Big increase in eastern region farms coming to the market

The amount of farmland being sold in the East of England has increased by almost a third in the early part of this year, say land agents.

Some 4,300 acres of farmland were publicly marketed in the region within the first three months of 2024 – a 28% rise year on year, according to a quarterly farmland survey by agents Savills.

But values have changed very little compared to the end of last year. Average prices are still sitting at just over £10,000 an acre for prime arable land, says Savills associate director Oliver Carr, who covers Cambridgeshire, West Suffolk, Hertfordshire and Bedfordshire.

“In January we predicted that farmland supply would increase this year – and so far all early indications would suggest that’s the case. While some are changing the way they run their farms, others are taking the opportunity to leave the industry.”

Farmers have been encouraged to reassess their options by Defra’s early exit scheme, introduced to encourage farmer retirements. Others have been spurred into action by the loss of the basic payment scheme – exacerbated by lower margins.

Essex farm has £11.5m guide price

Clavering Hall Farm near Saffron Walden is up for sale with a guide price of £11.5m.

The Essex farm extends to 803.91 acres and benefits from additional annual commercial income of £29,570 because some buildings are let to tenants, says Will Radbourne, part of the rural agency team at Savills.

“The quality of a farm’s infrastructure remains a strong influence on price. Farms with commercial scale fields, easy access and good-quality buildings suited to modern agriculture are tending to attract more interest and competition.

“Another wet autumn and spring also means buyers are scrutinising drainage carefully and, for some buyers, free-draining land generally will be favoured unless yields are seriously impacted in drier weather.”

On heavier soils, where productivity is dependent on underdrainage, records and quality of drainage are becoming more important, says Mr Radbourne. This will be factored into offers given the expense of investing in new field systems.

“Similarly, the security of water supplies for irrigating specialist cropping is coming under greater scrutiny, as are the potential financial benefits landowners can receive through stewardship schemes.”

These include peatland rewetting, flood alleviation, nutrient neutrality and more active water meadow management, all of which offer alternative financial returns.