15 December 2021
Having been involved in countless valuations, farm and property sales, and land development, the past 18 months has not only been one of the busiest times for the team but one of the most interesting, advising and guiding clients through the myriad of market challenges and the effects posed by the covid pandemic.
The rural property market has seen unprecedented demand during the last 18 months across all sectors whether it be large commercial farms, lifestyle holdings, rural houses, or cottages. The plot market is also experiencing a resurgence in values which have largely remained static since the crash in 2008.
While the rural property market was already seeing signs of improvement, the lockdown restrictions imposed across the UK in 2020 prompted a rapid rise in demand.
Enquiries for rural and spacious properties increased dramatically, with a large proportion of interest in rural Scotland coming from buyers located in more built-up areas such as southern England. As this level of demand outstripped the supply, sale prices rose and on average were 15-25% above the asking price. Furthermore, in 2020 we witnessed the return of Closing Dates which have been something of a distant memory since pre-2008 in some rural locations compared with City hot spots.
Demand for forestry land or land capable of planting has also increased with many agricultural buyers being outbid by forestry buyers prepared to pay well in excess of agricultural values, which in turn has had an upward impact on land of other grades.
These unprecedented prices for forestry land, have been driven up further through the fear of future carbon counting and uncertainties around the impact of climate change legislation.
More recently however market conditions for rural houses appear to be slowing with some buyers now opting to return to the city lifestyle post lockdown. Buyers and sellers do remain cautious however due to uncertainties around inflation, the possibility of interest rate rises and the prevalence of Covid cases.
The farmland market continues to thrive however with sustained interest and high prices being paid to acquire land.
Whilst the plot market also remains strong with demand for high-quality sites, well located, with a good view and with services nearby. Interest for more marginal sites however has scaled back as increased build costs make these sites less viable.
Looking forward to 2022 there is a blend of both optimism and uncertainty with macro factors such as Covid, Brexit, the threat of Scottish Independence and the economy having the ability to influence the market.
Good property, however, that is well priced, presented and positioned in the market will continue to sell well.
At FBRSeed we have a well-established agency department that is led by a team of Chartered Surveyors who offer comprehensive advice and strategy to navigate the aforementioned challenges and deliver value across the rural property market.
Our team offer a range of services including valuations, recommendations on ways of increasing site value, making planning applications on behalf of our clients, spending time ensuring the property is ready for sale such as making sure EPCs and home reports are in order, and considering the best method of lotting and the impacts of splitting to maximise value for our clients.
We focus on the quality of sales rather than quantity ensuring that clients have a high level of service at an affordable price and with no hidden costs.
Contact our property team by emailing firstname.lastname@example.org or calling 01573 224381.