Industry Eye: Demand makes for good time to sell

This lack of supply was underlined when we placed Deighton Grange on the market, a 335-acre well equipped commercial mixed arable farm situated north of Northallerton. This generated significant interest and a sale has been agreed, subject to contract.

The market for blocks of agricultural land remains equally buoyant. However, we have seen the widest variation in prices, from less than 3,500 per acre to well over 8,000 per acre.

It is encouraging to report a very good market for farms and agricultural land; unlike the residential, commercial and industrial property markets. In general the banks are still prepared to lend on agricultural properties.

The inheritance tax benefits of owning agricultural land is still a driving force with non-farmers still entering the market. However, if anyone is seriously considering selling, now may well be the time. There is a view that the rate at which Capital Gains Tax is levied, is likely to go up. It would be prudent for clients to consult with land agents and accountants in this respect.

I would say therefore that it is a good time to sell. Shortage of supply, plenty of demand, low interest rates and current taxation benefits point to a buoyant farmland market for this spring and early summer.

Robin Jessop FRICS is managing director of estate agents Robin Jessop Ltd in North Yorkshire. Tel: 01677 425950; www.robinjessop.co.uk