A strong pipeline of assets will be coming to the market following a stall in sales due to adverse weather conditions, according to property consultants Carter Jonas.
A high volume of farmland stock is set to come to market over the coming months, according to new data.
Severe weather conditions in Q1 2018 had a negative impact on activity, however 6,000 acres of farmland is due to enter the market over the current and subsequent quarter, comprising of predominantly smaller lots.
The first three months of 2018 recorded a minimal dip in average land values in England and Wales, dropping 0.6% to £8,917.
This reflects market fluctuations as well as the ongoing effect of protracted Brexit negotiations and uncertainty surrounding the future of support payments for rural businesses, according to Carter Jonas.
Whilst values remain the highest in Southern and Central England, where demand for arable land is most pronounced, land in the North West has recorded an average increase of £500 per acre and is now some of the most expensive in the country.
The Eastern regions saw values dip, reaching an average of £8,500 per acre, while prices in Wales, the South West and the Midlands remained constant.
Andrew Fallows, Head of Rural Agency at Carter Jonas said te volume of stock that is set to come to the market is encouraging and welcome.
“Across England and Wales, values continue to be polarised, with neighbouring pockets of land attracting significantly different levels of interest,” Mr Fallows said.
“While farmland still offers strong, long term investment opportunities, thanks to the counter-cyclical nature of the market, the lack of certainty surrounding the lengthening of sector support is discouraging some businesses from confidently committing to rural assets in the short term, and has created a more cautious, discerning buyer, one willing to wait for the best value land.”
