16th August 2021
Demand remains high for rural property!
Property prices are soaring, rocketing, upwards in a manner I do not recall before. We sell a property and think it was a serious price and 3 months later it looks good value. Initially, across North Cumbria and Southern Scotland, it was the under £400,000 houses which were highly sought after as post-lockdown 2020 there was a desire for a better quality of life in a rural area, working mostly from home but the increase in prices and high levels of demand have now spread to most rural property types.
Farms and land are no longer only the demise of farmers, these assets are being bought for planting, renewables, carbon offset, re-wilding, diversification, development, investment and lifestyle as well as large farmers expanding. Planting land often quoted at £4,000 per acre last year is more often quoted at £5,000 – £6,000 this year. In Dumfries and Galloway good quality farmland, in smaller parcels, is now making £10,000 – £12,000 per acre and sometimes more for a “pony paddock”.
Fundamentally, there is a shortage of properties available and significant pent-up demand from parties who sold last year and are currently renting meaning more enquiries and a more competitive buying situation. This combined with the current low interest rates, cash-rich purchasers relocating from cities and higher value areas as well as the hugely increased demand for rural and village properties have all added to the increase, we have seen in property prices. Buyers have been driven by the ‘race for space’ as our requirements changed post-lockdown.
What the future holds is the great unknown, but it is likely that there will be some sort of slowing or stabilisation through the winter. If you are thinking of selling, in order to maximise value, planning is key especially in such a fast-paced market. Instruct your solicitor in advance to ensure all legal issues are highlighted and resolved where possible and make copies of Deeds available; obtain at least 2 market appraisals to understand how different agents will market your property to ensure maximum exposure. Advertising on the online portals is key with so many potential purchasers coming from further afield and, as such, the visual impact of marketing materials has never before been so critical to maximising the value of your property.
Stuart Thomson is a Director of C&D Rural covering Cumbria and Southern Scotland.Back to Archive