Farmland Market Regional Round-up
Cheshire & Northeast Wales
The frenzied activity of the spring of 2008 tailed off in the second half of the year when it became apparent that prices had plateaued and the heat had gone out of the market. Earlier in the year there had been multiple bidders for almost any agricultural property that came to the market leading to exceptional prices being achieved in many cases. By the autumn, levels of interest had undoubtedly dropped and many parcels sold at or only slightly over their reserve price, although this may partly be explained by an increase in vendors’ expectations. Local farmers looking to increase existing acreage have continued to underpin the market while premium prices have often been achieved as a result of competition from adjoining householders.
Larger parcels of land (50+ acres) have been rare. A block of just under 200 acres was sold to a single purchaser in November for around £4,750/acre, but this was heavy clay land in a district where many of the former dairy farms have ceased production leading to a lack of competition from local farmers. Elsewhere, smaller parcels have typically made £6,000 to £7,000 per acre.
A similar picture has prevailed in Northeast Wales, although there has probably been more land available and demand has held up better. One of the features of the marked in 2008 particularly in Cheshire has been the lack of complete farms being offered for sale. It is possible that retirement plans and resulting sales were deferred on the back of improved returns in 2007 and early 2008. If so, such decisions are now looking questionable in an uncertain agricultural climate and with residential buyers inevitably likely to be less significant in the market.
The early signs are that the spring of 2009 will see a continuing supply of bare land to the market. Whether vendors’ expectations of 2008 prices are met will depend upon whether purchasers’ confidence has been dented by the economic recession or conversely agricultural land is seen as a safe investment when compared with equities or other property assets.
Bare Land Cheshire (£/acre)
Land Type Range Average
Grade 3 Pasture £4,500 to £6,000 £5,000
Better quality arable/pasture £5,000 to £7,000 £6,000
Smaller parcels of 20 acres £6,000 to £10,000 £7.500
For further details please contact Edward Clark: e.clark@dentonclark.co.uk