THERE has been a 27% increase in land offered to the market by Savills so far this year, at 7579 acres.
This is in complete contrast to last year when supply was at its lowest, according to statistics provided by Savills, since the rural property firms' records began in 1995.
Savills head of rural agency Evelyn Channing said: "Activity so far this year has been for all types of property with buyers including a significant proportion in possession of rollover funds, as well as lifestyle interest and from south of the border looking for value.
"Chapel Farm in the Scottish Borders (105 acres) attracted a lot of interest in February and March with 66% of viewers coming from outside of Scotland. Where rollover funds are not in evidence we see cash being favoured over a higher bid supported by loan. Those looking to borrow therefore need to start the process early in order to be in the best position possible at a competitive closing date.
"There was a marked decrease in the number of potential bidders following the increase in interest rates implemented last October. With a further recent increase to 4.5% we are likely to see less appetite from those who are not predominantly cash buyers particularly during the current period of uncertainty over our future agricultural policy, coupled with volatile commodity prices and the high cost of inputs.
"Up the hill, the demand for planting land has softened and offers made subject to bird surveys are becoming the norm. This may impact timeframes for both buyers and sellers and underlines the necessity for early conversations for anyone considering a sale.
"Despite these challenges and given the positive start to the year in terms of activity, we are optimistic for the remainder of this year particularly for units of quality with good productive land. Strong pre-emptive offers are being received and thwarting plans for units that were destined to come to the open market in the coming months. Savills have recently put the 457 acre arable farm of East Garleton in East Lothian under offer after six weeks of private marketing.
READ MORE: High demand and rising prices may limit access to rural land
"Our early predictions are being further borne out by two recent open market June launches in the Scottish Borders: Shoestanes, a 579 acre stock farm near Heriot has generated an immediate reaction from both farmers and forestry planters; whilst Nottylees, a 461 acre arable unit in the Tweed Valley located close to the actual border, has generated 12 viewings within the first week of marketing from buyers originating from both England and Scotland."
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