Scarcity of Land in North-East Keeps Driving Prices
A lack of land coming to the market is pushing prices, as well as cash buyers waiting in the wings for opportunities to purchase.
Tim Sedgewick, Director for H&H Land & Estates, leads the team in the north-east and North Yorkshire and here discusses the current trends in land sales and how demand remains greater than supply in the region.
“There is a real scarcity of land in the north-east and North Yorkshire, and as such when things do come on the market they are selling very quickly, especially equipped farms. We are seeing a lot sold privately – sellers do not necessarily need to go to the market as we have a database of ready, willing, and proceedable customers looking for both land and ring-fenced farms. We have a fantastic farm coming to the market this autumn, a 260-acre farm, near Morpeth in Northumberland. An easily accessible and productive farm, situated in a very desirable area, we know that it will be in considerable demand.
“The majority of purchasers we are seeing are cash buyers, many of whom have sold land for development so have roll-over monies from capital gains tax, so are looking for quick results. We are also seeing some countryside charities coming to the fore looking for land. Both the Woodland and Wildlife Trusts have bought pieces of land through investment and funding for environmental and off-setting purposes. This is driving land prices and resulting in land selling for well above the estimated price.
“We recently launched Lady Park Farm, near Gateshead, and the interest has been phenomenal and in a very short timescale, it has already been brought to a closing date due to the high interest.
“As society continues to shift and the spotlight is changing on how farmers are producing food, off-set carbon and improving habitats, this is going to impact and focus people’s mind as to what land is being purchased and what it is being purchased for.
“Speculatively, developers have an eye and purchase land which they believe may have significant development potential longer term and are offering a clawback in favour of the seller, along with the ongoing potential to farm it until such a time arises.
“If you have land which does not necessarily fit your future farming practices or successions, it really is worth looking at the potential which could be achieved through trading, whether for farming, commercial, or biodiversity purposes. For me personally, it is absolutely vital that we continue to consider food production at all costs, and the crucial and important role of family farms in local communities. Change for change’s sake is never a good idea and we mustn’t lose sight of traditional values or the fact that land needs managing.”
“As a company, this year we are delighted to have seen so many innovative and progressive farms diversifying their businesses. Some fantastic examples of this are East Grange Farm at Shincliffe which, alongside a mixed arable and sheep enterprise, now also have a Pick-Your-Own Pumpkin Patch and a Christmas barn. Another is Box-It based near Millborne in Newcastle, which utilises farm barns for secure document storage and shredding services for businesses.
“Another looking to add value to their produce and enhance its overall farming enterprise is Broom Mill Farm, near Bishop Auckland, which has developed a butchery, farm shop and tearoom.
“There are many opportunities to increase revenue from the existing core farming business and I am seeing considerable keenness and innovativeness. However, to be successful it is absolutely key that you complete some market research and really look into details and opportunities and seek guidance to ensure you are maximising potential with what works for your farm.”
