Brace of land deals provides grounds for cautious optimism15/06/20
The farming industry faces a huge amount of uncertainty owing to the triple economic impact of a decline in subsidies, Brexit and the challenges presented by COVID-19. There is a considerable amount of speculation that land prices are likely to fall. Despite this, we have reported two recent sales that appear to buck this potential trend.
Sale in North Shropshire
In north Shropshire, a sale of approximately 224 acres was completed in an off-market deal, equating to an average of £9,375 per acre. The arable land achieved £10,000 per acre, while the pasture sold for £8,500 per acre.
Land sold near Wrexham
Meanwhile, after a short period of active marketing, 24 acres of arable land near Wrexham sold for £200,000 (£8,333/ acre), with Forge Property again acting for the vendor.
In our view, these two deals give us cause for cautious optimism that land prices will hold firm. When it comes to investment, there’s no doubt that agricultural land is a popular choice, particularly when other property sectors are under pressure. Farmers looking to expand will continue to buy land if they need it. It’s also important to remember that for now the tax regime around agricultural land is still favourable.