North-east England farmers active in 2024 land market

Commercial farmers in the north-east of England remain active in the land market, despite the scaling down of direct payments and the legacy of the poor 2023 harvest.

They account for more than half of buyers in what has been a relatively strong market in the region in 2024, with local agents reporting good support from traditional lenders.

Northumberland has seen the most activity – nearly twice the acreage has been offered for sale on the open market this year compared with 2023.

The regional market has also been strong in County Durham, where several sales of 50 to 250-acre blocks of bare land have sold.

See more: All articles about land markets

John Coleman, head of land and farms sales, GSC Grays 

Increased supply in the early part of the season was driven mainly by cashflow issues following a poor 2023 harvest, reduced subsidy payments and stubbornly high interest rates.

Early demand kept up with this increased supply until the announcement of an early general election, which pretty much slowed down all decision-making.

Late summer and early autumn trading were then busy as buyers and sellers tried to get ahead of the Budget.

The main drivers for sales have been lack of succession, retirement or debt reduction.

Some exceptional prices have been achieved. Parcels of prime arable land on the County Durham and North Yorkshire border exceeded £20,000/acre, bringing the average price above £11,500/acre for the first time since GSC Grays started keeping records 10 years ago. 

Prime arable land in Northumberland consistently sold in excess of £10,000/acre.

It would be a brave agent who suggests that the price of land will continue to rise next year, but there are sufficient positive measures that would indicate they are not likely to fall by any dramatic measure.

Harry Morshead, associate director, youngsRPS 

Buyers are actively looking for rural properties and land but are becoming more specific in their requirements, and price is a factor in that.

We are seeing a need for guide prices to accurately reflect the property and the market.

The majority of sales in 2024 were as a consequence of retirement and also vendors selling as part of a restructuring process, using the sales income within their existing business or elsewhere. I expect reasons for sale to be similar in 2025.

Despite the gloom caused by the Autumn Budget announcements, I am confident demand will continue for rural property.

There is still inheritance tax relief available and, ultimately, the age-old adage that you can’t make more land still applies.

From this point forward, the market will dictate the price – marketing will need to be clear and transparent and prices realistic in order to generate maximum interest.

For sale in 2024

North Yorkshire ring-fenced farm

Aysdale Gate Farm, at Guisborough, North Yorkshire, is on the market with GSC Grays, with a guide price of £2.6m for the whole.

The 301-acre ring-fenced farm and livery yard with scope for diversification has extensive modern buildings, including loose housing for 200 cattle and lambing sheds.

The substantial Georgian farmhouse has four reception rooms, five bedrooms and three bathrooms. It is being sold in one lot at a guide price of £2.6m.

Northumberland upland farm

Low Tipalt Farm, a 96-acre upland farm at Greenhead, Northumberland, has been launched by youngsRPS with a guide price of £1m.

The farm includes an equipped steading, a three-bedroom farmhouse with an annexe, and a shepherd’s hut.

Diversified income is generated through holiday letting, as well as from environmental schemes.

Sold in 2024 

Livestock holding

Crow Hall Farm at Bardon Mill, Hexham, Northumberland, a fully equipped livestock holding with 1,820 acres, sold to an investor and exceeded its £7.5m guide price.

Marketed by GSC Grays, it has extensive modern livestock buildings with capacity for 200 cattle and 2,000 ewes, silage clamps and a slurry lagoon, and 170 acres of commercial and amenity woodland.

Ring-fenced arable land

As well as the four-bedroom farmhouse there are a further two residential properties.

Pegswood, 104 acres of ring-fenced arable land at Morpeth, Northumberland, was snapped up by a local farmer.

Marketed at a guide price of £950,000 it sold well, says agent youngsRPS.

The Grade 3 land had been farmed in hand by the vendors, who used it as part of a satellite operation with the crops grown on it supporting a mixed farming enterprise.