Downward pressure on GB farmland market

Published 15 November 16

Recent research by Savills shows that, across GB, supply of farmland for the year to September 2016 was up 3% compared to the same period in the previous year, although farmland values were down more than 2%. Overall, 162,400 acres were advertised which is the highest level for the first nine months of the year since 2008. 

Downward pressure on GB farmland market 

England saw a reduction in both supply and land values with reduced activity in the eastern parts of the country, though the amount of land offered in the South West has increased. In contrast to England, Scotland and Wales saw prices remain static and supply increase. Demand in Wales is reported to be helped by dairy farmers looking to expand their dairy operations.

Regional variations in values are described as never having been greater, with markets becoming increasingly localised. The fall in values is primarily driven by pressure on arable land values, with evidence of pressure on grassland values as well, though not as significant as for arable land. However, a weaker pound, which will help boost subsidies and create opportunities for overseas buyers, may provide some support to farmland values.