English farmland market getting tougher...

[The Business Barn]

The latest estate and farmland review prepared by Strutt and Parker suggests that the market for farmland in England is getting tougher, despite average land values rising over the first half of 2018.

Michael Fiddes, head of estates and farm agency at Strutt and Parker, states within the report that a significant proportion of land marketed over the past year is still available or has been withdrawn.

“The market remains incredibly polarised with location and farm type, rather than quality, remaining the key drivers of the price achieved,” says Mr Fiddes.

 

[Nearly]

Shock horror, the 'right' land is going up, the 'wrong' land is difficult to sell.
Almost as if people want to invest in something secure but need an exit strategy / option to get their money out again.

 

[sparish]

.

 

[Walterp]

The 'significant proportion' of land unsold is a lot more than 'significant' - it's 40%.

A market correction is upon us.

 

[jendan]

The 'significant proportion' of land unsold is a lot more than 'significant' - it's 40%.

A market correction is upon us.

Only if people are forced to sell.There will be plenty buyers at lower prices.Plenty eagle eyes looking for distressed sales.

 

[Northeastfarmer]

I’ll take 500 acres at £1500 an acre

 

[Hilly]

It will go down and then back up to an all time high just a long term pattern with the highers getting higher every time.

 

[Fossil]

I remember going to a talk by S and P about 4 or 5 years ago. They had graphs predicting land prices would keep going up forever along with commodity prices and profits. Wish I had kept the hand out as they would never admit they were wrong without it....

 

[Hilly]

I remember going to a talk by S and P about 4 or 5 years ago. They had graphs predicting land prices would keep going up forever along with commodity prices and profits. Wish I had kept the hand out as they would never admit they were wrong without it....

Thats just stupid a school child could come up with economics like that, there will always be peaks and troughs but the long game is up.

 

[Fossil]

Thats just stupid a school child could come up with economics like that, there will always be peaks and troughs but the long game is up.

I am not so sure. Interest rates have been at historically low levels for a long time now. They can’t stay there for ever, and when they go up all asset values will fall...

 

[Barleycorn]

I’ll take 500 acres at £1500 an acre

Just about what I was offered from a neighbouring farm in the early eighties, but turned it down, have regretted it ever since, but interest rates were high then, and overstretching could have harmed the rest of the business. I've got a diploma in hindsight!

 

[Hilly]

I am not so sure. Interest rates have been at historically low levels for a long time now. They can’t stay there for ever, and when they go up all asset values will fall...

Might but if you think 99% of the country is in more debt than they can shake a stick at i dont think they could put rates up or the uk would be destroyed.

 

[Hilly]

Some tough times ahead , looks like the American special relationship is over, trump rightly obviously dose not like May sees her as weak and the unwashed rent a mob made him very unwelcome , me thinks if i was him id be doing the uk no favours none at all and who could blame the man.

 

[lazy farmer]

I amazed nobody has mentioned either a changed/massively reduced subsidy regime from 2020 or Brexit itself.

 

[Hilly]

I amazed nobody has mentioned either a changed/massively reduced subsidy regime from 2020 or Brexit itself.

Im already enduring that ! you should try it its marvelous.

 

[Jackov Altraids]

I’ll take 500 acres at £1500 an acre

I share the sentiment but could we?

Not many of us keep £750,000 under the pillow in case we see a bargain.
In reality, if land dropped to £1500, how can we borrow the money to buy it?

 

[caveman]

. ... ... especially if your geared to £5k an acre or more on what you already have. Lol

 

[Walterp]

I share the sentiment but could we?

Not many of us keep £750,000 under the pillow in case we see a bargain.
In reality, if land dropped to £1500, how can we borrow the money to buy it?

This is the reality, amid all the bluster - it is one thing to recognise a good buy, and quite another to be able to capitalise on it.

I wonder how many TFF members could put their hands on £750,000 of their own, on three months' notice?

 

[Tarw Coch]

This is the reality, amid all the bluster - it is one thing to recognise a good buy, and quite another to be able to capitalise on it.

I wonder how many TFF members could put their hands on £750,000 of their own, on three months' notice?

If they could would they declare it on here?