Number of unsold farms rises as pressure on profits bite

The number of farms left unsold on the market has risen sharply, as livestock farmers are hit by profits and the residential market cools.

About 13% of publicly and privately marketed farmland in England was still on the market by the end of Q3 last year, according to data across all agents compiled by Strutt & Parker.

This was more than double the figure five years before, a 500% increase on 2013 and a 333% increase on the 10-year average of 3%.  

See also: Five charts that explain England’s farmland market

2014 fared little better, with 12% of such land still on the market at the end of the third quarter.

Acres of farmland exchanged

Michael Fiddes, head of estates and farm agency at Strutt & Parker, said:

“There are a number of livestock farms unsold in the North West which is a result of the pressure on profits in the livestock sector and some farms not having the right location or setup to attract non-farmer buyers.

“Although the available land is spread across all regions and most farm types, there is a notable number of residential farms with higher per acre prices, particularly in the south east and east of England. 

“As there has been a slowdown in the country house market, it is not surprising that some residential farms are taking longer to sell.

Jason Beedell, research partner at the agent, said people were waiting for the right farm in the right place.  

“It’s such a thin market – the 112 farms launched so far this year sounds a lot but if you’re looking for a large arable farm, perhaps with good transport links, you could be waiting a long time. Buyers are also a lot more cautious and aware of value.” 

Just 65% of farmland that was marketed in 2015, much lower than the 10-year average pf 84%.