More than 14,000 acres of farmland were put up for sale in the East of England during the first half of 2024 – a year-on-year rise of almost 10 per cent.
Only Scotland, (21,721 acres), the South West (20,600 acres) and the North (19,589 acres) saw more farmland marketed in the six months to the end of June, according to the quarterly farmland survey from Savills.
In total 14,292 acres of farmland has been publicly marketed in the East of England since the start of the year, the research says. It represents a nine per cent rise on the 13,072 acres put up for sale in the first half of 2023.
The report also shows a dip in value for some farmland types in the East of England, although in many cases they still remain above the national average.
Harry Kennedy, associate in the rural agency team at Savills in Norfolk, said: “Our last survey forecast the supply of farmland would continue its upward trajectory and so far this has played out – predominantly driven by larger blocks over 500 acres becoming available as farmers and landowners manage the transition away from the Basic Payment Scheme (BPS).
“The continued reduction in funding is encouraging many farmers and landowners to diversify and find alternative sources of income, however others are making the difficult decision to leave the industry completely or to consolidate and sell part of their holding.”
According to the Savills report, 118,232 acres of farmland were marketed across Great Britian in the first six months of 2024 – a rise of 36 per cent year-on-year.
Overall, farmland values for Great Britain increased by an average 1.7 per cent in the 12 months to June, putting the average value for all farmland at £8,242 per acre. Average prime arable land values reached £10,140 per acre, while Grade 3 arable land is valued at an average of £8,674 an acre.
In the East of England the average value of all farmland dropped to £9,276 an acre at the end of June – a fall of 6.6 per cent but still higher than the national average. The value of prime arable land dropped 8.3 per cent to an average of £9,928, while the value of Grade 3 arable land now averages £9,251 an acre – a rise of 7.3 per cent in the last 12 months.
Will Radbourne, part of the rural agency team at Savills in Chelmsford, said: “Over the last 18 months or so the East of England has led the way in terms of farmland values – with prices hitting an almost historic high and significantly ahead when compared to the rest of the UK.
“But more farmland on the market means more choice and – although values are still higher than they were two years ago and for the most part still outperforming the national picture – we have started to see a slight rebalancing.
“Encouragingly, there continues to be a strong pool of committed buyers with appetite for best-in-class properties ranging from prime residential estates to substantial farming portfolios.
“The cumulative effect of the agricultural transition and the array of demands on farmland also suggests the adaptability of Grade 3 arable land for multiple uses is making it increasingly popular, with values increasing accordingly. However, buyers are more selective than ever and presentation of a property and pragmatic pricing is paramount.”
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