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Value of UK farmland could double in five years

Graham Ruddick Telegraph
The value of farmland will increase from a peak of £4,970 per acre to £10,000 by 2015, Knight Frank predicts Photo: Getty Images

The value of farmland will increase from a peak of £4,970 per acre to £10,000 by 2015, Knight Frank predicts Photo: Getty Images


The value of farmland in the UK could double in the next five years, new research claims. The surge in pricing is set to be driven by a shortage of quality farmland as the global population expands and demand for food increases.



These factors have already helped farmland avoid the worst effects of the financial crisis. Despite the worst financial crisis since the 1930s, before the end of the year land values are in line to recoup the 5.5pc falls seen after the collapse of Lehman Brothers.


Farmers have been seeking to expand their land holdings as their incomes grow, while lifestyle buyers and investors are increasingly attracted to the solid returns of rural Britain as credit becomes more available.


According to Knight Frank's annual forecasts, this is in sharp contrast to UK house prices, which will not recover their 2007 peaks until 2014.


The value of farmland will increase from a peak of £4,970 per acre to £10,000 by 2015, the property agent says. This includes an 11pc growth in 2009, despite the recession, then a 9pc rise in 2010, 15.8pc in 2011, and 16.2pc in 2012.


Andrew Shirley, the head of rural property research at Knight Frank, said: "The farmland market has surprised most commentators by recovering from last year's second-half malaise far quicker than expected.


"It now appears that the fall in values was a temporary blip during a period of general economic turmoil, rather than a reflection of a fundamental weakening of the farmland market."


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