Mixed fortune for Wales and NI land despite high demand

Significant demand from interested parties has kept land prices stable in Wales, while boosting values in Northern Ireland.

Data for the first half of the year show that values for arable and pasture land in Wales have remained flat, according to Carter Jonas.

Prime cropping ground is averaging about £9,500/acre, with good grassland at £8,500/acre and hill ground about £1,500/acre.

See also: Land in your area 2021: Northern Ireland

However, average values are just guides, said Hugh O’Donnell, partner at Carter Jonas, with some land in the Vale of Clwyd advertised for £10,000/acre attracting strong interest.

“There are a number of market forces that can influence the value of a farm in Wales and we have seen over the past six months that amenity buyers and those looking for future potential in the carbon and natural capital markets are very active,” he said.

Despite concern about the end of the Basic Payment Scheme and a lack of clarity surrounding the proposed Sustainable Farming Incentive, Welsh farmland prices look set to remain strong for the rest of the year.

“Demand for quality well-equipped units for expanding businesses or relocating farmers remains constant, and even isolated blocks of pasture that in recent years may have generated modest interest are now attracting much more attention, with prices being dictated by location and local interest,” Mr O’Donnell said.

“Interest in marginal land, including hill ground, from green investors also shows no signs of slowing down. Purchasers with an environmental focus are driving demand for sites with the potential for tree planting, carbon capture and biodiversity.”

Land is in huge demand in Anglesey and the same can be said for further down the country in Carmarthenshire and Pembrokeshire, where interest from neighbouring buyers should not be underestimated.

Supply is slow and Sylfaen Farm (see “What’s on the market?”) is expected to be one of the largest Welsh farms to be sold this year. When opportunities arise, buyers are ready, he said.

Northern Ireland

Average farmland prices in Northern Ireland have risen from about £10,000/acre this time last year to £11,500/acre, according to Savills.

However, the range in prices has widened, with a higher proportion of offers of £20,000/acre or more received for prime land or small blocks with competitive neighbouring interest.

Meanwhile, land in need of improvement or with blemishes (such as limited road access or property within the boundary not being in the same ownership) has become more price sensitive.  

The first half of 2022 has seen a decrease in the number of equipped farms in excess of 100 acres launched to the market, with the average size being offered at about 30 acres, said James Butler, head of country agency at Savills.

Smaller blocks of land continue to perform well, but the price is generally determined by the strength of the local interest rather than the quality of the land.

“The very limited supply of standalone viable farms is resulting in buyers looking beyond their local area to secure a suitable unit,” said Mr Butler.

“Farmland is currently perceived as a useful hedge to inflationary pressures on the wider economy and, combined with the contribution that land ownership can make to the environment, we have seen the pool of buyers looking to buy a large farm in Northern Ireland expand during 2022. These buyers typically have cash funds generated from a non-farming enterprise.”

Usually, less than 1% of the total agricultural land area in Northern Ireland is offered for sale each year and this will continue to be the case in 2022, he said.

With the diverse range of buyers remaining active in the market, average values are anticipated to hold firm for the remainder of the year but with the range in values widening.

What’s on the market?

Gwynedd

Sylfaen Farm © Carter Jonas

Sylfaen Farm near Barmouth is on the market with Carter Jonas for £4m.

The 1,338-acre beef and sheep upland hill farm overlooks the Mawddach Estuary and Cader Idris mountain range.

It comes with a five-bedroom house, three-bedroom cottage currently used as a holiday let, range of livestock buildings and a 34kW hydroelectric scheme.

County Tyrone

Cavandarragh Farm © Savills

Savills has launched 262-acre Cavandarragh Farm near Castlederg as a whole or in nine lots, guided at £4.555m.

The dairy holding includes a 40:40 rapid-exit parlour,  300 cubicles, winter accommodation for about 750 head of livestock, and a five-bedroom house.

The land is all ploughable and has recently had substantial reinvestment.