2021 was a year where the rural market was dominated by a huge demand which outstripped a restricted supply of properties available on the market.
Davidson & Robertson’s new dedicated Rural Agency team handled 40 transactions with a combined value of over £25,000,000 during 2021. The transactions handled ranged from 1 bedroom derelict cottages to large prime arable farms and just about everything in between. The average premium over asking paid was 33% which goes to show quite how much demand there was out there during the year.
The sales handled by D&R were predominately handled on an on-market basis with a small number of private off market deals being agreed. The benefit of an off-market sale is that a vendor can sell their property in a discreet manner and can apply a premium to an asking price to prevent a sale from being offered to a wider audience on the open market. An open market sale is the best way to ensure that the property is offered to widest possible audience via a suitable marketing campaign and means that a vendor can be confident they are getting the best price for their property.
There has been a marked increase in the number of investors in the marketplace looking to buy land for tree planting and peatland restoration to take advantage of the Environmental Social Governance (ESG) benefits. Investors are seeing that regulatory accountability for environmental impacts is shifting and that investing in farmland as an asset is the most sensible way forward. This has driven land values up and in early 2022 we are seeing signs of farmers beginning to take advantage of good prices being paid, by getting in touch with us to discuss a potential sale.
Should you be considering a farm sale or purchase, our dedicated sales team is on hand to provide the expert advice that will help you achieve your objectives. For a confidential, no-obligation discussion please contact William Dalrymple or a member of the Sales Team on 0131 449 1155.