Property News

Thursday, March 01, 2007

Farmland has trebled in value

According to the Royal Institution of Chartered Surveyors (RICS) rural land market survey, average UK farmland has trebled in price, the highest its ever been in the history of the RICS.

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 the year. Competition between City fuelled "life-style" buyers and farmers, keen to expand production and exploit higher commodity prices, has resulted in demand rising at its fastest rate so far.

In the North East England, prices grew by around 15% in the second half of 2006, compared to the same period in 2005. RICS spokesman David Coulson, a rural chartered surveyor working in the region, said: "North-East farmland and farms have been slow to come to the market and demand still far exceeds supply. So the few farms and parcels of land to be sold have seen a steep rise in price." He said most land on the North-East market is priced at levels of £3,000 per acre (£7,413 per hectare) with small lots frequently achieving prices of £8,000 to £10,000 per acre.

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