How has farmland performed in recent years?
During the past 10 years the overall value of GB farmland has increased by 149% and barring any major economic or fiscal changes, we do not anticipate significant price rises or falls in the short to medium term. Savills is forecasting overall average growth of 5.5% for the next five years followed by sustained, steady growth in the longer term. Whilst equestrian properties often include residential assets such as a main house and staff accommodation as well as specialist facilities, the value of the land does underpin the overall value of the property so this increase in land values during the past decade must be positive news for equestrian property owners.
Who is buying and selling land?
Whilst farmers still make up the greatest proportion of sellers at 46%, this figure was lower than in 2015; contributing factors include the recent softening in average farmland values, uncertainty surrounding Brexit and the short term prospect of an increase in subsidy as a result of the weak pound.
Farmers also make up the largest proportion of buyers in the land market at 46%, the number of new non-farming buyers, such as those driven by lifestyle including sporting and equestrian, who are buying land for the first time has increased from 16% to 20% of all buyers on the previous year.