Garry Best, Director of Best Property Sales and land specialist, takes a look at influencing factors on land values, trends and predictions for 2012. 

LAND TRENDS -2011 in review

While the property market has over the past 12 months demonstrated a now familiar downward trend, agricultural land continues to remain the exception and is highly sought after.

Land continues to be in short supply as historically land owners are reluctant to part with acreage, however so called ‘forced sales' and changing economic circumstances have resulted in a relatively small number of land holdings changing hands throughout 2011. As a result buyers have had to be savvy to compete with other interested parties and successfully add to their land portfolio. 

Garry Best, Director with Best Property Services explains: "The growing demand for land in recent years can be attributed to a number of changing factors including confidence in farm business future growth and stability; agricultural relief from Inheritance Tax as well as alternative sources of energy competing for acreage.   Globally a rise in world grain prices and the focus on a growing world population and the need to increase food production from land has had an impact on demand for land and subsequently value.

"This year we've seen a small number of forced land sales, often originating from lending institutions taking security of land in ‘the boom years' and having to realise this security when insolvency arises. In these cases the variance below market value has tended to be from 20%-50% as a result of the lender and the individual looking for a satisfactory resolution in difficult financial circumstances. These kind of sales can provide opportunities for buyers and in most cases family members or related parties have been able to provide solutions to keeping the land within the family."

While most property agencies have experienced a decline in selling prices and volumes of property sold since the market peaked in 2007, one service in greater demand is property acquisitions.

Serious buyers who want a specific property or to build a portfolio of properties are more regularly engaging Land Agents to tap into their knowledge, negotiating skills and network of contacts within the industry to achieve better value in the purchase, than the individual could otherwise do on their own.

"With so much uncertainty of values and lack of sales evidence in some categories, buyers can benefit from retaining an agent to acquire on their behalf in order to take full advantage of the current ‘buyers market.  This service also provides a level of confidentiality for the purchaser, in that if they are unsuccessful, the vendor is not informed as to the name of the person the agent was acting on behalf."

Looking to future trends for 2012, Garry says it's back to basics for the market, with the old adage of ‘Quality not Quantity' being the corner stone.

"Location was often forgotten by property developers and purchasers between 2002-2007 which became an expensive mistake for many.

"What has become apparent throughout 2011, is that the few buyers who have money to invest are highly selective in favour of ‘prime location' land and aren't looking to simply accumulate assets because they are offered at bargain rates. Looking forward, the market will shift to focus on quality of location over quantity of assets," Garry concludes.

FOR MORE ADVICE CONTACT BEST PROPERTY SERVICES, TEL 028 3026 6811 OR SEE http://www.bestpropertyservices.com/

ENDS

For press information contact Catherine McGinn, MAC PR, tel 028 41739017 or mob 077 2029 4413 or info@macpr.co.uk.