Shropshire Farming Talk: ​Where are we with the property market?

In the early part of the year there was a steady increase in the average price of all types of land, with a marked disparity between the price of good quality arable land and poorer grassland. Prices levelled off throughout the spring and summer and this was attributed to the pressures of higher interest rates, decreasing commodity prices and narrowing of farm profit margins as well as pre-election and budget uncertainty.

As has always been the case in our industry, death, debt and divorce remain the main drivers for the sale of land. The range of buyers has remained similar to previous years, with farmers, investors and those wishing to purchase for environmental reasons (carbon offsetting and biodiversity net gain) all looking to secure land.

I don’t expect the market in our area to alter dramatically in 2025 as there is still relatively little land sold each year with plenty of demand. However, there is little doubt that buyers will be more clinical in their buying decisions and will be mindful of external forces including tax implications. Furthermore, the reduction of agricultural land which is available to farm due to the Governments policy on housing development should reinforce prices.

When it comes to residential property, the market has slowed very slightly but, as always, interesting properties in quiet rural areas which are priced right are still attracting high interest. Nearly five years post-pandemic there is still an appetite to move to rural areas in search of a better work/life balance. That said, lenders have become more cautious and, with the inevitable increase in living costs which the budget will bring in April, it will be interesting to see how easy it is to secure a mortgage.

I don’t believe that the true impact of the budget and its proposals will be fully evident until later in 2025 or early 2026. We will just have to wait and see.