Value of farmland in Yorkshire and north of England set to continue to grow predict experts

However markets are likely to remain highly localised – and those areas in highest demand could see greater increases.

The forecasts come after a positive year for the farmland market across Yorkshire and the north of England.

According to Savills, the value of all types of farmland in the region – arable and pasture – now sits at an average of £7,212 an acre. This is a six per cent rise compared to the end of December 2021, when the average was £6,802 an acre.

The value of prime arable land however is now at an average of £10,787 an acre in Yorkshire and the north of England, representing a 4.9 per cent increase on the same time last year. This is the highest average value per acre anywhere in the county.

The data also shows that 25,200 acres of farmland were publicly marketed across the north of England last year – which is a 15 per cent rise from December 2021. In Great Britain as a whole, 128,000 acres of farmland were marketed during 2022 compared with 122,000 acres in 2021, an increase of five per cent. The north of England accounted for 27 per cent of farmland marketed in England during 2022.

Andrew Black, who leads the rural agency team for Savills in the North of England and is based in the firm’s York office, said: “There are currently compelling arguments for selling, buying and holding land, and the right decision is personal in each case, but it is worthwhile farmers reflecting on these in relation to their objectives and longer term plans. The average value of farmland is at an all-time high and for those that do choose to sell, the decision could prove rewarding.

“Consequently we do expect more farmland to come to market this year – whether it be investors looking to cash out and release capital, farmers struggling with debt due to increased input costs or those enticed to leave the industry by the Lump Sum Exit Scheme. However, even then, it’s unlikely demand will be satisfied.

“Competition for high-quality commercial farmland remains strong, while environmental motivations continue to provide a buzz, with tree planting, biodiversity net gain (BNG), natural capital, carbon sequestration markets and regenerative farming all resulting in increased interest from investors who want land with potential to secure income from nature-based solutions. Rollover buyers will also continue to be a major force, with demand from lifestyle buyers perhaps cooling slightly in line with the

housing market.

“The current gulf between supply and demand is likely to temper any negative impact of the rise in interest rates, with the pent up demand insulating farmland values from the impact of the economic downturn.”

Significant deals agreed by Savills throughout the north of England last year include the sale of the 4,000 acre Goole Estate, 200 acres of prime arable land in Naburn and 583 acres of farmland in Northumberland.