07 July 2015 | Online since 2003

Demand for arable land driving up farmland prices



12 August 2014 03:20:42|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


Start Date: 2 July 2015
Job Stockman / Tractor Driver >>>Tenbury Wells 

We are looking for a stockman/tractor driver to join the team on our 850 head beef unit in Herefordshire. We aim to employ an...


Start Date: 18 June 2015
Job for General Farm Worker>>Pitlochry

Working at Balachallan Home Farm, Near Tulliemet, the successful applicant will be proficient in all aspects of suckler cow h...


Start Date: 24 June 2015
Job for -Tractor Driver /General Farm Worker - Norfolk

Operator required on highly mechanised 1600Ha arable farm and transport business for tractor driving,general maintenance and ...


Start Date: 6 July 2015
Experienced tractor driver / machinery operator required. Immediate start! Job in Hampshire / West Sussex

Family 3,000 acre contacting business require an additional member of staff. With  a team of 12, the company c...


Start Date: 20 June 2015
Demonstration combine driver, SAME Deutz-Fahr. Harvest job travelling round the UK

SAME Deutz-Fahr has an exciting opportunity for an experienced combine driver to join its UK team to demonstrate one of its c...





Top stories you may have missed
5 June 2015 | Cattle

A strong pound and increased red meat imports coupled with a plentiful dome...


5 June 2015 | Arable

Depression is affecting Wales' farming industry and there is a need to use ...


5 June 2015 | Arable

With just one week to go before the final judging and announcement of the w...


5 June 2015 | Finance

A rural law expert has highlighted the importance of good succession planni...


5 June 2015 | Farmshops

A south Yorkshire dairy farming family is pulling out all the stops to prom...


4 June 2015 | Finance

Predicting what is going to happen to wheat prices is a challenge, but in s...


4 June 2015 | Agri Safety

A Lancashire based livestock theft prevention scheme is aiming to go nation...


4 June 2015 | News

A female farmer has been recognised by the farming and conservation industr...


4 June 2015 | Finance

The new Conservative government appears to be preparing to implement cuts f...


4 June 2015 | Arable

The Rural Payments Agency (RPA) will have mobile support units at the follo...