Year on year, to the end of June, the supply of publicly marketed farmland in the South West increased by just under 65 per cent, according to the latest market analysis from Savills.
20,600 acres of farmland were marketed during the first half of 2024, compared to 12,514 acres during the same period in 2023.
In the South East, there was an increase of 59 per cent over the same period, with 12,335 acres of farmland marketed to the end of June, compared to 7,763 acres during the same period in 2023.
The rise corresponds with increased supply across Great Britain as a whole, which was up by an average of 36 per cent at 118,232 acres. This represents a 19 per cent increase compared to the pre-Brexit levels of 2012-2016.
Kelly Hewson-Fisher head of rural research comments: “In January we forecast the supply of farmland would continue its upward trajectory with the market returning to historic average levels of supply. So far this has played out.
“Also, this year’s spring marketing window was compressed due to the extremely poor early weather and of the total acreage marketed during the first six months of this year 93,435 of them came to the market from April.”
Looking at the size of farms marketed, there have been more larger blocks, over 500 acres, marketed than in 2023.
Values
Overall, farmland values for the South West increased by an average of 5.6% in the 12 months to June, putting the average value for all farmland at £9,240 per acre. Meanwhile, the South East saw an increase of 1% on average over the same period to £9,335 per acre, with GB as a whole seeing an increase of 1.7% to the end of June, with an average value of £8,242.
Average prime arable land values reached £10,947 per acre in the South West, a year on year increase of 5.7%, with the South East seeing values of £10,803, an increase of 1.8%. Average prime arable values in GB were £10,140 at the half-year point.
The cumulative effect of the agricultural transition and the array of demands on farmland suggests the adaptability of grade 3 arable land to multiple uses is reflected in its popularity and values have increased by 6.5% in the South West.
Geoff Jones, Savills head of rural agency in the south, says “It is clear following the marketing of a number of farms and estates ranging from prime residential estates to substantial farming portfolios there is strong buyer appetite for best in class properties across all sectors. However, buyers are more selective than ever and presentation of a property and pragmatic pricing is paramount.”