The 2017 Farm and Agricultural Land market has seen a continuation of the trends seen over recent year, but will this continue into 2018?
The supply of land for sale in Yorkshire has continued at historic low levels in 2017, the next 12 months is unlikely to see any change to this decline as the uncertainty over BREXIT continues and farmers and landowners wait for some clarity before looking to dispose of assets. The continued favourable taxation treatment of holding land, both in terms of Capital Gains Tax Rollover Relief and Inheritance Tax, Agricultural and Business Property Relief, which look set to continue relatively unchanged during the current government, will only continue this trend.
Farmland prices during 2017 showed a continuation of a 2 tier market, with the best land in desirable locations achieving premium prices often up to the levels seen over the last 2 years, and poor or remote land receiving limited interest and selling for a substantial discount or remaining unsold as we enter 2018. The new year is unlikely to see any substantial changes to this 2 tier price structure, land put to the market in the new year will continue to achieve strong prices often still in excess of £10,000/ac where there is neighbouring interest or buyers with rollover money, the latter who are becoming more numerous as the housing developers pick up pace throughout Yorkshire. For land in less desirable parishes the key will remain in setting a realistic Guide Price and targeting the marketing carefully to ensure maximum exposure of the property and not seeking to apply overly restrictive covenants.
The political negotiations which make the headlines each week will inevitably have an impact as we proceed though the year but with each announcement the degree of uncertainty will reduce and buyers confidence will increase.
The key to achieving a successful sale is to start planning early, take professional advice on your options and to plan your marketing campaign carefully. Good advice early on can often save substantial sums in taxation and result in a swifter and easier sale.
If you are considering your options in 2018 or beyond and would like a confidential discussion, call a member of our Rural Agency Team who would be pleased to meet with you.