03 January, 2012
The capital value of UK farm land will grow quicker
than many other property markets including residential housing and
London office spaces, according to Savills rural research.
In a Property Wire report, the global property group
says that the average value of farm land will rise by 36 per cent
over the next five years, with many expecting a five per cent
growth in 2012 alone.
Its predictions follow a strong growth in average farm land
values over the last five years - up 138 per cent. This is
significantly more than the average values seen in residential and
commercial property assets.
However, it is only the best quality farm land that is likely to
increase its value dramatically, says Alex Lawson, director of
Savills Farms and Estates.
Mr Lawson explained that Savills' expectations of a 9.7 per cent
increase in average farm land value for 2011 were pulled down by
the quality of land seen in some regions. Therefore the actual rise
was muted, at just 5.7 per cent.
"This average however, masks the strong demand for the best
arable land which recorded growth of 8.9 per cent," he said,
according to IBTimes.com.
Going forward into 2012, Mr Lawson expects land values to at
least maintain their value, if not rise.
"Against a backdrop of economic uncertainty the farmland market
is likely to become more diverse in terms of performance, we expect
the continuing tightened supply and low interest rates to maintain
values for all but the worst quality land," he added.
Source: Vertical Leap