Auctions are Pushing the Value of Land and Property to New Levels
Land, farms, and property all highly sought after on the auction market.
We have seen some staggering results at recent auctions. Last week’s land and property auction held at Borderway Mart in Carlisle saw some record-breaking results with two farms that went under the hammer; Moorhouse and Sunnycroft, collectively achieved £4 million, and two acres of land at Laversdale, between Brampton and Carlisle, reached the unprecedented price of £111,000.
Both located close to Wigton, Moorhouse Hall Farm, the 146 acres acre productive dairy farm with a six-bedroom traditional farmhouse, a bungalow, and assorted agricultural buildings sold for £2.5 million, and the 96-acre livestock farm, Sunnycroft, sold for £1.5 Million.
“These have been phenomenal sales, and these are prices that can only be achieved when selling by public auction. With the high demand we are seeing some fierce competition, both from local buyers and those from further afield, and this is driving the price of property and land to new heights. This was certainly the case for the two acres of land at Laversdale, which sold for more than five times the average price per acre,” says Thomas Armstrong, Director & Chartered Surveyor for H&H Land & Estates.
“Public auctions have been missed and this is demonstrated not only by the results, but by attendance, and the volume of property being sold by auction which is confirmation that people want to do business this way.”
“Selling rural land and property via public auction is a traditional means of trading and, certainly this year, we are seeing more and more vendors keen to sell their property this way. We are witnessing farms and land selling for prices significantly above what the guide prices indicate, making it very difficult to give an accurate estimation on the value of a property or land,” adds Thomas.
Many properties recently sold at auction by our South Lakes office have also sold for well over their guide prices. Bellow Hill Farm, a 30-acre smallholding in the Garsdale Valley with a farmhouse and barns sold for £780,000 – 63% over its guide price. Another impressive result was the sale of Corfe Farm at Wharton, Lancashire, which included a farmhouse and 4 acres of land which sold for 25% over the guide price. Likewise, 24 acres of pastureland with some areas of woodland, near Coniston Water, sold for an average of £11,231 per acre which is 50% over the guide price.
Live auctions are the most transparent methods of sale as no one can make a bid unless they have the funds available, and all bidders can see that the reserve has been met or surpassed. The other main benefits of selling through the live auction system are that there is no property chain, and once the hammer falls the buyer is committed to purchasing and is expected to immediately pay a 10% deposit and sign a contract.
Not everyone is familiar with the procedures for sales by public auction and selling this way can be rather intimidating. However, it is a relatively straightforward process, and based on the success and popularity seen at recent auctions it is a method of selling that should be considered.
Thomas concludes: “Our September auction in South Lakes is already at capacity and entries are being taken for our public auction in October, so I urge potential sellers to get in touch now to avoid missing out.
“There is a strong demand for bare blocks of land, woodland, farms, and property and as such we are seeing phenomenal results for these. More and more farmers and landowners are seeking to increase their acreage, especially if the land is of high amenity value or comes with barns or outbuildings that could be repurposed and utilised.”
If you have any queries or would like further information regarding selling your property or land via auction, please contact the H&H Land & Estates Carlisle Borderway Mart Office on 01228 406260 or at [email protected].
