People in their twenties and thirties are now key players within the agricultural land market across both the UK and Ireland, according to estate agency Savills.
And this trend is unfolding at a time when the land prices continue to strengthen.
Savills’ director, Neal Morrison commented: “Significant numbers of younger people have made money in the likes of the technology sectors over recent years.
“And they are keen to invest in property and land. Moreover, they have the money to make these investments without a requirement to borrow from a lending institution.”
According to Morrison, Savills are “aware of instances” where younger family members made their parents aware of potential land and associated property investment opportunities.
“So, yes, land acquisition is very much an activity that has a strong millennial and even younger age profile focus,” he said.
“And Savills has tailored it marketing activities accordingly.”
Farm business investment
Savills recently hosted a press briefing for members of the Guild of Agricultural Journalists at Elmfield Castle, close to the village of Gilford in Co. Down.
At the event, Josh Pim, an agricultural land specialist with Savills, confirmed that farm business investment remains a core driver within the Irish property market.
He explained: “This reflects the fact that so many families in Ireland are very aware of their agricultural heritage.
“And they regard an investment in farm land almost as a rite of passage.”
A key factor driving the price of agricultural land in Ireland is the fact that so little of it comes up for purchase: the figure comes in at less than 1% of the available land area on an annual basis.
“Slightly less than 300 farms with a scale of 200ac or more came up for sale last year,” Pim said.
Land valuation
Meanwhile, the value of land continues to increase around the world, particularly in North America and Western Europe.
In Northern Ireland, private treaty, as opposed to public auction, is the most popular route to market for agricultural land sold publicly.
However, in the Republic of Ireland, there would be greater emphasis placed on the use of public auctions.
Providing a land valuation facility is an important element of the service mix provided by Savills.
Company director, Harry Crosby, confirmed that land acquisition is an attractive option for banks, from a lending perspective.
He said: “Land values will depend on a number of factors.
“These include its inherent quality, location, access, sectoral performance, surrounding environmental criteria, and the future development potential of the site in question.”
