Strong agricultural land values expected in 2011

Peter Willcock, chairman of Halls
Peter Willcock, chairman of Halls

A leading firm of auctioneers, estate agents and valuers is optimistic that the strong demand for agricultural land will continue in 2011.

Peter Willcock, chairman of Halls, revealed that the company had sold 3,319 acres of land with an overall aggregate value in excess of nearly £25 million during a very busy and successful 2010.

Notable sales of larger farms were Charity Farm, Burlton (514 Acres), Park Hall Farm, Ellesmere (522 Acres), Wood Farm, Tenbury Wells (203 Acres), Chads Farm, Whitchurch (201 Acres), Patton House, Much Wenlock (267 Acres) and Gilfachrhiw, Rhayader (149 Acres).

Parcels of accommodation land continue to be in great demand, with better quality arable land realising between £6,000 – £11,000 per acre during 2010.

"We are confident and upbeat about the prospects for farmland values this year, after an exceptional 2010," said Mr Willcock. "A wide variety of purchasers view land as a secure investment and some are attracted by potential tax saving as they seek to achieve Agricultural Property Relief from Inheritance Tax in the future.

"However, the biggest driving force in the market place appears to be existing farmers, who are looking to expand and who have been encouraged by higher commodity prices, coupled with lower bank interest rates.

"The scarce supply of land available has fuelled price competition and it is encouraging to see farmers having such confidence in the future of their industry."