Tight supply of farmland drives prices

Farmland values are continuing to rise – but supply remains tight.

(Source: www.farmersguardian.com, 21 Sep 2009)

The average, across-the-board value of land rose 3% in the third quarter of this year say Savills with the strongest growth in the South East.

By land type, arable recorded the highest growth in value at 5%. This, says the firm, reflects the market this year being more focused towards demand for commercial farms than the amenity/lifestyle demand.

In the South East average values increased 6.4%, whereas in Scotland, the value of farmland remained unchanged in the third quarter - with the exception of prime arable values which strengthened 4.4%.

Less land is marketed however. Some 79,000 acres were publicly marketed across England in the first eight months of 2009 compared with 94,000 acres in same period 2008.

In Scotland it was 20,000 acres compared with 23,500 acres in same period 2008.

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