Hobbs Parker - Land Values - A Retrospect of 1999 and Beyond

Land Values - A Retrospect of 1999 and Beyond

By Colin Hosmer

At the start of 1999 there was a general expectation both nationally and regionally, that there would be increased marketing of land and farms as a result of the continuing drop in farm incomes, resulting in lower land prices.

Across the whole country these expectations have been confounded.

In the South East commercial farmland is still sought after and in most areas there have been, and continue to be buyers who have the ability to take on the limited supply. Coupled with the plentiful interest from non farmer buyers competing with the commercial farmer, values have held firm and in the case of good residential farms have increased

As we approach the Millennium it may be appropriate to remember that farming has been through some other difficult periods in the 20th Century, under different circumstances to the present of course, and to look back at what has happened to land values. To be consistent throughout, and for better comparison, I have quoted figures for farms of

This would have been a useful holding in 1900 when a good many farms were tenanted. An average annual rent in the Kent or Sussex Weald for a fully equipped farm with house, buildings and land would have been around ś1 per acre, and Little Romden Farm, Smarden comprising house, buildings, and 133 acres, let at ś110 per annum, was sold about this time at ś2,100 plus the landlord's standing timber at a charge of ś244 5s 6d! In 1920 we were selling let land on Romney Marsh at Auction at about ś25 per acre and Romney Marsh annual rental values were between ś1.10 and ś1.75 per acre.

The early part of the Century

The early part of the Century saw the split up and sale of many of the old landed family estates. In 1925 we sold a number of complete farm units in the Kent Weald, south of Maidstone, with vacant possession. Varying from 50 - 200 acres they achieved prices ranging from ś35 - ś65 per acre. The top price per acre was for a mixed farm with fine early Tudor farmhouse, range of buildings, with a little over 100 acres where the cropping was hops, orchard, arable and pasture in approximately equal proportions. The sale price was ś6,700. In the late 1980's we sold the same farm, with the addition of a few modern buildings and a further 14 acres, at about ś550,000. Today it would be valued

By the 1950's asking prices for bare land in the Kent and Sussex Wealds were of the order of ś100 per acre, and by 1975 one would probably have paid between ś70,000 - ś100,000 for a full equipped mixed farm of around 100 acres, and bare land ranged from about ś450 - ś800 per acre.

Coming closer in time it is amazing how much things have altered over just the last 10 years. It was during 1989 that the "blight" on land values in Kent caused by the multiplicity of possible fast rail routes between London and the Channel coast was lifted, with the exception of an area around Ashford. At that stage the final link up of the M20 and M25 network had not been completed - what a difference that has made to property values in the South East! In 1989 we were reporting values of up to ś2,300 per acre for Romney Marsh land with Grade III land across the Kent and Sussex Weald and Downland mainly falling between ś1,300 - ś1,600 per acre for commercial blocks. IACS had not

Some significant sales by Hobbs Parker

Some significant sales by Hobbs Parker during 1999 include 305 acres Rooting and Coldham Street lands at Little Chart. The Rooting Street land in all about 171 acres sold by tender at a figure well in excess of the ś350,000 guide price. Colour photo as already provided. Of the total, about 161 acres was IACS eligible arable land with the remainder woodland. There was a higher percentage of woodland on the Coldham land in all about 134 acres. This comprised 86 acres of IACS arable and temporary grass, 8 acres pasture plus about 40 acres of woodland, all quickly sold by tender when guided at ś200,000.

Broadway Green Farm, Petham was a mixed grass and arable farm near Canterbury. Colour photo as already provided. It had an attractive Listed farmhouse for modernisation, extensive modern livestock and general purpose buildings in about 130 acres. It was sold prior to Auction in July in excess of the guide price of ś450,000.

The Millenium

At the eve of the Millennium one cannot help notice how devoid of advertisements for farms and land for sale, the farming press have been. One of the most authoritative national publications dealing specifically with records of agricultural land sales reported an increase of nearly 20% in the number of land and farm transactions in Kent and Sussex

Significant amounts of land have come available to let through the medium of farm business tenancies and successful competitive tenders have left many disappointed parties.

Throughout 1999 in the buoyant market, sales have taken place quickly often by formal or informal tender. Whilst a little more land has come on the market over the autumn period this seems to have found a ready interest with sales already having been agreed in the majority of cases, at the time of writing.

Country Houses

The country house market is strong and low interest rates, plus an attractive capital taxation regime that encourages investment in vacant possession agricultural property will help to hold up land values in our area.