A recently released report by UK property consultants Knight Frank indicates that prime farmland is at record prices, going for as much as £8,000 an acre. The Farmland Market Index shows an average price of £6,000 across the country, with many locations selling much higher.
According to Andrew Shirley, head of rural land research at Knight Frank, “Demand for all types of land in England is still extremely strong. The limited amount available to buy means the difference in price between top-quality and average soil is relatively small.”
“Despite the credit crunch that is affecting other property sectors, agricultural land is still in demand from a wide variety of buyers. There are a number of funds in the market prepared to pay premium prices for the few parcels of land they are able to buy,” he added.
The company’s survey is a county by country analysis of prices across the UK. The most expensive land is located in Cheshire and Berkshire, where the per-acre price is £8,000. “Berkshire attracts wealthy lifestyle buyers looking for attractive amenity land, while Cheshire boasts some of the best growing conditions for grass and is prime dairy-farming country,” said Mr Shirley, who predicts that prices will remain strong.
“My feeling is that prices will continue rising but we have already seen the strongest period of growth. However, farmland certainly isn’t a bubble waiting to burst and in these uncertain financial times is still likely to appeal to investors looking for a safe home for their funds and farmers wanting to expand their acreages.”
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