UK farmland values dip in first quarter of 2017
Farmland values across the UK recorded a slight decrease in the first quarter of 2017 according to Carter Jonas, the national property consultancy. Average arable land values remained below £10,000 per acre in most areas, including the East, with the exception of Central and Southern England, which out-performed the rest of the country.
Jack Cook, rural associate, Carter Jonas – East, said: “Sales activity has been relatively quiet throughout the East, reflecting the seasonal nature of the sector, as well as the impact of economic and political uncertainties on the market.
“Significantly more property has come to the market in the last four weeks, reflecting the strong pipeline of stock expected to come through over the summer. Hotspots within the region are evident though, and the land market is exceptionally localised in the same regions.
“Rollover relief funds are playing an increasingly significant role in the East, with landowners set to benefit from the recent upsurge of housing development.”
The rural sector as a whole still holds strong appeal for international investors, with European buyers in particular looking to capitalise on the weaker Sterling.
Recording the highest average rents for Farm Business Tenancies, at £170 per acre, holdings in the East of England are of most value, particularly when a commercial element is incorporated, with bare land generating limited interest.
Mark Russell, rural partner, Carter Jonas – East, said: “The fact that FBTs in the East achieved the highest values, indicates the resilience of farming businesses and their continued ambitions to expand.”
• Image courtesy – Carter Jonas