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UK Farmland Prices Soar

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United Kingdom  Scotland  Royal Institution of Chartered Surveyors 

By - Tuesday 01 March 2011

A lack of supply of good quality land in the UK has caused land values in the country to soar, with farmland prices reaching an all-time high in the last half of 2010.

This is according to the latest report from the Royal Institution of Chartered Surveyors (Rics), which noted that on average there was an increase of six per cent in land values. Farmland was most expensive in the north-west at £17,300 per hectare, while the cheapest land was in Scotland, priced at £9,100, Rics explained.

Rising prices were aided by the growing demand for farmland among investors. A total of 55 per cent more surveyors reported that demand rose rather than fell for commercial farmland, compared to only six per cent for residential.

"The last six months of 2010 saw further strong gains in farmland prices as commodity prices continued to move upwards. Commercial farmers are increasingly keen to purchase prime farmland to expand their businesses and this strong demand is keeping the market very active," said Sue Steer, Rics spokesperson.

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