New research has found that uncertainty surrounding Brexit is restricting the amount of land coming to market in England, Scotland and Wales, which saw drops of 16 per cent, 11 per cent and 40 per cent respectively.
However, according to the researchers, there is always a pattern of historic low supply before a Common Agricultural Policy (CAP) reform, so there is expected to be an increase in the number of land parcels for sale post Brexit.
In addition, the value of farmland fell by more than eight per cent last year because of fears subsidies will fall away after 2019. Separate research found that rural land was worth around £8,972 at the end of 2017, dropping from £9,778 at the same point in 2016.
Despite this, the price is expected to rebound slightly across the UK this year, except in the south east where it will take slightly longer to improve. This will be in part because of the release of the UK’s agricultural Bill later this year, which should clarify key issues surrounding farming productivity and environmental enhancements and help to restore confidence to the market.
Earlier this year, Environment Secretary Michael Gove said that the Government would guarantee subsidies at the current EU level until the 2022 election, after which there would be a “transitional period” to a new system.