The amount of land for sale publicly remains low. The volume marketed in Q3 was only 9,800 acres, which is less than half the five- and ten-year averages for this normally busy time of the year for the market. The total acreage brought forward in the year to the end of September is also 27% below the five-year average.
However, a significant acreage has also been marketed privately, which is not included in our figures because of the difficulty in collecting comprehensive information. Private sales – which can involve smaller blocks of land, farms or estates – are estimated to account for around 25% of the market nationally, but as much as 40% of the market in some regions.
Figure 1: Amount of farmland publicly marketed in England (acres)
NB Figures are for whole years unless otherwise stated and are rounded to the nearest 100 acres. Privately marketed farmland has been excluded due to the difficulty of collecting comprehensive information.
Supply is particularly low in the North East and the West Midlands, and for mixed, residential and dairy farms. There are some areas where there are virtually no farms left unsold because demand continues to outstrip supply.
Figure 2: Number of farms for sale in England to end of Q3 2021, by type and region
Demand remains strong and is being supported by the lack of supply. Every farm over 500 acres marketed in the first half of 2021 has already sold or is under offer and almost 70% of farms sold in 2021 have achieved their guide price or more. This is a return to the levels last seen in 2014, when the market was near its peak.
If we look backwards into 2020, the proportion of farms still available after a year of marketing is at a five-year low. This shows that land and farms which are being marketed are tending to sell.
There is a good spread of active buyers, with people prepared to travel to view farms and estates because of the shortage in supply. The proportion of farms bought by farmers is continuing its long-term downward trend, and there has been more trading – both buying and selling – by institutional investors in 2021.
Figure 3: Buyer type
N.B. Data is by number of sales, not acres. The year is when the farmland was sold (exchanged) and is for whole years unless otherwise stated. 2021 figures cover Q1 to Q3 only.