While the level of farmland openly marketed in Britain during the first quarter of 2021 rose by 20 per cent year on year, it remained very low (at just 14,987 acres).

But these official ‘supply’ figures do not tell the whole story as the number of transactions currently taking place privately has been increasing in recent years. Last year private sales increased by 71 per cent compared with 2019 as sellers tested the market on an exclusive basis, rather than opting for more public launches.

The trend is continuing this year, with substantial premiums often being generated. This demonstrates that when golden opportunities are quietly offered to buyers – regardless of the time of year or political or socio-economic concerns – there is strong appetite to invest.

What is a private sale?

If you have agreed with your selling agent to promote your farm privately, it will not appear in any office window displays, it will not be listed on their website, or indeed on any other property portals, and it will not be featured in any press advertising, editorial or on social media platforms. In fact buyers will not be able to find any evidence at all of your property being for sale via traditional marketing methods.  

How does it work?

Instead, good agents will rely on their knowledge of the local, national and – where relevant – the international market, and also on their relationships with buyers and buying agents. Many such buyers have registered their exacting property requirements with us so that they can be offered potential properties which match their needs, often on an exclusive basis. This is often because they are keen to avoid a potentially time-consuming search for the perfect farm or estate as well as the potential stress involved in bidding blindly, or being outbid by another buyer only to start their search again.

Why do sellers choose to market privately?

The majority of our sellers choose to take the open-market route, enabling us to shine a light on their property through an advertising and PR campaign aimed at reaching ‘new’ buyers, as well as those already known to us – sometimes from all over the world. This certainly has the potential of creating more competition by ensuring our client’s property has the maximum exposure to the highest number of potential buyers. 

However, those sellers who opt for the private route do so for a number of reasons. They may not wish to disclose the sale to family, friends and neighbours, particularly if illness, divorce or debt is a driver.

In the case of larger, commercial farm and estate sales, private offering can minimise uncertainty for staff, tenants, suppliers and customers and allow the business to trade normally until a deal is concluded.

Some of our sellers – often, but not always, high-profile business people or celebrities – have not wished to share their addresses, floor plans and images of their properties with the world at large. They have preferred to keep the sale and asking price low profile, both for reasons of privacy and security.

Private sales can sometimes be quicker and less expensive in terms of marketing costs: time and money does not have to be factored in to book, plan and fund a full marketing campaign. Further, avoiding multiple viewings to find the right buyer can also reduce the length of time involved in a sale. 

Thus off-market can be the most appropriate option when there is a need for a swift sale, or if the seller has already bought another property and needs to release equity quickly, or perhaps when sellers are older or are simply busy and time poor.   

It is true that choosing the private route means sellers will never know for sure whether they could have achieved a higher price, as their property has never been truly market tested. However, for many, their desire for privacy is paramount. If they have enlisted a well-connected, experienced agent, these sellers can take comfort in the fact that strong negotiating skills and comprehensive knowledge of the market – including reliable valuations, analysis of comparable sales and a comprehensive black book of active buyers – have been brought to bear when agreeing the ultimate selling price for their property.

Further information

Contact Sian Houston or Penny Dart

Contact Savills Rural