Land Values

[gone up the hill]

That is twice what they should be paying or were before sfp

House alone is worth 6/8K a year then the buildings are worth another 10k so £80 acre including all the value of them is cheap.

 

[Princess Pooper]

The idea of Dyson doing farming for 'fun' I don't buy into.

He's a multi- millionaire because he's a shrewd businessman. He's no doubt building for the long term and probably going to use profit averaging for when he makes millions in a few years time. He's in it for money.

However saying this I don't have a problem with him doing this. It's a free market, the pictures from his farm are a positive picture for U.K. farming and if he speaks up for farmers I think the Government would listen him rather than a group of grumpy farmers.

I didn't mean he was doing it for fun, but said he had a genuine interest, it's not like for example the millionaires who invested in forestry for the tax concessions without ever setting foot in the Sitka spruce plantations. I agree he is a shrewd businessman and what I was getting at was that his investment in land (improving soils etc) will pay off over time. And I also agree that as a recognised entrepreneur he is very likely to be listened to. He is also helping youngsters progress up the career ladder. 'Investing' is spending money - buying goods or paying labour for building work, drainage contractors etc. All the things that farmers always say that they contribute to the rural economy.

 

[glasshouse]

House alone is worth 6/8K a year then the buildings are worth another 10k so £80 acre including all the value of them is cheap.

Cheap it maybe, but it is outwith the law to charge separately for house or buildings under AHA rules for rent reviews.
If some folk are daft enough to let the agent bulldoze them into it, it doesnt mean everyone else should.

 

[glasshouse]

just seen the name Dyson on the menin gate on bbc2. a relative?

 

[Frank-the-Wool]

What size are these blocks of land? Why are they not able to be ploughed?

This land is heavy Wealden clay that lays wet all winter and dries out in the summer. It will grow grass if managed well and kept limed. Some of it has been ploughed but yields seldom make it economic.

Any pics of this land??

Surely this is just the type of land that should be used to help new entrants get a start??

I have been part of a group of people trying to do just this but up to now with limited success. The major problem in the S.East for any new entrants is the cost of housing and finding any buildings that are of use.
Most of the old farm buildings are being converted into houses and with rents for a small house at a £1k per month keeping livestock is not a viable option. Even when the land is rent free it can still be a struggle to make a living without a good alternative source of income.

 

[glasshouse]

This land is heavy Wealden clay that lays wet all winter and dries out in the summer. It will grow grass if managed well and kept limed. Some of it has been ploughed but yields seldom make it economic.



I have been part of a group of people trying to do just this but up to now with limited success. The major problem in the S.East for any new entrants is the cost of housing and finding any buildings that are of use.
Most of the old farm buildings are being converted into houses and with rents for a small house at a £1k per month keeping livestock is not a viable option. Even when the land is rent free it can still be a struggle to make a living without a good alternative source of income.

Are you anywhere near uckfield frank?

 

[Frank-the-Wool]

Are you anywhere near uckfield frank?

Not that far.

 

[JCMaloney]

If you have a spare £13+ million under the mattress.... https://www.carterjonas.co.uk/land/for-sale/shackerstone/ntr170014

 

[davieh3350]

They dont give it to farmers now, it goes to landowners.
Anyyhing a tenant gets has to be handed over to landlord.

Not here it doesn't. Cheap rent too.

 

[glasshouse]

Not here it doesn't. Cheap rent too.

You must be the exception.

 

[davieh3350]

You must be the exception.

I am pretty lucky, not too bad a patch of land, though awkward small fields with roads, rivers and trees between them. I don't think my rent would be as much as the interest on a loan to buy the ground if it came up for sale!

(Rough stab in the dark figures)

 

[glasshouse]

I am pretty lucky, not too bad a patch of land, though awkward small fields with roads, rivers and trees between them. I don't think my rent would be as much as the interest on a loan to buy the ground if it came up for sale!

(Rough stab in the dark figures)

yes, but the loan would be gone in 25yrs

 

[davieh3350]

yes, but the loan would be gone in 25yrs

Sod that. Wouldnt like the stress.

 

[midlandslad]

I posted this in the Brexit section, but thought it was more appropriate in here.

Now we have some clarity post Brexit is everyone expecting an increase of farms and land onto the market?

Are people seeing an increase in off market deals?

 

[capfits]

Now we have some clarity post Brexit is everyone expecting an increase of farms and land onto the market?

Are people seeing an increase in off market deals?

Yes to both.
Some are over complicating deals and missing out on private deals. Some kind of weird FOMO.

 

[jackrussell101]

I can't see much reduction in land prices to be honest. 10k an acre is fair value now with cost of funds, inheritance taxes and the whole long term demographic arguments etc. I always feel land is expensive until I go for a trip down to the south east and look in an estate agents window, I know which asset I'd rather own going forward...

 

[Yale]

I can’t see any strong drivers for land prices to increase.

So we have a Brexit decision,however it will take its relationship with future trading partners a minimum of 5 years to pan out.

Commodity markets are flat,money is cheap but because money is cheap you need inflation for investment to deliver.

Only thing you have is rental return which is as good as a savings account but locking money up in land is still unpredictable.

There are better places to put money with better returns.

 

[som farmer]

with the inheritance laws, land will be bought to avoid them, there is some serious money out there. When the said buyers realise farming is not a licence to print money, will this mean the formation of big estates, where farms are let out, in other words going back years ? If so, could it mean more chances for young farmers etc, because, at the moment, the criteria for future tenants, is how deep their pocket is !

 

[db9go]

I can’t see any strong drivers for land prices to increase.

So we have a Brexit decision,however it will take its relationship with future trading partners a minimum of 5 years to pan out.

Commodity markets are flat,money is cheap but because money is cheap you need inflation for investment to deliver.

Only thing you have is rental return which is as good as a savings account but locking money up in land is still unpredictable.

There are better places to put money with better returns.

Were is there better place

 

[Yale]

Were is there better place

Industrial units for letting seem to be popular.

just have to choose carefully as they are rateable if empty.