Farmland Market Review 3Q2014

Page 1

Market Intelligence Report

Farmland Market Great Britain - 2014Q3 The farmland market contracted in 2014 – with less land for sale than in 2013 although we are not quite at the all time low amount of 2012. The lack of land to buy is supporting values in England, Scotland and Wales – as it has done for at least the last five years. Values have risen in the last 12 months by 6% in England and Scotland; equipped land values have risen by 7% in both countries, so more than the 3-5% for bare land. Welsh values have remained constant. Giles Wordsworth National Head of Farm Agency and Dr Jason Beedell Head of Research

England

Scotland

Wales

Prices have risen by 6% in 12 months and are at record levels. The amount of land for sale has fallen.

Prices have risen by 6% on the back of continuing low levels of supply.

Prices remain at record levels for both bare (£8,100 per acre) and equipped farms (£11,250).

We now expect less land to be marketed compared with 2013.

Demand remains strong for the best land and high amenity units.

smithsgore.co.uk

Only 61 farms were publicly marketed covering 8,800 acres so scarcity remains the driver.


England Farmland values in England (£/acre) Values remain at all time high levels. Equipped land values up 7% in the past 12 months, and 2% rise for bare land.

12,000 10,000 8,000 6,000

13Q3

64

5

81

51

14Q3

55

6

76

41

West Midlands South Central South West

14Q2

14Q3

Bare arable

£6,400

£6,300 

Bare pasture

£6,100

£6,300 

Equipped land

£7,200

£7,200 =

14Q2

14Q3

Bare arable

£7,750

£8,000 

Bare pasture

£6,500

£6,500 =

Equipped land

£8,750

£8,750 =

14Q2

14Q3

Bare arable

£8,250

£8,750 

Bare pasture

£6,250

£6,250 =

Equipped land

£11,500

£12,000 

14Q2

14Q3

Bare arable

£8,500

£8,500 =

Bare pasture

£6,500

£6,500 =

Equipped land

£10,500

£10,500 =

10Q4 Bare land

11Q1

12Q1

Equipped land

13Q1

14Q1

All land

North East

25

09Q1

Yorkshire & Humber

Mixed

70

0 08Q1

14Q2

14Q3

Bare arable

£6,300

£6,300 =

Bare pasture

£4,700

£4,700 =

Equipped land

£8,200

£8,200 =

14Q2

14Q3

Bare arable

£8,000

£8,000 =

Bare pasture

£5,500

£5,500 =

Equipped land

£9,000

£9,000 =

Bare arable

£7,750

£7,750 =

Bare pasture

£6,000

£6,000 =

Equipped land

£9,500

£9,500 =

14Q2 East Midlands

Livestock

8

2,000

14Q2 East of England

Dairy

49

North West

Arable 12Q3

4,000

South East

97,600 acres have been marketed in the year to date, which is less than the 5 year average. Only 105 - 115,000 acres will be marketed by the end of 2014, which is one of the smallest amounts ever.

Smiths Gore offices

Bare land

14Q3

14Q3

Bare arable

£8,750

£8,750 =

Bare pasture

£6,000

£6,000 =

Equipped land

£9,500

£9,500 =

14Q2

14Q3

Bare arable

£8,000

£8,000 =

Bare pasture

£6,250

£6,250 =

Equipped land

£10,000

£10,000=

Equipped land

All land

£/ac

% change

Acres

No of sales

£/ac

% change

Acres

No of sales

£/ac

% change

Acres

No of sales

09

£4,800 

-2%

19,500

135

£7,200 

-11%

96,700

360

£6,700 

-11%

116,400

496

10

£5,400 

13%

23,100

178

£8,300 

15%

98,700

433

£7,600 

13%

121,800

611

11

£6,000 

11%

24,400

148

£9,400 

13%

104,500

462

£8,700 

14%

128,900

610

12

£6,900 

15%

17,500

128

£9,700 

3%

73,100

338

£9,000 

3%

90,600

466

13

£7,100 

3%

26,500

232

£10,800

11%

95,400

468

£9,800 

9%

121,900

700

12Q1

£6,000 =

0%

3,800

29

£9,400 =

0%

12,400

59

£8,800 

1%

16,200

88

12Q2

£6,300 

5%

6,700

38

£9,600 

2%

28,800

119

£8,900 

1%

35,600

157

12Q3

£6,600 

5%

4,100

36

£9,600 =

0%

23,400

116

£9,000 

1%

27,400

152

12Q4

£6,900 

5%

2,900

25

£9,700 

1%

8,500

44

£9,000 =

0%

11,400

69

13Q1

£7,000 

1%

5,400

43

£9,800 

1%

12,100

66

£9,100 

1%

17,500

109

13Q2

£7,100 

1%

7,900

78

£10,200

4%

47,800

211

£9,500 

4%

56,000

290

13Q3

£7,200 

1%

9,500

75

£10,300

1%

26,400

129

£9,500 =

0%

35,300

204

13Q4

£7,100 

-1%

4,200

37

£10,800

5%

8,900

61

£9,900 

4%

12,900

98

14Q1

£7,100 =

0%

2,900

27

£10,800 =

0%

8,200

38

£9,900 =

0%

11,200

65

14Q2

£7,200 

1%

9,900

78

£11,000

2%

47,100

201

£10,000 

1%

57,000

288

14Q3

£7,400 

3%

9,600

72

£11,000 =

0%

19,900

106

£10,100 

1%

29,500

178


Scotland Farmland values in Scotland (£/acre) Values remain at all time high levels. Equipped land values up 7% in the past 12 months, and 5% rise for bare land.

12,000 10,000 8,000 6,000

31,500 acres have been marketed in 2014 so far - 6,000 acres less than in 2013 and in 2012 but only 1,800 acres less than the 5 year average. Only 35,000 acres will be marketed by the end of the year.

Arable

Dairy

Livestock

Mixed

12Q3

8

1

28

10

13Q3

10

3

36

11

14Q3

10

3

26

13

£/ac

% change

Acres

No of sales

12Q3

£6,200 

-2%

16,300

47

13Q3

£6,900 

11%

22,600

60

14Q3

£7,300 

6%

10,400

52

4,000 2,000 0 12Q1

12Q2

12Q3

12Q4 Bare land

13Q1

13Q2

13Q3

Equipped land

13Q4

14Q1

14Q2

14Q3

All land

Smiths Gore offices

Bare land

Equipped land

£/ac

% change

Acres

No of sales

09

£4,500

-

3,800

24

£6,000

£/ac

10

£4,500 =

0%

3,400

28

11

£5,500 

22%

3,100

12

£5,850 

6%

3,900

13

£5,950 

2%

12Q1

£5,500 =

0%

12Q2

£5,500 =

12Q3

£5,750 

12Q4 13Q1

All land

% change

Acres

No of sales

-

23,300

85

£5,800

£/ac

% change

Acres

No of sales

-

27,100

109

£6,000 =

0%

31,000

100

£5,800 =

0%

34,400

128

20

£5,000 

-17%

27,700

28

£6,250 

25%

35,700

94

£5,100 

-12%

30,800

114

105

£6,200 

22%

39,500

133

3,100

21

£7,250 

16%

38,400

400

4

£6,250 =

0%

3,300

117

£7,100 

15%

41,500

138

13

£6,100 =

0%

3,700

17

0%

1,600

10

£6,250 =

0%

15,600

5%

1,100

7

£6,250 =

0%

15,100

44

£6,100 =

0%

17,200

54

40

£6,200 

2%

16,300

47

£5,850 

2%

800

7

£6,250 =

0%

1,600

£5,850 =

0%

500

4

£6,250 =

0%

900

8

£6,200 =

0%

2,300

15

5

£6,200 =

0%

1,400

9

13Q2

£5,950 

2%

1,100

6

£7,000 

12%

13Q3

£5,950 =

0%

1,300

9

£7,000 =

0%

12,500

42

£6,900 

11%

13,600

48

21,300

51

£6,900 =

0%

22,600

60

13Q4

£5,950 =

0%

200

2

£7,250 

4%

3,700

14Q1

19

£7,100 

3%

3,900

21

£5,950 =

0%

900

6

£7,250 =

0%

14Q2

£6,250 

5%

2,500

18

£7,500 

3%

1,600

11

£7,100 =

0%

2,500

17

16,100

53

£7,300 

3%

18,600

71

14Q3

£6,250 =

0%

1,500

12

£7,500 =

0%

8,900

40

£7,300 =

0%

10,400

52


Wales Arable

Dairy

Livestock

Mixed

12Q3

0

1

12

3

13Q3

1

6

12

2

14Q3

0

1

20

0

Farmland values in Wales (£/acre) 12,000 10,000 8,000 6,000

£/ac

% change

Acres

No of sales

4,000

12Q3

£9,400 

1%

2,400

16

2,000

13Q3

£10,800 

15%

4,900

21

0

14Q3

£10,800 =

0%

2,300

21

12Q1

12Q2

% change

12Q4 Bare land

Bare land £/ac

12Q3

13Q1

13Q2

13Q3

Equipped land

13Q4

Equipped land

Acres

No of sales

£/ac

% change

14Q1

14Q2

14Q3

All land

All land

Acres

No of sales

£/ac

% change

Acres

No of sales

09

£4,500 

6%

1,700

14

£9,500 

31%

9,800

54

£8,800 

29%

11,500

68

10

£5,000 

11%

1,200

9

£10,000 

5%

32,100

50

£9,300 

6%

33,300

59

11

£6,000 

20%

1,300

8

£9,500 

-5%

7,300

48

£9,000 

-3%

8,600

56

12

£6,500 

8%

400

4

£9,250 

-3%

7,200

29

£8,800 

-2%

7,600

33

13

£8,000 

23%

1500

14

£11,250 

22%

11,600

60

£10,800 

23%

13,100

74

12Q1

£6,000 

9%

0

0

£9,500 

10%

1,200

4

£9,000 

11%

1,200

4

12Q2

£6,250 

4%

200

2

£10,000 

5%

3,400

7

£9,400 

4%

3,600

9

12Q3

£6,250 =

0%

200

2

£10,000 =

0%

2,200

14

£9,400 =

0%

2,400

16

12Q4

£6,500 

4%

0

0

£10,000 =

0%

400

4

£9,500 

1%

400

4

13Q1

£7,500 

15%

100

1

£10,500 

5%

1,600

11

£10,100 

6%

1,700

12

13Q2

£7,750 

3%

400

4

£11,000 

5%

3,700

23

£10,500 

4%

4,100

27

13Q3

£8,000 

3%

200

3

£11,250 

2%

4,700

18

£10,800 

3%

4,900

21

13Q4

£8,000 =

0%

600

5

£11,250 =

0%

1,800

9

£10,800 =

0%

2,400

14

14Q1

£8,100 

1%

600

5

£11,250 =

0%

1,300

6

£10,800 =

0%

1,900

11

14Q2

£8,100 =

0%

900

10

£11,250 =

0%

3,700

19

£10,800 =

0%

4,600

29

14Q3

£8,100 =

0%

600

7

£11,250 =

0%

1,800

14

£10,800 =

0%

2,300

21

Figures in this review are from our comprehensive database of all sales of publicly marketed farmland over 50 acres; they are therefore transaction-based, other than the Scottish, Welsh and regional values which are from our regional farm agents as reliable figures cannot be generated from the small numbers of transactions in these areas. The figures exclude sales where the residential value of the sale is greater than 50% of the total. If you have any questions about this report, please contact: Dr Jason Beedell Head of Research t 01733 866562 e jason.beedell@smithsgore.co.uk

Contacts National Head of Farm Agency

Giles Wordsworth

London

0207 409 9490

England

Giles Wordsworth Sam Tydeman

London Newmarket

0207 409 9490 01638 676743

North East North West Yorkshire and Humber West Midlands East Midlands East of England South East South Central South West Scotland

Stephen McOwan Simon Waller William Douglas Ed de Lisle David Goodson Sam Tydeman William Banham Giles Wordsworth Harry St John Simon Derby Toby Perry Christopher Anderson

Corbridge Clitheroe York Lichfield Peterborough Newmarket Maidstone Oxford Oxford Taunton Exeter Truro

01434 632404 01200 411052 01904 756303 01543 266407 01733 559306 01638 676743 01732 879058 01865 733302 01865 733304 01823 445036 01392 294891 01872 274646

Head of Farms and Estates Agency Team

John Coleman

Edinburgh

0131 344 0881

Head of Property Investment and Valuations

Gerald FitzGerald

London

0207 409 9492


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