Spring Surge Expected in Farmland Sales Due to Delayed Launches and Robust Market Conditions

Experts from property consultancy Carter Jonas predict an increase in the availability of farms and land for sale this spring. This forecast follows delayed property launches due to wet weather conditions earlier in the year. Warmer temperatures and longer days are expected to trigger a more active selling season.

Carter Jonas reports a 50% increase in publicly marketed land during the first quarter of 2024, totaling 11,400 acres. Andrew Chandler, head of rural agency at Carter Jonas, explains that this initial supply is normally a smaller portion of the total seen in subsequent quarters. The delayed launches suggest greater-than-usual availability this spring.

Carter Jonas’ Farmland Market Update highlights continued demand as a factor in rising land values. Average arable values in England and Wales increased 0.9% to £9,667/acre, with pasture values rising 0.7% to £7,806/acre (January to March).

Easing inflation (CPI fell from 4.0% in January to 3.4% in February) may provide relief for agricultural businesses. Chandler notes potential benefits could include reduced input costs, stabilized demand, and better access to credit if interest rates decline as predicted.

Despite some economic uncertainty, the farmland market outlook remains positive. Land values are expected to maintain an upward trajectory due to potential interest rate cuts, sustained buyer interest, and investments focused on natural capital.

The government’s recent decision to extend agricultural property relief from inheritance tax (for land under environmental management agreements) could strengthen the market. This policy shift may attract more farmers to these agreements.

Additionally, the Sustainable Farming Incentive’s early popularity, driven by wet conditions, further supports projections of an active farmland market influenced by economic and environmental factors.