Land in your area 2020: West Midlands

Both the number of acres and the number of farms publicly marketed in the West Midlands in 2020 dropped 44% on the previous year, according to Strutt & Parker’s data.

However, agents say the growing trend of holdings being sold privately will mask the total amount of land and farms changing hands.

The average price has edged up year-on-year for both arable (12%) and pasture (4%), with increased demand helping support land values.

See also: Land in your area 2020: East Midlands

Frustrated buyers

The West Midlands has seen a very similar pattern to other parts of the country, with several significant off-market deals, while, generally, the market has been led by a lack of quality stock with limited farms and land available.

Despite the wider effects of the Covid-19 pandemic, the farming sector has largely remained positive and, despite a perception that land prices could fall, we have seen prices maintain at good levels. Nearly every deal we have done has seen local farmers and landowners bidding against national rollover buyers and foreign investors. This trend certainly does not look to be changing any time soon.

There are many frustrated land-hungry buyers who remain in the market, and their hope is that 2021 will bring a new surge of acreage to the market. Time will tell.

Will Matthews, partner, Knight Frank

Farmers adapting to change

Demand has been focused on the more productive and flexible farmland holdings and those with additional non-agricultural income streams. The demand for non-agricultural income shown is a result of buyers seeking to protect themselves against reducing BPS payments.  

Rollover buyers continue to increase in number and are willing to pay premium values for larger-scale opportunities close to home. This demand is focused around the larger cities and towns across the region.    

2020 has produced a shift in buyer profile, with more non-farming and lifestyle-led parties seeking a wide range of rural properties – from smallholdings to larger farms. We see this trend continuing as a greater proportion of the population move towards full- or part-time home-working arrangements.

With the outline of our new domestic farming policy appearing, we are starting to see many farmers stress-testing their business, with mixed results.      

The number of private transactions continues to hide the true volume of farmland changing hands. 

Richard Gadd, associate director, Fisher German

What sold well?

King Stone Farm © Fisher German

Fisher German launched King Stone Farm, Little Rollright, on the Warwickshire/Oxfordshire border, with a guide price of £2.85m.

The 124-acre mixed holding has a four-bedroom house, two-bedroom annexe and a range of buildings.

It sold as a whole in excess of the guide to a private investment buyer.

What’s on the market?

Darlaston Grange Farm © Fisher German

In Staffordshire, a 234-acre arable farm is available with Fisher German as a whole or in up to three lots.

Darlaston Grange Farm has a five-bedroom house, one-bedroom annexe and a range of traditional buildings, and is guided at £3.3m.