LAND MARKET UPDATE 2018 NORFOLK EDITION

LANDMARKET UPDATE 2018 NORF O L K ED I T I ON

We expect to see variability in themarket continue through 2018. Whether prices stabilise this year, depends to an extent on supply and howmuch land comes forward to themarket. If supply remains at similar levels to 2017 then we expect land prices will continue to fluctuate and prices may fall slightly in some areas. Uncertainty will continue until we knowmore about future subsidies and future trade deals. When this happens, it couldmark amajor turning point in themarket, one way or another, depending on the outcome. In the future, issues of food security and land being a diminishing resource will still persist and long-term landowners can take heart from this. Indeed, somemay see a further weakening in land prices as a good buying opportunity. For property coming onto themarket in 2018, the key will be forward planning and patience, to ensure the property looks its best and has the best possible market exposure.

We started 2017 against a backdrop of land prices having eased over 2016 and an expectation that theymay fall further. In Norfolk, 2017 was a busy trading year with our Norwich & King’s Lynn offices handling over 3,000 acres of land transactions. Themarket continues to be characterised by its variability; we have seen bare arable land values between £6,000 and £12,000 / acre withmuch in between. The quality of the land and the acreage on offer have an impact on what can be achieved but location remains critical. There are a number of ‘hot spots’ in Norfolk and acreages traded in these areas have pushed up our average arable land value across the county to £9,000 / acre in 2017, with farmer buyers acquiring themajority of land.

Anne Barker & JimMajor, Partners Brown&Co FarmAgency

Residential. Commercial. Agricultural. brown-co.com

THINKINGOF SELLING IN2018?

Consider tax Consider Capital Gains Tax on sale proceeds. Entrepreneurs Relief can apply where a disposal is as a result of the cessation of a business, reducing the rate of tax from20%to 10%. This cannot be left to chance and the sale needs to be planned and structured accordingly. For the sale of a typical parcel of land acquired for £3,000 / acre and sold for £9,000 / acre, the tax saving could be in the region of £600 / acre. Take advice and plan ahead to ensure any disposal is as tax efficient as possible. Secret dealing – avoid temptation In this fast-pacedmarket, with such awide range of prices being paid, it is hard to keep track of values. Whilst the possibility of a hassle-free sale to a neighbour may have appeal, to do somay risk underselling your land. In amarket with such huge variations, involve an agent to ensure full exposure to themarket, whether in a public or private transaction.

Plan ahead and assemble a team Whether retiring, consolidating or restructuring, the decision to sell is amajor one and is not taken lightly. Consideration should be given to implications for future income, impact on any retained property, tax planning and succession. These arematters that should be addressed fromthe outset andwhere the right professional advice is key. Assemble a trusted teamtoworkwith, to ensure that the decision to sell is the right one, and if it is, the transaction is done efficiently and in linewith your wider objectives. Maximise value Youwill only sell the property once, and therewill only be one chance to maximise value. So be proactive. Is there Planning potential on a range of buildings or a parcel of land that should be explored before a sale? Is there a tenancy or licence that should be terminated to sell with vacant possession? Does the property look its best? Have photographs taken in the spring or summer if a launch needs to be later in the year. Prepare legal information to ensure the sale runs swiftly and smoothly once the deal has been agreed.

TheBrown&CoNorfolkofficeswere involved inagricultural property transactions of over 3,000acres in2017. Weprovideunrivalledadvice tohelpyoubuy, sell or rent your farmfor thebest price.

2017 ACTIVITY

SOLD

SOLD

Hickling Broad Estate, Hickling | Guide £2,300,000 588.69 acres (238.23 hectares). Hickling Broad, reed bed, wetland andmarsh with commercial let portfolio including boatyard, sailing club site, cottage, 4 holiday lodges, extensive boathouses &moorings.

Manor Farm, South Creake | Guide £4,500,000 Fully equipped residential arable farmnear theNorthNorfolk Coast, in all 355.58 acres (143.90 hectares).

SOLD STC

SOLD

Land at Stokesby | Guide £1,025,000 152.53 acres (61.73 hectares). Productive grade 3 arablemarsh in Broadland location, with a stretch of riverbank alongside the river Bure.

Gostelyns, StokeHoly Cross | Guide £955,000 5-bedroomgrade II listed farmhouse, with extensive formal gardens traditional barn and grazingmeadows, in all 28.49 acres (11.53 hectares)

SOLD

SOLD STC

BankHouse Farm | Guide Price £3,000,000 A productive arable farmwith excellent buildings including 2,800 tonnes of first class grain storage, in all comprising 134.42 hectares (390.79 acres) or thereabouts.

Land at Broadway&OldHall Farm, Scarning | Guide £1,540,000 168.87 acres (68.34 hectares). Attractive block of good quality arable land in large easilyworked fields.

SOLD

SOLD

The Broads 412 acres (166.73 hectares) Grade 1 & 2 arable land in the Broads with irrigation. Sold privately.

Church FarmBarns, Beeston | Guide £425,000 0.63 hectares (1.55 acres). Traditional range of barnswith views over extensive countryside. Planning consent for conversion to three residential units.

SOLD

SOLD

Land at Heron Farm, Besthorpe | Guide £1,540,000 171.47 acres (69.39 hectares). Productive block of grade 3 arable land with basic payment scheme entitlements.

Marshes at Acle | Guide £290,000 73.44 acres (29.72 hectares) Well managed quality grazingmarshes, with good road frontage. Available in lots.

SOLD

LET

England’s Farm, GreatWitchingham | Guide £630,000 11.29 acres (4.57 hectares) Residential smallholdingwith substantial house, general purpose building, stables and grazing.

Arable land at Binham– Let by tender 313.38 acres (126.82 hectares) let under a 12month FarmBusiness tenancy

WHY BROWN&CO? With 27 rural professionals across our Norfolk based offices, Brown&Co has awide network of agents and farmconsultants eachwith expert local knowledge. We are amulti-disciplinary Firmwith teams dealingwith residential and commercial property, all aspects of architecture and planning aswell as our land agency and farmconsultancy teams. Our active international offices in Poland andRomania combinedwith our other operations in Europe and South America, meanwe have access to and understand international buyers.

Every sale, whatever size, is handledwith the same dedication and professionalism.

For personalised, professional advice and guidance during any transaction contact our experienced agency team.

Jim Major King’s Lynn Office 01553 778058 jim.major@brown-co.com Rowley Barclay King’s Lynn Office 01553 778062 rowley.barclay@brown-co.com

Anne Barker Norwich Office 01603 598227 anne.barker@brown-co.com Sarah Lucas Norwich Office 01603 598431 sarah.lucas@brown-co.com

Residential. Commercial. Agricultural. brown-co.com