Property Market Update April 2008
There are still plenty of good news stories despite the current volatility in the property market.
Agricultural land continues its steep rise in price. Barely any land of any type is now available at less than £4,000 per acre. Good quality arable or dairy land in large blocks is now selling at double that figure in some places. Cheshire is no exception - although very little land has come onto the market so far, sizeable agricultural blocks are now being guided at £6,000 to £8,000 per acre. Recent sales of large pony paddocks in north Cheshire (12 acres plus) have reached £15,000 per acre at auction.
The rental market for agricultural land is at least as strong. Fisher German’s Knutsford office recently let 112 acres for the High Legh Estate in north Cheshire in two blocks on a 9 year farm business tenancy by tender. The farm included some modern livestock buildings and a 3 bedroom farmhouse. Tenders ranged from £95 to £178 per acre with the successful applicants tendering in excess of £145 per acre, excluding single payment entitlements.
Fisher German also recently let a farm for the Capesthorne Estate near Macclesfield on a 9 year farm business tenancy. The farm offered 108 acres of dairy and arable land with good quality dairy buildings and a decent 4 bedroom farmhouse. Tenders were submitted by tenants of the estate whose offers ranged from £180 to in excess of £200 per acre, excluding single payment entitlements.
Several factors are combining to increase interest in agricultural land both for rent and purchase. World demand for food – including wheat, beef and milk – is increasing steeply. Growing conditions in some parts - notably Australia - are becoming more unreliable. Large areas in North and South America are being utilised for biofuel production rather than for food. Added to this the weaker pound both benefits exporters from the UK and potentially increases the value of the single payment. The result has been significant rises in prices paid for most agricultural products in the UK.
It is a mixed picture, as for some farmers these increased prices have been tempered or even wiped out by the increasing costs of fuel, fertiliser and animal feed. The specialist pig and poultry sectors have been particularly hard hit with the dairy industry also affected. Livestock farmers have encountered problems of their own in a new foot and mouth outbreak last summer and blue tongue since then.
The housing market presents a less buoyant picture, although we can expect the Bank of England’s latest intervention proposals to go some way towards freeing up mortgage lending.
However, residential lettings activity is increasing. Enquiries from both vendors and applicants are rising, particularly for high value properties, and we are looking forward to a period of higher rental returns.
For further information, or a free market appraisal of your property, please contact Hugh Maxfield at our Knutsford office on 01565 757970 or email hugh.maxfield@fishergerman.co.uk
- Ashby de la Zouch
- 01530 412821
- Banbury
- 01295 271 555
- Knutsford
- 01565 757970
- Market Harborough
- 01858 410 200
- Newark
- 01949 851815
- Southampton
- 02380 883150
- Stafford
- 01785 220 044
- Worcester
- 01905 453275
