The number of acres on the market in North East England is down almost 40% over the year, on par with the domestic supply situation, which at worst was down 82% , but has now stood at around -34%.
The average price of arable land has fallen from £ 7,500 / acre in 2019 to £ 8,250 / acre this year, while the price of pasture remains stable at £ 5,000 / acre.
With the huge demand for land and rural property from a wide range of buyers, the overwhelming message from agents is that sellers who are considering selling start the process as soon as possible.
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The 2020 market was characterized by an extremely limited supply, but what was released received good interest and sold well.
This demonstrates that demand remains strong and contributes to underlying values across the region.
Demand is greatest for serviced units that offer diverse income streams such as vacation rentals or renewables.
The lifestyle market continues to strengthen as the pandemic has led to a real estate need that offers a balance between lifestyle and connectivity. Proximity to Newcastle, Darlington and York means excellent access to London which is a huge plus for many buyers.
The shift in agricultural policy towards public money for public goods has spurred demand for real estate with the ability to tap into environmental credentials, underscored by the strong sale of a 400-acre ‘ecological farm’ which has progressed despite the lockdown.
Turning to 2021, as the budget continues to be delayed and we have a stable tax environment, we are saying to potential sellers ‘why wait to sell?’
Sam Johnson, Partner, Carter Jonas
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Despite the monumental distress caused by Covid-19, the North East land market has remained very active. Private and market properties have attracted serious and real interest, as well as getting good prices.
Prices have maintained their value over the past 12 months, no doubt due to the lack of real estate on the market. However, when properties become available, this very constraint arouses active interest from buyers near and far.
Of course, land is a safe investment in times of turbulence, and this is reflected in the trends of buyers. This, combined with the low cost of long-term borrowing and the ability to secure loans over long periods, kept interest high.
There is undoubtedly a huge demand for land with potential for forest plantation, and with the announcement of additional funding, this will likely continue.
For all potential suppliers, my advice would be to start the discussion as early as possible. The demand is there, the money is available, and the asset is considered very secure.
Tom Oates, partner, youngsRPS
What has sold well?
Home Farm in Richmond, North Yorkshire, was on the market for £ 2.1million with Carter Jonas.
The ranching operation comprises 135 acres, a modern equestrian facility, three cabins, a four bedroom farmhouse and an attic barn, and sold near its guide.
What’s on the market?
Near Witton-le-Wear, County Durham, youngsRPS has launched the 118-acre Blakeley Hall farm with a target price of £ 1.35million.
The prairie unit consists of a three bedroom house, modern buildings, and traditional buildings with planning permission for residential conversion.