Farmland in your area 2023: North-east England

The market for farmland in north-east England in 2023 has seen a drop of almost 10% in farmer buyers, but with private investors, lifestyle buyers, institutional investors and a new type of environmental buyer now increasingly active, the market overall shows demand continuing to outstrip supply.

While perception points to the supply of farmland significantly increasing, market analysis suggests otherwise.

See also: Biodiversity net gain – legal issues for farmers

Reports show that nationally anywhere from 33,000 to 62,000 acres of openly marketed land was on offer by the end of June 2023 – at least 10% below the 10-year average.

Environmental focus

In any year, we would expect the number of active farmer buyers to be at or just over 50%, but in 2023, this is falling closer to 40%.

This has, however, been compensated for by other buyers.

Environment, social and corporate governance funds have been hugely influential and capital funding for environmental groups has made them very competitive, with the need for biodiversity net gain and in nutrient neutrality, where the better the land taken out of production, the greater the reward and benefit to the environment.

Northumberland is offering more farms for sale than it has done for the past 12 years. North Yorkshire and County Durham have, however, remained relatively quiet, down more than 6% this year.

Despite the effect of interest rate rises, which have slowed the general rate of growth, premium prices are being offered in the market, with an increase in available land expected at the end of this year and into 2024.

John Coleman, head of land and farm sales, GSC Grays

Cross-section of buyer

Strong buyer interest remains, but with a greater cross-section of buyers than before, pricing plays an important part in securing initial interest.

Farmer-buyers still predominate, but affordability is an issue, both in terms of cash reserves and also lending, as the ability to service loans becomes more challenging.

Meanwhile, those perceived to be in a position to pay higher prices, such as environmental and woodland investors, often have niche requirements.

There has been an unprecedented number of farms and land on the market this summer. I expect more of the same in 2024 as pressure on income from subsidy changes and costs is making people consider their futures.

Lotting can open up a property to a number of different buyers, allowing the seller to tap into a more affluent market.

It can also work for a farmer-buyer, offering a chance to buy land at a price unaffected by the capital value of a house and buildings.

Harry Morshead, associate director, youngsRPS 

What’s on the market?

High Waupley Farm © GSC Grays

High Waupley Farm, Saltburn-by-the-Sea, Cleveland, has just been launched by GSC Grays.

This ring-fenced mixed farm has a stone farmhouse, two semi-detached cottages in need of refurbishment, a granary with development potential and a good range of modern buildings. 

It includes 286 acres of Grade 3 arable land, 24 acres of permanent pasture and 10 acres of woodland, and is being sold in one lot at a guide price of £3.5m.

Housty © youngs RPS

Housty, Catton, Hexham, Northumberland, is being offered for sale by youngsRPS, with a guide price of £1m.

This livestock holding is in the Allen Valley and has about 79 acres of productive grassland.

There is a range of both modern and traditional farm buildings and a recently refurbished three-bedroom farmhouse. Part of the farm is in a Mid-Tier Countryside Stewardship agreement.

Farms sold in 2023

Branton East Side Farm © GSC Grays

Branton East Side Farm, at Powburn, Northumberland, a prime arable and livestock farm with just over 860 acres, exceeded its guide price of £9.1m when it was sold by GSC Grays.

The farm has modern livestock buildings for housing 580 cattle and 1,000 ewes, covered silage clamps and 700t of grain storage.

The property has a five-bedroom farmhouse with a one-bedroom annexe and a terrace of four cottages and stables.

Struthers Farm © youngsRPS

Struthers Farm, Catton, Hexham, Northumberland, a well-equipped Grade 4 grassland farm, sold for well in excess of its £975,000 guide price.

It had been offered for sale in two lots or as a whole and was sold to a single buyer through youngsRPS.

With almost 65.84 acres of land, Struthers Farm has a detached four-bedroom farmhouse and a range of modern and traditional buildings.