UK farmland 'flavour of the month' for investors
Wednesday, 2 February 2011 3:07 PM
Investors are increasingly interested in UK farmland, helping to make it "flavour of the month", according to one expert.
New figures from Knight Frank suggest that English farmland values increased by 13 per cent in 2010, with stronger gains than those seen by other asset classes.
Mark McAndrew, head of farm and estate sales at Strutt & Parker, said that the market had "unquestionably" been attracting more investors, drawn in by the potential for solid returns and a "safe investment" opportunity.
"Primary interest is still from farmers, but there is a wide range of other people who are looking at land as an investment," he noted.
McAndrew added that UK farmland was also appealing to overseas buyers, due to Britain's "relatively benign and stable climate".
According to Knight Frank's data, the average price of farmland in the UK is now £5,803 per acre – marginally down from its peak.
Tom Raynham, head of farm sales at the firm, 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," he added.
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Tags:
- farmland ,
- rural property ,
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