Land Prices

[BuskhillFarm]

With a few plots of land appearing on the market going for £25000 per acre usually in poor state or part of it in trees/bog and no planning in place…

What do you value agri land at purely for buying to actually farm it?

I know it’s a can of worms buying vs selling. Hill vs Arable

 

[Doing it for the kids]

Such a Broad brush it’s hard to answer.

I don’t think an acre has sold for less than 10k round here for many years

 

[jon9000]

Good questions at 10k it seams ridiculous unless it's next door,

 

[cb387]

Would anyone discount its value with a labour govt ahead of us

 

[teslacoils]

I'm not sure anyone can justify it at day one, unless you've just sold a field for a housing estate.

 

[livestock 1]

Land has always been overvalued compared to its farming capabilities especially when you are buying it

 

[Bald Rick]

Just come back from an auction this pm for two farms on the Sainted Isle

First near the top of the island (not the blessed part) made £11,600/ac

The other was a neighbouring farm of 154ac that had my sphincter twitching.... went for £15,000/ac with the buyer saying he would have gone to £20k

Prices don't reflect farm prices. Cheaper to rent bigly

 

[topground]

20.4 acres BS40 went for £18000 last year at auction. Airport parking money.

 

[Poncherello1976]

Just purely for farming and aiming for a 5% return on your investment, which recently may have been better in a savings account!, £10000 per acre. Possible on arable, stretching it maybe on grass.
Obviously lots of other factors come in to the price of land.

 

[Tarw Coch]

It’s a funny old world, do a Google on average land prices and it will almost certainly come in at under 10k an acre for arable and even less for grass, figures from some of the big land agents yet little goes for less than 10k around here, most well in excess of and some certainly well over the 15. I do often wonder how they arrive at their averages, must be a lot of cheap land somewhere

 

[livestock 1]

Just purely for farming and aiming for a 5% return on your investment, which recently may have been better in a savings account!, £10000 per acre. Possible on arable, stretching it maybe on grass.
Obviously lots of other factors come in to the price of land.

5% wouldn’t be better in a savings account 12 months back average inflation would have swallowed that and a bit more

 

[livestock 1]

In the 90’s we got quotes for borrowing money think it was 97 but not 100% sure one main bank said the average return on agricultural land bought for farming was 4% then
I can remember questioning that but he had the figures off who he was lending to

 

[Poncherello1976]

5% wouldn’t be better in a savings account 12 months back average inflation would have swallowed that and a bit more

Fair point. I did say may though. The point I was trying to infer is that if you are after a direct return for your money then there maybe easier/better ways to get your return than from land. Different from if you are trying to reduce tax liabilities but that was not the OPs question.

 

[Wood field]

We have literally just had the valuer here , still awaiting his report , but he went around every parcel of land and then the house and surrounding acres
Wouldn’t give anything away ,just “ wait for the report
I managed to squeeze a price for the house and 21 acres around it , but not outlying ground .
Hill ground with some decent flat mowing parts , on average across the lot I say £5 k acre ( all sda)
Whatever his report says we’ve decided to stay on for another 5 years then re assess where we want to be

 

[livestock 1]

Fair point. I did say may though. The point I was trying to infer is that if you are after a direct return for your money then there maybe easier/better ways to get your return than from land. Different from if you are trying to reduce tax liabilities but that was not the OPs question.

Almost anything is a potential better return than land for money invested. Almost all of the other things are higher risk. Land is a safe bet, secure, tax friendly and inflation proof. That’s why I reckon its returns are poor.
When we were borrowing money for land in the 90’s as I said earlier one bank had the average return for land at 4%. Another was advising against buying land and instead to buy into an engineering firm or caravan site both gave many more times the return on investment against capital outlay

 

[livestock 1]

A very successful haulage firm sent an agent off to buy him some farms. He hasn’t made his money from farming but to avoid tax, depreciation and to enable him to hand down his assets he has bought farms

 

[Wood field]

Prices are very skewed at the moment, valuer said they are getting more and more corporates wanting to buy to “ re wild” to help them greenwash!
purely from an agricultural return we always thought 3k acre was enough to pay in the hills
However when a few locals said to me “ you paid to much , it should have been £1k acre “ I reply , sell me 300 acres then at £1k
As always it’s to dear to buy and to cheap to sell

 

[lloyd]

20.4 acres BS40 went for £18000 last year at auction. Airport parking money.

Cheap compared to some?

 

[MrNoo]

12 acres sold next door for 250K with a 25 year uplift clause on it.

 

[lloyd]

12 acres sold next door for 250K with a 25 year uplift clause on it.

Next to a village?