The next big investment - Farm Land
Do you know what the average price of an acre of farmland is? The Royal Institution of Charter Surveyors and Frank Knight Estate agents have conducted some research and found that the average price for an acre of farm land is £7,440 across the UK and has been this way for the past 6 months of 2013. This is three times the price an acre cost during the same period in 2004 when the average price of an acre of farmland was £2,400.
The reason for the price rise is because commercial farmers want to expand their businesses and investors also want to buy land to rent to farmers which has increased the demand therefore, increased the price. The reason why commercial farmers want to buy more land is because of the ever increasing demand for food which is being driven by growing populations and the reason why investors are purchasing land is because it is seem as a safe haven’ investment when even rivals gold.
Knight Frank analysed some data and concluded that gold has been the only asset to outperform farmland but the price of gold is starting to fall. Farmland is most expensive in the North West of England where the supply is tight and an acre will cost an average of £8,813 according to a RICS survey. The cheapest farmland can be found in Scotland at £4,438, half the price of an acre in the North West.
According to a Cheshire based auctioneers Wright Manley, a 13.5 acre plot of farmland in Antrobus near Northwich recently sold for over £12,000 per acre. Forecasting the future and looking at the wider perspective, farmland prices are set to rise around the world not only because of the demand for food but the increasing need for land to be used for renewable energy sources such as biofuels.
Would you consider investing in farmland?
Amanda McGovern, Pali Ltd
- Plans To Build Homes On Green Belt At Popular Prenton Golf Course Causes Fury
- Marine Litter, What Is It And What It Does To The Environment
- Stamp Duty Has Fallen Within The Last Year By One Billion Pounds
- Has The Property Market In Your Area Been Affected By Brexit?
- Plans Move Forward As Liverpool City Centre Looks To Home New High-Speed Rail Station
Subscribe to receive a weekly update of our blog posts