Property consultants Carter Jonas have suggested that a number of high-value land assets will be coming to the market in the coming months following a stall in sales after adverse weather conditions earlier in the year.
The poor weather in the first quarter of 2018 caused downward pressure on activity in the farmland market, however, Carter Jonas estimates 6,000 acres of farmland is due to enter the market over the current and following quarter.
During the first three months of 2018 average land values in England and Wales dipped by 0.6% to £8,917, reflecting not only the poor weather but also the ongoing effect of the Brexit negotiations and uncertainty surrounding the future of subsidies for farms.
Southern and Central England, where demand for arable land is greatest have seen values remain relatively high, while land in the North West recorded an average increase of £500 per acre and is now some of the most expensive farmland in the country.
Meanwhile, Eastern England saw unexpected dips in values, reaching an average of £8,500 per acre, while prices in Wales, the South West and the Midlands remained stable.
Andrew Fallows, Head of Rural Agency at Carter Jonas said: “Across England and Wales, values continue to be polarised, with neighbouring pockets of land attracting significantly different levels of interest.
“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.”