Industry Eye: Unusually cold winter delays the startof busiest time of year for farm sales in Britain

Mid-May to the start of harvest has become the prime selling season, and sets the tone for the rest of the year in terms of supply, demand and values. The market has been late this year, probably as a result of the cold winter and slow start to the growing season rather than being in response to the General Election.

To the end of April 3, 500 acres of farmland had been publicly marketed in the North of England, which was a decrease of 25 per cent on the same period last year, and a much greater decrease than the five per cent reduction recorded across Great Britain for the same period. Supply in Cumbria and Lancashire has been close to the average for the last few years.

There has been more land advertised for sale in Northumberland, together with slightly increased volumes in South and West Yorkshire, whilst supply levels in North Yorkshire are significantly lower.

Values have continued to rise marginally, following rises of 7.6 per cent in the region last year, and there have been some remarkable results, arable land selling for up to 8,000 per acre.

Despite the limited volume of land on the open market, there are now opportunities for farmers and investors to buy land privately, as well as for sale-and-lease-backs across the region. This presents itself whilst returns from alternative investments are so low, and whilst we may be entering another period of uncertainty in the financial market.

Most of these opportunities are not publicly advertised. In terms of public sales, we look forward to launching a substantial Grade I farm in south of the county at the end of the month, as well as an investment farm to the west of the county with sporting potential, and a residential estate.

For those prepared to travel further, we have just launched Brauncewell Estate.

This comprises 1,960 acres of south Lincolnshire arable and heathland offered as a whole or in lots at a guide price of 13.3m, which is generating huge interest from investors and farmers.

The new coalition government will lead to some policy changes, and it is too early to say whether these are likely to have any impact on land values, although the Conservatives have already conceded their proposed increase in Inheritance Tax Relief.

This illustrates the need for good tax planning on all farms, particularly as the new government will be looking at ways to increase tax revenue.

Any uncertainties in the financial markets which lead to a weaker pound may of course actually benefit farming incomes.

Andrew Black of Savills, tel: 01904 617831; [email protected]