There are signs that the growth in farmland values is slowing, according to Savills farms and estates.
"Our initial assessment of values at the third quarter of this year indicates that the average value of all types of farmland across Great Britain dropped very slightly by -0.5% during the year to around £7,340 per acre," said Alex Lawson, director at Savills.
Average values for the all types of farmland across England, Scotland and Wales are recorded at £8,100, £4,560 and £5,630 per acre respectively. Scottish values have remained stable over the past few years with values lagging behind those recorded south of the border.
The pressure has been greatest on the high values achieved for arable land in England over the past few years and our research suggests that average prime quality arable land values across England have fallen around -2.4% during this year to just under £10,000 per acre. In contrast average grassland values have increased by a similar but positive percentage to around £6,440 per acre.
“The divergence, over the past eight to ten years, between average values for arable and grassland and also between average values in England compared with those in Scotland and Wales may present opportunities,” continues Lawson.
Around 130,000 acres were publicly marketed in Great Britain in 2015 to 20 September, which is 10% more than in the same period in 2014 but still 1% less than the average of the same period of the previous five years (2010-14).
Ian Bailey head of rural research adds, “The market has become more finely balanced over the past 12 months with demand more price sensitive and the very high headline values are achieved less frequently. Local market knowledge, for both buyers and sellers, is therefore critical in a market where prices achieved range widely from average values”.
