National View
Average arable land values across England and Wales increased by 0.9% during Q2 and 1% over the last 12 months to £8,522 per acre. This was the first time that a significant increase has been recorded since Q2 2016 (quarterly) and Q4 2016 (annually).
Pasture land also recorded a rise in values – by 1.2% over the quarter and 1.4% since Q2 2020 – to reach an average of £6,822 per acre.
These strong and positive values are very welcome, particularly after a tough 12 months in which very few transactions were completed. Many lots that have recently completed or are currently under offer are achieving values close to, or more than, guide price.
The increased supply now available on the market has also released some of the pent-up demand from purchasers, many of whom have been noticeably active in recent months.
Although sales are transpiring, sizeable lots remain few and far between, with smaller lot sizes and parcels of land currently dominating the sales market. There is hope that the strong residential market, exacerbated by the stamp duty holiday ending on 30 June, will filter through to more land sales later in the year.
According to figures from Farmers Weekly, around 30,000 acres were introduced to the market between April and June, almost four times more than in Q1 2021 and double that of Q2 2020. This takes year-to-date supply to circa 38,000 acres, a marked increase on the same period of 2020, but still down on previous years, see figure 2.
£8,522
per acre
Average
arable land value in q2
Q-ON-Q
CHANGE
0.9%
1.0%
y-ON-y
CHANGE
£6,822
per acre
Average
PASTURE land value in q2
Q-ON-Q
CHANGE
1.2%
1.4%
y-ON-y
CHANGE
Farmland market update q2 2021
Key data and expert commentary outlining trends in the farmland market
"There are a wide range of prospective buyers currently seeking rural property. This includes those on the hunt for country homes in rural locations..."
Average land values in
England and Wales
FIGURE 1
Publicly marketed
farmland supply
FIGURE 2
FIGURE 3
Commodity price trends
Source: Carter Jonas, AHDB, Farmers Weekly, DEFRA
Inputs
Outputs
Crude Oil
Fertiliser
Red Diesel
Feed Wheat
Rapeseed Oil
Milk
Beef
Pork
Average land values in
England and Wales
FIGURE 1
Publicly marketed
farmland supply
FIGURE 2
Average land values in
England and Wales
FIGURE 1
Source: Carter Jonas
Average land values in
England and Wales
FIGURE 1
Average land values in
England and Wales
FIGURE 1
12,000
10,000
8,000
6,000
4,000
2,000
0
Jun 2013
Jun 2021
£ per acre
Pasture
Arable
Publicly marketed
farmland supply
FIGURE 2
Source: Farmers Weekly
Acres
As at November
180,000
10,000
80,000
4,000
40,000
0
Jun 15
Jun 16
Jun 17
Jun 18
Jun 19
Jun 20
Jun 21
CRUDE OIL
Unit
Latest data
Date
Quarterly change
Annual change
£/barrel
51.1
Jun ‘21
9.7%
72.8%
Fertiliser
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
284.2
May ‘21
1.9%
26.0%
Red Diesel
Unit
Latest data
Date
Quarterly change
Annual change
pence/litres
64.2
Jun ‘21
7.0%
38.2%
Feed Wheat
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
184.3
Jun ‘21
-4.2%
8.8%
Rapeseed Oil
Unit
Latest data
Date
Quarterly change
Annual change
£/tonne
443.7
Jun ‘21
10.2%
32.5%
MILK
Unit
Latest data
Date
Quarterly change
Annual change
pence/litre
30.1
May ‘21
0.6%
12.7%
BEEF
Unit
Latest data
Date
Quarterly change
Annual change
pence/kg dw
395.7
Jun ‘21
0.7%
10.6%
Pork
Unit
Latest data
Date
Quarterly change
Annual change
pence/kg dw
156.6
May ‘21
9.5%
-6.4%
Click a location for
a local overview
East of england
Arable
Pasture
Lifestyle
Silts and Fen
£6,000
£5,250
£13,000
£7,000
£9,750
£9,250
£20,000
£11,000
£8,000
£6,750
£16,000
£8,750
0.6%
3.8%
0.0%
0.0%
1.9%
3.8%
3.3%
0.0%
Low
£ / acre
Prime
£ / acre
Average
£ / acre
Quarterly %
Annual %
East of England land values
Jun 16
Jun 21
£ per acre
£0
£12,000
Arable
Pasture
North west
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£7,750
£5,000
£250
£11,000
£8,250
£1,500
£9,500
£6,750
£800
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Pasture
Hill
EMAIL DEBORAH
01539 814914
Associate Partner
Deborah Lund
North West land values
Jun 16
£0
£12,000
Arable
Pasture
£ per acre
Jun 21
Wales
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£8,000
£4,000
£500
£9,000
£8,000
£1,500
£8,500
£6,000
£1,000
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Pasture
Hill
EMAIL Hugh
01248 360417
Associate Partner
Hugh O’Donnell
Wales land values
Jun 16
£0
£10,000
Arable
Pasture
£ per acre
Jun 21
South WEst
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£8,000
£4,000
£10,000
£8,500
£8,800
£7,600
3.5%
2.7%
3.5%
4.8%
Pasture
EMAIL David
01823 428591
Partner
David Hebditch
South West land values
Jun 16
£0
£12,000
Arable
Pasture
£ per acre
Jun 21
North east
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£5,750
£3,750
£1,400
£10,000
£8,000
£6,000
£2,500
£13,000
£6,750
£5,250
£1,900
£11,500
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Pasture
Hill
Lifestyle
EMAIL Sam
01423 707801
Associate Partner
Sam Johnson
North East land values
Jun 16
£0
£10,000
Arable
Pasture
£ per acre
Jun 21
Yorkshire and the Humber
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£7,250
£4,750
£1,400
£10,000
£10,000
£6,500
£3,500
£12,000
£8,250
£6,250
£2,400
£11,000
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Pasture
Hill
Yorkshire Wolds
EMAIL Sam
01423 707801
Associate Partne
Sam Johnson
Yorkshire and the Humber land values
Jun 16
£0
£12,000
Arable
Pasture
£ per acre
Jun 21
£10,000
£15,000
£12,500
0.0%
0.0%
Lifestyle
East Midlands
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£6,000
£5,900
£13,000
£9,750
£8,000
£25,000
£7,800
£6,800
£16,500
0.6%
0.0%
n/a
0.6%
0.0%
n/a
Pasture
Lifestyle
East Midlands land values
Jun 16
£0
£12,000
Arable
Pasture
£ per acre
Jun 21
West Midlands
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£7,500
£6,250
£8,000
£12,250
£9,250
£12,000
£9,600
£8,000
£10,500
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Pasture
Lifestyle
EMAIL MICHAEL
07801 173004
Associate
Michael Paton
West Midlands land values
Jun 16
£0
£12,000
Arable
Pasture
£ per acre
Jun 21
South east
Arable
Low
£ / acre
Prime
£ / acre
£ / acre
Quarterly %
Annual %
Average
£8,500
£7,000
£12,500
£10,000
£8,250
£17,500
£9,500
£8,000
£14,000
2.7%
3.2%
3.7%
2.7%
3.2%
3.7%
Pasture
Lifestyle
EMAIL Andrew
01962 833386
Partner
Andrew Chandler
South East land values
Jun 16
£0
£14,000
Arable
Pasture
£ per acre
Jun 21
Wales
West Midlands
East Midlands
South west
South east
East of england
Yorkshire & the humber
North east
North west
EMAIL Andrew
020 7518 3212
Head of Rural Agency
Andrew Fallows
EMAIL heena
020 7518 3270
Senior Research Analyst
Heena Gadhavi
Get in touch
Click a trend for more info
Q-ON-Q
CHANGE
y-ON-y
CHANGE
WEST MIDLANDS
NORTH EAST
SOUTH WEST
WALES
NORTH WEST
YORKSHIRE & HUMBER
EAST MIDLANDS
EAST OF ENGLAND
SOUTH EAST
2019
EMAIL Robert
CLOSE
01539 814914
Senior Surveyor
Deborah Lund
View on desktop for a full overview
2019
CLOSE
View on desktop for a full overview
North East land values
Mar 16
£0
£10,000
£ per acre
Mar 21
EMAIL Sam
01423 707801
Associate
Sam Johnson
2019
CLOSE
View on desktop for a full overview
Yorkshire & The Humber
land values
Mar 16
£0
£12,000
£ per acre
Mar 21
EMAIL Sam
01423 707801
Associate
Sam Johnson
2019
CLOSE
View on desktop for a full overview
Wales land values
Mar 16
£0
£10,000
£ per acre
Mar 21
EMAIL Hugh
01248 360417
Associate Partner
Hugh O' Donnell
2019
CLOSE
View on desktop for a full overview
East Midlands land values
Mar 16
£0
£12,000
£ per acre
Mar 21
2019
CLOSE
West Midlands land values
Mar 16
£0
£12,000
£ per acre
Mar 21
EMAIL Ben
07801 173004
Associate
Michael Paton
2019
CLOSE
View on desktop for a full overview
East of England land values
Mar 16
£0
£12,000
£ per acre
Mar 21
EMAIL Jack
01223 346628
Partner
Mark Russell
2019
CLOSE
View on desktop for a full overview
South East land values
Mar 16
£0
£14,000
£ per acre
Mar 21
01962 833386
Partner
Andrew Chandler
EMAIL Andrew
2019
CLOSE
View on desktop for a full overview
South West land values
Mar 16
£0
£12,000
Arable
Pasture
£ per acre
Mar 21
EMAIL david
01962 833386
Partner
David Hebditch
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
Arable
Pasture
View on desktop for a full overview
View on desktop for a full overview
Although sales are transpiring, sizeable lots remain few and far between, with smaller lot sizes and parcels of land currently dominating the sales market. There is hope that the strong residential market, exacerbated by the stamp duty holiday ending on 30 June, will filter through to more land sales later in the year.
EMAIL MARK
01223 346628
Partner
Mark Russell
EMAIL MARK
01223 346628
Partner
Mark Russell
EMAIL mark
01223 346628
Partner
Mark Russell
There are a wide range of prospective buyers currently seeking rural property. This includes those on the hunt for country homes in rural locations as the flight-to-country trend shows no signs of slowing, in addition to rollover buyers looking to reinvest funds from developments.
£7,500
12,000
£9,000
0.0%
0.0%
Stilts and Fen
100,000
50,000
40,000
30,000
20,000
10,000
0
There are a wide range of prospective buyers currently seeking rural property. This includes those on the hunt for country homes in rural locations as the flight-to-country trend shows no signs of slowing, in addition to rollover buyers looking to reinvest funds from developments.
Furthermore, with the changes to subsidy payments to reward for environmental initiatives fast approaching and in the back of many buyers and landowners’ minds, the demand for assets which have the potential to benefit from this is on the rise. In recent months, we have noticed an increase in enquires for small parcels of bare land across the country, with prospective buyers hoping to use these acres for woodland creation in many cases, a trend which we will continue to monitor closely over the next few months.
The UK has already seen many temporary campsites open this year, largely on unused parcels of land and on working farms, and we expect many landowners will follow suit to diversify their income streams, even if it is seasonal and for up to 56-days.
These pop-up campsites will go towards filling the gap where traditional holiday accommodation remains fully booked. The current, and any further, extension will help the rural economy bounce back after the losses incurred during the closures last year – not just directly to campsite owners, but also to nearby restaurants, shops and pubs, to name a few, who are likely to benefit from the increased trade.
In the camping market, a rule change in 2020 which now allows pop-up campsites to open for 56 days, instead of the previous 28-day rule, without full planning permission is likely to give a considerable boost to this sub-sector, which suffered a loss for most of last year after businesses were forced to close. As an end date was not specified, this rule remains in force and many stakeholders are lobbying for the UK Government to extend this further to 72 days.
This is very positive for our clients – the owners of such businesses – who have had, and will continue to have, a great year in terms of turnover. Due to this, demand for leisure assets is at very high levels, however many vendors are currently unwilling to market their properties and businesses, opting to take advantage of and benefit from the current, and upcoming, busy season and high demand from consumers. However those who have decided to market have achieved strong prices, with these buyers having utilised the stamp duty holiday before it came to an end on 30 June.
"The current, and any further, extension will help the rural economy bounce back after the losses incurred during the closures last year"
Following the easing of restrictions earlier in April, and due to international travel remaining restricted, the UK’s rural leisure market reopened with a bang. Holiday accommodation has remained fully occupied since 12 April with no signs of abating during the upcoming summer and autumn seasons. In many cases, a good volume of bookings was made well in advance of the lockdown restrictions easing, and as a result, consumers hoping to book a last-minute UK getaway during the school holidays are unlikely to find availability, particularly in high footfall, tourist locations.
RURAL LEISURE View
EMAIL STEPHEN
07968 216596
Head of Leisure
Stephen Richards
60,000
70,000
80,000
90,000
Furthermore, with the changes to subsidy payments to reward for environmental initiatives fast approaching and in the back of many buyers and landowners’ minds, the demand for assets which have the potential to benefit from this is on the rise. In recent months, we have noticed an increase in enquires for small parcels of bare land across the country, with prospective buyers hoping to use these acres for woodland creation in many cases, a trend which we will continue to monitor closely over the next few months.
This is very positive for our clients – the owners of such businesses – who have had, and will continue to have, a great year in terms of turnover. Due to this, demand for leisure assets is at very high levels, however many vendors are currently unwilling to market their properties and businesses, opting to take advantage of and benefit from the current, and upcoming, busy season and high demand from consumers. However those who have decided to market have achieved strong prices, with these buyers having utilised the stamp duty holiday before it came to an end on 30 June.
"The current, and any further, extension will help the rural economy bounce back after the losses incurred during the closures last year"
Following the easing of restrictions earlier in April, and due to international travel remaining restricted, the UK’s rural leisure market reopened with a bang. Holiday accommodation has remained fully occupied since 12 April with no signs of abating during the upcoming summer and autumn seasons. In many cases, a good volume of bookings was made well in advance of the lockdown restrictions easing, and as a result, consumers hoping to book a last-minute UK getaway during the school holidays are unlikely to find availability, particularly in high footfall, tourist locations.
RURAL LEISURE VIEW
In the camping market, a rule change in 2020 which now allows pop-up campsites to open for 56 days, instead of the previous 28-day rule, without full planning permission is likely to give a considerable boost to this sub-sector, which suffered a loss for most of last year after businesses were forced to close. As an end date was not specified, this rule remains in force and many stakeholders are lobbying for the UK Government to extend this further to 72 days.
These pop-up campsites will go towards filling the gap where traditional holiday accommodation remains fully booked. The current, and any further, extension will help the rural economy bounce back after the losses incurred during the closures last year – not just directly to campsite owners, but also to nearby restaurants, shops and pubs, to name a few, who are likely to benefit from the increased trade.
The UK has already seen many temporary campsites open this year, largely on unused parcels of land and on working farms, and we expect many landowners will follow suit to diversify their income streams, even if it is seasonal and for up to 56-days.
EMAIL Andrew
07968 216596
Head of Leisure
Stephen Richards
