Alternative Outlook

Unlike many other assets farm land in the UK has continued rising in value throughout this year, a trend analysts expect to continue into 2013 and beyond.

One of the key factors helping to support values is the dwindling supply of farmland available to buy, according to the latest research from Savills.

‘There continues to be a real thirst for good quality blocks of arable land from a wide range of buyers and the biggest issue is the lack of supply. For other land types buyers are increasingly discerning and we are often findin…

Chinese buyers, whose interest in foreign farmland has raised hackles from Argentina to Australia, have turned their attention to the UK – although for investment, rather than food security, reasons.

“We are seeing interest from a wide variety of investors, as well as farmers. It is interesting to note that over the past 60 years farmland has often performed well in times of economic crisis. During the reign of Queen Elizabeth prices have risen by almost 11,000%.”

James Prewett, Head of Regional Farm Sales in Central and Western Englan…

Carter Jonas’s latest performance review of the Model Estate has reinforced its value as, “a high performing and stable asset class during a difficult economic backdrop,” according to the property consultancy’s head of research, Catherine Penman.

The report, prepared by Penman, assesses the value of returns on investment for a notional rural estate of 3,208 acres, and compares the performance of other recognised asset classes – including gold, wine, antiques, classic cars, equities, and commercial and residential property.

With a…

Question for you: Which distinctly British asset class has offered the most attractive returns over the past decade? Central London property? Not even close, even if it has done rather well. UK farmland is the answer, having more than tripled in value over a decade which will otherwise not be remembered for its outsized returns.

The rise in farmland values is not only a British phenomenon. All over Northern Europe and North America farmland values have responded well to higher commodity prices. Last year alone, farmland prices in the…

Savill’s Farms and Estates experts are determined that the growth of farmland prices in 2012 will make UK farmland the most attractive asset for investors.

They believe that the price growth will amount to 36% in the next 5 years, of which 5% will account for 2012 alone.

The forecast seems to be very realistic given the fact that UK farmland prices have increased by as much as 138% in the past 5 years.

Commenting on the future of the farmland in UK, Alex Lawson of Savill’s Farms and Estates, said: “against a backdrop of economic uncer…

If you can’t buy gold to protect your wealth in the face of global economic uncertainty, is farmland the next best thing?

London and country agents Savills says the value of grade three arable land rose 3.3 per cent during the second quarter, following a 2.7 per cent rise in the first three months of this year.

The average value is now £5,900 an acre, up by almost 200 per cent on a decade ago.

Ian Bailey, head of Savills rural research, says: “This average half year growth of six per cent accounts for nearly two-thirds of the grow…