2024 Agricultural land and property market

After a year of rapidly rising interest rates, we look forward to 2024 in the expectation of greater stability and hopefully rates starting to reduce.  2024 will see the BPS payments in the form of the new delinked payments reduced to half their former level as the phasing out process continues to bite with the scheme disappearing completely by 2028.  The Sustainable Farming Incentive has started to come forward with much more on offer and the promise of yet more in the coming months.  Livestock, the mainstay of many North West farms remain at profitable levels, although the milk price has suffered some ups and downs.  Inputs however remain stubbornly high with the pressure this imposes on farm budgets.

So how does this affect the land market and its prospects for 2024?  Agricultural land weathered the financial turmoil and higher interest rates of 2023 very well, with good blocks of land continuing to sell above expectations.  Small blocks and pony paddocks achieving some exceptional prices depending on locations.  As previously highlighted strong demand from neighbours and those with rollover money lead the way underpinned by non-farming money still seeing agricultural land as a good tax vehicle.  Land is still seen as a good long-term investment with lending institutions, especially the specialist Agricultural bankers who are still happy to lend for the right project.

I expect to see agricultural land maintain its current levels but whether it will move forward remains to be seen.  We will get a good guide at the end of February when our Cumbria office holds our collective auction of 3 parcels of land in various lot sizes all situated within 10 miles of Kendal.  This will be followed by the launch of other land to the market shortly afterwards – so watch this space.

Whilst many properties are sold by private treaty, auction has traditionally been a popular method of selling land.  Farmers understand the auction process well and the great benefit for both buyer and seller giving certainty of the sale and exchange of contracts on the day after competitive bidding.  In recent years informal tender has become more popular as it can lead to premium prices if a party perceives exception competition but always has the downside of delayed contracts with the possibility of a purchaser, or vendor, changing their mind and pulling out.  Each method has its own benefits and downsides, and careful thought needs to be given to pick the appropriate method of sale when marketing a property. 

We are well experienced in all three methods of sale and would be happy to advise any potential vendors accordingly.