Demand boosts farmland values

Farmland prices have risen by almost 10pc in the second quarter, according to the latest reported figures from the Royal Institution of Chartered Surveyors.

Farmland prices have risen by almost 10pc in the second quarter, according to the latest reported figures from the Royal Institution of Chartered Surveyors.

The rise in residential farmland continues to reflect this year's housing market boom, with strong city bonuses sustaining amenity and lifestyle buyers.

Christopher Miles, who is a Norwich-based spokesman for the RICS, said: "There is a strong demand for quality commercial farms. There is plenty of depth in the market reflecting a continued short-age of supply and an increase in both interest and confid-ence in land investment."

The latest survey revealed that a total of 14,816 acres was sold in 91 transactions - an average of £3,734 an acre - in the first quarter to March. Since then, the RICS has reported keener interest in land as demand has greatly exceeded supply.


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In the quarter to June, the average farmland price rose by more than £150 to £2,990 an acre - based on reports by surveyors in England and Wales. In East Anglia, land prices rose by just 2pc.

Barry Hawkins, of Downham Market, reported: "There is very little land coming on the market" while Ed Baskerville, of TW Gaze, of Diss, said: "Where smaller blocks are made available prices rise as demand increases and earnings capacity becomes irrelevant."

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