2019 farmland values

Farmland values remained largely flat during 2019, as the market continued to grapple with prolonged uncertainty. The Savills Farmland Value Survey shows that average values have been relatively static with the average for all types of farmland across Great Britain falling 0.2% to £6,687 per acre. At a country level, English farmland lost ground as average values dropped 0.4% on 2018 figures, whereas Scotland and Wales both recorded gains of 0.5% and 1.2% respectively. Northern England recorded the largest value increase of 1.3% in contrast to a 1.2% loss across the East of England.

Across Great Britain, while average prime arable land recorded a 0.5% drop to £8,715 per acre, prime dairy farmland values gained 0.8% to £6,767 per acre.

These fairly static farmland values may partly be due to reduced market activity. However, Savills sales show evidence of a wide range of prices achieved either side of the average, which suggests a continuation of dynamic market forces.

2019 farmland supply

Farmland market supply reached a new record low in 2019 with just 117,000 acres publicly marketed across Great Britain. This eclipses the previous record of 135,000 set in 2012 and is the lowest since Savills starting tracking the farmland market in 1993. Last year’s farmland supply was 38% down on 2018 (189,000 acres) and 29% down on the five-year average.

Reduced offerings were a common theme across the home nations, with Scotland recording a 44% drop in supply to 25,000 acres, Wales a 32% reduction to 8,231 acres and England a 37% decline to 85,000 acres. The largest reduction in publicly marketed sales occurred in the East of England where only 11,000 acres were marketed, - 67% down on 2018 and approximately half the long-term average.

Buyer and seller profiles

Analysis of transactions during 2019 where Savills acted for either the buyer or seller shows that in a smaller market, new non-farmer buyers represented a higher proportion of buyers in 2019. These represented 23% of all purchasers compared with 16% in 2018, which is the highest proportion for five years. This suggests that current purchasing motivators are more aligned to lifestyle and investment security than commercial farming. Indeed, 55% of new farm buyers cited residential or sporting interests as the key motivation for the purchase, with investment motivating another 21%. Taking existing non-farming buyers into account, non-farmers accounted for 53% of all purchasers. Evidence from our agents around the country shows that non-farming investors continue to show interest in acreage close to regional centres or with the potential for diversified business opportunities.

Farmers represented just 42% of all buyers, which is the lowest level since our records began. Commercial farmers with successors showed continued appetite to expand across quality farmland or in locations well suited to complement existing farms.

Our research of sellers shows a clear link between farming activity and the amount of land being publicly marketed (see graph). Full-time farmers represented just 36% of all sellers – again the lowest level since our records began in 1993. Clearly market uncertainty has overwhelmed decisions to sell for some time. However, those who did sell may have grasped an opportunity as demand for the right properties has remained strong; almost half of farmer sellers cited either retirement (17%) or investment outside of farming (30%) as a reason to sell.

Non-farming landowners represented around half of all sellers. Our research shows that these were selling for a variety of reasons that are similar to selling a private residence, including relocation, downsizing, death and personal reasons and financial restructuring

_{Read the articles within Spotlight: The Farmland Market below.}