Farmland in your area 2024: Wales

Recent Welsh farm income data that showed big falls in every sector is reflected in the performance of the farmland market.

Some regions saw a significant increase in land coming to the market in 2024, but that supply wasn’t being matched by buyer demand.

Uncertainty over Wales’ new environmental land management scheme and the country-wide rollout of nitrate vulnerable zones (NVZs) are affecting buyer confidence.

One section of the market that continues to perform well is productive bare land, with strong competition among buyers showing no signs of waning.

One notable feature was the increase in the size of farms being marketed, with some exceeding 1,000 acres.

See also: Uncertain times produce mixed outlook for land market

Rob David, land agent, Herbert R Thomas

I noticed a significant increase in land coming to the market throughout Wales in 2024, especially larger parcels and complete holdings, but demand was tempered by several factors.

High interest rates discouraged investment, and there was a noticeable decline in buyer confidence in the farming sector, largely due to uncertainty surrounding the Sustainable Farming Scheme, NVZs, and the proposed changes to inheritance tax relief.

Financial restructuring and debt accounted for a significant portion of sales, while retirement and sales resulting from death also played a role.

Political factors had a substantial influence, with a surge in market activity in the first half of the year in anticipation of potential changes to capital gains tax.

Landowners were strategically completing deals before any tax reforms could be implemented.

The average size of farms being marketed in Wales increased to 186 acres, a shift driven by various vendors, including institutions, local authorities, and traditional family farms.

I expect the market to face continued challenges in 2025 as the economic factors that dampened demand are likely to persist.

Political uncertainties will still play a role, however I am confident that the resilience shown in 2024 suggests the market will adapt, with potential opportunities arising from ongoing agricultural transition and restructuring efforts.

Hugh O’Donnell, partner, Carter Jonas

We saw a buoyant market for bare land sales in Wales in 2024 and expect that to continue.

Buying land ready to farm from day one has lots of appeal for commercial farmers. We see a particular hunger for these parcels in the north from dairy farmers who want to expand.

When blocks of 20 or 30 acres or more of improved grassland are launched demand is extremely keen, especially so on Anglesey and the Lleyn Peninsula and in the Vale of Clwyd.

These don’t come to the market often and that translates into keen prices – we have seen productive blocks of grassland sold for £10,000/acre or more.

Confidence in the earning potential of land varies across different farming sectors though.

We didn’t see many large commercial farms coming onto the market, but instead a steady trickle of units of around 100 acres with a farmhouse and a range of buildings.

Interest in these was across the board, particularly those that were well presented.

These are bigger purchases than bare land so the process is slower.

Borrowing costs are sometimes perceived as a stumbling block but farmers want competitive interest rates and, like the rest of us, banks are in business and are listening.

On the market

Llanmihangel Farm, at Pyle, near Bridgend © Herbert R Thomas

Llanmihangel Farm, at Pyle, near Bridgend, has just been launched by Herbert R Thomas at a guide price of £3.85m.

This has 154 acres, a range of farm buildings and stabling for more than 40 horses.

There is a period farmhouse and two substantial barn conversions.

Arable and pasture land at Prestatyn Road, Prestatyn © Carter Jonas

A 137-block of arable and pasture ground is on the market at Prestatyn Road, Prestatyn.

The land, which is currently farmed for grass and maize production, is being offered for sale as a whole through Carter Jonas at a guide price of £1.25m

What sold well in 2024

120-acre block of Grade 3b agricultural land at St Mary Hill in the Vale of Glamorgan © Herbert R Thomas

A farmer buyer snapped up a 120-acre block of Grade 3b agricultural land at St Mary Hill in the Vale of Glamorgan after it was launched by Herbert R Thomas in August 2024, selling at higher than its £950,000 guide price.

Ty Newydd at Clynnog Fawr, Caernarfon © Carter Jonas

Ty Newydd at Clynnog Fawr, Caernarfon, a 58-acre ring-fenced block of grazing and cropping land and small parcels of mixed woodland, was sold by Carter Jonas in October 2024 at its £425,000 guide.