English farmland proves to be one of the best performing assets during the recession

alues for equipped farms and bare land continued to rise in the final quarter of 2011, to 14% for the year, so they have now risen continuously since the summer of 2009, despite the increase in supply of land to the market.

Values
“Equipped land values rose by 2% in the final quarter and by 13% over 2011 as a whole. This impressive rise in values followed a 16% rise in 2010, so values have risen by a third since the recent low point in the summer of 2009.”

“Bare land values have also risen, by 3% in the final quarter and by 12% in 2011 as a whole.  Although bare land values rose slightly more slowly than equipped ones, their greater resilience in 2008 and 2009 means that bare land values have risen by 50% since the start of 2008, making it one of the best performing assets during the recession”, says Giles Wordsworth, Head of Farm Agency at Smiths Gore.

Supply – the amount of land for sale
“Although the amount of land for sale remains at historically low levels, there were more equipped farms for sales in 2011 than in 2010 and 2009, and more units for sale in the final quarter of 2011 as well. 2011 was the first time more than 100,000 acres of equipped land was for sale since 2008”, says Dr Jason Beedell, Head of Research at Smiths Gore.

There were the fewest bare land sales in 4Q2011 for four years but, for the year as a whole, a similar amount of land was marketed in 2011 as in 2010 and more than in 2009 and 2008.

But despite this increase in supply, the lack of availability can be seen when the figures for specific farm types in specific areas are examined:

Detailed figures for 4Q2011
All farms
70 farms and parcels of land over 50 acres were marketed in 4Q2011, which is comparable with the numbers marketed during the same period of 2010 (70 properties) and 2009 (69).

13,200 acres were marketed in 4Q2011, which is 33% more than in 4Q2010 (9,900 acres) and 18% more than 4Q2009 (11,200 acres).

Equipped farms (Farms with buildings)
50 equipped farms were marketed in 4Q2011, compared with 47 in the same period of 2010.

35% more land was marketed in 4Q2011 (10,400 acres) than during 4Q2010 (7,700 acres), and 21% more than in 4Q2009 (8,600 acres).

Bare land
20 parcels of bare land were marketed in 4Q2011, which is slightly less than the same period in 2010 (23 properties).

The area for sale was 28% higher in 4Q2011 at 2,800 acres compared with 2,200 acres in 2010, and 11% higher than in 4Q2009 (2,600 acres).

Our regional valuers would be pleased to give your more information about the land market in your region or county. Please do not hesitate to contact them:

North East Iain Welsh, Darlington Office (01325 370500)
North West Simon Waller, Preston Office (01772 663122)
Yorkshire and Humber Sam Tydeman, York Office (01904 756303)
West Midlands Harry St John, Oxford Office (01865 733304)
East Midlands Giles Wordsworth, Oxford Office (01865 733302)
East of England Bennett Swayne, Newmarket Office (01638 676748)
South East David Slack, Maidstone Office (01732 879053)
South West Simon Derby, Taunton Office (01823 445036)