UK farmland prices treble
mark at tlio.org.uk
Fri Feb 23 15:36:05 GMT 2007
UK farm prices rose 18% in the latter half of 2006 as demand is far
exceeding supply of available land.
Royal Institute of Chartered Surveyors 2006 Rural Market Survey:
Farmland prices and market activity show strong rise in the latter
half of 2006
The rate of growth of farmland prices has trebled, reaching the
highest levels in the survey's history, reports the RICS rural land
The farmland market strengthened rapidly in the second half of the
year, with prices rising by 18% compared to 6% in the first half of
Competition between City fuelled 'lifestyle' buyers and farmers,
keen to expand production and exploit higher commodity prices, has
resulted in demand rising at the fastest pace in the survey's
Demand is far exceeding supply of available land.
However, rising demand is not only being fuelled by domestic
Chartered Surveyors report that foreign farmers particularly those
from Denmark and Ireland are seeking to purchase land due to the
high price levels in their homeland markets.
The weighted average price of farm land rose to £8 164 per hectare,
up from £7 219 in H1 2006.
The level of sales in 2006 finished at the highest level recorded in
four years, with activity 50% higher than in 2004, and surveyor's
confidence, for both commercial and residential farmland prices rose
to the record levels.
RICS spokesperson Sue Steer commented:
"High commodity prices have resulted in a huge increase in demand as
farmers compete with non-farming money for land.
However, availability of land has slipped back as strong commodity
prices has led to a sense of renewed optimism in agriculture and
reduced the financial pressure on farmers to sell, despite rising
"City slickers are still attempting to take advantage of low
farmland prices with large bonuses encouraging ever-popular City
"The UK continues to attract investment from Denmark and Ireland as
foreign buyers enjoy the luxury of low prices compared to home
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