2018 could be the time to sell land
Farmers should be making hay while the sun shines – and get property on the market this year to take advantage of positive market forces.
Ben Compton at Bruton Knowles’ Gloucester office, said: “Looking back at this time in 2017 we had some great land and farm sales which completed in good time and so far this year we have seen continued demand for land and farms, with prices remaining firm in most areas.
“In addition to the open market sales, we have had a number of private instructions – this is especially effective if you know your neighbours are interested and can often result in a premium to prevent the property from going on the market.”
“However, it is noticeable that buyers are becoming more discerning - looking into every aspect of a purchase prior to committing themselves. The ongoing challenges of Brexit will come into play, however the majority of land sales are being driven by neighbouring competition, continued low interest rates and Inheritance Tax benefits.
“Entrepreneurs relief brings Capital Gains Tax down from 20 to 10 per cent, which is attractive for those farmers looking to retire out of farming, whilst interest rates are still low land values will remain strong as long as farmers can see a future, but they could drop as we near the ‘exit door’ without a clear way ahead for the industry. If the timing is right from a personal or business perspective then it could be as good a time to sell as any.
“There are a lot of people out there sitting on land which has been increasing in value, and thinking of going to market in a year or two.
“While there is not a lot of land on the market, farmers with roll-over money are finding it hard to buy. The choice and stock levels just aren’t there.
“Those looking for commercial farms don’t have a lot to choose from so prices are remaining strong. Viable commercial units of 500 acres plus are few and far between. With Brexit and possible higher interest rates on the horizon it’s a good time to take advantage.
"Obtaining the right independent valuation and market advice is critical before proceeding, it is potentially one of the biggest decisions you will make - looking at all options before making a final decision is important, as is timing and for some the best time to sell could be 2018."
