Spring, at least in calendar terms, is here and we are well into the second quarter of 2018. Bearing in mind that the farmland market is in its early stages for the year, research shows that average farmland values remained stable to the end of March while market activity varied considerably across the counties.

Throughout the UK it appears we may be seeing more supply following the below '10-year average’ activity recorded last year. Indeed, supply during the first quarter was up by almost 25 per cent compared with the same period of 2017, with around 14,000 acres publicly marketed. So what can we expect for the rest of the year?

Looking at the turnover of supply during the past few years (see graph below) it is clear that there is no exodus from farmland  – a 0.5 per cent and 1 per cent turnover of land represents a farm sale once in 200 years and 100 years respectively. Clearly alternative income streams, including environmental grants, or off-farm employment are contributing to the sustainability of businesses.

Turnover is most liquid (by 25 to 50 years) in the South East of England, possibly reflecting a greater proportion of ‘lifestyle’ owners whose ownership tends to be more fluid.

We look forward to some blue skies, gentle drying winds and sunshine to reinvigorate crops and grassland so future sellers can have photographs taken and potential buyers can see a farm and its land at its best. 

Average (past 10 years) turnover of publicly marketed farmland supply in years

Further information

Contact Savills Rural