Farmland up three-fold

Date: 23/02/2007 14:26

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Farmers were the major winners in the second half of 2006 as their properties' growth trebled, principally due to a shortage in supply.

Prices rose by 18 per cent in the second sixth months of last year compared to just six per cent in the first half as competition between City buyers and farmers, looking to exploit higher commodity prices, hotted up, according to the Royal Institution of Chartered Surveyors (Rics).

The weighted average price of farmland jumped to £8,164 per hectare compared to £7,219 in the first half while the level of sales reached their highest level for four years.

Sue Steer, Rics spokesperson, said: "High commodity prices have resulted in a huge increase in demand as farmers compete with non- farming money for land.

"However, availability of land has slipped back as strong commodity prices has led to a sense of renewed optimism in agriculture and reduced the financial pressure on farmers to sell, despite rising interest rates.

"City slickers are still attempting to take advantage of low farmland prices with large bonuses encouraging ever popular City lifestyle trends."


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