Land in your area 2021: Wales

The total supply of acres on the open market in Wales dropped 18% year-on-year in 2021, according to Savills.

However, the acreage varied between regions, with agents reporting an increase in the number of properties for sale in the south.

Strong demand from a range of buyer types is still pushing prices higher. The average value across all land types in the country increased 5% to £5,464/acre.

See also: Nine county farm tenancies on offer across England and Wales

Farm businesses looking to expand, rollover purchasers, and environmental buyers are all keen to purchase land in Wales.

Marginal land has seen the most notable increase in interest, with many buyers looking to purchase land for tree planting and net biodiversity gains.

Active grassland market

In 2021, there was a rise in the number of properties coming forward for public sale, particularly dairy farms in the south and south-west of the country.

However, strong demand has meant prices have remained firm. We have seen traditional farmer buyers from both within Wales and further afield actively looking to buy.

Some of these farmers are looking to expand their existing farming businesses, while others have rollover money they wish to reinvest.

Alongside this, there is growing demand from green investors who are particularly interested in land with the potential for environmental projects. This is pushing up prices slightly for some of the more marginal upland farms.

Looking forward, we anticipate that supply is likely to remain at similar levels to 2021, and likewise we expect demand to remain consistent.

As such, we are of the view that prices are likely to remain firm in 2022.

Tom David, senior associate director, Strutt & Parker

Demand for marginal land

The Welsh farmland market has shaken off any nervousness following Brexit and the initial impact of Covid-19, with values remaining steady as demand continues to outstrip supply.

Our most recent quarterly market update estimates that the average price for arable land is £8,500/acre, with £6,000/acre for pasture and £1,000/acre for hill ground.

More and more buyers interested in biodiversity and public goods – as opposed to the agricultural value of land – are emerging.

We’ve seen a rise in sales of land for tree planting from a range of sources including high net worth individuals, companies, and trusts.

There are strong signs that this market will increase in importance in 2022.

Farmland’s potential for biodiversity and carbon capture will be a significant consideration for this market and we could see sales of marginal land such as isolated pasture blocks rise as a result. 

Hugh O’Donnell, partner, Carter Jonas

What sold well?

© Strutt & Parker

Ty Wrideen on Holy Island, Anglesey was sold by Strutt & Parker at a guide price of £1.8m to a lifestyle buyer, after attracting significant interest.

The 255-acre mixed livestock holding includes a house and a range of buildings.

© Carter Jonas

Carter Jonas sold Ty Newydd Farm in Conwy Valley, North Wales to an investor for close to the guide price of £3m.

The livestock property has a three-bedroom house, a range of modern buildings and 648 acres of ring-fenced grassland.