Gold Fever
Demand for Farmland - Stuart Hext MRICS, FAAV, Residential and Rural Property
Buying farmland is as good as gold. Investing in agricultural land is proving a valuable defence strategy for many looking to protect their assets.
New research shows that UK farm owners out-performed the FTSE 100, Prime Country House Prices and Prime London Property. Agricultural land prices have more than doubled in value since 1995 and based on market research are expected to almost double again between 2010 and 2012 .
Availability of farmland remains limited and global cereal stocks remain historically depressed, which will continue to push prices in the future.
In 2009 agricultural land in the UK has grown on average by 11% in value. Next year the price growth is expected to ease to 9% whilst in 2012 it is predicted to hit a growth of 16.2%.
The farmland market has now regained much of the ground it lost after the credit crunch when sales virtually ground to a halt. For the past 15 years farmland has performed significantly better than residential property and the FTSE 100 index.
The popularity of buying agricultural land has also been bolstered in the UK by the fact that local farmers receive subsidies from the European Union which are paid in Euros. As a result, since the sharp depreciation of Sterling, landowners and farmers have enjoyed a substantial windfall.
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