we reported
growth of 11.7%. Looking at land
types prime arable has increased in
value 16% this year and grassland
of all quality increased 12.5%.
Interestingly when you look at the
growth since 2010, prime arable
has grown 61.8%, average arable
58% and average grass 37.5%. The
now established two tier market is
still evident, with factors such as
quantity, size, field shape, access
and purchaser type remaining
important.

To read more, visit www.farmers-mart.co.uk

Last year, Savills publicly marketed
20,138 acres in total, meaning that
we retained our position as market
leader, handling more UK farmland
than any other agent.
The land market is at historic low
levels and looking forward to 2015
there is no obvious reason why
volumes should increase. However,
while public sales are at an all time
low there is more private activity
which is estimated to be up to
30% of the volume of transactions.
Despite this we are in a cycle of
low turnover. It is possible that the
low levels of profitability may result
in more land for sale, which has not
always been the case in the past. In
2014 debt related sales accounted
for 14% of the market being the
highest level for some time.
Farming profitability and optimism
may have an impact on land supply
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