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22 | aspects of land | spring / summer 2017
LAND MARKETS
A lthough in 2016 British land values fell an
average of 3.6 per cent, according to Savills
Farmland Value Survey, over the past 10 years
they have soared by 160 per cent. And according to
Savills latest farmland forecasts they are projected to
increase another 5.5 per cent by 2021.
This might not happen straight away as the next
two years are likely to see a stall in prices amid low
commodity prices and political uncertainty, but from
2019 onwards Ian Bailey of Savills Research expects
them to improve.
“The best commercial farmland in England will always
be popular and in demand,” he says. “Poorer land will
continue to be difficult to sell, unless there is an interested
neighbour or it is attractively priced.”
“Prices range from £6,000 an acre to £13,000 an acre,”
says Alex Lawson of Savills Farms and Estates. “It’s a
very diverse market, attracting investors looking for good
arable land and diversified estates.”
As for the top end of the country house market, which
has had some tough years, there are signs of improvement.
“Mixed rural or sporting estates with diversification will
see strong demand,” says Alex. “And there will be growing
interest in strategically located property from corporate
investors and private individuals. Currency differences
since Brexit are real drivers for overseas purchasers.”
HOME ADVANTAGE
British farmland has historically been a safe investment and amid
global uncertainties is likely to remain a sound purchase for the future
“FOR SOME,
POLITICS IS A
CONCERN, BUT
FOR OTHERS IT IS
AN OPPORTUNITY
TO EMBRACE
AND FIND
POSITIVITY OUT
OF DRAMATIC
CHANGE”