Farmers keen to buy land
Farmers were more active in the land market during 2004, according to new figures from Savills.
The firm's vendor and purchaser survey, which head of research Ian Bailey said covered 15-25% of UK deals, showed that 46% of vendors were farmers, up from 41% in 2003. This was probably because the issues surrounding mid-term review were becoming clearer and profitability was up at the beginning of the year, he said.
Lifestyle buyers were still significant players, accounting for 42% of purchases, but their rapid increase of market share had slowed, said Mr Bailey.
This could be a reflection of the residential market, he reckoned. "Interest rates were on the way up and there wasn't quite the condifence there."
Farmers sold 54% of farms in 2004 compared with 50% in 2003, but debt as a reason for sale increased by just 2% to 13.2% of transactions. "It is still not there as a factor to bring more land onto the market. This suggests supply will stay tight," said Mr Bailey.
However, there was a glimmer of good news for land agents desperate to get more properties onto their books with the number of non-farmers selling to relocate increasing sharply.
"It's just a snapshot at the moment but maybe the same reasons that impact on the general market, like schools, are impacting on the farmland market."
Source: Farmers Weekly
Date: Friday 4th February, 2005
