Farmland values fall in UK, back to 2012 levels
Farmland values across the UK have fallen by over 10% during the past 12 months to an average nationally of £8,967 per acre, the latest research shows. This vale is the lowest it has been since 2012 with some regional difference, according to new data from national property consultancy Carter Jonas. It shows that values remain the highest in Southern and central England, where demand for arable land is most pronounced.
By contrast, land values are under the greatest downward pressures in the Midlands, where average prices fell by 11.1% to £8,000 per acre in the last quarter. However, in an increasingly polarised market, hotspots in the Midlands are still evident, with certain parcels of land attracting up to 30% above the average £/acre.
Following a comparatively quiet spring and summer, the Northern regions experienced a supply increase compared to 12 months previously. Prices saw a continuation of the £9,000 per acre average achieved in the second quarter. Demand for good quality, correctly priced land remains robust across the UK, and is particularly apparent in the Central, South and South West regions, where strong prices are achieved where there is potential for diversification.
The research report explains that the banks are continuing to support the rural sector overall, however, six months on from the start of the official Brexit negotiations, lenders are displaying more caution when considering proposals. It remains to be seen whether this encourages innovation and revised strategies, or whether more stringent lending procedures result in the demise of underperforming farming businesses.