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UK Farmland Prices Continue to Grow

According to a report recently published by Strutt & Parker - UK property consultants - the demand for farmland in Great Britain has increased significantly.

(Source:, 24 May 2010)

The growth of investors' interest, in its turn, resulted in a rise in farmland prices. Since the beginning of 2010, UK land values have increased by 18%.

Commenting on the findings, Mr. Evans of Strutt & Parker said that the prices have seen the most growth in the past 2 months.

Strutt & Parker's report is supported by the forecast made by Savills, which states that farmland prices will increase by another 5-6% [per year] until 2015. In the opinion of Mr. Miles of Savills the prices are growing constantly as the demand from buyers increases.

This year, traditional buyers of land in the UK - farmers - have been joined by British and foreign investors. Even though the average yield from UK land remains at as low as 2%, this type of asset is considered a safe investment, which might also bring capital gains and tax benefits.

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