More farmers are putting their land up for sale in the East of England as some leave the industry completely, according to a new report.
More than 14,000 acres of farmland were put up for sale in the region during the first half of 2024 – a rise of almost 10% year on year, according to a quarterly survey by land agents Savills.
Only Scotland, (21,721 acres), the South West (20,600 acres) and the North (19,589 acres) saw more farmland marketed in the six months to the end of June.
In total 14,292 acres of farmland has been publicly marketed in the East of England since the start of the year, the research says.
This is 9% more than the 13,072 acres put up for sale in the first half of 2023 and has been accompanied by a dip in value for some types of farmland.
William Hargreaves, who leads the rural agency team for Savills in the East of England and is based in the firm’s Ipswich office, suggested a changing landscape for farmers may be behind the rise.
“Our last survey forecast the supply of farmland would continue its upward trajectory and so far this has played out – predominantly driven by larger blocks over 500 acres becoming available as farmers and landowners manage the transition away from the Basic Payment Scheme (BPS)," he said.
“The continued reduction in funding is encouraging many farmers and landowners to diversify and find alternative sources of income, however others are making the difficult decision to leave the industry completely or to consolidate and sell part of their holding.”
The report revealed that 118,232 acres of farmland were marketed across Great Britain in the first six months of 2024 – a rise of 36% year on year.
Among the properties to come up for sale in the last few months is the 1,922-acre Blyford Estate and the 838-acre Chediston Estate - both owned by the Wilderness Reserve, a luxury retreat near Southwold for high-end holidaymakers - with an overall price tag of £36.6m.
Overall, farmland values for Great Britain rose by an average 1.7% in the 12 months to June, putting the average value for all farmland at £8,242 per acre.
Average prime arable land values reached £10,140 per acre, while Grade 3 arable averaged £8,674 an acre.
However, the East of England saw average values of all farmland dropped to £9,276 an acre at the end of June – a fall of 6.6% but still higher than the national average.
The value of prime arable land dropped 8.3% to an average of £9,928 - but the value of Grade 3 arable now sits at an average of £9,251 an acre – a rise of 7.3% in the last 12 months.
“Over the last 18 months or so the East of England has led the way in terms of farmland values – with prices hitting an almost historic high and significantly ahead when compared to the rest of the UK,” said Will.
“But more farmland on the market means more choice and – although values are still higher than they were two years ago and for the most part still outperforming the national picture – we have started to see a slight rebalancing.
“Encouragingly, there continues to be a strong pool of committed buyers with appetite for best in class properties ranging from prime residential estates to substantial farming portfolios.
"The cumulative effect of the agricultural transition and the array of demands on farmland also suggests the adaptability of Grade 3 arable land for multiple uses is making it increasingly popular, with values increasing accordingly.
"However, buyers are more selective than ever and presentation of a property and pragmatic pricing is paramount.”
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