The agricultural land market is always a keen topic of conversation.
The fluctuation of commodity prices, the economy, Brexit, the housing market, sentiment and local circumstances are just part of the melting pot which impact on the all important £’s/acre, not even to mention the actual nature of the land itself. We are often asked about land values and whilst it’s possible to discuss general trends, it’s a complex issue and the ’local circumstances’ are often the most unpredictable factor.
We have seen a general softening of the market in recent years with perhaps the peak being seen in around 2015. The fall in values has not been significant, although it may have felt like a bigger drop as it seems the land market was talked up higher than it ever reached. Beware of talk down the pub, as it’s only ever the high prices that get gossiped about and those high prices are often not as inflated as the rumours would have you believe!
As a general guide, land values in the range of £7,000 to £10,000 per acre are not uncommon but it is usually the specific circumstances of each sale that make the biggest difference. Indeed, we have sold land within and a long way outside of this range in the last 12 months. It is the local factors such as proximity to, and the number of, interested purchasers with available funds, which has the biggest impact. Every site needs an individual assessment to get a more accurate value.