Land prices

what are historical sources of information on land prices?

the farmland market and DEFRA

what are all sales of agricultural sites required to be notified to?

inland revenue under authority if the finance act 1931

what does the inland revenue series contain?

information on all agricultural land sales over 5 hectares

in the inland revenue series, what does the reported price exclude?

legal fees and stamp duty

what is a requirement of the inland revenue series?

to pay stamp duty land tax

how many months is the time lag of information?

9 months

what is stamp duty land tax?

the oldest tax administered by the board of inland revenue

what is stamp duty land tax charged as?

a % of the amount paid for property or land when it is bought or transferred

what do higher % stamp duty land tax rates apply to?

higher-value transactions

what can the amount payable of stamp duty land tax vary for?

• residential or non-residential,

• freehold or leasehold,

• relief or exemptions,

how often is stamp duty land tax reviewed?

annually in ‘the budget’

when was stamp duty land tax suspended on non-residential and land in England and Northern Ireland?

during COVID-19

what other types of tax were suspended during COVID-19?

• Land and buildings transaction tax (non-resident) in Scotland,

• land transaction tax (non-residential property) in Wales,

How is data collection challenging (in regard to private companies)?

private companies collect information based on their own sales portfolio,

information from private companies isn’t easily accessible and is biased

what is the problem with RICS information?

it tends to be more independent but relies on voluntary submissions

when was RICS suspended?

from 2019

what does RICS stand for?

the royal institute for chartered surveyors

why weren’t results published from RICS in 2019?

there had been such low feedback from agents on the opinion-based portion of the survey

what do RICS and the royal agricultural university release reports on and how often?

release biannual reports on market sentiment and sales based on submissions from land agents across England and Wales

how many acres of farmland were publicly marketed in 2012 and 2019? (according to information from Savills)

2012 - 135,000 acres,

2019 - 117,000 acres, (new record low),

why has publicly marketed farmland decreases?

1. unstable and uncertain market prices,

2. high interest rates discouraged investment into land,

3. the move from BPS to SFI in England has driven environmental interest,

4. similar buyer interest in Wales and Scotland with new schemes being introduced

what are agricultural land values provided for?

hypothetical sites which are typical for the region

what do the agricultural land values exclude and what does this mean??

any uplift from ‘pony paddock’ markets or hope value, so the values are representative for a commercial agriculture user

what factors affect the price of land at a given time?

• grade of land,

• tenure,

• size of parcel land,

• farm or bare land,

• potential for development,

what type of price di smaller parcels of land have and what is demand like for them?

higher price and greater demand

what type of buyers of farms has there been an increase and decrease in?

increase - institutes/corporative/other,

decrease - farmer and non-farmer,

according to Savills (2013) what % of farmers buy land with the intention of expanding?

91%

according to Savills (2013), what % of new non-farmers have the intention to start farming on the land they want to buy?

16%

according to Savills (2013), what % of institutional/corporative buyers get land for investment?

77%

what affects European land prices?

supply and demand

how much is paid for European land?

more paid for better quality land in good economies,

poor quality land is the same price,

price variability,

what does land price vary according to?

• area sold,

• quality,

• location,

• use,

• tenure,

• buyer/purchase profile,