Our north east agency team were involved in the purchase and sale of over 1,500 acres in 2022. Operating out of Doncaster and Newark, the team works across South & East Yorkshire, Derbyshire, Nottinghamshire, and Lincolnshire. We caught up with Associate, Thomas Parker, to find out more about the northeast land market and what his team have been doing to advise farmland buyers and sellers in this geographical area.
“The volumes of land offered to the market in 2020 and 2021 were impacted by the Covid-19 pandemic. In 2023, as witnessed nationally, this region has seen a modest increase in the number of acres brought to the market with figures surpassing those in the previous two years.
“Despite the increase in available land, demand is still very much outstripping supply with a wide range of buyers actively searching for a variety of requirements. Farmers are still the primary buyer of farmland, especially those purchasing land adjacent or near to their existing holdings and looking to benefit from economies of scale. A significant portion of the buyer’s pool was ‘rollover’ buyers seeking to reinvest the proceeds from the sale of land for development, to defer capital gains tax liability.
“Over the last 12 months, we have seen a growth in the number of enquiries from non-farming money such as lifestyle buyers, private investors, and corporate bodies. These types of buyers have been targeting holdings that have additional conservation and environmental features, as well as those that offer carbon offsetting opportunities.
“This was evidenced when we brought the Land at Old Whittington in Chesterfield to the market. The property comprised three distinct blocks of predominantly arable land totalling about 150 acres and was offered for sale by informal tender, as a whole or in up to three lots. The land lay within a 1.25-mile radius of the built-up area of Old Whittington, with each lot offering something different.
“The property generated interest on a local and national level following a public marketing campaign which resulted in offers on the whole property and for individual lots. Following the tender deadline and a review of the offers received, a decision was made to sell the property in multiple lots, which achieved a sale well in advance of the guide price.
“This is a prime example of the wide variety of buyers who are now in the marketplace. This has not only increased competition but has invariably contributed in part to the rise in average land values. Such a competitive marketplace has led to many buyers registering their interest with land agents, to find and agree on sales privately. These deals can often lead to premiums being paid, which can benefit both buyer and seller.
“Last year, we were instructed to act on behalf of many buyers in the acquisition of multiple blocks of land and farms across the region. This included the acquisition of properties privately available and on the open market. These properties have varied in acreage ranging from 50 up to 260 acres, comprising a mixture of arable land, grassland and woodland. We expect the number of deals being undertaken privately to continue to grow especially where discretion from both parties is required.
“Looking ahead, we predict more land in the region to be brought to the market as farming businesses feel increased pressure from rising input costs and falling subsidy payments. Although supply is likely to improve, we still expect there to be a shortfall, therefore strengthening values for all land types throughout 2023.”
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