19 April 2015 | Online since 2003



12 August 2014|Finance,News,Property News

Demand for arable land driving up farmland prices


Strong demand for arable land is fuelling the increase in farmland prices across the UK, according to estate agents Halls.

Peter Willcock made the comment in response to the latest Rural Land Market Survey release by the Royal Institution of Chartered Surveyors (RICS), which showed that price of UK farmland rose by three per cent in the first half of 2014 to £9,594 an acre.

In addition to land prices now being 12 per cent higher than a year ago, farmland now costs more than four times what it did when RICS first began recording rural land market data in 1994, when land cost £2,028 per acre. Price growth in the last decade has been driven principally by farmers.

The breakdown shows that Wales saw the largest price increase- 19 per cent - over the last year, where the average price per acre now stands at £8,625 - higher than anywhere else in the UK - and nearly seven per cent greater than the national average.

“Agricultural land prices have been very strong and dynamic so far this year, particularly for arable land and farms,” said Mr Willcock. “I think that is where the real strength of the market has been.

“People still recognise agricultural land as a secure investment as well as offering a potential inheritance tax saving. A period of sustained low interest rates has also encouraged farmers to buy land to expand their operations.”

While interest from potential buyers has now seen substantial rises since the end of 2008, the RICS reports that the imbalance between supply and demand appears to show no sign of waning. In the face of growing concerns around housing shortages and burgeoning populations, investors increasingly are seeing land as an economic safe haven.

Over the last 12 months, 32 per cent more chartered surveyors reported rises, rather than falls, in demand and, looking ahead to the next 12 months, 44 per cent of respondents expect prices to rise, rather than fall.

The latest RIICS survey shows that growth in demand for farmland continues to outstrip supply and this is pushing up prices and supporting expectations for further increases over the course of the next year.

Demand remains very strong on the commercial side, particularly from farmers keen to expand production onto neighbouring plots.

Significantly, however, there has been a revival in residential or ‘lifestyle’ demand, which only began to start growing at the end of 2013, having been more or less flat since 2008. This coincides with the broader turnaround in the UK housing market.

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


7 April 2015
Experienced Grower
Our client is an award-winning restaurant that serves locally sourced food, much of which is grown on their organic farm....

14 April 2015
Residential Property PA - Maternity Fixed Term Contract
Private Client & Agriculture PA. Cambridge, Cambridgeshire, England (£23,000-£24,000 per year)....

16 April 2015
FARM - GENERAL LABOURER
You will join part of a small team as a farm - general labourer. The hours of work are 8am to 5pm Monday to Friday....

30 March 2015
Rounds People
Cotteswold Dairy Ltd was established in 1938 and is one of the UK’s leading independent, family-owned dairies....

31 March 2015
Sales Representative - Animal Health
We are currently representing a leading international provider of animal health products, and looking for a Sales Representat...





Related Companies


Top stories you may have missed
10 April 2015 | Agri Safety

Final phase of Scotland's war on BVD

The permanent eradication of Bovine Viral Diarrhoea [BVD] in Scottish cattl...


10 April 2015 | Dairy

Dairy farmers competitiveness will be te...

The abolition of milk quotas in Europe on 1st April has resulted in a numbe...


10 April 2015 | Cattle

EU milk sector growth 'dependent on expo...

The top 14 milk producing countries in Europe will increase their productio...


10 April 2015 | News

Could the rural vote hold the key to the...

Matt Ware is the NFU's head of government and parliamentary affairs, based ...


10 April 2015 | Arable

Action needed to boost farmgate prices i...

There is a 'desperate need' to improve farmgate returns given low incomes a...


9 April 2015 | Arable

OSR damage risks early Sclerotinia infec...

Rapid stem extension, after a slow start to spring, is likely to create spl...


9 April 2015 | Finance

Time for a farm rent revolution?

The time has come for landlords to expect to see reductions in farm rents, ...


8 April 2015 | Cattle

Cogent strengthens reputation for high c...

Cogent’s reputation as a source of the highest calibre sires has been enhan...


8 April 2015 | Arable

Exotic plant fungus a 'serious threat to...

The spread of exotic and aggressive strains of a plant fungus is presenting...


7 April 2015 | Animal Health

Share information to tackle food fraud, ...

The FSA’s new Food Crime Unit wants the industry to share information, some...