Farmland Prices Surge
Farmland prices in the West Midlands surged at the fastest pace in the RICS, Rural market survey’s history during the second half of 2007 – up by 27.3% compared with 11.5% in the first half of the year but lifestyle buyers are expected to retreat as financial woes continue.
Demand for residential and non-residential farmland in the West Midlands gained further momentum, particularly in the latter half of 2007, where it increased at the fastest pace in the survey’s history. Nevertheless, the availability of land stabilised in both sectors of the market, having picked up quite sharply in the previous half, albeit from a very low base.
Nationally, sharp increases in commodity prices have encouraged farmers to expand production and enter the market as purchasers, with demand far outstripping supply. Increasingly, British farms are rivalling Irish and Danish buyers in the market. However, surveyors reported that the proposed changes to the Capital Gains Tax regime could see conditions loosen as landowners seek to sell before the April deadline to avoid paying a potentially higher percentage of capital gains.
The net balance of surveyors expecting price rises in residential farmland fell from 60% to 30%. City bonuses are likely to be a lot lower as the credit crunch continues to hit the financial sector. Lifestyle buyers have retreated while market uncertainties continue.
The average price of arable land rose to £10,949 per ha from £9,929 in the first half of 2007 breaking the £10,000 per ha barrier for the first time in the survey’s 13 year history. Price expectation for the non-residential market also rose to the highest level on record.
Steven McLaughlin, RICS spokesperson and rural specialist in the West Midlands, said:
‘With demand for farmland currently outstripping supply, we are continuing to see the upward trend of land values across the region. The recent increase in commodity prices has resulted in a bit of a feeding frenzy for farmland, as farmers return to the market to compete with investors and foreign farmers for arable land. Availability of agricultural land in the West Midlands may increase in the run up to April as landowners seek to offload land before the changes to the capital gains tax regime sees them out of pocket.
However, with the credit crunch taking its toll on the city, lifestyle buyers are expected to retreat from the market leaving country-living a mere dream for many.’

Planning for the future
As regeneration fever continues to drive the country and the legislation minefield presenting a challenge at every turn, professional planning services become increasingly valuable and often provide a lifeline to development potential on every level.
The value of sound planning advice and expertise across a broad field of activity underpins many projects and Savills Planning teams in Nottingham, Leeds and York have now combined their considerable resources to provide an unrivalled service across the Midlands and the North. They are able to advise on a range of projects from smaller niche developments to large corporate or institutional schemes, land assembly advice and local authority frameworks.
Savills now have a formidable team led by Peter Dixon based in Leeds with working with clients across the UK. The Leeds based team has been involved with some high profile and complicated projects as a major urban extension for Crest in Bath and working with Alan Sugar in London on the Spurs training ground in greenbelt with supervision of complex environmental impact assessment and detailed design codes.
Nick Grace and his team in the East Midlands have been instrumental in bringing many schemes to fruition through detailed planning applications, challenging decisions and advising on land assembly to create better, more feasible development opportunities.
Savills Planning & Regeneration department is one of the largest of its kind in the UK, with more than 180 fee earners working from offices throughout the country. The highly focused northern team has some 17 Planners in total and is able to serve a wide range of clients and needs across a broad geographical area. Peter Dixon will take overall responsibility with Nick Grace leading the way across the East Midlands.