Recent years have seen a shift in agricultural land prices in the North West area of England, particularly in Cumbria.
PFK Rural, based in Rosehill Business Park, Carlisle, states that these changes reflect 'broader economic trends' as well as regional differences.
Land prices are said to have withstood 'fluctuating economic conditions', with pasture values growing to new heights as of the second quarter of 2023.
These increases underscore a 'robust demand' for agricultural land, despite ongoing economic uncertainty.
Arable land, in particular, is high in demand, commanding prices of more than £12,000 per acre in areas where demand outstrips supply.
A variety of elements contribute to the current land market conditions.
In the northwestern region, the influx of agricultural land has provided more buying opportunities.
Nevertheless, demand persists, especially for high-quality land.
Cash buyers, commonly with rollover funds, continue to drive the market.
Other factors influencing land prices are said to include updated environmental schemes and government pledges of support.
This has afforded some assurances to farmers and landowners, stabilising the market and increasing the demand for land that aligns with environmental criteria.
Another key factor is economic considerations, with high borrowing costs posing challenges to some potential buyers and impacting the price that sellers can 'realistically expect'.
Proposed changes to inheritance and capital gains tax policy have created unease, according to PFK.
The impact of potential changes on property values and investment returns is not yet apparent, creating 'apprehension' among investors and landowners.
This lack of clarity could deter investors from committing to new projects, resulting in a cautious market environment.
PFK Rural also noted an upward trend in off-market land transactions, although this method doesn't suit every property or vendor.
Looking ahead, it is expected that the regional agricultural land market will remain 'buoyant'.
Demand for quality land, 'supportive' government policies, and caution borne out of economic conditions will likely influence market trends.
Both buyers and sellers should keep abreast of these developments and seek out professional advice when negotiating this 'evolving' landscape.
PFK concludes that agricultural land prices in the region are a reflection of the 'complex interplay' of supply, demand, and broader economic elements.
While record-high values for pasture and arable land, coupled with government support, have left the market 'vibrant', concerns remain about potential changes to capital taxes.
Any queries can be directed to them via their contact details listed in the report.
Those with questions can contact PFK Rural on 01768 866 611 or via email at rural@pfk.co.uk where one of the advisers will be 'happy to assist'.
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