COMMENT: Demand for amenity land has skyrocketed since the Covid-19 pandemic as the so-called ‘race for space’ sees buyers hunting out paddocks, grassland or woodland.
The habits of buyers in the auction room have long been indicators of what is going on in the wider economy, and we have seen a significant uplift in demand for amenity land. These buyers are increasingly those who have properties with smaller gardens but are seeking parcels of land of their own for fun at the weekends, be that ‘living on the wild side’, camping out or making dens with the children. These people have come into a market that was already healthy and with a strong buyer base, including investors wanting land for development, neighbours seeking to protect their boundaries or those in search of grazing.
This vast range of buyers has led to marked price rises, with values in East Anglia now reaching up to £100,000 per acre. And for every amenity land example we have brought to the auction room in the past 18 months, we have seen an average of 75 interested parties download the legal pack for each lot.
Woodland – which can provide the ultimate escape and be a cheaper alternative to buying a holiday home – has also become more desirable. As property with significant amounts of grazing or woodland can come with a premium attached, buying just the land can be a more viable alternative.
Staycations on the rise
Amenity land now presents itself as a great opportunity for someone looking to set up glamping or camping sites, which are growing in popularity as foreign travel continues to be marred with issues. Sites in rural areas with a couple of acres of grassland are now being eyed up by those looking to create a new staycation site, and we have seen a marked increase in enquiries from the owners of amenity land as to how such a site could be set up.
This presents a very real opportunity for landowners to sell off parcels of land that are of little agricultural value for a significant premium. The sites that tend to be the most sought after are those in edge of village locations, ideally grassland, and with clear boundaries or fencing, or a site which may offer medium to longer term development potential.
Buyers here are often taking an opportunist view of the potential for planning policies to be changed in the medium to long term. With some buyers not able to afford the high prices demanded for land with planning approval, people are turning to this more speculative approach in the hope of one day gaining permission. And on the flipside of this, often buyers are looking to purchase parcels of land in order to protect it from becoming used for development, whether that be to protect a view or their boundaries.
We saw examples of exactly these buoyant prices in our June auction. First, 3.47 acres of land in Orwell, Hertfordshire, was sold to an end-user, likely for general amenity use. The site had extensive road frontage and vehicle access, and featured a number of mature trees, backing onto open farmland, and had the potential for a range of uses. This site saw some extremely competitive bidding from both local buyers and from those further afield. It sold for £258,000, representing values of more than £74,000 per acre. This was well above the site’s pre-sale estimate of £50,000.
Similarly, just over an acre of grassland in Duxford near Cambridge sold for £116,000 against an estimate of £55,000. This was a prime opportunity, being situated in one of the area’s most popular villages and with clear boundaries marked by fences and brick and flint walls. However, this site eventually sold to a local bidder who was looking to acquire additional outside space without thoughts of future development.
An enduring trend
For those looking to sell amenity land at auction, it would be sensible to consider presenting opportunities with well-maintained fencing and in good condition. Also, we have seen a growth in the number of amenity lots coming to auction with the inclusion of overage clauses. This allows the seller the best of both worlds – a strong first sale price, coupled with a potential future payout should the land eventually get planning permission for development.
The demand for amenity land looks as though it’s here to stay. The old adage of “buy land, they aren’t making any more of it” continues to hold true and, as Covid-19 encouraged greater swathes of the general public to start really enjoying the outdoors, I would forecast that these premium values are here to stay.
Ian Kitson is director at Cheffins
