Daniel Rees, head of rural sales for Savills in south and west Wales, discusses the shape of the market, during the first half of 2024.

 

A long, wet winter, coupled with an early Easter, meant that the farmland market was slow out of the blocks this year. Despite the spring market not getting going until April, activity has been positive and we have secured a good number of sales.

Across Great Britain there has been a notable increase in supply of publicly marketed farmland – with the number of acres marketed to the end of June up by an average of 36 per cent year on year.

Supply has increased in Wales although to a lesser extent at 11 per cent – which amounts to a total of 8,668 acres during the first half of the year. This uplift represents a continuation of the steady upwards trend we have seen year-on-year over the last five years.

Values across Great Britain as a whole saw a small increase of 1.7 per cent during the first half of this year, reaching an average value of £8,242 per acre.

Prime arable land values in Wales rose by 9.4 per cent in the 12 months to June to an average £8,750 per acre, while grade 3 arable values also went up by 7.3 per cent to £8,341 per acre.

The market for the larger commercial farms and land has been relatively slow. While there are buyers looking, they have been taking more time to make a decision.

Often this reticence relates to the economic climate – it may be that the Bank of England’s recent decision to cut interest rates to 5 per cent will make a difference in the second half of the year.

The most significant part of the market in Wales is among lifestyle-driven and equestrian buyers, who are particularly active, with some buyers relocating from Ireland and Scotland to Wales.

Reasons have varied from seeking more land, outbuildings and also moving due to the political climate.

We are also still getting enquiries from younger farmers who are keen to purchase land, smallholdings and small farms that need investment, as a route to getting a foot on the ‘farming ladder’.

This desire among new entrants to start up their own farming enterprises is a positive sign for the future, showing that there are plenty of young and keen farmers that want to get on and be successful in agriculture – despite the current challenges.

The good news is that there is plenty of choice available, from very small properties of one or two acres, to larger, more established operations, and edge-of-town and village locations to much more rural properties.

Meanwhile, those looking to market their property can be confident that there is appetite to buy here in Wales.

Values have held up well, with prices dependent on land type and location. Buyers are increasingly discerning, which means that presentation of a property is particularly important, along with sensible pricing.