This site uses web cookies · Read our Policy here
International: (+34) 952 198 657
Open navigation menu

Farmland to Defy Trend for Minimal Growth

First name: 


Last name: 


Tel. Number: 

IPIN Disclaimer.

  We never share your data with any third parties.

*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.

News by Category


United Kingdom  Farmland Investment  London  Savills  Andrew Shirley  Alex Lawson  Rural Land Sales 

Farmland to Defy Trend for Minimal Growth

By - Tuesday 22 January 2013

With many UK growth markets - including central London - experiencing a slowdown this year, it seems farmland is the safe bet for property investment in 2013. According to research from Savills, the upward trend for annual growth will continue this year, with farmland values predicted to rise by 40 per cent over the next five years. This is in contrast to prime central London property, which will only witness an average of 26 per cent growth over the same period.

Nevertheless, not all farmland will enjoy the same level of performance, and the gap between prime units and other classes is increasing. Alex Lawson, director of farms and estates, explained: "It is no longer a case of one size fits all and there are now clear divergences in value between the prime quality, well located blocks of arable land and the rest, which are likely to widen further. Across all property asset classes the economic uncertainty has pushed investors towards quality and farmland is no exception."

The sale of secondary and tertiary land will depend on reasonable pricing, despite the limited supply of prime farmland and high demand. The difficult agricultural environment will also put pressure on the sector, with the industry experiencing dramatically lower yield and the livestock sector incurring higher costs for housing animals. Consequently, average farming incomes are expected to decline in 2013, albeit marginally.

Nonetheless, farmland values are still increasing, with the Knight Frank Farmland Index Q4 2012 report showing that average values in England rose by almost three per cent in the final quarter of the year. This means that farmland can be expected to fetch an average of GBP 6,214 per acre. Andrew Shirley, head of Rural Property Research, stated: "English farmland's bull-run is not yet over, despite the impact of the horrific weather on farming profitability this year. The market proved resilient in 2012 and is predicted to gain further ground next year."

Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here



*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.

«« Back to IPIN Live

Follow IPIN Global

Latest Content

Recent Comments

Powered by Disqus