City Slickers running scared but arable land prices reach record high
Wednesday, July 30, 2008
UK farmland prices surged at the fastest pace in the RICS’ rural market survey’s history during the first half of 2008 but lifestyle buyers retreated as the credit crunch deepened.
The farmland market jumped forward, with the average price rising by 24 percent (the fastest pace in the survey’s history) from £10,439 to £12,965 in the first half of 2008 and by 47 percent year on year. Arable land rose by 32 percent to £14,453 from £10,439 and pasture land rose by 16 percent to £11477 from £9929. Sharp increases in commodity prices continue to encourage farm investors to expand production or enter the market as purchasers.
The net balance of Chartered Surveyors reporting an increase in demand for residential farmland fell for the first time since 2005 from 50 percent to -3 percent while demand for non-residential farmland remained buoyant at 65 percent. The net balance of surveyors expecting price rises in residential farmland fell from 30 percent to -25 percent. There is an expectation that lifestyle buyers will continue to retreat while the challenging financial climate persists.
Read more at the RCIS newsroom
Labels: credit crunch, House market, RCIS, rural property, uk farmland prices, uk land prices
