Farmland prices in Yorkshire and North of England at highest point, reveals new research

According to the research, prime arable land traded at an average of £11,277 an acre in the North of England in the three months to the end of June this year. This is a rise of 4.5 per cent when compared to the end of March and 7.2 per cent more compared to the same period in 2022 when the average price stood at £10,519 an acre.

It is the highest average price for prime arable land in the North of England since regional land values began to be collated by Savills, in 1993.

Nationally, prime arable land traded at an average £10,242 an acre at the end of June – a rise of 8.7 per cent year on year and the average price for ‘all types’ of farmland in the North – pasture and arable – sits at £7,452 an acre.

This represents a rise of 3.3 per cent when compared to the end of March this year and 9 per cent up when compared to June 2022 when the average price was £6,834 per acre.

Nationally, ‘all types’ of farmland traded at an average of £8,101 an acre in the three months to the end of June – a rise of 10 per cent when compared to the same period last year.

Andrew Black, who leads the rural agency team for Savills in the North of England, said: “Well- equipped commercial farms and significant acreages of bare arable land are often being bought in competition by buyers with capital gains rollover funds who have a time sensitive window for investment.

“This demand has helped support values and there have been cases where the prices paid are significantly more than the current averages recorded.

“Driven by buyers looking for environmental solutions and opportunities, values for poorer quality pasture land have also increased.”

During the first six months of this year 85,400 acres of farmland were publicly marketed across Great Britain, 16 per cent more than during the same period of 2022. So far this year there has been approximately 14,897 acres of land publicly marketed in the North of England – compared to 25,628 for the whole of 2022.

Mr Black said said that factors such as retirement and debt are behind the amount of farmland being marketed and while current interest rates may lead to more people being forced to sell – there will always be interest is sought after Yorkshire locations.

He added: “One of the primary motivators for current farm sales is retirement, either where there is no successor or where the next generation does not want to farm. Debt is also creeping in as a reason for a sale.

“Farms and estates with a significant proportion of value allocated to residential assets are more affected by rising interest rates.

"That said, best in class properties in the popular locations are still highly sought after and deals have been agreed within a few weeks of launch at prices in excess of the guide price.”