RICS/ RAU Rural Land Market Survey H2 2014

RICS Economics

RICS/ RAU Rural Land Market Survey

Great Britain

H2 2014

Tight Supply Conditions Supporting Price Expectations

Land prices break through 10,000 per acre

Lower commodity prices tempers pace of
demand but supply conditions remain tight
Prices expected to continue rising

11000
10000

Transaction based measure includes residential component*

9000
8000

The H2 RICS/RAU Rural Land Market Survey shows

that demand for farmland continues to outpace supply.
This is driving up prices and supporting expectations for
further rises over the year to come. Rents remained
broadly stable over the second half of the year and
investment yields fell to match their previous all time
low of 1.6%.

Opinion based measure - bare land only**

7000
6000
5000
4000
3000
2000

1994

The surveys transactions based measure of farmland

prices (which includes a residential component where
its value is estimated to be less than 50%) rose by 2.8%
during H2 and 8.3% over the year to reach 10,067 per
acre based on a four quarter moving average. The
surveys opinion based measure (a hypothetical
estimate by surveyors of the value of bare land) rose by
2% in H2 and by 6% year on year to reach 8,223 per
acre.

Weighted average price of farmland

England and Wales only

per acre

1996

1998

2000

2002

2004

2006

2008

2010

2012

* where residential value is estimated to be less than 50% of total value (based on a 4 quarter moving average)
**Series started in 2003

Demand for farmland

Net balance, %

80

2014

Source: RICS / RAU

Rising

60

40

20

-20

According to surveyors, average annual arable land

rents (under the Agricultural Tenancies Act) decreased
in H2 for the first time in six years but remain 0.8%
higher over the year. Pasture lands rents, on the other
hand, rose by 3.4% in H2 and by 7.8% over the year to
reach 107 per acre.

-40

-60

Commercial

Falling

1999

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Despite a slight fall in land price in H2 as a result of the

uncertainty brought about by the independence
referendum and CAP review, Scotland still experienced
the highest (opinion based) annual price growth of any
part of the UK with a rise of almost 17%. However, at
an estimate of just 4375 per acre, prices in Scotland
are still 47% below the national average with the price
of pasture land at least 40% cheaper than any other
part of the UK. Yorkshire and Humber and Wales also
witnessed particularly strong price growth during 2014
with arable land in both areas driving the rises.

2003

2005

2007

2009

2011

2013

per acre

Regional opinion based price snapshot - H2 2014*

8000

7000

6000

5000

4000

3000
Scotland North Eastern South
East
East

East
Mids

National North Yorks South

West Humber West

Wales

*based on surveyor opinions of bare farmland prices

80

Net balance, %

West
Mids

Source: RICS / RAU

Expected price changes - next 12 months

Rising

60
40
20
0
-20
-40

joshuamiller@rics.org
See notes to editors on
next page descripon of
data and methodology.

2001

Source: RICS

9000

Anecdotal evidence from members suggests that the

recent fall in commodity prices may be tempering the
pace of demand, particularly for smaller blocks, in all
parts of the country. However, demand is still increasing
and tight supply conditions are providing additional
support. Indeed, supply of commercial farmland
remained flat or decreased in nine of the ten areas
covered by the survey while demand grew in all but one
part of the UK.

Residential

-80

The increase in demand from lifestyle buyers that

began in H2 2013 continued throughout the whole of
2014 with this trend being noticed across most parts of
the UK. This is adding to price pressures and keeping
price expectations in positive territory in all areas.

-60
-80
Commercial

Residential

-100

Falling

1998

2000

2002

2004

2006

2008

2010

2012

2014
Source: RICS / RAU

Graphs, charts and data are available to the media on request. Contact the RICS Press office on: (0)20 7695 1634/ +44 (0)20 7334 3736

RICS/ RAU Rural Land Market Survey H2 2014

Notes to editors

The statistics provided by RICS members in England, Wales and Scotland, are collated by the Royal Agricultural
University, Cirencester.

Rents:

Rental figures refer to the typical rent paid for let land for all grades, expressed as a median of all responses of five
or more.
England and Wales rent figures are the weighted average of regional results.
England and Wales yield figure is simple average for all data collected.
ATA = Agricultural Tenancies Act 1995; AHA = Agricultural Holdings Act 1986.

Land prices:

Figures refer to the typical prices paid, in per acre for bare land.
Regional figures expressed as a median of all responses of five or more.
England and Wales figure is the weighted average (by region).
Non-residential land: where estimated residential value is less than 50%.
Residential land: where estimated residential value is greater than 50%.
The RICS transaction based measure of farm land prices is based on actual sales and includes a residential component, where that component is estimated to be worth less than 50% of the total value of the plot.
The RICS opinion based measure of farm land prices is a hypothetical estimate of bare land only i.e. it excludes the
residential component. As a result, the opinion based measure will tend to be less than the transaction based measure.

Farmland purchasers:

Regional figures for each category are based upon the average response of surveyors responding.
Figures may not aggregate to 100% due to rounding errors.
National balances refer to Great Britain and are based upon a simple average across all respondents.

Net balances:

Balance = Proportion of surveyors reporting a rise in demand/availability minus those reporting a fall (if 30% reported a rise and 5% reported a fall, the net balance will be 25%).
Demand and supply balances based on change over previous year.
Expectations balances based on change over next year.
National balances refer Great Britain and are based upon a simple average across all respondents.
Net balance data is opinion based; it does not quantify actual changes in an underlying variable.
Net balance data can range from -100 to +100.
A positive net balance implies that more respondents are seeing increases than decreases (in the underlying variable), a negative net balance implies that more respondents are seeing decreases than increases and a zero net balance implies an equal number of respondents are seeing increases and decreases.
Therefore, a -100 reading implies that no respondents are seeing increases (or no change), and a +100 reading
implies that no respondents are seeing decreases (or no change).
A change from +30 to +60 does not mean that the variable grew by 30% in one period and by 60% in the next period, but it does indicate that twice as many surveyors reported an increase compared to a decrease than in the previous period.
Likewise, if the net balance reading drops from +90 to +5, this still means that more respondents are reporting increases than decreases overall, but the breadth of those reporting increases has fallen dramatically; meanwhile, a
shift in the reading from -90 to -5 still means that more respondents are reporting decreases than increases overall,
but the breadth of those reporting decreases has fallen dramatically.

RICS/ RAU Rural Land Market Survey H2 2014

Chartered Surveyor market comments

England

prices.

Ben Taylor, MRICS, Bidwells,

Cambridge, 01223 559459 - 2014
was another quiet year in terms of
the volume of land traded,
although several noteworthy and
high-profile transactions illustrated
the presence in the market of
investor-purchasers, particularly
for larger parcels of prime arable
land. Such holdings look set to
continue to prove popular, with
further competition from those
looking to roll over development
gains as well as traditional landed
buyers in the market. Smaller and
lesser quality blocks of land have
seen a slight cooling, but location
remains key and there is evidence
of second rate land still making
first rate prices, depending on who
the neighbours are.

Rod Christie FRICS, CKD

Galbraith, Elgin 01343 546 362 Decrease in supply and steady
demand has kept prices static.
Very buoyant market for good
arable farm land but much
slower market for pasture land.
Strong demand for land to rent
but very limited supply without
grazing licences.

Scotland
Malcolm Taylor FRICS, Bell
Ingram, Forfar, 01307 462516 Demand for prime arable land still
strong especially land for
vegetables and potatoes. Sales up
to 12k per acre have been
agreed. Demand for poorer land
or land difficult to work has slipped.
Arable and stock units, and units
with limited arable potential will
become less attractive in the
coming year as commodity prices
fall in the spring 2015.
Mark Mitchell FRICS, Bell Ingram
Limited, Perth, 01738 621121
The two main issues faced in
2014 were the referendum and
CAP Review. Both of these
impacted significantly on land
sales in the second half of 2014.
The referendum brought the
market to a standstill with sellers
being nervous about placing
property on the market. The lack of
any real detail about the Basic
Scheme made both sellers and
purchasers wary, in particular what
entitlements might or might not be
transferable and the likely level of
future payment. All in all a year of
little sales activity due to
considerable uncertainty for both
sellers and purchasers.
James Galbraith MRICS, CKD
Galbraith, Edinburgh, 01312
406962 The lower subsidy
payments will affect land values,
particularly following a difficult year
in 2013 and with lower commodity

Jennifer Campbell MRICS, Peter

Graham & Associates LLP,
Avoch, 01463 811942 It is
now becoming clear that the
upland beef sector in my area in
the highlands is going to suffer
heavy reductions of SFP and for
more marginal hill farms, this will
result in the slashing of stocking
and redundancies of herdsmen.
More land I believe will come
onto the market as older farmers
with uninterested children elect
to get out of farming. I believe
that land values have peaked
and will ultimately reduce in my
area. I think rents will also need
to adjust to the economic
conditions which will be faced
for upland livestock farming
following the slashing of SFP.
James Boulton MRICS, Smiths
Gore, Wooler, 01668 280812
VP farmland sells well, anything
with a tenant struggles.
Wales
Tim Main MRICS, Balfours,
Shrewsbury, 01743 353511
Quality land is still selling well.
Buyers are still more conscious
of problems such as bad
access.
Iwan Jones MRICS, BJP,
Carmarthen, 01267 236363
Farmland prices vary
considerably in the SA post
code. Some areas where we
have two or more expanding
dairy farmers competing can see
prices paid for bare land of over
10,000/acre. Where we don't
have this competition from such
buyers land is more reasonable
priced. The market can be very
hot or cold depending where the
land is located.

Gareth Wall, MRICS,

McCartneys LLP, Kington,
01544 230316 Good
productive arable and pasture
land remains a strong price. The
more marginal land on the
Welsh borders and in Wales has
eased slightly due to lower
farming income and the
forthcoming changes in the
Basic Payment Scheme
particularly in Wales. Good
arable land in the west midlands
remains a strong price with
particular interest from
businesses operating anaerobic
digesters.
Glyn Owens FRICS,
McCartneys LLP, Knighton,
01547 528621 Demand will
remain strong for farmland
where there is neighbour and
local interest. Unless arable
returns improve there will be
less interest in larger blocks of
arable land. Livestock prices
appear to be firming which will
help fuel demand for grassland.
David Powell, MRICS, Powells,
Monmouth, 01600 714140
The latter half of 2014 saw little
land or farms come to the
market and those that did
received modest interest, with
no immediate offers or evidence
of premium prices likely to be
achieved for equipped farms.
Many neighbouring owners
adjacent to marketed land
cautious in bidding too strongly
for land, with concern over
future interest rates and
reduction in commodity prices
being quoted as key reasons for
cautiousness. Strong prices still
being achieved for good quality
accessible bare land where
good local demand. An upsurge
in applicant registration
experienced following SDLT
changes, possibly indicating
some increase in demand at the
end of the year heading into
2015.
Gareth Lloyd FRICS, Watts &
Morgan, Cowbridge, 01446
774152 The market continues
to attract farmer clients despite
the reduction in Single Farm
Payments and milk prices etc. It
is envisaged that prices will
continue to rise during 2015.
The demand for disused barns
for conversion is not as strong

as in previous years although

there is now demand for blocks of
land suitable for solar parks and
wind turbines, with quite a number
already up and running on 30
year leases.
Eastern
DH Sinfield FRICS, Alexanders,
Huntingdon, 01480 432220
There is clear evidence of a two
tier market for arable land with an
overhang of sales which have not
found buyers. Some parcels
which were guided at 10,000 per
acre have failed to sell at those
levels and there is evidence that
more realistic guiding is now
required.
Barry Hawkins, Barry L Hawkins,
Downham Market, 01366 387180
As always when produce prices
fall interest in land falls but there
will always be the must have
situation/once in a lifetime . Just
wheat and rape land will be hard
to sell.
Ben Taylor MRICS, Bidwells,
Cambridge, 01223 559459
2014 was another quiet year in
terms of the volume of land
traded, although several
noteworthy and high-profile
transactions illustrated the
presence in the market of investor
-purchasers, particularly for larger
parcels of prime arable land. Such
holdings look set to continue to
prove popular, with further
competition from those looking to
roll over development gains as
well as traditional landed buyers
in the market. Smaller and lesser
quality blocks of land have seen a
slight cooling, but location
remains key and there is evidence
of second rate land still making
first rate prices, depending on
who the neighbours are.
Jim Major FRICS, Brown&Co,
Kings Lynn, 07768 465748
High asking prices for
commercial farms in more
unfashionable rural areas have
appeared to cool demand and the
sentiment in the market appears
to be less enthusiastic, not least
when looking at prices upwards of
10,000 per acre. Smaller blocks
of bare land suited to farmer
buyers have traded at a material

RICS/ RAU Rural Land Market Survey H2 2014

reduction in recent months as the

wheat price has fallen back.
Mark Russell MRICS, Carter Jonas,
Cambridge, 01223 346 628 Less
land in the second half of the year in
the east continues to be sought after
by a large number of purchasers.
However, with some high prices
discussed in the market, vendor
expectations have risen and with the
agricultural commerciality of values
at current levels being questionable
there is some market discussion
about the possibility of a less
exuberant market into 2015.
Chris Leney MRICS, Robinson &
Hall, Ipswich, 01473 835253
Market remains strong. Local
bidders are still important for smaller
blocks of land. Larger blocks seeing
interest from farmers and non
farmers alike. Reasonable amount of
land changing hands privately.
Adrian Wilson MRICS, Savills,
Cambridge, 01223 347231 There
is still sufficient demand for
commercial farmland. Location,
quality and size are the key
determining factors on high and low
values. There are signs there may be
an increase in supply and the effect
may be to put pressure on values
although we do not envisage any
significant decrease over the next 12
months.
Tim Fagan MRICS, Strutt & Parker,
Chelmsford, 07702 199588 The
land market in Essex is extremely
strong, particularly to the west of the
county where there are a good
number of large farmers who benefit
from non farming income from let
buildings where there is great
demand close to London. Quality of
land is also an issue, and in areas of
central/west Essex around Great
Dunmow and also on the Tendring
Hundred east of Colchester, farmers
have traditionally been able to grow
high value crops and therefore have
the wherewithal to compete strongly
to buy what comes available.
Conversely, in parts of Essex where
local demand is not so strong, it can
be difficult to sell small blocks of
arable land (circa 50 acres) which
are uneconomic for farmer buyers to
travel a distance to farm. We see the
two tier market continuing where

some areas will sell well above

the average of 11,500/acre
whilst others will be below.
Giles Allen MRICS, Strutt &
Parker, Ipswich, 01473 214841
The farmland market in east
anglia remains strong, although
the rise in values has stalled a
little following the substantial
increases of the first half of
2014. Supply remains tight and
demand, particularly from
private investors, relatively
strong. With soft commodity
prices recovering and a
depleted supply of land, values
should remain at least firm in to
the early part of 2015.
Tom Goodley MRICS, Strutt &
Parker, Norwich, 01603 617431
Location, quality and size
seem to be the main three
factors influencing the farmland
market. Large blocks are
appealing to the institutional
investors and some great
results have been achieved.
Most farmers are not in a
position to buy very large
blocks of good quality arable
land, but they are still keen to
pursue more affordable blocks,
especially if located on their
boundary.
East Midlands
Ben Taylor MRICS, Bidwells,
Cambridge, 01223 559459
2014 was another quiet year in
terms of the volume of land
traded, although several
noteworthy and high-profile
transactions illustrated the
presence in the market of
investor-purchasers,
particularly for larger parcels of
prime arable land. Such
holdings look set to continue to
prove popular, with further
competition from those looking
to roll over development gains
as well as traditional landed
buyers in the market. Smaller
and lesser quality blocks of
land have seen a slight cooling,
but location remains key and
there is evidence of second
rate land still making first rate
prices, depending on who the
neighbours are.

Elizabeth Allen MRICS, Brown

& Co, Spalding, 01775 717894
Demand is still strong in
popular buying areas where
supply is short. With tight
farming cash flows we have an
interesting 12 months ahead.
Matthew Allen MRICS, Fisher
German, Banbury, 01295
271555 In the central
midlands region there remains
strong demand for most types
of farmland however prices
remain strongest where there is
an abundance of special
purchasers. We have seen
some weaker values for
intermediate size blocks where
there is not significant
commercial or investment
appeal. There remains a lack of
supply of larger arable blocks
with very strong demand from a
variety of purchasers when they
have become available. This is
also true for high quality
residential farms. The market
for 2015 is uncertain with few
farms likely to be available prior
to the general election.
Ian Calverley MRICS, Fisher
German, Retford, 01777
861927 Demand in the
second half of the year has
been slowed by struggling
commodity prices. Strong
demand remains for good
blocks of commercial land in
good locations with reasonable
access or a significant
residential element. There still
remains significant investment
interest with money from
outside the industry. Good land
will still sell quickly and there
have been a number of off
market transactions and this
trend looks set to continue for
2015.
Robert Hurst FRICS, Fisher
German, Newark, 01636
642504 Large well equipped
units sell at a premium; small
blocks of bare land where
demand is from local farmers
are achieving a wide range of
prices. There is now some price
resistance and due to the fall in
commodity prices this could put
pressure on land values in

2015.
Jennifer Whitton MRICS,
Howkins & Harrison, Rugby,
01788 564694 The second
half of 2014 has seen an
increase in land being offered,
especially smaller blocks of offlying bare land. Land is
generally being sold where
farmers are retiring or families
have split up. A number of
properties sold this half have
been purchased by existing
farmers and the majority of
interest has come from farmers,
both locally and nationally if
there is a house and buildings
with the land. We are also
finding that location and type of
land is having a much bigger
impact on land sales and values
and a bigger gap is being seen
between well located quality
land and badly located poor
land. Rollover relief continues to
play a big part in rising land
values which is unlikely to
change until development
ceases.
Andrew Pearce MRICS, Savills,
Lincoln, 01522 508933
Supply will be restricted
particularly in relation to
commercial arable units but
much will depend on bank
borrowing and low commodity
prices which may force more
land on to the open market.
Demand will continue to remain
strong with purchasers
competing for the available
units. We predict that there will
be increased interest in the
better located residential
holdings on the back of the
improving residential market.
Demand is particularly strong for
the larger commercial arable
holdings and we predict that the
volume of private deals will
increase further in 2015 to as
much as possibly 35% of overall
sales.
Charlotte Smithson MRICS,
Smiths Gore, Lincoln, 01522
507310 Investor buyers
continue to push up land values
in Lincolnshire on larger blocks.
Smaller blocks are still being
purchase predominantly by

RICS/ RAU Rural Land Market Survey H2 2014

farmers.
Sam Holt MRICS, Strutt & Parker
LLP, London, 02073 185172
Blocks of land over 100 acres
remain attractive to agribusinesses with diverse income
streams. Smaller farmers have
been affected by lower commodity
prices, and as a result we may see
some of these come to the market
in the next six to twelve months.
Some large parcels of land have
traded without coming to the open
market, which has resulted in a
premium, but often only where
marriage value is concerned.
Rental values have been
compressed due to the lack of
return in the second half of 2014.
North East
David Coulson FRICS, Addisons
Chartered Surveyors, Crook,
07779 623371 The continuing
shortage of quality farms continues
to distort the market. There is a
premium for quality farms and bare
land but demand for other land has
eased slightly. We have
experienced a huge variation in
sale prices across the north east
with a variation of as much as 30%
for arable land. Upland hill farms
lacking decent buildings can be
difficult to sell as stock needs to be
wintered when brought down from
the hill. Small parcels of grassland
under 10 acres have been making
substantial prices with many well in
excess of 10,000 per acre.
Sam Johnson MRICS, Carter
Jonas, Harrogate, 07768 658217General scarcity continues to be
the prevailing factor responsible for
the preservation of high values.
The market however is incredibly
discerning and values vary greatly
across the region and as such, an
appreciation of the local market is
key. It has been clearly
demonstrated that there are good
quality purchasers willing to pay a
premium for large, good quality,
commercial blocks of agricultural
land and well equipped units.
Properties with sporting value in
the region are also generating
significant interest from the
market.

Neal Thompson FRICS, Edwin

Thompson, Berwick upon
Tweed, 01289 304432 There
has been remarkably little land
sold on the open market in this
area over the last 12 months.
The pace of land value increase
is likely to slow as 3 years of
modest profitability tempers
farmer demand. Good quality,
well located parcels of land with
a restricted residential element
are likely to continue to grow in
value, especially where there is
neighbour interest.
Ashley Dodgson MRICS, GSC
Grays, Bedale, 01677 422400
The land market continues to
remain robust with demand
exceeding supply albeit the gap
between prime and average
land is becoming more
pronounced with wide variances
in values. However, this does
not account for an increasing
number of private/off market
transactions, which are often at
premium prices to purchasers
with "roll-over" funds or
neighbouring farmers benefiting
from the synergy in owning
adjacent land. The strength in
depth of the market is mixed
particularly for poorer quality
land in less sought after areas,
where interest can be limited. It
is difficult to predict the direction
of the land market in 2015 with
variable commodity prices,
reduced farm profits, the
introduction of the Basic
Payment Scheme and a general
election. That said, whilst
interest rates remain at current
low levels, the UK and world
population continues to grow
and favourable IHT & CGT tax
regimes remain, land should
remain a popular investment.
James Boulton MRICS, Smiths
Gore, Wooler, 01668 280812
Lack of supply is affecting the
market, although this is
increasing the demand in the
rental sector where rents are
good.
Charles Raine FRICS,
YoungsRPS, Hexham, 07730
546422 Demand in the letting
sector remains extremely strong
with a good number of strong
tenders for any farms which

come to the market. Equipped

farms are seeing a strong
demand from farmers wishing to
expand.
North West
Graham Bowcock MRICS,
Berrys, Northwich, 01606
818953 We have seen
another interesting year with
continuing short supply in the
north west and strong demand.
Most land tends to be bought by
farmers, although this may ease
in line with downward pressure
in commodity prices. However,
non-farming investors and
amenity buyers continue to play
their part in making the market,
something which is likely to
continue as residential values
rise and tax breaks remain
available.
South East
Julian Sayers FRICS, Adkin,
Wantage, 07850 397667
Demand for farmland in the
locality continues to strengthen
fuelled by funds being available
from those selling development
land. Supply on the other hand
remains scarce particularly for
substantial parcels of arable
land.
Russell Parkes MRICS,
Batcheller Monkhouse,
Pulborough, 01798 872081
The south east land market is
generally stable. There is
reasonable demand for large
commercial blocks and small
amenity parcels. However this
lessens for mid-range areas of
about 50 acres, unless there is
neighbouring interest.
Matthew Peters FRICS, Bruton
Knowles, Gloucester, 01452
880184 With so little coming
to the market anything that has
has sold very well in an
undersupplied market place.
The increasing number of farms
sold privately has all led so
some exceptional prices being
paid. Anything that is
commercial creates real interest
against those holdings that have
a large residential value. Land
values have become difficult to
call with certain areas achieving

well over 10,000 per acre whilst in

other areas where there is little
neighbouring interest sees little
enthusiasm in paying over 7,000 per
acre. Roll over money is again to the
fore with a number of purchasers still
looking. As long as supply remains so
tight I can see no reason for prices to
fall even though commodity prices
appear to be under pressure.
Richard Liddiard FRICS, Carter Jonas,
Newbury, 01635 263012 The market
has continued to rise with demand
outstripping supply. However the
immediate future must be viewed with
some caution in the light of uncertainty
in the form of the upcoming election
plunging oil prices and a downturn in
economic activity throughout the world.
The changing outlook will inevitably
feed into the farmland market and we
will see a continued flight to quality
from well funded individuals/
businesses who have been driving the
market for the larger farms and blocks
of land. However the smaller parcels
may find it more challenging to achieve
high prices where the funding to
purchase will become an issue for
lenders in a period of uncertainty.
Ed Smith MRICS, Carter Jonas LLP,
Oxford, 01865 404443 The market
has had a strong appetite for large
blocks of arable land around 700 acres
and above, with higher premiums
being paid for quality and location.
Medium sized blocks around 250 acres
have become much more reliant on
local interest, with little interest being
registered at all for second grade land,
except where there is a special
purchaser. Demand for smaller blocks
of 10-20 acres remains high in certain
areas, but largely driven by nonfarming purchasers.
Matthew Allen MRICS, Fisher German,
Banbury, 01295 271555 In the
central midlands region there remains
strong demand for most types of
farmland however prices remain
strongest where there is an abundance
of special purchasers. We have seen
some weaker values for intermediate
size blocks where there is not
significant commercial or investment
appeal. There remains a lack of supply
of larger arable blocks with very strong
demand from a variety of purchasers
when they have become available.
This is also true for high quality
residential farms. The market for 2015
is uncertain with few farms likely to be
5

RICS/ RAU Rural Land Market Survey H2 2014

available prior to the general

election.
Rowan Allan MRICS, HJ Burt,
Steyning, 01903 879488 A very
busy 2014 with some significant
acreages sold as working farms as
well as a number of smaller
amenity/lifestyle blocks attracting
the usual premium interest and
prices. With a few more blocks of
500 acres or more offered for sale
in Sussex in 2014, buyers had a
little more choice and with
competition as expected shown for
the best located and equipped
holdings, but with the less good
quality land areas still needing to
be realistically priced in order to
achieve sales.
Andrew Brown MRICS, Marriotts
Property LLP, Faringdon, 01367
242422 Continued farmer led
demand keeps upward pressure
on land and farm buildings,
particularly arable. The residential
element is a more variable beast.
Larger houses with a few hundred
acres have seen less interest
whereas cottages and smaller
dwellings with land have enjoyed
good demand. We expect the
same to remain true during 2015.
The view that farmland is a good
bet in these still uncertain times
holds true as arable land prices
rose about ten percent in 2014 in
our area.
Matthew Sudlow MRICS, Strutt &
Parker LLP, London , 02073
184668 The recent trend of less
and less land being transacted has
continued. Strutt & Parker
Farmland Database shows 64%
fewer acres sold publicly in 2014
when compared to 2012. This lack
of supply continues to underpin
land values. Prices will remain the
same and likely increase for any
larger blocks of land made
available (350 acres plus). The
lifestyle buyer is starting to
become more active again in the
south east. The upcoming general
election and any new government
policies this may bring such as
mansion tax could have a further
impact on this emerging trend.
Simon Male MRICS, Woolley &
Wallis, Salisbury, 01722 424515
The prevailing fiscal regime, low
interest rates and market

perceptions appear to be
encouraging landowners to hold
onto farmland in the expectation
that prices will continue to
increase and/or stabilise (but
not go down). The limited
supply of farmland to the open
market continues to create
fierce competition for the best
commercial blocks of farmland
but buyers appear increasingly
discerning with significant
discounts being applied to land
with shortcomings.
Comparatively less interest
residential farms despite
recovery in housing markets.
Increasing supply of pasture
land and small arable blocks to
rental market.
South West
Kit Harding FRICS, Carter
Jonas, Bath, 01225 747271 The farmland market in the
west country continues to see a
lack of supply. Premium prices
are being paid for well equipped
farms and larger blocks of
arable land. A greater
divergency between the value of
pasture land and arable land is
becoming evident and prices for
both are dictated by local
demand and quality. In some
less fashionable areas land is
proving more difficult to sell.
David Kivell FRICS, D R Kivell
and Partners, Tavistock, 01822
810810 - The 2014 farm and
land market suffered at the
hands of a late wet spring and
lower commodity prices.Low
milk prices will make banks less
keen to support land purchases
although prospects for beef and
sheep appear more optimistic.
Large scale pig farmers are very
bullish in the land market. The
change from single to basic
payment scheme is looking like
no more than a storm in a tea
cup. Residential buyers seem
poised to re-enter the residential
farm market.
William Fox Grant MRICS, Fox
Grant, Salisbury, 01722 782727
There is a dire shortage of
supply of farms and bare land of
any quantity. In the 25 years of
marketing farmland I can not
remember a time with such a

shortage of supply. I am looking

forward to 2015 with some
optimism as it can only improve
from last year. We have
expanded in 2014 purchasing
Peter Radish Taunton so we do
expect more supply as a result!
Will Handel MRICS, Greenslade
Taylor Hunt, Honiton, 01404
46222 The east Devon land
market continued to strengthen
throughout 2014 as established
farming businesses were keen
to expand further when the
opportunities arose. Increased
competition from non farming
buyers resulted in some
exceptional prices being
achieved. Location continues to
be an important factor in
determining value as prices can
vary significantly from one
district to another.
Charles Lucas FRICS,
Humberts, Marlborough, 01672
519111 Whilst there is still an
underlying shortage of supply,
there is still a strong demand
but this is tempered by current
cereal prices. With a pending
election in 2014 we consider
that there is unlikely to be any
change in supply or land values
in the short term.
Stuart Hext MRICS, Luscombe
Maye, Kingsbridge, 01548
857474 Demand continues to
outstrip supply. Real shortage of
whole farms coming to market.
Only pockets of "away" ground,
pony paddocks or marginal land
coming to market. Occasional
good quality block hotly
contested from buyers on local,
regional and national level.
Andrew Brown MRICS,
Marriotts Property LLP,
Faringdon, 01367 242422
Continued farmer led demand
keeps upward pressure on land
and farm buildings, particularly
arable. The residential element
is a more variable beast. Larger
houses with a few hundred
acres have seen less interest
whereas cottages and smaller
dwellings with land have
enjoyed good demand. We
expect the same to remain true
during 2015. The view that
farmland is a good bet in these

still uncertain times holds true as

arable land prices rose about ten
percent in 2014 in our area.
Philip Hodgkin MRICS, Smiths Gore,
Taunton, 01823 446986 - Increasing
differentiation in value between poor
land tending to be pasture and
ploughable/arable land
Andrew Dodds MRICS, Stags, South
Molton, 01769 575244 Demand for
residential farms continued to
strengthen through the second half of
2014 with interest from buyers moving
into the south west and those already
living in the region. Land values
continue to be mainly driven by interest
from local farmers, who also appear
keen to take on existing commercial
units.
Adrian Cannon MRICS, Tayler &
Fletcher LLP, Bourton-on-the-Water,
01451 820913 Limited supply
coming to market with private deals
still ongoing and values variable
dependant on interest.
Tom Pullin MRICS, Voyce Pullin,
Bristol, 01454 269486 Bare land
values continue to remain strong
although with the recent deterioration
in the milk price there is an element of
uncertainty as to whether this is likely
to have an impact on values and
supply of land and farms coming to the
market. Together with the general
election in the spring the next six
months are likely to test the market.
Simon Male MRICS, Woolley & Wallis,
Salisbury, 01722 424515 The
prevailing fiscal regime, low interest
rates and market perceptions appear
to be encouraging landowners to hold
onto farmland in the expectation that
prices will continue to increase and/or
stabilise (but not go down). The limited
supply of farmland to the open market
continues to create fierce competition
for the best commercial blocks of
farmland but buyers appear
increasingly discerning with significant
discounts being applied to land with
shortcomings. Comparatively less
interest residential farms despite
recovery in housing markets.
Increasing supply of pasture land and
small arable blocks to rental market.

RICS/ RAU Rural Land Market Survey H2 2014

West Midlands
Tim Main MRICS, Balfours,
Shrewsbury, 01743 353511
Quality land is still selling well.
Buyers are still more conscious of
problems such as bad access.

appear to be under pressure.

Mike Taylor FRICS, Barbers Rural,

Market Drayton, 01630 692500
Good quality arable land remains
very keenly sought after and where
there is irrigation, you can name
your price. The market for poorer
arable land and permanent pasture
is a lot more mixed, depending on
location and timing. Good quality
dairy farms are still selling well, but
some blocks of grassland in the
wrong places are more difficult to
sell. The advantage of good local
knowledge of the market place
cannot be under estimated.

Victoria Pocock MRICS, Carter

Jonas, Shrewsbury, 01939
210101 Demand for good
quality bare land in Shropshire
continues to be strong but at
this time of year supply is not
great with the majority holding
off marketing until spring. The
struggle with poor milk price is
clearly having an adverse effect
on farm incomes and we are
likely to see more land and
farms to come onto the market
in spring 2015 as a result of
this. With the lead up to the
election there is likely to be
some effect for both buyers and
sellers but only time will tell on
this.

Jeremy Jehan MRICS, Brightwells,

Hereford, 01432 261325 All
parcels sold well and very pleasing
prices achieved, on a very quiet
year in lowland Herefordshire, with
few equipped farms available on
the open market. The uplands
were busier and generally
customers for most blocks. Price
has held up well, throughout, with
fewer purchasers actively looking.
Money still cheap to borrow but
commodity price falls and
squeezing subsidy returns may
just weaken the market if any extra
supply comes on stream in 2015.

Charles Meynell FRICS, Fisher

German LLP, Stafford, 01785
273999 In the right location
bare land prices for better
quality arable and grassland
have exceeded 12,000 per
acre, driven by strong
competing interest from
neighbours. Where no local
interest exists demand and
hence price is subdued. At last
there is interest in residential
farms, even where the quality of
the house and fixed equipment
is modest; location remains
key.

Matthew Peters FRICS, Bruton

Knowles, Gloucester, 01452
880184 With so little coming to
the market anything that has sold
very well in an undersupplied
market place. The increasing
number of farms sold privately has
all led so some exceptional prices
being paid. Anything that is
commercial creates real interest
against those holdings that have a
large residential value. Land
values have become difficult to call
with certain areas achieving well
over 10,000 per acre whilst in
other areas where there is little
neighbouring interest sees little
enthusiasm in paying over 7,000
per acre. Roll over money is again
to the fore with a number of
purchasers still looking. As long
as supply remains so tight I can
see no reason for prices to fall
even though commodity prices

William Fox Grant MRICS, Fox

Grant, Salisbury, 01722 782727
There is a dire shortage of
supply of farms and bare land of
any quantity. In the 25 years of
marketing farmland I can not
remember a time with such a
shortage of supply. I am looking
forward to 2015 with some
optimism as it can only improve
from last year. We have
expanded in 2014 purchasing
Peter Radish Taunton so we do
expect more supply as a result!
Jennifer Whitton MRICS,
Howkins & Harrison, Rugby,
01788 564694 The second
half of 2014 has seen an
increase in land being offered,
especially smaller blocks of offlying bare land. Land is
generally being sold where
farmers are retiring or families

have split up. A number of

properties sold this half have
been purchased by existing
farmers and the majority of
interest has come from farmers,
both locally and nationally if
there is a house and buildings
with the land. We are also
finding that location and type of
land is having a much bigger
impact on land sales and values
and a bigger gap is being seen
between well located quality
land and badly located poor
land. Rollover relief continues to
play a big part in rising land
values which is unlikely to
change until development
ceases.
Gareth Wall MRICS,
McCartneys LLP, Kington,
01544 230316 Good
productive arable and pasture
land remains a strong price. The
more marginal land on the
Welsh borders and in Wales
has eased slightly due to lower
farming income and the
forthcoming changes in the
Basic Payment Scheme
particularly in Wales. Good
arable land in the west midlands
remains a strong price with
particular interest from
businesses operating anaerobic
digesters.
Glyn Owens FRICS,
McCartneys LLP, Knighton,
01547 528621 Demand will
remain strong for farmland
where there is neighbour and
local interest. Unless arable
returns improve there will be
less interest in larger blocks of
arable land. Livestock prices
appear to be firming which will
help fuel demand for grassland.
Jack Tavernor MRICS, Strutt
and Parker, Shrewsbury
,
01743 284206 There
continues to be strong demand
for quality land from strong
farming businesses. Increasing
competition from non-food
producing uses is also
underpinning the strong values
seen. Demand overall,
particularly from commercial
farmers is not being satisfied by
the supply coming forward and I
dont anticipate this supply and
demand balance changing any

time soon. The dairy industry in

particular will experience tough times
but I dont expect this to mean a
significant amount of extra land coming
forwards.
Yorkshire & Humberside
Sam Johnson MRICS, Carter Jonas,
Harrogate, 07768 658217 General
scarcity continues to be the prevailing
factor responsible for the preservation
of high values. The market however is
incredibly discerning and values vary
greatly across the region and as such,
an appreciation of the local market is
key. It has been clearly demonstrated
that there are good quality purchasers
willing to pay a premium for large,
good quality, commercial blocks of
agricultural land and well equipped
units. Properties with sporting value in
the region are also generating
significant interest from the market.
Ashley Dodgson MRICS, GSC Grays,
Bedale, 01677 422400 The land
market continues to remain robust with
demand exceeding supply albeit the
gap between prime and average land
is becoming more pronounced with
wide variances in values. However,
this does not account for an increasing
number of private/off market
transactions, which are often at
premium prices to purchasers with "roll
-over" funds or neighbouring farmers
benefiting from the synergy in owning
adjacent land. The strength in depth of
the market is mixed particularly for
poorer quality land in less sought after
areas, where interest can be limited. It
is difficult to predict the direction of the
land market in 2015 with variable
commodity prices, reduced farm
profits, the introduction of the Basic
Payment Scheme and a general
election. That said, whilst interest rates
remain at current low levels, the UK
and world population continues to grow
and favourable IHT & CGT tax regimes
remain, land should remain a popular
investment.

RICS/ RAU Rural Land Market Survey H2 2014

Contributor details
England National
Ben Taylor
MRICS,
Bidwells,
Cambridge,
01223 559459
Scotland National
Malcolm Taylor
FRICS, Bell
Ingram, Forfar,
01307 462516
Stewart
Hamilton
MRICS, Bell
Ingram, Forfar,
01307 462516
Mark Mitchell
FRICS, Bell
Ingram Limited,
Perth, 01738
621121
Alison Muir
MRICS, CKD
Galbraith, Ayr,
01292 292533
Rachel Myles
MRICS, CKD
Galbraith,
Cupar, 01334
659 989
James
Galbraith,
MRICS, CKD
Galbraith,
Edinburgh,
01312 406962
Rod Christie
FRICS, CKD
Galbraith,
Elgin,01343
546362
Mike Thompson
MRICS, CKD
Galbraith,
Galashiels,
01896 662823
William Inglis
MRICS, CKD
Galbraith, Isle
of Islay, 07920
273991
Colin Stewart
MRICS, CKD
Galbraith,
Perth, 01738
448144

Charlotte Lane
MRICS, CKD
Galbraith,
Stirling, 07899
877728
Gordon
McConachie,
CKD Galbraith,
Aberdeen,
01224 860710
Walter Barbour
FRICS, CKD
Galbraith,
Perth, 01738
456 069
Rhona Booth
MRICS,
Davidson &
Robertson
Rural, Forfar,
01307 490220
Stuart Sharp,
GM Thopson,
Stranraer,
07874 158270
James Denne
MRICS, Knight
Frank LLP,
Lauder, 01578
722814
Jennifer
Campbell
MRICS, Peter
Graham &
Associates
LLP, Avoch,
01463 811942
James Boulton
MRICS, Smiths
Gore, Wooler,
01668 280812
Wales National
Tim Main
MRICS,
Balfours,
Shrewsbury,
01743 353511
Iwan Jones
MRICS, BJP,
Carmarthen,
01267 236363
Eifion Bibby
MRICS, DMPC,
Colwyn Bay,
01492 510360

Kathryn Perkins
MRICS,
Edward Perkins
Chartered
Surveyors,
Haverfordwest,
01437 760730
James
Andrews
MRICS,
Llewellyn
Humphreys,
Carmarthen,
01267 237812
Gareth Wall
MRICS,
McCartneys
LLP, Kington,
01544 230316
Glyn Owens
FRICS,
McCartneys
LLP, Knighton,
01547 528621
Victoria Rees
MRICS, Owen
and Owen,
Pembroke,
01646 621500
David Powell
MRICS,
Powells,
Monmouth,
01600 714140
Gareth Lloyd
FRICS, Watts &
Morgan,
Cowbridge,
01446 774152
Eastern
DH Sinfield
FRICS,
Alexanders,
Huntingdon,
01480 432220
Barry Hawkins,
Barry L
Hawkins ,
Downham
Market, 01366
387180
Ben Taylor
MRICS,
Bidwells,
Cambridge,
01223 559459

Jim Major
FRICS,
Brown&Co,
Kings Lynn,
07768 465748

Robert Hurst
FRICS, Fisher
German,
Newark, 01636
642504

Ashley
Dodgson
MRICS, GSC
Grays, Bedale,
01677 422400

Mark Russell
MRICS, Carter
Jonas,
Cambridge,
01223 346 628

Jennifer
Whitton
MRICS,
Howkins &
Harrison,
Rugby, 01788
564694

James Boulton
MRICS, Smiths
Gore, Wooler,
01668 280812

Chris Leney
MRICS,
Robinson &
Hall, Ipswich,
01473 835253
Adrian Wilson
MRICS, Savills,
Cambridge,
01223 347231
Giles Allen
MRICS, Strutt &
Parker, Ipswich,
01473 214841
Tom Goodley
MRICS, Strutt &
Parker,
Norwich, 01603
617431
Tim Fagan
MRICS, Strutt
and Parker,
Chelmsford,
07702 199588
East Midlands
Rupert Harrison
FRICS, Andrew
Granger,
Loughborough,
01509 243720
Julia Hayhurst
MRICS,
Bagshaws,
Uttoxeter,
01889 562811
Ben Taylor
MRICS,
Bidwells,
Cambridge,
01223 559459
Elizabeth Allen
MRICS, Brown
& Co, Spalding,
01775 717894

Rupert West
FRICS, King
West, Market
Harborough,
01858 435970
Peter Horne
FRICS,
Merryweathers,
Doncaster,
07836 310565
Camilla
Shipley, Pygott
& Crone,
Sleaford,
01529 414555
Andrew Pearce
MRICS, Savills,
Lincoln, 01522
508933
Charlotte
Smithson
MRICS, Smiths
Gore, Lincoln,
01522 507310
Sam Holt
MRICS, Strutt
& Parker LLP,
London, 02073
185172
North East
David Coulson
FRICS,
Addisons
Chartered
Surveyors,
Crook, 07779
623371
Sam Johnson
MRICS, Carter
Jonas,
Harrogate,
07768 658217

William
Douglas
MRICS, Smiths
Gore, York,
01904 756303
Charles Raine
FRICS,
YoungsRPS,
Hexham, 07730
546422
North West
Graham
Bowcock
MRICS, Berrys,
Northwich,
01606 818953
Craig Brough
MRICS, H&H
Land &
Property,
Carlisle, 01228
406260
Andrew Coney
MRICS, P
Wilson &
Company,
Preston, 01772
882277
Jo Edwards
MRICS,
PFKLand
Agency,
Penrith, 01768
866611
Tony Rimmer
MRICS,
Rostons,
Chester, 01829
773000
William
Douglas
MRICS, Smiths
Gore, York,
01904 756303
South East

Matthew Allen
MRICS, Fisher
German,
Banbury, 01295
271555
Ian Calverley
MRICS, Fisher
German,
Retford, 01777
861 927

Neal
Thompson
FRICS, Edwin
Thompson,
Berwick upon
Tweed, 01289
304432

Julian Sayers
FRICS, Adkin,
Wantage,
07850 397667

Russell Parkes
MRICS,
Batcheller
Monkhouse,
Pulborough,
01798 872081

David Kivell
FRICS, D R
Kivell and
Partners,
Tavistock, 01822
810810

Matthew Peters
FRICS, Bruton
Knowles,
Gloucester,
01452 880184

William Fox
Grant MRICS,
Fox Grant,
Salisbury, 01722
782727

Richard
Liddiard
FRICS, Carter
Jonas,
Newbury,
01635 263012

Martyn Venner
MRICS,
Greenslade
Taylor Hunt,
Bridgwater,
01278 425555

Ed Smith,
MRICS, Carter
Jonas LLP,
Oxford, 01865
404443

Will Handel
MRICS,
Greenslade
Taylor Hunt,
Honiton, 01404
46222

Martin Allen,
MRICS, Elgars,
Canterbury,
01227 720557
Matthew Allen
MRICS, Fisher
German,
Banbury, 01295
271555
Rowan Allan
MRICS, HJ
Burt, Steyning,
01903 879488
Andrew Brown
MRICS,
Marriotts
Property LLP,
Faringdon,
01367 242422
Matthew
Sudlow MRICS,
Strutt & Parker
LLP, London,
02073 184668
Simon Male
MRICS,
Woolley &
Wallis,
Salisbury,
01722 424515
South West
Richard
Greasby
MRICS, Butler
Sherborn,
Cirenecster,
01285 883740
Kit Harding
FRICS, Carter
Jonas, Bath,
01225 747271

Richard Webber
MRICS,
Greenslade
Taylor Hunt,
South Molton,
01769 574500
Charles Lucas
FRICS,
Humberts,
Marlborough,
01672 519111
Stuart Hext
MRICS,
Luscombe
Maye,
Kingsbridge,
01548 857474
Andrew Brown
MRICS,
Marriotts
Property LLP,
Faringdon,
01367 242422
Ryan Kuszek
MRICS, National
Trust, Bristol,
01275 378440
Philip Hodgkin
MRICS, Smiths
Gore, Taunton,
01823 446986
Andrew Dodds
MRICS, Stags,
South Molton,
01769 575244
Stuart Gray
MRICS, Strutt &
Parker LLP, St
Albans, 01727
738297

RICS/ RAU Rural Land Market Survey H2 2014

Contributor details
Adrian Cannon
MRICS, Tayler
& Fletcher LLP,
Bourton-on-theWater, 01451
820913
Tom Pullin
MRICS, Voyce
Pullin, Bristol,
01454 269486
Simon Male
MRICS,
Woolley &
Wallis,
Salisbury,
01722 424515

Richard Banks
MRICS, G
Herbert Banks,
Great Witley,
01299 896968
Jennifer
Whitton,
MRICS,
Howkins &
Harrison,
Rugby, 01788
564694
Gareth Wall
MRICS,
McCartneys
LLP, Kington,
01544 230316

West Midlands
Julia Hayhurst
MRICS,
Bagshaws,
Uttoxeter,
01889 562811
Tim Main
MRICS,
Balfours,
Shrewsbury,
01743 353511
Mike Taylor
FRICS, Barbers
Rural, Market
Drayton, 01630
692500
Jeremy Jehan
MRICS,
Brightwells,
Hereford,
01432 261325
Matthew Peters
FRICS, Bruton
Knowles,
Gloucester,
01452 880184
Victoria Pocock
MRICS, Carter
Jonas,
Shrewsbury,
01939 210101
Charles
Meynell
FRICS, Fisher
German LLP,
Stafford, 01785
273999

Glyn Owens
FRICS,
McCartneys
LLP, Knighton,
01547 528621
Jack Tavernor
MRICS, Strutt
and Parker,
Shrewsbury,
01743 284206
Yorkshire &
Humberside
Sam Johnson
MRICS, Carter
Jonas,
Harrogate,
07768 658217
Ashley
Dodgson
MRICS, GSC
Grays, Bedale,
01677 422400
Peter Horne
FRICS,
Merryweathers,
Doncaster,
07836 310565
William
Douglas
MRICS, Smiths
Gore, York,
01904 756303

William Fox
Grant MRICS,
Fox Grant,
Salisbury,
01722 782727

RICS/ RAU Rural Land Market Survey H2 2014

RICS/ RAU Rural Market Survey

Management
RICS
Josh Miller
Senior Economist
T: +44 (0)20 7334 3777
joshuamiller@rics.org

Royal Institution of Chartered Surveyors

Parliament Square
London
SW1P 3AD

RAU
Diane Martin MRICS, FAAV
Senior Lecturer in Valuation
T: + 44 (0)1285 652531
diane.martin@rau.ac.uk

Royal Agricultural University

Stroud Road
Cirencester
Gloucestershire
GL7 6JS

About the Royal Agricultural University (RAU)

Founded in 1845, the Royal Agricultural University (RAU) is the oldest agricultural college in the
English speaking world and has a long-standing, global reputation in education, research and
consultancy.
The RAU currently provides a unique learning environment for approximately 1000 students from
over 40 different countries. The College offers almost 30 different degree courses in disciplines as
varied as agriculture, business, equine, food, and land and property management.
Since the 1930s, the Royal Institution of Chartered Surveyors (RICS) has accredited courses at the
RAU. Today, the College offers a choice of five degree programmes at undergraduate and
postgraduate levels within its School of Real Estate and Land Management, from where it continues
to train and educate the future leaders of the land and property professions.
The RAU has always pioneered research as part of its academic output and also has an established
track record of working with government, institutional and private sector clients, utilising the
expertise of its academic resources to deliver high quality contract research and consultancy.

About the RICS/ RAU Rural Market Survey

The statistics provided by RICS members in England, Wales and Scotland, are collated by the Royal
Agricultural University, Cirencester.

10