Farmers are being blown out of the market for small parcels of land because of the shortage of rural housing, a Cork auctioneer has claimed.

Mitchelstown auctioneer Eamonn O’Brien said he sold three small holdings recently where farmers never got a look-in once bidding took off – although there was plenty of farmer interest in all three properties.

“Farmers can’t compete for small parcels of land. They’re making crazy money,” he said.

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A guide price of €130,000 was put by O’Brien on a small derelict house on 10.35ac, which is located on the Black Road route to Galtymore Mountain outside Mitchelstown.

He calculated that the house – which is in the parish of Skeheenarinky and about 2.5 miles from the village of Kilbehenny – was probably worth €50,000 and the land around €80,000/ac or €8,000/ac.

"The house wasn't great. Half the roof was gone and the front door was on the ground," he explained.

“But the phone never stopped ringing from once the signs went up. Two locals were interested and they pushed the price to €260,000 over the next three weeks - or twice the guide price,” O’Brien said.

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The auctioneer explained that the presence of a derelict house on lands is putting a real premium on the value of small holdings.

He pointed out that around €90,000 in supports are potentially available under the Vacant Property Refurbishment Grant and from the Sustainable Energy Authority of Ireland to totally refurbish these residences.

However, he said even if a value of €100,000 was put on the Black Road house, this still put the sale price for the land at €16,000/ac.

O’Brien had a similar experience with the sale of a six-acre field at Mourneabbey near Mallow.

A guide price of €15,000/ac was put on the field, but it eventually made €142,000 or €23,660/ac.

Farmers were interested in the lands, but were never in the running when the bidding really got going, the auctioneer said.

Although O’Brien insisted that the lands were sold “subject only to title and boundary”, he said speculative site potential was a factor in the eventual sale price.

The same auctioneer sold 4.5ac of “elevated grassland” 2.5 miles from Mitchelstown. An adjoining house owner saw off all competition with an offer of €17,500/ac for the property.