18 Feb

Buyers battling it out for South West farmland as supply drops dramatically

Buyers battling it out for South West farmland as supply drops dramatically

Farmland values across the South West are forecast to rise in the short term as the key drivers of supply and demand come into play – but rates of growth are set to vary depending upon land type, geography and quality.

From 2022 to 2026, it is believed poorer-quality livestock land value growth will outperform prime arable land, excluding inflation, against a backdrop of continued constrained supply.

These forecasts build on the performance of the market in 2021, which saw values in the South West region increase by an average of 8% across all land types.

The value of prime arable land increased by 6.6% during 2021, while poor livestock land saw the strongest growth of any type at 13.3%.

The figures show out-performance in the regional market, which saw the strongest growth of any region in England. Scotland was the highest-performing market, recording an increase of 31.2% across all farm types last year.

The supply of publicly marketed farmland during 2021 reflects a slower than expected ‘bounce back’ in the number of acres available from the lows of 2019 and 2020, suggesting that supply levels are unlikely to recover to those seen historically in the short to medium term.
 

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