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Farmland Values End Year 13% Higher

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United Kingdom  GBP  Farmland Investment  Knight Frank  Agricultural Land  Tom Raynham  Farms 

Farmland Values End Year 13% Higher

By - Wednesday 02 February 2011

Despite falling flat in the final quarter of 2010, English farmland values ended the year 13 per cent higher than 2009, new figures released by Knight Frank have revealed.

According to the firm's Farmland Index, the average price for farmland in England now stands at GBP 5,803 per acre - only just below its peak value.

Tom Raynham, head of farm sales at Knight Frank, said: "Farmland prices are being driven by lack of supply and lack of quality. When good quality farms come on to the market they sell well, whether that be lifestyle quality or quality of land.

"There are some good properties coming to the market in spring 2011 and due to the lack of supply these will hopefully provide some good activity at the beginning of the year to drive the market forward."

Knight Frank added that it was encouraging to see farmland hold its value well over the year, despite much uncertainty before, during and after the General Election.

Meanwhile, land values are forecast to climb by around seven per cent over the course of this year as confidence returns to the market.

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