Orkney land a ‘hot market’

The land market around Scotland has been described as stable in the most part by agents around the country.

“Land is following a similar trend to last year,” according to Ian Hope of Galbraith Group. “Land is seen as a stable investment in a time of uncertainty. Orkney is a hot market right now as farmers look to consolidate.

“For the last few years, forestry has been putting a floor under the market,” Ian explains.

Uncertainty was a theme echoed by Derek Bathgate of Davidson and Robertson. “There is definitely uncertainty in the industry but people out there are willing to stay invested,” he outlined.

“It has been a difficult year for a lot of agents but forestry is keep a floor on things.

“Forestry companies and investors are willing to pay £1,500 to £1,800/ac for plantable land with good access,” according to Derek.

“It is still mainly established farmers that are buying land. Good dairy silage ground is making £3,500-£5,500/ac depending on who is interested. Along the east coast very good arable land can make up on £10,000/ac but there is not a lot of supply of good-quality land.”

Derek continued: “The exchange rate would help outside investors and we are seeing a lot of enquiries from Northern Ireland. They seem to be back in the market again and interested for the first time in 10 years since the crash.”

Supply

Jamie Wedderspoon, associate director with Savills has seen supply rise by 16% to 41,200ac in 2018 after what was a slow start to the year.

“However it should be noted that this increase has been due in part due to two significant portfolios of agricultural land,” according to Jamie. “Ellon Farms in Aberdeenshire (2,000ac) and the Evertown Portfolio (9,000ac) in Dumfries and Galloway.”

Again he has seen some top quality arable parcels make over £10,000/ac but the results are regional.

“The market is active in Aberdeenshire but less so in the Borders and South West Scotland,” according to Jamie.