Farmland in your area 2023: West Midlands

The acreage of land offered for sale in the West Midlands in 2023 is up by about one-third on the previous 12 months, pushing supply higher than the 10-year average.

That buoyant supply has had an impact on average values; prices plateaued in the second half of the year, in stark contrast to earlier months, when some prime arable land was changing hands for £10,000-£13,000/acre.

While the scale and types of farms offered for sale have varied, ranging from dairy and livestock units to strategic holdings and tenanted investment opportunities, there was a noticeable uplift in smaller areas of bare land and smaller livestock farms marketed this year. 

See also: East Midlands land market review and outlook

Demand becoming more variable

Ben Ainscough, director, King West

Prime arable farms in popular areas of the West Midlands continue to sell well, although demand is becoming more variable.

Purchasers continue to be led by farmers with rollover money, the investment sector, and environmental buyers. 

The region has seen an increase in the amount of land publicly marketed in 2023, along with a growing number of significant transactions taking place off-market, too.

The market remains less predictable than in other regions, with values in excess of £13,000/acre still regularly being achieved for arable land.

The forecast for 2024 is uncertain. With the continued reduction in BPS, high input costs and the increasing likelihood of a general election on the horizon, a number of clients are beginning to enquire about the idea of selling before a possible change of government.

Despite this, land continues to be seen as a favourable investment for many.

Continued confidence in buying

Richard Gadd, partner, Fisher German 

The West Midlands saw significantly more supply of land and farms in 2023 compared to the past two years.

Arable land values strengthened in the first half of the year with good grade 2 and 3 land making well over £10,000/acre.

Pasture land values held firm up to the end of June, but have since seen more muted growth as the level of caution from livestock and dairy buyers has increased.

Values achieved have been location driven in the most part.

We are seeing many more conservation led and non-farming investors acquiring land for non-agricultural purposes.

Looking ahead, while the impending general election is affecting buyer sentiment, the recent announcement from the shadow environment secretary that Labour would not remove agricultural property relief will give confidence to many.

Wider economic challenges and high input costs remain, and with serviceability of debt a challenge for many, we will likely see continued muted land value growth in the coming 12 months.

What sold well in 2023

Pencombe © Fisher German

A ringfenced and productive arable land holding, extending to about 101.45 acres at Pencombe, Herefordshire, generated a good level of interest when it was marketed by Fisher German.

The interest resulted in a sale in excess of the £1m guide price.

What’s on the market?

Pinley Abbey © Fisher German

The Pinley Abbey Estate in Warwickshire comes with four period residential properties, modern and traditional farm buildings, and equestrian facilities together with about 100 acres of mature pasture land.

It is being marketed by Fisher German at a guide price of £4.35m.

Source: Regional pricing data supplied by Strutt & Parker is for blocks of more than 100 acres. 2023 data is for January to end September.