2023 was a “pivotal year” for UK farmland supply, with 157,200ac in circulation, according to estate agency Savills.
This figure is 15% higher than the average over the past five years, but is still below the average of 162,000ac recorded between 2003 and 2016.
in Spotlight: Farmland MarketMr Savills has suggested that the amount of publicly marketed supply could rise further, predicted to be around 180,000ac a year by 2028.
Andrew Teanby, associate director of rural research at Savills, said: And our research on machine sales numbers seems to confirm this. ”
According to the survey, agricultural equipment sales in 2023 increased by 71% compared to 2015.
Mr Teanby said: “We continue to believe that more land will come to market, with increased machinery sales as an indicator. That's one of the potential consequences.”
Mr Savills said over the past three years, retirement and changes in farm policy were far more common reasons for farmers to sell farm equipment than in 2015, when no new farm policy was on the horizon.
The value forecast for the real estate company's farmland sector over the next five years is influenced by continuing economic challenges, weak demand from all types of buyers in the market, and increasing availability of farmland.
Alex Lawson, Savills Regional Agency Director, said:
“Individual sales are influenced by specific property attributes and salient dynamics such as location and strength of neighborhood interest.
“However, as we have recently witnessed, unexpected global and economic shocks can affect all markets.”
