Soaring demand lifts market price

Across Scotland, we saw properties secure good interest in 2019 with strong offers received, averaging 28% over asking price for all properties sold.

Last year the market saw the level of interest and speed of sale being determined by the quality of the property and its location.

Land sold for tree planting in 2019 was 32% over asking price with a value range of £1,650 to £2,000 per acre.

The market price has been rising with increasing demand, especially for good-quality planting land, and we have seen a continued level of interest to start 2020, with more planting land to come to the market in the near future.

This national trend is certainly something we are seeing in the northeast of Scotland too.

Lifestyle properties are being dominated by buyers seeking to purchase within commuting distance of central Scotland together with a manageable amount of land – often between five and 20 acres.

The lifestyle market has weakened in the north-east.

Before the oil price crash of 2015, demand was high, but today there are far fewer lifestyle buyers in the area, so demand for houses with a building and around 30-50 acres of land dropped.

The agricultural sector is still dominated by farmer buyers, including neighbouring businesses taking local opportunities or those reinvesting in agricultural property for its tax benefits.

Funding is still readily available at competitive rates and those who have income from sources external to agriculture are incentivised due to the tax advantages of owning agricultural land.

Although uncertainty over the future of subsidy continues, the recent upturn in some Scottish markets, combined with a degree more political certainty following the election in December 2019, has led to a positive start to 2020, but there are regional variations.

In the north-east, there are more buyers than sellers for good arable land and it is selling well.

However, there is less demand for poorer-quality land. The price for beef is affecting hill and livestock units, with few farmers prepared to commit to buying land until the future is clearer.

For the reasons covered above, we believe the market in 2020 will remain competitive, with opportunities for progressive agricultural business, forestry and planting land purchases.

Locally, there will be fewer buyers looking for rural properties with lifestyle or equestrian appeal, so sellers will need to be realistic.

When selling land to a neighbour, some favour private sales, but across The Courier catchment, we have seen instances where actively marketing with an agent has helped achieve better returns/acre.

Where a landowner was expecting £4,500-5,000 per acre, they have been achieving £5,000-6,000 per acre.

For those considering selling in 2020, but who are holding off because of Brexit uncertainty, we would advise to start planning now, so when the time is right, you are ready to enter the market.

In the northeast, there are more buyers than sellers for good arable land...

Picture: Shutterstock. Land sold for tree planting in 2019 was 32% over asking price.