31 March 2015 | Online since 2003



21 March 2014|Finance,News,Property News

North East land prices quietly creeping up


Land prices in the North East are 'gaining momentum' as opinion based prices of bare land are at approximately £7,000 with Knight Frank reporting an average of £6,882 per acre, according to regional firm George F White.

Over £70 million of agricultural bare land and equipped farms were transacted by George F White during 2013 with average values for bare land deals handled by the firm reported at £6,904 according to their recent research.

Claire Bainbridge, Director of Research commented that “The North East is clearly holding its own with the increase in land values, and with the RICS/RAU survey showing a 9% increase in the North East over the second half of the year the impact of a limited supply of good farmland is taking hold.

It will be one of the reasons for the large number of deals which have been conducted privately by the firm. Over 65% of the agricultural bare land and equipped farms transacted by George F White were done privately and more significantly 98% of bare arable land transactions were handled privately”.

Michael Bell from the George F White Alnwick office commented that “with good quality land in short supply, and increased demand from within and outside the region by not only farmers but also a significant number of investor clients it’s easy to understand why certain land types are increasing in value throughout the region. Bare arable land is at a premium, with some deals nearly reaching the £9k per acre mark, but also good quality pasture land holding its own. Smaller, less well equipped hill farms are not as well sought after at present yet could still prove to be a good investment for the right client”.

Tom Mason from the George F White East Yorkshire office added that “the perception is that larger well equipped units are more often than not openly marketed, however we have been involved with a number of significant farms and estates that have been handled privately. Of the 10,600 acres handled by the firm in 2013 over 65% of the deals done were private transactions”

Michael also stated that the increase in private deals will be due to a number of reasons, “often clients want to handle deals off market to remove some of the pressure of selling, to keep an element of control as well as the potential for a premium price over market value.”

Prices are being driven by a combination of factors, some of which became more prevalent during the second half of 2013. Commercial farmland demand, as has been the case in recent surveys, remains strong. Surveyors point out the importance of neighbouring farmer interest in pushing up the price of land.

In addition, it appears that prime commercial holdings are proving more attractive to investors than those of lesser soil quality.

The survey’s transaction based measure of farmland prices (which includes a residential component where its value is estimated to be less than 50%) increased by around 8% during the period, now standing at £9,258 per acre (taken as a four quarter moving average). The survey’s opinion based measure (a hypothetical estimate by surveyors of the value of bare land) rose by approximately 4% to £7,754 per acre.

"Prices for commercial arable land have continued to show impressive growth, and there was probably more market activity during the summer months than some had anticipated," said Ben Taylor, from Bidwells, Cambridge.

"Territorial bidding combined with stronger resolve from investors has seen prime commercial holdings hit new heights. We have also seen a relative return to form for moderately sized residential farms, although this remains very location-specific. Supply of top quality silt land continues to be exceptionally tight.”

Tom Raynham of Knight Frank, said: “Nationally the market is still being driven by greater demand than supply. The investor market still competes strongly against farmers and there is certainly more foreign (European) interest in farmland as an investment as the financial and legal stability of the UK draws more money and the benefits not only from tax but capital appreciation that farmland in the UK provides.”

David Strang Steel of Strutt and Parker, Banchory, said: “In the north east of Scotland there has been very little farmland sold in 2013 but there is a strong combination of local farmers, local business people and roll over buyers looking for farmland. We anticipate that with a strong local residential market the farmland market will improve further. Harvest 2013 was easy and to date we have had the mildest start to winter in memory.”

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


13 March 2015
Senior Business Development Manager/Field Sales (Aftermarket Products)
Do you live in or have you worked for Automotive, Construction, Industrial, Agriculture, Aftermarket, Material Handling, Sale...

10 March 2015
HGV Class 2 Driver
Must have a HGV class 2 driving licence. Duties include multi drop deliveries in the local and surrounding areas, and all oth...

24 March 2015
Control Room Operator
Hole Farm, Lye Green, Crowborough. As the SIA licence is personal to you not to your employer, you will be required to pay fo...

18 March 2015
Platform lead- Core Enzymes
D with emphasis on animal nutrition, health or physiology, relevant to research in mono-gastric farm animals. Du....

13 March 2015
Band 6 ODP / Anaesthetic Nurse
Chase Farm Hospital Site:. Barnet Hospital currently functions as an emergency centre and Chase Farm as an elective centre......




Top stories you may have missed
23 March 2015 | Cattle

UK butchers face difficulties to recruit...

Butchers in the UK are losing a generation through lack of training opportu...


20 March 2015 | Arable

Dust - the secret fertiliser?

NASA research has revealed how dust blown from the Sahara desert helps supp...


19 March 2015 | Arable

The Budget 2015: A Farmer's Budget?

“In the run up to the Budget 2015 most commentators were predicting that th...


17 March 2015 | News

UK's first floating solar power system l...

The UK’s first fully operational floating solar panel system has been unvei...


13 March 2015 | Animal Health

Labour and Conservatives clash over badg...

Axing the badger cull in England and Wales will save more than £120 million...


12 March 2015 | News

Solar could be cheapest energy source by...

By 2025, solar power could become one of the cheapest forms of energy in ma...


11 March 2015 | Finance

English buyers turn their attention to S...

Demand for Scottish farm land remains strong and continues to be better val...


9 March 2015 | Cattle

2020 vision for the Welsh red meat indus...

The Welsh red meat industry should aim to increase sales by at least 34 per...


6 March 2015 | News

MP raises egg industry concerns on trans...

Fears about the impact that a proposed transatlantic trade agreement could ...


Stay safe and legal when flying drones

The use of Unmanned Aerial Vehicles and Unmanned Aircraft Systems - or dron...