Farmland market defies uncertainty in South West England
The South West rural market has coped with Covid and Brexit uncertainty confidently thus far, according to Carter Jonas Partner David Hebditch.
“When Covid struck, most farmers were flat out catching up from the wettest winter in history and it was very much business as usual,” he said.
“But, coupled with the political situation regarding Brexit, some buyers and sellers have probably held back a little in 2020, which would account for a drop in supply across the country.”
While 2021 holds a lot in store for British agriculture, David says there is a good case for bringing farms to the market either now or in the spring.
“There are benefits for buyers and sellers to moving early, not least the relatively benign tax regime currently in place which could change when we see what is in the delayed budget,” he said.
“And now is a good time to be borrowing money while rates are low and the banks are very competitive. Overdraft limits and arrangement fees are being looked at and we’ve never been busier with our Agricultural Mortgage Corporation (AMC) work within the South West.
“As we move forwards we could see some hardening of rates because money is very cheap right now.”
Rollover buyers are prominent in the region, contributing to the number of people actively searching for opportunities.
“These individuals are generally looking for reasonable acreages and quality ground,” he added.
Well-equipped dairies and units with existing income streams from diversifications are proving popular.
“If holdings have an established income that sits alongside the farming enterprise it means the buyer doesn't need to go through the planning and conversion, and pay all the costs,” David said. “I anticipate that will continue to be a trend going forwards.
“There is also an opportunity for buyers to divide their farm to suit different markets. A house with paddocks can be packaged together for the strong lifestyle market, and farmers are more than happy to pick up the land – they don’t always want or need another dwelling.”
Although demand outstrips supply, David warns that being realistic with valuations is very important.
“You rarely get away with over-valuing a farm,” he said. “However, if you price it right the market will pick it up and potentially run away with it – you may well beat the guide price that way.”
For more information about the South West rural property market, contact one of the team:
Taunton – David Hebditch on 07717 727274 or david.hebditch@carterjonas.co.uk.
Truro – Chris Anderson on 07393 269425 or chris.anderson@carterjonas.co.uk.
Bristol – Arthur Chambers on 07801 666177 or arthur.chambers@carterjonas.co.uk.
