Land News

Farmland prices hit record levels

Lawson Fairbank, 15th April 2007

English farmland has increased 14 per cent over the past year to an average of £3,353 in the first quarter of this year, latest figures from Strutt and Parker’s Farmland Database have revealed.

The firm expects the farmland market to outstrip the residential market in 2007. Compared to the north-south divide of the residential market, farmland prices vary by just £150 or so per acre above and below the £3,353 average.

A limited supply of farmland has helped push prices up with only 8,400 acres of new land coming to market in the past year – the lowest amount since 2001.

“There is a massive shortage but huge demand,” says Mark McAndrew, head of estates and farm agency at Strutt and Parker.

“In each of our five selling regions, no more than 3,000 acres came to market during the first quarter of 2007. That could represent only two or three sales. It means that purchasers need to be either very patient or very flexible about where they want to buy.

“Today’s buoyant market is linked more to the strength of the UK economy than to the state of farming or quality of land. There has never been so much money in the farmland market, from farmers, but also from investors and lifestyle buyers.

“In addition to UK wealth, we have seen an influx of European investors, particularly from Denmark and Ireland, where prices are substantially higher than in England.

“It is a great time to buy, because with such limited supplies we expect the farmland market to be set fair.’’

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