Farmland in your area 2023: East Midlands

Public and private market activity for land and farms in the East Midlands has increased in 2023, with what agents suggest is a reasonable supply and a good level of demand.

That activity points to buyers looking for good-quality and productive blocks of land that can be used immediately, either as a standalone or as part of a larger unit.

Similarly, purchasers are seeking opportunities where they can add value with planning or diversification opportunities.

There is a sense that the supply and demand seen this year will be replicated in 2024.

See also: Farmland market – supply, demand, influences and values

Cash purchases

Charlie Bryant, partner, Brown & Co JH Walter

Cash purchases, largely fuelled by development land sales, have once again dominated the land market in the East Midlands in 2023. 

The differential between market value and the levels at which those wholly or mainly reliant on funding can bid has increased through the year.

The divergence can be anywhere between £3,000-£5,000/acre, maybe more in some locations.

It’s a tough place for borrowers to compete, and I suspect some have stopped trying; I would dissuade them from feeling like this. 

Looking forward, the strength of the market will largely be determined by the extent of rollover funds that remain to be invested and whether the emergence of buyers interested in land acquisitions for environmental reasons is maintained and develops.

Farmers dependent on productivity and associated economics are a long way down the list in terms of market influencers. 

Stable market

Tim Howard, Howkins & Harrison

While it can’t be ignored that interest rates have risen significantly, they are still at a manageable level for many.

We have launched more bare land to the market than in previous years – land that attracts local farming businesses to expand or rollover buyers keen on the taxation benefits.

We have also sold more farms and land off-market than we have done for many years.

We have advised the majority of our clients to be sensible and cautious with their expectations from the outset and this is paying dividends with a good level of interest and viewings.

Land across our region can sell well in excess of £10,000/acre, but it is often site and location specific, therefore can’t be considered to be the norm.

Land continues to be a safe investment both from a retention of value and taxation benefits perspective.

In my opinion, while rollover and inheritance tax reliefs are available in their current form, the market for land will remain stable.

Farms sold in 2023

Navigation Farm, Willoughby, a ring-fenced mixed farm with general-purpose buildings covering almost 1600sq m, about 97.14 acres of arable and pasture land and a four-bedroom farmhouse, was marketed by Howkins & Harrison at a guide price of £2m, selling to a local farming family planning expansion.

Navigation Farm, Willoughby © Howkins and Harrison

A 69-acre block of Grade 3 arable land at Thorpe Arnold, offered for sale by Brown & Co JH Walter, sold in excess of the £10,000/acre guide to a buyer with farming roots now running diversified enterprises.

Situated in attractive open countryside, the land was in Countryside Stewardship having historically grown combinable crops. 

Grade 3 arable land at Thorpe Arnold © Brown and Co JH Walter

Cash buyers dominated the market in the sale of 185.85 acres of arable land at Gringley-on-the-Hill, Nottinghamshire, achieving a sale price well in excess of the £1.7m guide.

The land, suited to winter cereals and short-term grassland, was sold by Brown & Co JH Walter in a combination of lots to seven buyers.

What’s on the market?

© Howkins and Harrison

A 199.36-acre block at Wolfhampcote, on the Northamptonshire-Warwickshire border, is part of a wider holding.

It offers opportunity to acquire grazing land with potential for other amenity or environmental uses.

Howkins & Harrison is marketing it at a guide of £1.4m-£1.5m as a whole or as three lots.