Buyers in the market for region’s farmland

The most active buyers are in search of a rural lifestyle, focusing on residential farms close to good communication links; landowner buyers with development proceeds to re-invest in agricultural assets; and farmer investors looking to add land to existing diversified farming businesses.

According to Savills' latest analysis, more land came to the market in 2018 than in the previous year with an increase of 31 per cent across England.

In this region, 15,100 acres were marketed compared to 12,600 acres in 2017, accounting for 11 per cent of the English farmland market.

On the whole, values have remained relatively stable here although bare land sales have seen some downward pressure in places.

Our survey shows that during 2018 the average value of prime arable land in the West Midlands fell by 2.9% to £8,740 per acre. This compares with a decrease across Great Britain of two per cent to an average £8,760 per acre. Meanwhile, the average value of grade 3 livestock land in the region fell by 2.6% to £6,440 per acre.

Demand for land and farms remains strong. The primary focus is still for residential farms, equipped holdings and, driven by post-Brexit uncertainty, properties generating – or with the potential to produce – non-agricultural income.

That said, sensible pricing and knowledge of active buyers are vital in order to stimulate interest, create competitive bidding and achieve the best price.

The end of the Basic Payment Scheme in 2027 means many rural businesses will be evaluating their 10-year succession plans and we predict this will bring more supply to the market after 2021 than has been the case recently.

While poorer commercial arable and grassland may be subject to further falls in value, Savills' research predicts that the average value of GB farmland will remain close to current levels, but with the value of amenity and lifestyle property rising over the next four years.

Rhydian Scurlock-Jones, Rural director, Savills West Midlands