The end of 2013 saw strong trade for Non-SDA entitlements, with some purchasers achieving good rates before the English roll-over was confirmed. Prices continued fairly steadily in the first half of January 2014 at their post roll-over rate of £300 per unit plus VAT for Non-SDA, with Non-VATable entitlements making up to £340 per unit, although demand for Non-VAT has not been as strong as in recent years. However the second half of January has seen an increase in supply and purchasers reluctant to firm up offers at these levels, which has led to a drop in the Non-SDA market. Some vendors are now commenting that they would accept offers closer to the £270/ha mark for Non-SDA in order to progress sales sooner rather than later, and offers lower than this have been reported. Whether or not this is due to cash flow reasons purchasers would be well advised that although some vendors may take time to accept offers below £290/ha due to market consistency so far this (post roll-over) trading period, there are vendors looking to sell at these lower rates and one should start negotiations early to try to ensure the most competitive prices. It is certainly a buyer’s market at present.
Demand for SDA entitlements remains extremely strong due to the ongoing lack of SDA supply. Those looking to sell SDA entitlements are in a very strong position as they should be able to command high prices in the current market. This is not only due to the intention in England to increase the SDA rate in 2015 to be in line with Non-SDA, but also due to current strong demand and the number of purchasers who will need to make very competitive offers in order to obtain entitlements. It may be that many vendors are ‘holding out’ for confirmation of what the lowland and SDA rate will be in 2015, however this will take time and with demand so strong they would be advised to enter the market as soon as possible in order to take advantage of the current demand. Purchasers currently in the market are ready to offer £250/ha.
Similarly demand for Moorland remains strong, with transfers in the New Year being agreed at £50/ha and with the number of purchasers looking to buy this may well increase further. There is however more uncertainty in the Moorland market, compared to the other English markets, due to DEFRA speculation over increasing the Moorland rate, which we are yet to receive confirmation on. This could be dissuading vendors from coming to the market at this stage however, as with the SDA market, strong demand means that vendors will likely have more control over the prices they achieve by entering the market sooner rather than later.
Current Availability
|
Region
|
Quantity (ha)
|
Price (£/ha)
|
|
Non-SDA
|
59.11
|
£290/ha
|
|
Non-SDA
|
20
|
£280/ha
|
|
Non-SDA
|
21.1
|
£280/ha
|
|
Non-SDA
|
60
|
OFFERS
|
|
Non-SDA
|
2.06 (No VAT)
|
£340/ha
|
All entitlements listed remain subject to availability, contract & submission of RLE1 forms
Current Wanted
|
Region
|
Quantity (ha)
|
Price (£/ha)
|
|
Non-SDA
|
39.58
|
£265/ha
|
|
Non-SDA
|
11.72 (No VAT)
|
£340/ha
|
|
Non-SDA
|
5.3 (No VAT)
|
£340+/ha
|
|
SDA
|
25.97
|
£250/ha
|
|
SDA
|
11
|
£250/ha
|
|
Moorland
|
238.11
|
OFFERS
|
|
Moorland
|
250
|
OFFERS
|
|
Moorland
|
30
|
£50/ha
|
All entitlements listed remain subject to availability, contract & submission of RLE1 forms
If you wish to discuss any of the above further, please do not hesitate to contact us. Please see our website for a full list of current entitlements available and wanted, or by clicking here